Meirzhan Yussupov, CEO of Kazatomprom — Kazakhstan’s state-owned uranium producer — says it is appropriate for the national company to automatically receive a 90% stake in uranium mining projects upon contract renewal, regardless of the foreign partner’s previous share.
Amendments advance in parliament
Amendments to Kazakhstan’s Subsoil and Subsoil Use Code, drafted by lawmakers, recently passed the Mazhilis (lower house) and await Senate review. The changes would require Kazatomprom, or a subsidiary, to receive a 90% stake upon any uranium contract renewal.
«If a joint venture wishes to extend its contract, Kazatomprom or its affiliate will hold a 90% stake,» said Yermek Kuantyrov, Kazatomprom’s chief legal officer, during discussion of the amendments.
Ready for more responsibility
Kazatomprom is ready to assume responsibility for 90% of each uranium project once contracts are extended, Yussupov said. He noted that the subsoil use contract for Zarechnoye — a joint venture in which Kazatomprom and China’s SNURDC each hold 49.98% — will soon expire. Several contracts at SMCC, a joint venture with Kazatomprom owning 30% and Rosatom’s Uranium One owning 70%, are also nearing expiration.
Yussupov noted that negotiations will continue, and some partners have expressed reservations about the initiative.
Foreign partners urged to accept changes
Yussupov stated that Kazakhstan has met its contract obligations and hopes foreign partners will understand as the new rules take effect.
Kazatomprom CEO said that renegotiation would be necessary for new contracts. He added that requests for extensions would now require additional terms, including financial commitments.
Lawmakers seek priority exploration rights
Lawmakers also propose granting Kazatomprom priority rights for geological exploration at uranium sites. Currently, the company holds priority only for production, not exploration.
