Uranium production tax is going to be increased in Kazakhstan

MET for natural uranium will range from 4% to 18% depending on the volume of production starting from 2026 / Photo: kazatomprom.kz, photo editor: Aruzhan Makhsotova

The Mineral Extraction Tax (MET) for natural uranium production is set to range from 4% to 18%, depending on the volume of production, starting in 2026. This represents a significant increase compared to the 9% rate in 2025 and 6% in 2024.

According to amendments to the tax legislation signed by President Kassym-Jomart Tokayev, the MET rate will be 4% if the production volume of uranium ore concentrate (U3O8) is less than 500 tons; 6% for 1,000 tons; 9% for 2,000 tons; 12% for 3,000 tons; 15% for 4,000 tons and 18% for more than 4,000 tons. Additionally, the MET rate may increase if the weighted average price for uranium exceeds certain thresholds: by 0.5% if the price is more than $70 per pound; by 1% if the price is more than $80 per pound; by 1.5% if the price is more than $90 per pound and by 2.5% if the price is more than $110 per pound.

For other metals, starting January 1, 2026, the MET rates will be as follows: 21.06% for chrome ore; 3.25% for manganese concentrate and ferromanganese ore; 3.64% for iron ore concentrate; 8.55% for copper; 10.5% for zinc; 10.4% for lead; 7.5% for gold and silver; 6.5% for platinum and palladium; 0.38% for aluminum; 3.9% for tin and 7.8% for nickel.

For mineral raw materials containing chrome, titanium, magnesium, cobalt, tungsten, bismuth, antimony, mercury and arsenic, the MET rate will be 7.8%. For carbonization coal and anthracite, it will be 4.05% and for stone-coal, brown coal and oil shale, it will be 2.7%.

According to Kazatomprom, a subsidiary of Samruk-Kazyna and the world’s largest uranium producer, the government of Kazakhstan amended the Tax Code on July 1, 2024, aligning the MET for uranium producers with that of other mining enterprises. Since January 1, 2023, the tax base for uranium has been determined as a weighted average price for uranium concentrate (U3O8) published in open sources over a certain period, multiplied by the amount of produced uranium and the 6% MET rate.

«Starting January 1, 2025, the MET rate for uranium will change to 9% (for 2025 only). The aforementioned changes to the Tax Code will come into effect on January 1, 2025, and will not affect the company’s tax expectations for 2024,» the company said in a statement.

Before 2023, the MET rate for uranium was 18.5%. Since 2023, the rate has been calculated based on a weighted average price for uranium ore concentrate.