Kazakhstan to finalize major uranium deal with China

Kazatomprom is set to enter a uranium oxide concentrate supply agreement with China, valued at approximately $2.5 billion. The deal is on the agenda for Kazatomprom’s special general shareholders’ meeting, scheduled for Nov. 15, according to a release posted on the Kazakhstan Stock Exchange (KASE) website.

Under the agreement, Kazatomprom will supply uranium concentrate to two Chinese companies — CNNC Overseas and China National Uranium Corporation, both subsidiaries of China National Nuclear Corporation (CNNC). CNNC plays a key role in China’s nuclear power industry, managing nuclear power plants and advancing nuclear energy and technology development. The company also produces nuclear fuel.

The deal has already been negotiated but must receive approval from Kazatomprom’s shareholders, as Kazakhstani law requires. The deal’s value exceeds 50% of the company’s total assets, which are valued at $5.2 billion.

The shareholders’ meeting will take place on Nov. 15 in Astana at 10:30 a.m. local time. If a quorum is not met, the meeting will be rescheduled to Nov. 18.

As of July 1, 2024, 75% of Kazatomprom’s shares were owned by Samruk-Kazyna, with Citibank as the nominal holder of 24.34% of the stocks. Kazatomprom’s net profit surged by 27.4% in the first six months of the year, reaching $580 million, while revenue climbed by 13.3% to $1.5 billion.

Despite this financial growth, the company reduced its uranium oxide concentrate sales by 18%, from 9,500 to 7,800 tons. The output increased by 6% year-on-year (YoY) to 10,800 tons. The average selling price for the group of companies and Kazatomprom’s transactions rose by 41% to $66.22 and by 34% to $62.50 YoY, respectively.