Kazatomprom increases uranium production 9.3% in 9M, sales fall 5%
ASTANA. Nov 1 (Interfax) - The Kazakh nuclear company Kazatomprom increased uranium production 9.3% year-on-year in January-September 2024 to 16,751 tonnes, the company said.
The volume of production in proportion to the share of ownership in uranium mining enterprises in the reporting period increased by 10% to 8,939 tonnes.
"Production on both a 100% basis and proportional to the share of ownership was higher in Q3 and in 9M 2024 compared to the same period of 2023. This is due to an insignificant increase in the plans for 2024 and Q3 2024 in line with the higher requirements of the agreement on subsoil use compared to 2023, as well as the raised production forecast reflected in the company's operating and trading report for Q2 2024," the company said.
Mining companies' current rates of production are higher than was originally expected due to the resumption of drilling work in 2023 and efforts to achieve production targets.
However, Inkai, a joint venture with the Canadian company Cameco, did not achieve the target production level in 9M 2024. Annual production is expected to be more than 20% lower than the level stipulated in the agreement on subsoil use for this year.
"This is due to changes in schedule for acid treatment of new blocks, caused by small deviations in the supply schedule for sulfuric acid which lasted from mid-April to mid-May. Inkai is making reasonable efforts to overcome these short-term delays and minimize the possible effect on the forecasted period," the company said. However, Inkai's demand for sulfuric acid was met 106% in 9M overall.
Kazatomprom and its subsidiaries' sales fell 5% in 9M to 11,639 tonnes. The average sales price for one pound of uranium concentrate rose 38% to $66.81.
"Sales can differ significantly in each quarter, and they vary from year to year due to changes in the timing of delivery requests from customers during the year as well as delivery activities," the company said.
The company also pointed out the growth in spot prices for uranium, on account of which average sales prices in the reporting period were higher than last year. "The company's current total contract portfolio correlates in price with the spot prices for uranium. However, supplies as part of some long-term contracts in 2024 included a share of fixed price components, including price ceilings which were agreed upon amid relatively lower prices," it said.
The company has maintained its forecast for uranium production in 2024 at 22,500-23,500 tonnes from assets where it has 100% ownership and 11,600-12,600 tonnes from other companies in which Kazatomprom holds a stake.
Kazatomprom mines uranium, processes rare metals and produces and sells beryllium and tantalum products. All of the company's production is exported. The company is controlled by the state, free float is at 25%.
