The global uranium market experienced a price uptick following the unexpected suspension of operations at the Inkai joint venture in Kazakhstan, one of the world’s largest uranium producers.
The halt in production, effective January 1, 2025, was triggered by a delay in receiving crucial government approvals.
Canada’s Cameco Corporation, which owns 40 per cent of the joint venture, confirmed the production shutdown after being notified by its partner, Kazatomprom (60 per cent stake), that the in-situ recovery operation failed to secure an extension for submitting updated project documentation to Kazakhstan’s Ministry of Energy.
The suspension reportedly came as a surprise to Cameco, which had anticipated the extension would be granted before the end of 2024.
Tim Gitzel, Cameco CEO, expressed the company’s reaction, stating: “We are disappointed and surprised by this unexpected suspension.
“We will be seeking further clarification on how this transpired, as well as the potential 2025 and 2026 production and financial impacts, including future dividends.”
Kazatomprom, as the majority owner and controlling partner, instructed JV Inkai to halt operations to avoid potential violations of Kazakh legislation.
The company stated that it plans to submit the required documentation to the Ministry of Energy within the next few weeks and expects the situation to be resolved shortly thereafter.
Despite the temporary setback, Kazatomprom reassured stakeholders that it does not anticipate any significant impact on its 2025 production plans.
The company emphasised its commitment to fulfilling existing customer contracts, citing sufficient inventory levels to manage deliveries throughout 2025.
The Inkai operation, with estimated reserves of 104.7 million pounds of uranium, has been a significant contributor to global uranium supply.
In the most recent quarter, production on a 100 per cent basis reached two million pounds, with 5.5 million pounds produced in the first nine months of the year.
These figures show a slight decrease compared to the same periods last year.
Given that Kazakhstan provided 43 per cent of the world’s uranium supply in 2022, any disruption in production could have substantial implications for global uranium markets.
As the situation unfolds, industry observers will be closely monitoring the resolution process and its potential impact on uranium prices and supply chains.
