Kazatomprom shareholders approve uranium supplies to China's CNNC Overseas and CNUC

ASTANA. Nov 15 (Interfax) - Shareholders in Kazatomprom voted at extraordinary general meeting in favor of deals to supply uranium to CNNC Overseas Limited and China National Uranium Corporation Limited (CNUC).

Kazakhstan's national nuclear company said in a press release that a spot contract would be concluded for the sale and purchase of natural uranium concentrates between Kazatomprom and CNNC Overseas and a long-term agreement for the sale and purchase of natural uranium concentrates between Kazatomprom and CNUC.

"The transaction will contribute to expanding bilateral cooperation between Kazakhstan and China, ensuring a stable supply of uranium from Kazakhstan to China facilitating zero-carbon transition and further strengthening the role of Kazakhstan as a key player in the global nuclear energy market," the press release says.

Kazatomprom said in the middle of October that it had reached an agreement to supply U3O8 uranium concentrate to CNNC Overseas Limited and CNUC on market terms.

The value of the transaction, combined with previous agreements with CNUC and CNNC Overseas, exceeded 50% of the total balance sheet value of the company's assets.

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 mines uranium, processes rare metals and produces and sells beryllium and tantalum products, exporting all of its output. Kazatomprom reduced uranium production 1% to 21,112 tonnes in 2023.

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