ASTANA, Kazakhstan, July 15. The government of Kazakhstan has decided to purchase shares of Kazatomprom (a national uranium company) at the expense of the National Fund (NF) for a total of 467.4 billion tenge (about $970 million) in order to finance the republican budget, Trend reports, citing Kazakhstan's National Bank (NBK).
The National Bank, which manages the funds of the National Fund, as part of the implementation of the government decision, will have to convert foreign currency from the NF into tenge in the amount of about $970 million.
"Considering the unscheduled nature of the operation, the sale of the specified volume in a short period of time can have a significant impact on the balance of the foreign exchange market. In this regard, the National Bank intends to conduct a one-time conversion operation by directly selling the assets of the National Fund into the gold and foreign exchange reserves of the National Bank," NBK noted.
In order to maintain market neutrality and as part of mirroring this operation on the foreign exchange market, the National Bank plans to carry out an even sale of this volume on the foreign exchange market. Thus, from July, the National Bank will begin selling $970 million over 4 months, which is equivalent to $243 million per month.
"This measure is exceptional, designed to neutralize the impact of a one-time conversion transaction on the foreign exchange market. Sales volumes on the foreign exchange market will be published in accordance with the release schedule of statistical information of the National Bank," NBK said.
Meanwhile, Kazakhstan's Kazatomprom Group's uranium production in 2023 amounted to 21,112 tons, which is 1 percent lower than the same period in 2022 (21,227 tons). In the fourth quarter of 2023, production amounted to 5,795 tons. Compared to the fourth quarter of 2022, production volume remained unchanged (5,780 tons).
Sales volume for Kazatomprom Group amounted to 18,069 tons of uranium from January through December 2023, which is 10 percent more than the same period in 2022 (16,358 tons).
In addition, Kazakhstan ranks second in the world in terms of proven natural uranium reserves. The Republic of Kazakhstan's depths contain approximately 14 percent of all proven world reserves. The entire proven reserves of uranium in the country are expected to be more than 700,000 tons.
Kazakhstan surpassed the US in uranium production in 2009 and continues to dominate the global market. Kazakhstan accounts for almost 40 percent of global uranium output.