BAKU, Azerbaijan, October 26. Kazakhstan has decided to raise its uranium production levels under subsoil use contracts to 100 percent (30,500-31,500 tons of uranium) in 2025, due to favorable market conditions and attractive contracts, Kazatomprom JSC (Kazakhstan's national nuclear company) told Trend.
The company said the decision was made based on successful medium- and long-term contracts with both new and existing clients against the backdrop of improving uranium market conditions.
On September 29, 2023, Kazatomprom presented its strategy for uranium production for 2025. The Board of Directors of Kazatomprom approved the company’s strategy to increase uranium production volumes in 2025 to 100 percent of the level planned under subsoil use contracts.
"Additional production volumes in 2025 will be used to fulfill the Company's contractual obligations for deliveries in 2025 and beyond. It is expected that the implementation of this decision will lead to an increase in the estimated level of global primary uranium production to 6,000 tons in 2025 compared to the company's planned production volumes for 2024. The company expects production volumes in 2024 to be in the order of 25,000 – 25,500 tons of uranium," the source said.
Kazatomprom said its production volume in 2025 is therefore expected to be 30,500-31,500 tons of uranium (on a 100 percent basis).
"Despite the fact that the annual growth in production volumes from 2024 through 2025 is significant, the bulk of it is reserved within the framework of the company’s medium and long-term contracts. Geopolitical uncertainty and global supply chain challenges, along with high inflation pressures, continue to persist. In this regard, any potential increase in production in excess of this volume can be fraught with significant difficulties," the source noted.
The source said the company is beginning to work with joint venture partners and uranium mining subsidiaries to prepare budgets and production plans for 2024, taking into account expected production growth in 2025.
"The company will continue to monitor market developments and remain flexible to respond to rapidly changing market conditions," the source added.