Kazatomprom extends exploration at Inkai uranium deposit by four years

ASTANA. Aug 6 (Interfax) - The Kazakh Energy Ministry and the national atomic company Kazatomprom have agreed to extend the exploration period for Area 2 of the Inkai uranium deposit by four years, the company said on Tuesday.

The extension is part of a uranium resource replenishment program. "The amendment to the uranium exploration contract for Area 2 of the Inkai deposit extends the exploration period by four years," the company said.

It said uranium reserves in the C2 category for this area exceed 42,000 tonnes. After the completion of exploration work, some of these reserves are expected to be upgraded to the C1 category.

Geological exploration will be conducted by Kazatomprom's subsidiary, Volkovgeologia JSC.

Earlier, Kazatomprom's Managing Director of Production, Aliya Akzholova, said that exploration is expected to conclude in 2024, at which time final reserve estimates will be made.

The Inkai deposit was discovered in 1976. Uranium mining using in-situ recovery methods at Area 1 is carried out by the joint venture Inkai LLP, in which Cameco (Canada) holds a 40% stake and Kazatomprom holds a 60% stake. The total mineral resources of Area 1 amount to 148,000 tonnes of uranium.

Area 4 is developed by another Kazatomprom joint venture, South Mining and Chemical Company LLP. Areas 2 and 3 are currently in the exploration stage, according to Kazatomprom's annual report.

Kazatomprom is involved in uranium mining, rare metal processing, and the production and sale of beryllium and tantalum products. The company exports 100% of its products. In 2023, Kazatomprom reduced its uranium production by 1% to 21,112 tonnes compared to 2022.

Following the recent acquisition of company shares by the Finance Ministry using funds from the National Fund, the company's shareholder structure is as follows: the Samruk-Kazyna fund holds nearly 63% of the shares, the Finance Ministry holds 12% and free float is 25%.