Kazakhstan plans to cut uranium output

By  Trend

Kazakhstan, which is the biggest uranium producer in the world, plans to decrease uranium production by 8 percent or 2,000 tons in 2017 (about 3 percent of total global output), Kazakh State Wealth Fund Samruk-Kazyna reported on February 27.

The output will be reduced due to weak market conditions triggered mostly by a global oversupply. In 2016 Kazakhstan produced 24,000 tons, or 1.7 percent more compared to 2015.

“The production is expected to rise once market conditions improve,” the report said.

Samruk-Kazyna noted that in response to the production cut plans, uranium prices recovered to above $24 per lb. from of $17.75 per lb. as at end-November 2016, its lowest level since February 2015.

Kazakhstan does not presently possess nuclear power generation capacity and export all the produced uranium, primarily under long-term contracts. China accounts for 56 percent of Kazakhstan’s total uranium export.

Kazakhstan produced 39 percent of the world uranium output in 2015. Canada (22 percent) and Australia (9 percent) follow as second and third biggest uranium producers.