Kazatomprom signs major deal to supply uranium concentrate to China's CNNC Overseas, CNUC

ASTANA. Oct 15 (Interfax) - Kazatomprom has concluded a major deal to supply uranium concentrate to two China National Nuclear Corporation (CNNC) entities, namely CNNC Overseas Limited and China National Uranium Corporation Limited (CNUC), the Kazakh nuclear company said.

A Kazatomprom extraordinary general shareholders meeting will vote on the deal on November 15.

"Kazatomprom has reached an agreement with CNNC Overseas Limited and China National Uranium Corporation Limited on the supply of natural uranium concentrates in the form of U3O8 to the said companies on market terms at the time of reaching written agreements between the parties," according to the notice on holding an EGM.

"The value of the transaction submitted for consideration at the meeting, together with previously concluded transactions with CNUC and CNNC Overseas, exceeds 50% of the total book value of the company's assets," Kazatomprom said. Consequently, in accordance with Kazakhstan's legal requirements, this transaction must be submitted for approval at the company's general meeting of shareholders.

CNUC, based in China, and CNNC Overseas, registered in Hong Kong, are both affiliated with the China National Nuclear Corporation (CNNC), a state-owned enterprise involved in all aspects of the nuclear industry, including operating nuclear power plants, developing nuclear energy technologies and producing nuclear fuel.

In November 2023, Kazatomprom and CNUC entered into a long-term contract for uranium supply, though specific terms of that agreement have not been disclosed.

Kazatomprom is engaged in uranium mining, rare metal processing, and the production and sale of beryllium and tantalum products. The company exports 100% of its products. Kazatomprom reduced uranium production 1% to 21,112 tonnes in 2023.

Kazatomprom is controlled by the state. It has a 25% free float.