Kazatomprom, The Uranium giant of Kazakhstan, which is owned by the State, said that it will scales back production in 2026, and notes that current demand and supply dynamics do not justify a return to full capacity, even if the prices are firm in the long term.
The company, which is good for more than one fifth of the primary uranium output of the world, said in one Release of August 22 That it expects production by around 10 percent next year compared to earlier goals.
It will reduce its nominal starting level from 32,777 tons of U3O8 to 29,697 tons.
That amounts to a decrease of around 8 million pounds of uranium, or about 5 percent of the worldwide offer. The majority of the reduction comes from adjustments to Kazatomprom’s Budenovskoye joint venture.
“As the world’s largest producer and seller of Natural Uranium, Kazatomprom completely recognizes the crucial role that the company has in supporting the global energy transition,” noted Chief Executive Meirzhan Yussupov.
Kazatomprom said that the current environment is not justified to elevate the production of 100 percent production. The long -term uranium price is currently stable at around US $ 80 per pound, despite the volatility on the spot market.
Instead, the company said it is planning to “practice his Downflex opportunity within the acceptable 20 percent abnormality under the updated 2026 Subsoil usage use.” The actual guidelines for the 2026 output are later released.
The company added that stocks of sulfuric acid, a critical reagent for the in-situ recovery mining method that is used in its activities, is expected to be stable in 2026.
Kazatomprom also pointed to Kazakhstan’s own nuclear energy ambitions. The government has driven plans for three nuclear power plants, each of which requires around 400 tons (1.04 million pounds) uranium.
The updates from the company came as part of his half -yearly results. Kazatomprom reported a decrease of 54 percent in net profit to 263.2 billion Kazakhstani tenge (approximately US $ 489.5 million) in the first six months of 2025, compared to the same period a year earlier. Turnover fell 6 percent to 660.2 billion TenGE due to lower sales volumes.
In August 2024, the company reduced its 2025 uranium output predicting by 12 to 17 percent amid a shortage of sulfuric acid.
The new sour factory is only ready until at least 2026, while higher mineral extraction taxes, which started earlier this year, have been set to increase costs and to carve its traditional competitive advantage. But even if it cuts the starting objectives, Kazatomprom emphasized that it is steeped in large -scale exploration programs in Kazakhstan. The initiatives are aimed at supplementing reserves and protecting the company’s status as the leading global supplier of nuclear fuel.
“Kazatomprom is currently conducting a large -scale exploration in Kazakhstan, which is a top priority for supplementing his source base and maintaining the leading position as a worldwide supplier of nuclear fuel,” said Yussupov.
Potential uranium market deficiency
Although Kazatomprom has seen a decrease in profit, Uranium sector Major Cameco (TSX: CCO, NYSE: CCJ) registered growth in the second quarter of this year and expects a broad increase in demand.
“We believe that supporting government policy, the tangible actions of energy-intensive industries and positive public conversations all point out a global convergence: nuclear energy is a crucial solution for offering clean, constant, safe and reliable power to electrify worldwide economies,” ” wrote president and CEO Tim Gitzel In July.
Given the key role of uranium in clean energy, Focus economy Analysts predict that prices will remain well above 2010 during the decade, with price spread in the US $ 65 to US $ 80 reach.
The World Nuclear Association (WNA) projects that will be the demand of the uranium rises 28 percent by 2030Exciting an increase of 18 percent, powered by growth of emerging markets, artificial intelligence-related electricity needs, approval of modular reactor and ensuring energy breach. Primary uranium production of mines, conversion factories and enrichment installations meets most worldwide reactor question, where secondary range helps in the short term.
“Secondary delivery, however, is expected to play a gradually decreasing role in the world market, which is declining from the current level when delivering 11-14 percent of the Reactor Uranium Requirements to 4-11 percent in 2050,” says the WNA.
Despite the imminent shortage in the uranium sector, Focuseconomics analysts do not anticipate a return on the highlights of 2024, when prices exceed the basic principles in the midst of investor exhibition.
“Dynamics of supply/demand supports higher uranium prices: We predict a structural supply deficit of ~ 20 million pounds in 2025 to grow to ~ 130 million pounds by 2040, or represents 40 percent-45 percent subcutaneous,” the company says. “This vision is supported by increasing the increasing demand for uranium as the global nuclear fleet expands to support the growing power needs in the midst of a lack of meaningful potential supply to come online.”
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Publication of securities: I, Giann Liguid, has no direct investment interest in a company mentioned in this article.
Publication of securities: I, Georgia Williams, has no direct investment interest in a company mentioned in this article.
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