https://www.engineeringnews.co.za

Cameco, Kazatomprom restructure JV Inkai

11th December 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Canadian uranium producer Cameco and the National Atomic Company of the Republic of Kazakhstan (Kazatomprom) have agreed to restructure their joint venture over the Inkai in situ recovery uranium mine, in south Kazakhstan.

Kazatomprom CEO Galymzhan Pirmatov and Cameco president and CEO Tim Gitzel have signed the formal documents at a ceremony in London. These documents are required to complete the restructuring as outlined in the May 2016 implementation accord between Kazatomprom, Cameco and Inkai.

Accordingly, Kazatomprom’s share in Inkai will increase from 40% to 60% and it will gain operational control of the mine starting from January 1, 2018. Under the framework of the implementation agreement, Inkai extended its subsoil use contract until 2045.

“I am confident that the agreement between our companies will give new impetus to Kazakh-Canadian cooperation in the nuclear sphere. Increasing our participation share in Inkai will allow us to further develop this key asset together,” Pirmatov said in a statement on Monday.

“Implementation of this agreement will secure Cameco’s access to a tier-one production source through 2045 and strengthens our partnership with Kazatomprom,” Gitzel added in a joint news release.

The new agreement replaces the memorandum of agreement signed by Cameco and Kazatomprom in September 2012 and, provides for:

• the JV Inkai to have the right to produce 10.4-million pounds of uranium oxide a year (Cameco's share will be 4.2-million pounds), an increase from the current 5.2-million pounds (Cameco's share is 3-million pounds);
• JV Inkai will have the right to produce from blocks 1, 2 and 3 until 2045 (currently, the lease terms are to 2024 for Block 1 and to 2030 for blocks 2 and 3);
• subject to further adjustments tied to the refinery as described below, Cameco's ownership interest in JV Inkai will be adjusted to 40%, and Kazatomprom's ownership interest in JV Inkai will be adjusted to 60%;
• a governance framework that provides protection for Cameco as a minority owner;
• the current boundaries of blocks 1, 2 and 3 will be adjusted to match the agreed production profile for JV Inkai to 2045, and
• the loan made by a Cameco subsidiary to JV Inkai to fund exploration and evaluation of Block 3 (currently $160-million) will be restructured to provide for priority repayment.

Large producers such as Cameco have shuttered several mines in the wake of falling prices, and Kazatomprom has already announced production paring three times this year. The outlook for uranium remains unclear.

Both Kazatomprom and Cameco are operating at reduced capacity in response to a lacklustre uranium market. Cameco currently relies almost exclusively on Cigar Lake, Saskatchewan mine and the Inkai mine to produce significant volumes. Major producer Areva also announced production cuts in Niger.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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







sq:0.074 0.123s - 156pq - 2rq
Subscribe Now