BAKU, Azerbaijan, Dec. 29
By Nargiz Sadikhova - Trend:
Kazakhstan’s Kazatomprom National Atomic Company JSC postponed the first delivery of finished, certified fuel assemblies to the China General Nuclear Power Corporation (CGNPC) to 2022, Trend reports citing the Kazatomprom.
The supplies were planned within the agreements for expanding cooperation in the nuclear industry with CGNPC and its subsidiaries, CGNPC Uranium Resources Company Limited (CGNPC-URC) and CGN Mining Company Limited (CGN Mining).
Pursuant to the agreements, the parties created a joint venture, Ulba-FA LLP, for the construction of a fuel assembly plant with an annual nameplate capacity of 200 tons of uranium metal content equivalent in the form of fuel assemblies (UME), located at the Ulba Metallurgical Plant in the East Kazakhstan Region.
In accordance with the agreements, CGNPC-URC committed to procuring 200 tons of UME annually from the Ulba-FA plant within 20 years (4,000 tons UME in total).
The Company and CGNPC agreed that subject to Ulba-FA receiving the first fuel assembly contract from CGNPC-URC, the Company would sell to CGNPC or its affiliates up to a 49 percent interest in its wholly-owned subsidiary, Ortalyk LLP, on market terms determined by a third-party valuation (which is underway).
Despite COVID-19-related delays in the final commissioning stages of the Ulba-FA plant, work has resumed, with commissioning and required licensing being completed in 2020.
Under the current ramp-up and product qualification plan, and assuming no further delays, the first production from the Ulba-FA plant is expected near the end of 2021, with the first delivery of finished, certified fuel assemblies to the customer in 2022.
With respect to the purchase commitment from CGNPC-URC, the first five-year contract for the procurement of fuel assemblies was signed between Ulba-FA LLP and CGNPC-URC in December 2020, subject to approval by appropriate competent authorities.
The subsequent transfer of a 49 percent interest in Ortalyk LLP to CGNPC is expected to be completed by 30 June 2021 (subject to corporate and governmental approvals).
Upon completing the sale of an interest in Ortalyk LLP, Kazatomprom will retain a 51 percent interest and CGNPC or its affiliates will acquire a 49 percent interest, with each partner purchasing a proportionate share of uranium production from the operation according to interest.
Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23 percent of global primary uranium production in 2018.
The company benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs, and Associates, 26 deposits grouped into 13 mining assets. All of the company’s mining operations are located in Kazakhstan.
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