Kazatomprom and TajRedMet have agreed to collaborate in exploring, mining and processing uranium and other rare and rare-earth metals. The two enterprises signed a memorandum of understanding (MoU) during an official visit of President Kassym-Jomart Tokayev to Tajikistan, as reported by the press service of Kazatomprom.
According to Kazatomprom, the document lays the groundwork for a mutually beneficial strategic partnership, which could play a vital role in advancing the mining industry in both countries. Apart from mining and processing minerals, the two sides will collaborate in scientific research and research and development (R&D) projects. They will also introduce innovative technologies and organize personnel training.
«This step is of great importance for strengthening the partnership between our companies. Although it is too early to talk about specific results, we are focused on promising joint projects in the uranium industry, as well as rare and rare-earth metals, which can bring significant benefits to both Kazakhstan and Tajikistan. We hope that this memorandum will become the basis for long-term and productive cooperation, promoting economic growth and the development of high technologies in both countries,» emphasized Meirzhan Yussupov, CEO of Kazatomprom.
TajRedMet representatives are expected to visit Kazakhstan soon to observe and examine the production facilities run by Kazatomprom.
Rare and rare-earth metals are major components for manufacturing different high-tech products such as electronics, magnets, batteries and other innovative equipment.
In the middle of April, Kazatomprom reported that its subsidiary, Ulba Metallurgical Plant, received a license for exploration of rare metals (tantalum, niobium and beryllium) at the Karajal deposit in the Abay region. The company said that its main goal is to provide the plant with a mineral reserve base. Meanwhile, the enterprise has to acquire tantalum and beryllium from African countries. On top of that, global prices of these rare metals are extremely volatile.
Pini Althaus, managing partner and founder of the U.S. company Cove Capital, believes rare and rare-earth metals are now considered «new oil.» Even though Kazakhstan has plenty of these critical minerals, many of them have yet to be developed. He believes that Kazakhstan can significantly strengthen its economy and achieve prosperity if it develops this industry.
Earlier this year, Kazatomprom published its financial results for the first six months of 2024. The company lowered its production forecast for the next year, which resulted in a share value increase for the uranium companies. Kazakhstani brokerage companies are advising investors to buy shares of Kazatomprom, which is one of the main global uranium suppliers. More generally, Kazatomprom reported $630.7 million in net profit over the first six months of this year, a 27% increase compared to the same period of 2023.
Among key shareholders of Kazatomprom are Samruk-Kazyna (62.99%), the Ministry of Finance of Kazakhstan (12%) and Citibank (24.34%), the nominee holder of the shares, which had issued depository notes available on the London Stock Exchange. The shareholder structure changed after an over-the-counter deal between the National Bank and Samruk-Kazyna in July 2024. At the time, the state-run holding purchased Kazatomprom’s shares using the National Fund’s assets. (The National Fund is managed by the National Bank.)
