BAKU, Azerbaijan, Feb. 1
By Nargiz Sadikhova - Trend:
Kazakhstan’s Kazatomprom National Atomic Company is working with China General Nuclear Power Corporation and its subsidiaries (CGNPC) to construct a fuel assembly division (Ulba-FA) at the Ulba Metallurgical Plant in the East Kazakhstan Region, Trend reports citing Kazatomprom.
In accordance with the agreements, CGNPC committed to procure 200 tonnes of uranium metal content equivalent (UME) in the form of fuel assemblies 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, 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 (underway),” the company said.
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, the first five-year contract for the procurement of fuel assemblies was signed between Ulba-FA LLP and CGNPC Uranium Resources Company Limited in December 2020, subject to approval by appropriate competent authorities. The subsequent transfer of a 49 percent interest in Ortalyk LLP to CGNPC or its affiliates is expected to be completed by 30 June 2021 (subject to corporate and governmental approvals),” the company said.
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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