Russia has reportedly sold its stakes in certain Kazakh uranium deposits to Chinese-owned companies, marking a significant shift in the global uranium market.
This development involves Kazakhstan’s nuclear resources company, Kazatomprom, and Russia’s Rosatom transferring interests to Chinese entities.
Kazatomprom, the world’s largest uranium producer, revealed that Rosatom’s Uranium One Group sold its 49.979% stake in the Zarechnoye joint venture (JV) to SNURDC Astana Mining Company, whose ultimate beneficiary is China’s State Nuclear Uranium Resources Development Company.
The Zarechnoye JV operates the Zarechnoye mine, which had uranium reserves of approximately 3,500 tonnes (t) at the start of 2024. Mining operations at the mine are expected to be completed in 2028.
Additionally, Uranium One is expected to relinquish a 30% stake in the Khorasan-U JV to China Uranium Development Company, linked to China General Nuclear Power Corporation.
The Khorasan-U operates at the Kharasan-1 block in the Zhanakorgan district, with reserves of around 33,000t and an expected maturity in 2038.
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By GlobalData
Despite these transactions, Kazatomprom’s stakes remain unchanged.
After the Khorasan-U stake sale, Rosatom will retain interests in Kazatomprom deposits with combined reserves of 255,000t, including the Budennovskoye deposit, according to a report by Reuters.
Uranium One produced 4,831t of uranium in Kazakhstan in 2023, contributing to Russia’s position as the world’s sixth-largest uranium producer.
According to the report, Kazatomprom’s chief executive, Meirzhan Yussupov, highlighted that Western sanctions on Russia due to the Ukraine conflict complicate uranium sales to Western buyers.
Kazatomprom sells 29% of its output to Europe and has outlined the risks of sanctions in its annual report, noting potential reputational and corporate governance risks associated with Russian partners.
The company is currently concentrating on its strategic goal of replenishing its mineral resource base and fostering sustainable reserve growth. It has initiated an extensive exploration programme designed to evaluate promising areas and identify new deposits.
In the current year, the company has secured four new licences for the exploration of potentially lucrative uranium blocks, which it intends to develop independently. Initial assessments indicate that the total projected resources of these blocks surpass 180,000t of uranium.
