While there are signs of an uptick in the uranium market, including an increase in long-term contracting interest, a thinning spot market and slightly improved pricing, conditions are not yet conducive to adding additional tonnes to the market.

This is according to Kazakhstan national atomic company Kazatomprom, which is the world’s biggest producer of the uranium fuel.

CEO Galymzhan Pirmatov announced on Friday that Kazatomprom would continue exercising commercial discipline, resulting in 2023 production remaining 20% lower than previously planned subsoil use contract levels.

“The company does not expect to return to full subsoil use contract production levels until a sustained market recovery is evident, supply and demand conditions signal a need for more uranium, and the company's pipeline of mid- to long-term contract negotiations implies that there is a low risk of produced volumes further delaying the recovery,” he said.

The full implementation of this decision would remove up to 5 000 t from anticipated global primary supply in 2023, with uranium production in Kazakhstan remaining similar to the level expected in 2022. Kazatomprom's 2023 production is therefore expected to be between 22 500 and 23 000 t (100% basis).

Meanwhile, Kazatomprom announced that the closure of the transaction with China General Nuclear Power Corporation (CGNPC) for a fuel assembly plant at the Ulba metallurgical plant had been extended to the end of July.

CGNPC provided a guarantee that Ulba's production would be purchased by CGNPC, in exchange for Kazatomprom agreeing to sell a 49% interest in the company's wholly owned subsidiary, Ortalyk, to a subsidiary of CGNPC.

Upon completion of the transaction, Kazatomprom would retain a controlling 51% interest and CGN Mining would acquire a 49% interest in Ortalyk, with each partner purchasing a proportionate share of uranium from the operation.

According to the April sale-and-purchase agreement, a 49% share of the operation was assessed a value of $435-million.