Uranus, Photo: Robert Harding Productions
Russian state corporation Rosatom is selling its stakes in several Kazakh uranium deposits jointly developed with Kazatomprom to Chinese companies. This was announced on Tuesday by the world’s largest uranium mining company Kazatomprom, Reuters reports.
“Kazatomprom, which is listed in London and Kazakhstan, is the world’s largest uranium producer, accounting for 20% of global production in 2023. The company has significant reserves of raw materials, but does not have its own uranium processing facilities.
Previously, Rosatom had stakes in six of Kazatomprom’s fourteen fields, receiving part of the production under agreements that made it difficult for the Kazakh company to sell uranium to Western markets.
According to an official report, Uranium One Group, a subsidiary of Rosatom, sold a 49.979% stake in the Zarechnoye field to SNURDC Astana Mining Company Limited, the ultimate beneficiary of which is the Chinese state-owned State Nuclear Uranium Resources Development Company. Uranium One Group also plans to transfer 30% in the Khorasan-U joint venture to China Uranium Development Company Limited, a company affiliated with China General Nuclear Power Corporation (CGN).
Kazatomprom’s shares in these fields will remain unchanged, while Rosatom has not yet commented.
China is a key buyer of Kazakh uranium
China is the largest importer of uranium from Kazakhstan. After the sale of its stake in Khorasan-U, Rosatom will retain stakes in other Kazatomprom fields with total reserves of around 255,000 tonnes. This includes the Budennovskoye field, one of the world’s largest, which Rosatom acquired in a deal signed in 2023.
The Zarechnoye deposits had reserves of about 3,500 tonnes of uranium as of early 2024, while Khorasan-U operates at the Kharsan-1 area of the North Kharsan deposit in the Kyzylorda region, where reserves amount to 33,000 tonnes with a projected completion of development in 2038.
Risks of sanctions
In 2023, Uranium One produced 4,831 tonnes of uranium in Kazakhstan. Russia ranks sixth in the world in uranium production and controls about 44% of the world’s uranium enrichment capacity. Taking into account production in Kazakhstan, Rosatom was ranked third in terms of production in 2023.
Kazatomprom CEO Meirzhan Yusupov previously said that sanctions imposed on Russia over the war in Ukraine had made it more difficult for the company to sell uranium to Western markets.
“Kazatomprom sells 29% of its products in Europe. In its annual report, the company highlighted the risks associated with sanctions, which, although not directly affecting Rosatom, have affected some of its divisions and senior officials in the Russian nuclear industry.
“Rosatom has also expressed interest in building the first nuclear power plant in Kazakhstan, which is part of the country’s plan to switch from coal to cleaner energy.
