National Atomic Company Kazatomprom Joint Stock Company (Kazatomprom) () is the world’s largest producer and seller of natural uranium, providing over 40% of global primary uranium supply in 2019 from its operations in Kazakhstan. Kazatomprom's uranium is used for the generation of nuclear power around the world.
Kazatomprom is Kazakhstan’s national operator for the export and import of uranium and its compounds, nuclear power plant fuel, special equipment and technologies. The company's status as a National Company provides certain advantages, including, among other things, obtaining subsoil use agreements (in-situ recovery mine licences) through direct negotiation with the Government of the Republic of Kazakhstan.
All of the company's mines and subsidiary processing operations are located in the Republic of Kazakhstan.
The uranium is virtually all ultimately destined for export as Kazakhstan hasn't had a nuclear power plant since the shutdown of the Soviet built BN-350 reactor in Aktau in 1992. There is some debate regarding future use of nuclear power in Kazakhstan, however.
Development Strategy
In 2018, Kazatomprom adopted a Development Strategy for 2018–2028 based on the principles of sustainable development.
In the wake of the Russo-Ukrainian war, the EU has focused on Kazatomprom for its uranium supplies to replace those from Russia, given the firm is developing its own refinement facilities and new transportation routes avoiding Russian territory.
History
Foundation
Under a decree of Nursultan Nazarbayev, the First President of the Republic of Kazakhstan, Kazatomprom was established in 1997 as the national operator for the import and export of uranium, rare metals, and nuclear fuel for nuclear power plants.
Privatization
After more than 20 years as a National Company owned solely by Kazakhstan's National Wealth Fund, Samruk-Kazyna, Kazatomprom was taken public with an IPO in November 2018 that placed 15% of the company's outstanding shares in free float on the Astana International Exchange (AIX) and on the London Stock Exchange (LSE). With the IPO, Kazatomprom became the first portfolio company of Samruk-Kazyna JSC to have shares offered on the international capital market as part of the Comprehensive Privatization Plan for 2016-2020 announced by the Government of the Republic of Kazakhstan. This program is aimed at generating a free and competitive economy in Kazakhstan, creating and developing national platforms for attracting international capital, stimulating private business initiatives, and creating a favorable business climate. To attain this objective, the stated goal of the Kazakh Government is to reduce the State’s substantial share in gross value added to GDP to 15% in the medium- and long-term, which is better aligned with OECD countries.
After Samruk-Kazyna sold an additional 3.8% of the company's outstanding share capital in September 2019, and another 6.2% sold in June 2020, Samruk-Kazyna JSC remains the majority shareholder holding 75% of the outstanding share capital of Kazatomprom, while 25% are in free circulation and held by minority shareholders from around the world.
Uranium mining
When Kazatomprom was founded in 1997, it was the 13th largest uranium producer in the world and by the early 2000's, the country had set a public objective to become the world's largest uranium producer by 2010. In 2009, production had reached 13,500 tU (~35 million lb U3O8), making Kazakhstan the world's largest producer and achieving its target a year earlier than expected. Kazatomprom, as a National Company with a proportionate share of production from all of Kazakhstan's various uranium operations, became the world's largest single uranium producer in 2010. Production continued to grow, reaching a peak of 24,586 tU (~63.9 million lb U3O8) in 2016.
The global uranium market entered a state of oversupply beginning in 2012, following a drop in demand that resulted from the 2011 Japanese earthquake and tsunami, which crippled the Fukushima Daiichi nuclear plant and led to the suspension of operations at all of Japan's 54 nuclear reactors. In 2017, recognizing the need for the world's largest primary uranium producer to take a leadership role in balancing global supply, Kazatomprom's management began to shift the company's strategy away from a focus on production volume, centering a new strategy on value and aligning production output with market demand.