The world’s largest producer of uranium, Kazatomprom, has updated it’s production guidance from 25,300 tU to 21,750 tU for 2024, a decrease of over 14%. Also, production volume for the majority of its uranium mining operations will be approximately 20% below the levels stipulated in the Subsoil Use Agreements.
There are also warnings that production plans for 2025 are at risk, with any adjustments “expected to be announced in the report of the Company’s financial results for the first half of 2024. However, a swift return to a 100% production volume level relative to Subsoil Use Agreements may be at risk.”
The company warned the anticipated revisions to it’s production plan are due primarily to the availability of sulphuric acid, a crucial component in the ISR uranium mining method used by Kazatomprom.
Kazatomprom is the world’s largest supplier of uranium in the world, 75% state-owned by Kazakhstan which produced 43% of global uranium supply, followed by Canada (15%) and Namibia (11%).
“Kazatomprom’s 2024 uranium production volumes are expected to be in the range of 21,000 – 22,500 tonnes on a 100% basis and in the range of 10,900 – 11,900 tonnes on an attributable basis. Adjustments to the previously announced production intentions are due to challenges related to the availability of sulphuric acid and construction delays at the newly developed deposits, as highlighted in the Company’s announcement on 12 January 2024. The Company anticipates that the production volume for the majority of its uranium mining operations will be approximately 20% below the levels stipulated in the Subsoil Use Agreements”— Kazatomprom 4Q23 Operations and Trading Update
Our report on how uranium is at the start of a 10-year bull market, with the uranium market positively impacted by a large net increase in global nuclear reactors, which require uranium as fuel.