Kazatomprom to end uranium production cuts in 2025

Natsional'naya Atomnaya Kompaniya Kazatomprom AO

29/09/2023 09:09

ALMATY, Sept 29 (Reuters) - Kazatomprom  KZAP.KZ , the
world's biggest uranium miner which for the last few years has
restricted its own output in order to stabilise prices, will end
such cuts in 2025 and thus significantly increase production, it
said on Friday.
    "Kazatomprom remains committed to its market-centric
strategy and its disciplined approach to production and sales,
and we're excited to witness the start of a long-awaited
historical shift in the uranium market," Dastan Kosherbayev,
chief commercial officer of Kazatomprom, said in a statement.
    "As we are seeing a clear sign that the industry has entered
into the new long-term contracting cycle, driven by the
recognition of the restocking needs, Kazatomprom, with its
best-class and lowest cost mines, is absolutely prepared to
respond to these improving market conditions".
    The spot price of uranium has more than doubled over the
past three years, although it is still well down from a peak of
$140 a pound touched in 2007.
    For seven years including 2023, the company has produced 20%
less than its contracts with the Kazakh government allowed, with
this year's output seen at 20,500-21,500 tonnes.
    In 2024, Kazatomprom said it would stick to its plan to
produce 10% below the contract maximum, or 25,000-25,500 tonnes,
while with no restrictions in 2025, production is expected to
grow to 30,500-31,500 tonnes, the company said.
    "...Our intention to return to a 100% level of Subsoil Use
Contracts production volumes in 2025 is primarily driven by our
strong contract-book and already growing sales portfolio against
conservative 2023-2024 production scenario," Kosherbayev said.

 (Reporting by Mariya Gordeyeva
Writing by Olzhas Auyezov
Editing by Mark Potter)
 ((olzhas.auyezov@thomsonreuters.com; +7 727 2508 500; Reuters
Messaging: olzhas.auyezov.thomsonreuters.com@reuters.net))