China buys Rosatom’s stake in joint venture with Kazatomprom

Uranium One Group, a subsidiary of Russia’s state-owned Rosatom corporation, has sold its 49.979% stake in the Zarechnoye joint venture in Kazakhstan to SNURDC Astana Mining Company Limited. The ultimate beneficiary of this transaction is China’s State Nuclear Uranium Resources Development Co., Ltd., according to Kazatomprom, Kazakhstan’s national nuclear company.

«The National Atomic Company Kazatomprom JSC announces the exit of its Russian partner from some joint ventures. Uranium One Group JSC, part of the Rosatom State Corporation, has sold its 49.979% share in JV Zarechnoye JSC to SNURDC Astana Mining Company Limited, the ultimate beneficiary of which is State Nuclear Uranium Resources Development Co., Ltd. (China). Kazatomprom’s share in this joint venture remains unchanged, amounting to 49.979%,» Kazatomprom said in a statement.

JV Zarechnoye JSC operates the Zarechnoye mine located in the Turkestan region, which was discovered in 1977. As of early 2024, the deposit’s uranium reserves were estimated at approximately 3,500 tons. Mining operations at the Zarechnoye site are expected to be completed by 2028.

According to Kazatomprom, Uranium One Group JSC will also transfer its 30% ownership interest in the authorized capital of JV Khorasan-U LLP and a 30% ownership interest in the authorized capital of Kyzylkum LLP to China Uranium Development Company Limited. The ultimate beneficiary of this transaction is China General Nuclear Power Corporation (CGN, China), pending the completion of closing procedures by the involved parties. Kazatomprom’s share in these assets remains unchanged, with the company holding a 50% stake in JV Khorasan-U LLP and an indirect 50% stake in Kyzylkum LLP.

JV Khorasan-U LLP operates at the Kharasan-1 block of the Severny Kharasan deposit in the Zhanakorgan district of the Kyzylorda region. As of early 2024, the deposit’s uranium reserves were estimated at approximately 33,000 tons, with mining operations expected to continue until 2038. All uranium mined by JV Khorasan-U LLP is processed at the production facilities of Kyzylkum LLP, which are located on-site. Kyzylkum LLP does not hold subsoil use rights and is solely responsible for providing uranium processing services.

Kazatomprom stated that it welcomes new partners and wishes them success in their joint efforts. The company remains focused on replenishing its mineral resource base and ensuring sustainable reserve growth as a strategic priority. To this end, Kazatomprom has launched a large-scale exploration program aimed at evaluating promising areas and identifying new deposits. The program is already yielding positive results, further solidifying Kazatomprom’s position as a long-term industry leader. This year, the company obtained four new licenses to explore promising uranium blocks, which Kazatomprom intends to develop independently. Preliminary estimates indicate that the total projected resources of these blocks exceed 180,000 tons of uranium.

Last week, JV Zarechnoye announced plans to complete drilling operations at the deposit by 2028. The planned annual production capacity is 1,000 tons of uranium. The company produced 722 tons in 2023 and 747 tons in 2022. Commercial uranium mining at the Zarechnoye deposit has been underway since May 4, 2007.

In 2023, JV Zarechnoye reported a net income of 24.7 billion tenge (approximately $54 million), compared to $41 million in 2022. The company’s total assets grew from $99 million at the end of 2022 to $128 million by the end of 2023.