All output of Kazakh-Russian Budenovskoye JV reserved for Russian civil nuclear industry in 2024-2026

ASTANA. Aug 1 (Interfax) - All output of the Kazakh-Russian Budenovskoye joint venture will be reserved for the Russian nuclear industry in 2024-2026, Kazakhstan's national nuclear company Kazatomprom said.

"All Budenovskoye production volume in the period from 2024 to 2026 is reserved for the supply of raw materials to the Russian civil nuclear power industry on market terms under an offtake contract," Kazatomprom said in a report.

In June 2023, it emerged that Rosatom, through its subsidiaries Logistics Center JSC and Uranium One Group, became a participant in Stepnogorsk Mining and Chemical Combine, which owns a 49% stake in the Budenovskoye enterprise. Kazatomprom owns the remaining 51%. Prior to this, it was reported that the government of Kazakhstan adopted a resolution on the divestment of shares in three uranium enterprises in favor of Uranium One Group, which is part of the Uranium One division of the Rosatom state corporation.

Last year, JV Budenovskoye began pilot industrial uranium mining at sites 6 and 7 of the Budenovskoye deposit, located in the Sozak district of the Turkestan region. The subsoil use right agreement for these sites was concluded on October 16, 2020 for a period of 25 years, until October 16, 2045, the document grants rights to extract and sell uranium.

According to the annual report, in 2023 the company received 180 tonnes of uranium. As of January 1, 2024, the total volume of ore reserves of the deposits is 114,000 tonnes of uranium. The total volume of mineral resources, including reserves, is 119,900 tonnes of uranium.

Uranium One Group JSC is the management company of the Uranium One group, which is under the control of the Rosatom State Corporation. The Uranium One website reports that in Kazakhstan it owns 70% of the JV YuGKhK, which owns the Akdala and South Inkai uranium mines, 50% of the JV Karatau, which owns the uranium mine of the same name, 30% of the JV Khorasan-U, which is developing the Kharasan mine, as well as 50% of the JV Akbastau and 49.98% of the JV Zarechnoye (the Akbastau and Zarechnoye uranium mines, respectively).

The co-owner from the Kazakh side is NC Kazatomprom.

Kazatomprom is the national operator responsible for exporting uranium and its compounds, rare metals, nuclear fuel for power plants, and specialized equipment. Following a recent acquisition of shares by the Finance Ministry using National Fund resources, the current shareholder structure is as follows: the Samruk-Kazyna Fund holds nearly 63% of the shares, the Finance Ministry holds 12%, and the fee float is 25%.