Kazakhstan Reaches Record Uranium Production, Pushes Diversification Strategy

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The global leader in uranium production, Kazakhstan, increased output of mined uranium 9% in 2011, producing a total of 19,450 tons. This output represents about 35% of global supply and is more than twice the amount produced in 2010 by Canada, the world's second-largest producer.

The policy of diversifying into value-added nuclear fuel products is being pursued energetically. For additional information, see April 20, 2011, article - Kazakhstan Mulls 20,000 Ton Uranium Production Target and Nuclear Future.

The uranium solution processing capacity at Budyonovskoye 2 will increase to 3,000 tons of uranium annually, and the plant will handle output from two other mines. In 2013, additional processing capacity will be added at Buyonovskoye 3, where the construction of new mining facilities is under way. Construction of administration buildings and living quarters has been started at Kharassan 2. In 2013, the uranium sector should have domestic supplies for all the sulfuric acid required for leaching uranium from shallow deposits.

State-controlled KazAtomProm (KAP) (Astana, Kazakhstan) is pursuing strategic goals at the front end of the nuclear fuel cycle. This covers the supply chain from the basic sourcing of uranium to the loading of the manufactured nuclear fuel assemblies into a reactor.

KAP is discussing the joint establishment of a uranium enrichment plant with Russia's Techsnabexport (Tenex) (Moscow), the world's largest supplier of uranium products. The plant would be sited at Angarsk in Russia. KAP is working with Areva (EPA:AREVA) (Paris, France) on a fuel fabrication line with an annual capacity of 400 tons at Ulba, as well as the possible provision of integrated front-end products.

A project to set up a uranium conversion plant with Cameco Corporation (NYSE:CCJ) (Saskatoon, Saskatchewan), which was under consideration, has been put on hold according to World Nuclear News.

KAP signed a strategic cooperation deal in September 2011 with China National Nuclear Corporation (CNNC) to supply ceramic uranium oxide fuel pellets. A pilot batch has been made and delivered. In December 2011, an agreement was signed with China Guangdong Nuclear Power Corporation covering the long term supply of fuel pellets.

Japanese companies and utilities are involved in a broad range of nuclear and mineral-based supply activities with Kazakhstan.

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