Kazakhstan Boosts Uranium Production in First Half of 2024

Kazakhstan's national uranium operator, Kazatomprom, has announced an increase in uranium production for the first half of 2024. The company produced 10,857 tonnes of uranium, marking a six percent rise compared to the same period in 2023.

According to a press release issued on Thursday, this increase in production is attributed to slight adjustments in the production plan and the necessity to meet 2024 contractual obligations. The boost also comes from resuming drilling activities from 2023 and efforts to catch up on production rates.

"The company has secured the necessary volumes of sulfuric acid for 2024 production, even with a 20 percent reduction compared to subsoil use agreements," the press release stated.

Despite the production boost, Kazatomprom and its subsidiaries experienced an 18 percent decrease in sales, totaling 7,779 tonnes in the first half of the year. The average price of uranium concentrate rose by 41 percent, reaching $66.22 per pound.

The press release further explained that sales volumes increased in the second quarter of 2024 compared to the same period in 2023, mainly due to the timing of customer deliveries. However, overall sales for the first six months of 2024 were lower than the same period in 2023, influenced by reduced sales guidance and lower sales in the first quarter.

"Sales volumes can fluctuate significantly each quarter because of varying customer delivery requests and physical delivery schedules throughout the year," noted the press release.

Kazakhstan is the world’s largest producer of uranium, possessing about 12 percent of the world’s recoverable uranium resources. In 2022, Kazakhstan produced the largest share of uranium from mines, accounting for 43 percent of the world’s supply.

Kazakhstan is home to about 50 known deposits and 22 uranium mines, operated by Kazatomprom and various joint ventures. Additionally, it hosts the world’s largest low-enriched uranium (LEU) bank, capable of storing up to 90 metric tons of uranium suitable for making nuclear fuel.

Even though Kazakhstan has not used its uranium for electricity generation in decades, it remains committed to nuclear security. The country established a facility in 1973 for electricity production and water desalination, which closed in 1999 when Kazakhstan joined the global non-proliferation regime. Kazakhstan offers competitive advantages for the development of nuclear energy, which is sometimes considered a clean energy technology due to its lack of carbon emissions.

Kazakhstan supplied Russia and China with uranium worth $1.2 billion and $922.7 million, respectively, from January to October 2023. Notably, the supplies to China saw a 2.2-fold increase year on year.