World's largest uranium producer increases extraction volume in Kazakhstan

Oil&Gas Materials 3 February 2020 12:47 (UTC +04:00)
World's largest uranium producer increases extraction volume in Kazakhstan

BAKU, Azerbaijan, Feb. 3

By Nargiz Sadikhova - Trend:

According to the preliminary data, uranium production by Kazakhstan’s Kazatomprom National Atomic Company amounted to 22,808 tons of product during 2019, which is 5 percent more than during the same period of last year, Trend reports with reference to the report of the company.

In turn, production volume during 4Q2019 was 5,926 tons, which also is 3 percent more that during the same period of last year.

Furthermore, sales volume of the company equaled 16,044 tons of uranium in 2019 compared to 16,647 tons compared to the same period of last year, which indicates a decrease of 4 percent. Sales volume during 4Q2019 was 8,042 tons, which also is 67 percent more than during 4Q2018 (4,815 tons).

Average realized price was $26.91 per pound during 2019 and $26.08 per pound during 4Q2019.

Furthermore, according to the previously announced forecast of Kazatomprom, the company is planning on producing 22,750-22,800 tons of uranium this year. Forecast sales volume is 15,000-16,000 tons, and expected consolidated revenue is 485-505 billion tenge (approximately $1.24-$1.29 billion).

Earlier in 2019, Kazatomprom announced its intention to continue to flex down production by 20 percent through 2021, compared to the planned levels under Subsoil Use Contracts.

Full implementation of this decision would remove up to 5,600 tons of uranium from anticipated global primary supply in 2021. Kazatomprom’s 2021 production would remain below 23,000 tons.

Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23 percent of global primary uranium production in 2018.

The company benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 13 mining assets. All of the company’s mining operations are located in Kazakhstan.


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