Canadian uranium mining in Kazakhstan stopped: Cameco is disappointed and surprised

The Inkai joint venture in Kazakhstan has stopped uranium mining. Kazatomprom explained that they had not approved the development project on time. The Canadian company is demanding clarification.

Kazatomprom announced the temporary suspension of production from January 1, 2025 at site No. 1 of the Inkai field, developed by the Inkai joint venture in the Sozak district of the Turkestan region.

"According to the requirements of the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use", subsoil use operations are possible only if there is an approved field development project," the Kazakh company explained. — However, as of December 30, 2024, JV Inkai LLP, having failed to ensure the timely provision of the required documentation, did not receive the necessary approval from the competent authorities of the Republic of Kazakhstan. In this regard, in order to comply with the current legislation, JV Inkai LLP temporarily suspends production at the field."

Kazatomprom expects Inkai to provide all the necessary documents to the Ministry of Energy within the next two weeks, after which the situation will be resolved.

Canadian Cameco, which has a 40% stake, does not share the calm of the Kazakh company.

"In the reports received by Cameco as recently as December 26, 2024, it was not mentioned that there is a risk of suspension of production in connection with this process (approval of project documentation)," Cameco said.

"We are disappointed and surprised by this unexpected suspension and will seek further clarification on how this happened, as well as on the potential production and financial consequences in 2025 and 2026 (including future dividends), as well as what Cameco can do to help Kazatomprom and the joint venture."Inkai" to resume mining," the Canadian company added.

Kazakhstan is the largest uranium producer in the world. According to Kazatomprom at the beginning of 2024, the share of foreign companies in the country's existing deposits includes 266 thousand tons — almost 47% of all ore reserves. Rosatom is the largest participant in Kazakhstan's joint ventures. Uranium One Group has a stake in half of joint uranium mining projects — six out of twelve. And it accounts for 58% of the reserves in the joint venture, which belong to foreign participants — 154 thousand tons. The closest competitor may be Canadian Cameco (49.5 thousand tons).

After the start of SMO, the Canadian company changed the route of delivery of uranium bypassing Russia, and also refused to purchase the materials necessary for mining in Russia. Cameco admitted that this created great difficulties both in terms of production and delivery time, but they are not going to back down yet.