BAKU, Azerbaijan, October 26. Kazatomprom National Atomic Company is considering the Trans-Caspian International Transport Route (TITR or Middle Corridor) as an alternative route for delivering products to customers, Trend reports citing the Company's statement.
"Kazatomprom continues to monitor the growing list of sanctions on Russia and the potential impact they could have on the transportation of products through Russian territory. To date, there are no restrictions on the Company's activities related to the supply of its products to customers worldwide. Kazatomprom shipped its third-quarter volumes via St. Petersburg without any disruptions or logistical/insurance-related issues. However, the Trans-Caspian International Transport Route (TITR), which the Company has successfully used as an alternative route since 2018, helps to mitigate the risk of the primary route being unavailable, for any reason," said the statement.
The company noted that in order to transport Class 7 nuclear material on the TITR, permits must be issued by the relevant authorities in the jurisdictions through which the material passes.
"Kazatomprom has an approved quota allowing the Company to ship a total of up to 3,500 tonns from its Kazakh mines via the TITR. The Company is working to increase the quota limit and is assisting JV partners if they would prefer not to receive their share of material via the established route that passes through the Port of St. Petersburg," the statement informed.
The TITR requires the use of chartered sea vessels on the Black Sea rather than commercial shipping companies. In order to maximize the cost efficiency of using a chartered vessel, materials must be consolidated at the Georgian Port of Poti.
"Kazatomprom currently has a shipment to western markets in-progress on the TITR; the KAP-owned portion of the shipment has reached the Port of Poti without issue and it is now waiting for additional material to arrive, prior to being loaded onto a vessel for furtherance to its final destination. Kazatomprom’s past and current shipments of KAP-owned material are permitted based on commitments directly between KAP and the end-user taking title of the material at the destination," said the statement.
"However, when shipping Kazakh-origin uranium from JV operations to JV partners using the TITR, transit country authorities ask for certain shipment details and associated documents, provided by the Kazakh JV and potentially, from its non-KAP JV partner. As it is the first time the TITR-related jurisdictions are reviewing such arrangements, there is an elevated risk of transportation delays. The shipment that is currently en route to join Kazatomprom’s material waiting at the Port of Poti is sourced from JV Inkai and it has been delayed. There is a risk that the Company’s 2022 guidance for consolidated sales and consolidated revenue could be impacted if that portion of the shipment and/or if future shipments on the TITR in 2022, are delayed," the statement informed.
Whether the statement said that uranium is shipped by Kazatomprom or its partners sharing Kazakh assets, the product remains of Kazakh origin through to its arrival at a western conversion facility.