BAKU, Azerbaijan, August 5. The current macroeconomic situation has had little impact on sales and contracting of Kazakhstan’s Kazatomptom National Atomic Company, the company told Trend.
The company noted that nuclear reactor operators are generally not focused on the near-term when it comes to fuel procurement, other than using today’s market situation to assess potential impacts on future security of supply.
“Those utilities that are active in the market today are looking for uranium in the 2026-2035 period, so they are having to look past the “noise” of the current macro situation. Unlike other forms of generation where if the price of the commodity (fuel) doubles, the cost of electricity production basically doubles, uranium is only a small part of the overall operating cost (about 15%), so if uranium were to double, there is only a modest impact on opex – the more important consideration is ensuring the fuel and the processing services are available when needed,” the company said.
The company added that the fundamental outlook for nuclear power and uranium demand continues to improve. The focus of the global energy sector remains on net-zero, clean energy, diversification of sources, fuel cost and energy security, and nuclear, which provides benefits in each of those areas, continues to gain acceptance as a key part of the energy strategy of various countries around the world.
“The current macroeconomic situation has had little impact on our sales and contracting. However, though we remain the lowest cost producer in the world, like everyone else we are seeing pressure building on our production costs due to inflation and supply chain challenges. We have also seen a change in the risk profile related to our history and partnerships with Russian nuclear entities and our main transportation route through St. Petersburg. Although there has been no direct impact due to sanctions or restrictions to date, the risk is elevated and being monitored,” the company concluded.