Rosatom sells stakes in Kazakhstan's uranium projects to Chinese companies
A Russian government entity has exited a uranium initiative in Kazakhstan and will transfer its shareholding to Chinese atomic energy firms.
Uranium One (a division of Rosatom State Corporation, which manages foreign uranium extraction holdings) divested 49.99% of its equity in the Zarechnoye collaborative project at the uranium site bearing the same name in Kazakhstan, located in the Turkestan province.
The purchaser was SNURDC Astana Mining Company, under the ownership of China's State Nuclear Uranium Resources Development, a branch of State Nuclear Power Technology (one of China's nationally owned nuclear power generator operators). Drawing from Rosatom's 2021 disposal of American holdings (shares in Uranium One Americas, encompassing seven uranium endeavors), the Russian contingent might have gained 130 million rubles for facilities exhibiting similar yearly output.
Nevertheless, the value of raw uranium has since tripled, implying the uranium assets could have amounted to 400 million USD for Beijing.
It is furthermore anticipated that Uranium One will relinquish its interest in two additional initiatives in Kazakhstan: 30% of the registered capital of Khorasan-U JV LLP and 30% of Kyzylkum LLP.
The acquirer will be China Uranium Development Company: the ultimate beneficiary is the state-run entity China General Nuclear Power Corporation (CGN).
The Khorasan-U joint undertaking extracts uranium at the Khorasan-1 zone of the North Khorasan deposit in the Kyzylorda region. Reserves as of January 2024 totaled 33,000 tonnes.
Kazatomprom and Uranium One maintain several further joint operations. These encompass the 50/50 Karatau joint venture, which develops Block 2 of the Budenovskoye deposit, and the Akbastau joint venture, which develops Blocks 1, 3, and 4 of the Budenovskoye deposit.
Uranium One's arrangements concern organizations regulated by CGN and State Power Investment Corporation (SPIC). These institutions hold the No. 2 and No. 3 positions in China's nuclear hierarchy.
Activities pertaining to the creation of the atomic cycle are focused within the No. 1 corporation – China National Nuclear Corporation (CNNC).
Separately, analysts underscore the limited worth of Rosatom’s stake in Zarechny.
The Khorasan-1 locale also proved less abundant. Plans are in place for supplementary prospecting. However, the Russian faction will not invest in this endeavor, due to the presence of more advantageous zones: the Budenovskoye site.
It’s noteworthy to remember that a few weeks prior, international benchmarks for natural uranium hit their nadir since mid-November 2023, and since January 2024, the commodity has diminished in value by 17%.
And presently the cost of a pound of uranium mirrors the price bracket preceding the incident (March 2011) at the Fukushima atomic power station.
