“The updated strategy is based on the principles of creating long-term value and focusing on uranium production in accordance with market conditions. In particular, the primary emphasis is on increasing uranium reserves, developing the resource base of tantalum, beryllium, and other rare and rare-earth metals, as well as the co-extraction of by-products and rare-earth metals to ensure long-term stability and value for shareholders,” he stated during the ministry of energy meeting.
According to him, in the long term, “Kazatomprom” sees itself as a global leader in the nuclear industry, a transnational vertically integrated company playing a significant role in the uranium and nuclear sectors.
“Taking into account the existing competencies of ‘Kazatomprom,’ particularly in geology and rare metals processing science, we plan to further develop our potential for effective growth in the extraction and processing of rare and rare-earth metals. One of the important directions of ‘Kazatomprom’s’ work is the establishment of a domestic mineral resource base to support the operations of the Ulba Metallurgical Plant in producing tantalum, niobium, and beryllium products,” he noted.
Umerbekov believes that work in this direction will help reduce the production costs of these products, enhance economic efficiency, and create jobs.
“At the same time, we are exploring the possibility and feasibility of co-extracting by-products and rare-earth metals from uranium production products, developing technology for obtaining new products at the UMZ, as well as projects for producing medical radioisotopes from uranium production products,” he said.
A plan of activities for the medical radioisotope project has been approved. The technical specifications for the work are currently under discussion with foreign project participants from the USA and Japan.
The company conducted magnetic surveys at the Upper Irgyz deposit, which showed the area to be unpromising. For the Karadjal deposit, exploration plans are being developed for two areas (blocks No. 3 and No. 5). The company has obtained licenses for the exploration of solid minerals at the Lineyniy and Rodnikoviy sites and is conducting preparatory work for procuring services to develop exploration plans for these areas.
From uranium production products, it is expected to co-extract selenium, rhenium, vanadium, and gold. A mobile installation for obtaining rhenium has already been manufactured, and a corresponding pilot project is underway. Research work on co-extracting vanadium is being conducted, while the work on gold has reached the third stage. A request for research work on the co-extraction of selenium has also been initiated. A technological marathon for spheroidized powders has been held by AKF PIT to determine the execution of the project, which is expected to undergo a financial expertise.
“Kazatomprom” is developing new science-intensive and high-tech products. Funding for these projects will come from the subsidiary and affiliated organizations of “Kazatomprom,” directed to the autonomous cluster fund “Tech Garden Innovation Park” (Almaty) until 2022.
As for new production capacities, “Kazatomprom” plans to launch the Zhalpak processing complex with a capacity of 900 tons of uranium per year (the project is scheduled for implementation from 2022 to 2027), as well as a processing complex with a capacity of 6,000 tons of uranium per year at sites No. 6-7 of the Budenovskoye deposit with auxiliary infrastructure (2023-2027).
In the first nine months of 2024, 6.6 billion tenge were invested in projects compared to 745.4 million tenge for the entire year of 2023. Umerbekov explained that the increase in expenses is associated with the development of new projects (drilling and well construction, as well as other expenses), including in the joint venture “Budenovskoye” and LLP “Mining Enterprise ‘Ortalyk’.”
He also discussed the work of LLP “Ulba-TVS” (51% of JSC “Ulba Metallurgical Plant,” 49% Chinese CGNPC-URC), which produces fuel assemblies (FAs) and supplies them to Chinese nuclear power plants.
“In 2021, we successfully launched production at the ‘Ulba-TVS’ plant for the production of fuel assemblies and successfully delivered nuclear fuel to China’s nuclear power plants. From 2022 to 2024, the ‘Ulba-TVS’ plant successfully met its annual production plans, achieving indicators for phased reaching of design capacity. In 2022 – 50 tons, in 2023 – 100 tons, in 2024 – 200 tons. In 2024, the plant produced over 200 tons of low-enriched uranium in the form of FAs, completing the phased ramp-up to design capacity,” Umerbekov said.
In 2024, “Ulba-TVS” made five deliveries of FAs to China’s nuclear power plants. The plant is expected to operate until 2040.
From January to September 2024, “Kazatomprom” reported a net profit of 449 billion tenge (excluding one-time income from the acquisition of the business of LLP “JV ‘Budenovskoye’” amounting to 296 billion tenge). Revenue for the nine months was 1.139 trillion tenge. “Kazatomprom” paid out 315 billion tenge in dividends in 2024, compared to 201 billion tenge in 2023.