Production and Extraction
Global leadership in uranium production
Kazakhstan has established itself as a global leader in uranium mining, accounting for about 39% of the world's uranium production.
Kazatomprom stands out as the world's leading producer of natural uranium and has preferential access to one of the most significant resource bases. The Company operates uranium deposits suitable for the in-situ leaching method, which is an economically favourable and environmentally safer mining method. This, along with the long life of mining assets, allows Kazatomprom to maintain its leading position in the global market due to one of the lowest uranium mining costs.
Since November 2018, Kazatomprom's shares have been actively traded on the stock exchanges of the Astana International Financial Centre and the London Stock Exchange.
KEY PERFORMANCE RESULTS 2024
| Indicator | 2023 | 2024 |
|---|---|---|
| Production indicators, ’000 tonnes: | ||
| Uranium production | 21.1 | 23.2 |
| Uranium sales | 18.1 | 16.7 |
| Financial indicators19, billion KZT: | ||
| Revenue | 1,434.6 | 1,813.4 |
| Dividends | 200.9 | 314.6 |
| Net profit | 580.3 | 1,132.1 |
| Operating profit | 680.8 | 806.8 |
| Net debt | 125.5 | 144.5 |
| Taxes paid | 279.3 | 432.2 |
| Sustainable development indicators: | ||
| Greenhouse gas emissions (scope 1+2), ’000 tonnes | 717.3 | 644.2 |
| Accidents | 4 | 3 |
| Fatal accidents | 0 | 0 |
As a result of the early achievement of the key strategic goals set for 2018–2028, and given the fundamental changes in the nuclear industry, one of the main events of last year was the approval by the Company's Board of Directors of an updated development strategy for 2025–2034, aimed at increasing the resource base, expanding its presence in the nuclear fuel cycle, developing the rare and rare earth metals business, and diversifying sales and strengthening the trading function.
The Company's consolidated revenues for the year totalled over KZT 1.8 trillion, up 26% year-on-year, mainly due to an increase in the average selling price and higher revenues from the sale of enriched uranium product in line with Ulba-TVS LLP' increased supply of fuel assemblies during 2024.
Operating profit reached KZT 807 billion, up 19% year-on-year, reflecting an increase in the average selling price. Net profit for the year totalled KZT 1,132 billion, a 95% increase on the prior year.
In 2024, Kazatomprom confirmed its leading position as the largest uranium producer, accounting for about 21% of the world's primary uranium output. Production was higher than in 2023 due to the increased production plan, increasing by 10% to 23,270 tonnes on a 100% basis. The main growth was provided by Budenovskoye JV LLP, Akbastau JV JSC and Karatau LLP.
In 2024, the Company sold uranium products directly and through its subsidiary Trade House KazakAtom AG, supplying 21 customers in 9 countries (in 2023 - 23 customers in 9 countries).
However, consolidated sales decreased by 8% compared to 2023, reaching 16,670 tonnes.
The significant increase in the spot uranium price also contributed to an increase in the average realised price to 84.733 KZT per kilogram of uranium (US$69.48 per pound of U3O8), 30% higher than in 2023.
Key achievements for 2024 include the addition of two new customers, geographic expansion through a new country contract, and increased sales in the form of enriched uranium product.
CONSTRUCTION OF A SULPHURIC ACID PLANT
A project is underway for the construction of a sulfuric acid plant with an annual production capacity of 800,000 tons. The project will eliminate the deficit of sulphuric acid in Kazakhstan and reduce dependence on its import. At the same time, it will generate an additional 30 MW of electricity and introduce modern production technologies in compliance with international environmental and energy-saving standards. The project envisages an annual increase in tax revenues by more than KZT 4 billion and the creation of up to 500 jobs.
In January 2024, the feasibility study of the project was completed and the company signed the project implementation agreement, offtake agreement and strategic partnership agreement.
The project implementation period is 2023–2026.
CONSTRUCTION OF ZHALPAK ONSHORE PROCESSING COMPLEX
In June 2024, Kazatomprom received a new contract for uranium mining at the Zhalpak deposit, which was transferred to DP Ortalyk LLP. To maintain the production of sulphuric acid solution of uranium-containing commercial desorbate, a project is being implemented to build an onshore processing complex of the Zhalpak deposit with a production capacity of 900 tonnes per year. The project is aimed at expanding uranium mining and developing production and processing facilities. Its implementation will have a positive impact on the economic development of the region, including the creation of about 260 new jobs during the operation phase. Significant tax revenues to the budget are also expected.
The timeframe for the project is 2022–2027.
SUPPLY OF KAZAKHSTANI NUCLEAR FUEL
In 2024, Ulba-TVS LLP successfully delivered five batches of fuel assemblies (hereinafter – FAs) containing just over 170 tonnes of low-enriched uranium. All fuel assemblies passed acceptance control and were accepted by a nuclear power plant in the PRC. The FAs of the plant will have guaranteed supplies to CGNPC NPP in China until 2040. By the end of 2024, Ulba-TVS LLP has reached its design production capacity of 200 tonnes of low-enriched uranium per year in the form of fuel assemblies.
DEVELOPMENT OF RARE AND RARE-EARTH METALS
With the growing global demand for critical minerals, Kazatomprom is expanding its activities in the area of rare and rare-earth metals. UMP JSC obtained licences to explore the Lineyny and Rodnikovy sites in the Ulytau region. Geological exploration works are aimed at assessment and confirmation of rare metals reserves.
Opportunities for associated extraction of rare metals from uranium production are being studied. In 2024, pilot tests of a mobile unit for production of technically pure ammonium perrhenate were completed, and preparations for the design of a production site are underway. Also in 2024, a vanadium extraction technology was developed to produce ammonium metavanadate.
SUSTAINABLE DEVELOPMENT
In 2024, the company developed a new version of NAC Kazatomprom JSC's Sustainable Development Programme for 2024–2030, which was approved by the Company's Board of Directors.
In December 2024, based on the Corporate Sustainability Assessment questionnaire, international rating agency S&P Global Ratings rated Kazatomprom 48/100, with an overall ESG score of 50. Kazatomprom's score is 7 points higher than the previous year and almost twice as high as the industry average, which confirms the company's leadership position and the effectiveness of its sustainable development strategy.
Also in 2024, Kazatomprom disclosed data on climate change (at level "B") and for the first time on the Water Security area (at level "C") as part of the CDP ("Carbon Disclosure Project") climate rating.
In October 2024, Kazatomprom was included in the list of TOP 500 World's Best Companies – Sustainable Growth according to the research of the international magazine TIME Magazine, conducted jointly with the statistical organisation Statista. Kazatomprom ranked 126th in the rating and 6th among companies in the resources and infrastructure sector. The company is the only Kazakhstani company included in this list. This is a significant achievement for Kazatomprom, reflecting the positive results of implementing best practices in sustainable development.
PLANS FOR 2025
Kazatomprom's plans for 2025 are in line with its market-oriented strategy. Uranium output is expected to be between 25,000 and 26,500 tonnes in 2025 and consolidated sales are forecast to be between 17,500 and 18,500 tonnes. The Company's financial results may be affected by various factors, including logistical challenges, changes in Kazakhstan’s tax legislation and potential changes in social contributions.
The Company expects that in 2025, the percentage of deviation of uranium miners' production from the levels set out in the subsoil use contracts will vary but will remain within the 20% tolerance.
Mining and metals
The company is established for the purpose of:
- ensuring efficient subsoil use activities in the field of exploration, development, production, processing and sale of solid minerals;
- effective management of shareholdings in mining and metallurgical companies transferred to the company;
- reproduction of the mineral resource base of the republic.
Tau-Ken Samruk manages and implements geological exploration, mining, and production projects.
KEY PERFORMANCE RESULTS 2024
| Indicator | 2023 | 2024 |
|---|---|---|
| Production figures, tonnes: | ||
| Gold production | 52.2 | 54.6 |
| Silver production | 5.2 | 6.1 |
| Gold sales | 48.7 | 56.5 |
| Silver sales | 9.1 | 6.1 |
| Financial indicators20, billion KZT: | ||
| Revenue | 816 | 1,263.3 |
| Dividends | - | - |
| Net profit | -47.3 | 70.5 |
| Costs | 817 | 1,258 |
| Operating profit | -1.1 | 5.9 |
| Net debt | 83 | 58 |
| Taxes paid | 1.6 | 1.1 |
| Income tax paid | 0.7 | 0.5 |
| Other taxes and payments | 0.9 | 0.6 |
| Sustainable development indicators: | ||
| Emissions to atmosphere, tonnes | 127.62 | 73.75 |
| Accidents | 0 | 0 |
| Fatal accidents | 0 | 0 |
2024 marked wide development of investment projects and attraction of strategic partners for the Company. The following key events should be noted based on the results of the year:
- Attracted Cove Capital for geological exploration works at Akbulak site in Kostanay region.
- A memorandum of understanding was signed between the Ministry of Industry and Construction of Kazakhstan, Tau-Ken Samruk, KIGAM Geological Institute and Korean company SK Ecoplant.
- A record 54.6 tonnes of gold was produced.
- Realised an interest in the Kyzylkain project.
- A deal was concluded with partner Ulmus Besshoky LLP.
- Loans on Shalkiya and Alaigyr projects were repaid within the framework of pre-investment preparation (JV Alaigyr LLP and Shalkiya Zinc LTD JSC are included in the privatisation perimeter by the Resolution of the Government of the Republic of Kazakhstan No. 908 dated 29 December 2020).
- An exploration licence for copper and associated components was obtained for the Ordabas area, which was an important step in the development of the resource base.
In 2024, Tau-Ken Samruk continued to actively develop international partnerships in joint exploration activities with leading foreign companies.
In co-operation with Discovery Ventures Kazakhstan Ltd. a project to prospect for polymetallic deposits is being implemented. Decisions have been made to continue exploration of three licence areas.
As part of co-operation with the Turkish company Esan, work is underway to find copper deposits. In 2024, a licence for a site in the Aktobe region was obtained, desk studies were conducted, soil samples were taken at promising sites, ground geophysical IP/Res surveys were conducted, and drilling work began. Following the results of drilling, core samples were submitted to the laboratory.
REFINERY
Gold production in 2024 was 54.6 tonnes, an increase of 2.4 tonnes from 2023, driven by an increase in the supply of gold-bearing material.
At the end of 2024, silver refinery and sales totalled 6.1 tonnes, up 0.9 tonnes from 2023.
One of the significant steps in the execution of the strategy was the commissioning of the production waste recycling shop; 37.8 kg of gold and 48.3 kg of silver recovered.
To confirm the high quality of products and compliance with international standards, the Central Plant Laboratory has successfully passed the proactive monitoring of the London Bullion Market Association (LBMA).
DEVELOPMENT OF THE RARE METALS AND RARE EARTH ELEMENTS
The Company's main projects aimed at the development of the RM and REE:
- Rare earth elements at the Akbulak site – the project is aimed at mining REEs for the production of magnets (neodymium, dysprosium, terbium). Drilling and technological studies are planned for 2025. The project is implemented jointly with Cove Capital.
- Lithium-containing brines of the Aral Sea – jointly with KIGAM (South Korea) prospecting works are underway. In 2024, 300 samples have been taken, for which laboratory studies are being carried out.
- North Katpar and Upper Kayrakty tungsten projects – largest tungsten deposits outside China (1.4 million tonnes WO₃). Work is underway to attract independent consultants and strategic partners
PLANS FOR 2025
Further work is planned for 2025 on the polymetallic prospecting project.
It is also planned to continue geological exploration for copper deposits in 2025.
In 2025, the company will continue to raise investments and develop promising projects, improve production efficiency, develop partnerships and expand its presence in international markets.
