https://www.miningweekly.com

No. 1 uranium miner may enter spot market after Yellow Cake deal

17th March 2021

By: Bloomberg

  

Font size: - +

Kazatomprom, the world’s largest uranium producer, may buy the nuclear fuel in the spot market after a London-listed investment company exercised an option to purchase the metal.

Yellow Cake, which bets on uranium prices, said on Monday that it had exercised a $100-million purchase option with Kazatomprom. Yellow Cake also said it plans to make additional purchases if it sees value opportunities.

“We will evaluate our inventories and it’s possible we will buy material from market” to cover part of our deal obligations, Askar Batyrbayev, chief commercial officer at Kazatomprom, said in interview. The miner’s uranium inventory fell by 21% to 6 761 t last year as production declined, but remained within its target range, it said on Tuesday.

The State-controlled Kazakh miner charged 10% more for its uranium last year as the coronavirus pandemic pushed up prices. Kazatomprom and Canada’s Cameco Corp. have also cut output to reducing the global glut that built up following the 2011 Fukushima disaster in Japan.

The miner doesn’t expect “excess” sales of uranium this year after the deal with Yellow Cake, Batyrbayev said.

Edited by Bloomberg

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION