‘We’re excited to witness start of long-awaited historical shift in uranium market’
Kazakhstan’s state uranium company Kazatomprom, which for the last few years has restricted its own output in order to stabilise prices, will end such cuts in 2025 and thus significantly increase production.
“Kazatomprom remains committed to its market-centric strategy and its disciplined approach to production and sales, and we’re excited to witness the start of a long-awaited historical shift in the uranium market,” Dastan Kosherbayev, chief commercial officer of Kazatomprom, said in a statement.
“As we are seeing a clear sign that the industry has entered into the new long-term contracting cycle, driven by the recognition of the restocking needs, Kazatomprom, with its best-class and lowest cost mines, is absolutely prepared to respond to these improving market conditions.”
For seven years including 2023, the company has produced 20% less than its contracts with the Kazakh government allowed, with this year's output seen at 20,500-21,500 tonnes.
In 2022, Kazatomprom said it would stick to its plan to produce 10% below the contract maximum, or 25,000-25,500 tonnes, while with no restrictions in 2025, production is expected to grow to 30,500-31,500 tonnes, the company said.
“Our intention to return to a 100% level of Subsoil Use Contracts production volumes in 2025 is primarily driven by our strong contract-book and already growing sales portfolio against conservative 2023-2024 production scenario,” Kosherbayev said.
The spot price of uranium has more than doubled over the past three years, although it is still well down from a peak of $140/lb in 2007.
Market consultant TradeTech said the spot price has hit $65.50/lb U3O8 – the highest level in more than 12 years – as tight near-term supplies lead sellers to increase offer prices.
Investment company Sprott said the nuclear sector has been boosted by a steady flow of good news, including new-build announcements in China, the start of commercial operation at Vogtle-3 in the US and planned reactor restarts in Japan. South Korea, Canada and the UK are all planning major nuclear investments, Sprott said.
