Kazakhstan has firmly secured its status as a world leader in the uranium mining industry. Possessing the second largest proven reserves of natural uranium in the world, the country annually covers about 40% of global primary uranium production. This means that at least every third nuclear reactor in the world runs on Kazakh uranium.
Kazatomprom, Kazakhstan’s national operator for the export and import of uranium, rare metals and nuclear fuel for nuclear power plants, is a key player in this strategically important industry. Since 2010, Kazatomprom has been the world’s leader in uranium mining and production, and since 2018 it has ranked first in the world in terms of sales. In 2023 Kazatomprom sales increased 10% compared to 2022, the revenue reached a record USD 3.1 billion, and net profit amounted to about USD 1.3 billion. Since its IPO, the company’s market capitalization has increased from $3 billion to over $10 billion. The company plays a critical role in the global uranium market and significantly impacts the U.S. market. Kazatomprom’s ability to secure necessary inputs, like sulphuric acid for its in-situ recovery (ISR) mining method, and its capacity to navigate geopolitical tensions, are crucial for maintaining consistent production levels. For instance, the company’s recent efforts to diversify export routes, such as utilizing the Trans-Caspian International Transport Route, are aimed at mitigating risks.
Kazatomprom’s main clients are nuclear power plant operators i.e. utilities, and its main export markets are China, South and East Asia, North America and Europe. The company is constantly enhancing its international connections and cooperation with the world’s leading companies, which contributes to the exchange of advanced technologies and expansion of its global presence.
As the President of Kazakhstan Kassym-Jomart Tokayev noted in the state of the nation address in 2023, promotion of geological and geophysical exploration shall be prioritized. As a national operator, we have always focused and will continue to place further efforts to explore new uranium deposits and replenish our resource base. Kazatomprom has launched a large-scale geological exploration program aiming at discovering new and expanding existing fields. The results have already demonstrated certain positive effects: the uranium mineral resources at existing deposits increased by about 88.9 thousand tons in comparison to 2022.
In June, we signed a new subsoil use agreement for pilot production at Inkai 3 deposit in Turkestan region. Uranium resources at this deposit are estimated at approximately 83.1 thousand tons. The company transferred the Inkai 3 subsoil use contract to Kazatomprom-Sauran LLP, a 100%-owned subsidiary of Kazatomprom.
At a recent meeting with young Kazakh scientists, the Head of State emphasized Kazakhstan’s significant potential in the field of rare metals. The President made an emphasis on the need to expand geological exploration and introduce best practices in this undoubtedly important industry. As part of the initiative, Kazatomprom is actively engaged in scientific research and development of new technologies. Rare and rare-earth metals have unique properties and are widely used in various industrial and economic sectors, such as aviation, space technologies, rocket science, nuclear energy, medicine, instrumentation, electronics, mechanical engineering and metallurgy.
In 2023, Kazatomprom approved and adopted a Program for scientific and technological development of rare and rare earth metals for 2022-2029 period, and the creation of new types of products and the improvement of technologies for the associated extraction of useful valuable components at the company’s production entities. The Program’s goal is to ensure sustainable and balanced development and increase the company’s competitiveness in the rare and rare earth metals markets. It includes measures to expand the raw material base, develop and implement new technologies for obtaining rare and rare-earth metals, design scientific and innovative research, as well as create a system for training highly qualified personnel from among the company’s employees.
Kazatomprom also has Ulba Metallurgical Plant JSC (UMP) in its asset portfolio. UMP is the only one in the CIS and one of the few large enterprises in the world that has a full production cycle from processing raw materials to producing complete products from tantalum, niobium and beryllium. As part of the abovementioned Program, Kazatomprom is working to create its own domestic mineral resource base to support the operation of a plant making products from tantalum, niobium and beryllium. Today, UMP ranks 2nd in the world in the production of beryllium products and 4th in the production of tantalum products.
In 2023-2024, UMP received licenses for exploration of solid minerals on the blocks of the Upper Irgiz (Aktobe region) and Karadzhal (Abay region) fields. Geological exploration work is being planned to assess and confirm reserves of rare metals (tantalum, niobium, and beryllium); the results of the exploration will determine the feasibility of developing these deposits.
Implementation of these projects will enable Kazatomprom to provide existing production with its own domestic mineral resource base, increase economic efficiency, create new jobs and expand geographical presence.
At the same time, Kazatomprom is exploring the possibilities of associated extraction of RM and REM from uranium products. Research efforts are examining economically viable methods for extracting valuable components, such as scandium and vanadium, from industrial uranium products. Creation of a mobile unit for the production of ammonium perrhenate (technical purity rhenium) is an example of the successful implementation of development work in this direction. The project is now progressing to the pilot testing stage.
Work is also being carried out to study the possibility of expanding the range of UMP products, including the development of technology for producing spheroidized metal powders from UMP products. This area is completely new for Kazakhstan since spheroidized metal powders for 3D printing are not currently produced in the country.
Another unique and promising field of study is researching a possibility of developing a technology for producing radioisotopes for medical purposes from uranium products. This breakthrough international project is planned to be implemented with the participation of specialists from scientific organizations of Switzerland, USA, Japan and Kazakhstan.
Kazatomprom is actively strengthening its leadership position in the global uranium market, while simultaneously expanding activities in the production and processing of rare metals (tantalum, niobium, beryllium) and exploring the possibilities of producing other types of rare and rare earth metals. These efforts contribute to the long-term success and sustainable development of the National Atomic Company, increasing value for shareholders and stakeholders. This diversification not only enhances global supply chains but also ensures a more resilient and secure source of critical materials for the U.S. market, which is increasingly focused on reducing dependency on single sources and enhancing national security.
[Baiken Uranium Mine in Kazakhstan. Credit: NAC Kazatomprom JSC, via Wikimedia Commons]
The views and opinions expressed in this article are those of the author of the author.
Meirzhan Yussupov is the CEO of Kazatomprom, which he has been leading since 2023.
