Kazakhstan’s state-owned uranium extraction and nuclear company Kazatomprom has extended its 20% production cut until the end of 2023, as the uranium market is still recovering from a period of oversupply. The full implementation of this decision would reduce the anticipated global primary supply in 2023 by more than 5,500 tU. Kazatomprom's 2023 production should be between 22,000 and 23,000 tU, a 20% reduction of the total expected under the Subsoil Use Contract level (27,500-28,000 tU).
The company produced 19,500 tU in 2020, i.e. 15% less than in 2019. The 20% production cut was initially stated in 2018 for a 3-year period. Kazakhstan has been the world’s largest uranium producer since 2009, with a 42% share of global production in 2019.
In addition, Kazatomprom, which agreed to sell a 49% stake in Ortalyk to a subsidiary of China General Nuclear (CGN) for a total consideration of US$435m in April 2021, expects to complete the transaction by the end of July 2021. Ortalyk owns a 100% interest in the Central Mynkuduk Deposit that has a design capacity and subsoil use agreement in place to produce 2,000 tU/year. The company also fulfilled exploration and trial production at the Zhalpak Deposit, which contains aggregate mineral resources of approximately 39,000 tU (at end-2020).