Kazatomprom obtains exploration rights to new block at Budenovskoye deposit with more than 100,000 tonnes of uranium
ASTANA. Nov 18 (Interfax) - Kazatomprom has obtained a license for uranium exploration at the Severnoye block of the Budenovskoye deposit, Kazakhstan's national nuclear corporation said in a press release.
The license was issued for six years with a possible five-year extension.
The Severnoye block is located in the Shu-Sarysu uranium province in the Turkestan region's Suzak district.
"The Severnoye block has high potential due to significant uranium resources. Its favorable geological conditions and proximity to existing infrastructure creates a unique opportunity for successful long-term development. We're confident that this project will become an important stage of development of uranium industry in Kazakhstan and will significantly contribute to creating long-term value," CEO Meirzhan Yussupov is quoted as saying.
Preliminary data show that inferred category P1 and P2 uranium resources are estimated at more than 100,000 tonnes, and indicate significant prospects for detailed exploration. An update of uranium resources data will be aiming to convert these resources into C1 and C2 resource categories, the company said.
"In the context of growing global demand for uranium, this project will be an important contribution to ensuring global energy security and strengthening Kazakhstan's position in the global nuclear energy market. Kazatomprom will continue exploration as part of the program to replenish uranium resources and contribute to the company's growth and the sustainable development of Kazakhstan's economy," the press release says.
Earlier, Kazatomprom obtained a license for uranium exploration at Site No.5 of the Budenovskoye deposit for six years.
The Budenovskoye deposit is part of the Mynkuduk ore district in the Kenes-Budenovsk metallogenic zone and extends south from the Inkai deposit.
In June 2023, Russia's Rosatom, through its subsidiaries Logistical Center YTC and Uranium One Group, acquired a stake in the Stepnogorsk Mining and Chemical Combine, which holds a 49% share in the Budenovskoye JV. Kazatomprom owns the remaining 51%.
Earlier, the Kazakh government decided to transfer stakes in three uranium enterprises to Uranium One Group, a subsidiary of Rosatom's Uranium One division.
The joint venture Budenovskoye began experimental industrial uranium mining at Sites 6 and 7 of the Budenovskoye deposit last year. The mining and sales rights for these areas were granted under a 25-year agreement signed on October 16, 2020.
According to Kazatomprom's operating report for January-June 2024, all production from the Kazakh-Russian Budenovskoye joint venture will be allocated to the Russian nuclear industry until 2027.
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.
