JOHANNESBURG (miningweekly.com) – The share price of Uranium One fell by as much as 19% in Johannesburg on Thursday morning, after reports out of Kazakhstan on Wednesday that some uranium deposits had been sold illegally.

Uranium One traded 13,5% lower at R16 a share on the JSE by 09:40 local time, after touching a low of R15 earlier in the morning.

On Wednesday, the share price closed at R18,50 a share in Johannesburg, after falling by about 30%.

Trading in Uranium One’s shares were halted for most of Wednesday morning in Toronto, after the company’s stock plunged by 29,5%. The decline continued after the halt was lifted later in the afternoon.

Newswire Reuters reported that financial police in Kazakhstan were investigating the sale of a 30% stake in the Kyzylkum joint venture (JV) by State uranium company Kazatamprom. It quoted the country’s security committee as saying that foreign firms had “illegally” bought stakes in uranium deposits, citing the Kyzylkum JV as an example.

However, CEO Jean Nortier told Mining Weekly Online on Wednesday that it was a misunderstanding, explaining that it did own a 30% stake in Kyzylkum, but that it did not acquire it from Kazatomprom.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.