Rosatom Sells Its Stake in Kazakhstan's Uranium Mines to China

Kazatomprom, the state atomic company of Kazakhstan, announced the exit of the Russian state company Rosatom from several joint projects. It was revealed that Rosatom is selling its shares in at least three uranium extraction mines in Kazakhstan to China. This comes less than three weeks after Vladimir Putin, the President of Russia, referred to Kazakhstan as a 'trusted ally and partner of Russia' during his visit to Astana, calling the implementation of new large projects, including the construction of a nuclear power plant by Rosatom in Kazakhstan, a guarantee for the expansion of bilateral cooperation. In a statement from Kazakhstan's state atomic company, it was mentioned that 'Uranium One,' a Rosatom-owned company responsible for uranium extraction outside Russia, has sold 49.9% of its stake in the 'Zarchenoye' mine to a Chinese company belonging to the 'Nuclear and Uranium Resource Development Company' and is preparing to transfer 30% of its shares in the 'Khorasan-Uranium' mine and 30% of the shares of the 'Kyzylkum' company to the 'China General Nuclear Power Group.' In total, three state companies in China are involved in the development of technology and the construction and management of nuclear power plants. Kazatomprom holds the largest uranium reserves in the world but lacks uranium processing capacity. The company stated that Kazakhstan's share in the transactions between Russia and China has not changed. Recently, Mirjan Yusupov, the CEO of Kazatomprom, told the British publication 'Financial Times' that following sanctions against Russia, Kazakhstan's uranium sales in the international market have faced difficulties. About 29% of Kazakhstan's uranium is exported to Europe. Russian experts interviewed by 'Vedomosti' believe that the sale of some of Rosatom's assets in Kazakhstan has been beneficial for the company. Some also believe that the war against Ukraine and increasing dependence on China have weakened Moscow's position in the international arena, including among its allies in Central Asia, and that Beijing is taking advantage of this situation. Kazakhstan is one of the important countries in uranium extraction globally, and Russia plays a significant role in managing the mines in this country. The 'Zarchenoye' uranium mine, located in southern Kazakhstan, was commissioned in 1977 and is expected to remain operational for another four years. According to official data, approximately 3,500 tons of uranium can currently be extracted from this mine. 'Khorasan-Uranium' has 33,000 tons of uranium and is expected to be operational for another fourteen years. 'Kyzylkum' not only has a uranium extraction mine but also processing facilities, although no further information has been provided in this regard. According to the Russian newspaper 'Vedomosti,' Rosatom also owns 100% of the shares of the 'Mining and Chemical Plant' in the city of Stepnogorsk, 70% of the shares of the 'South Mining and Chemical Company,' and 50% of the shares of the 'Karatau' and 'Akbastau' companies; these assets account for approximately 49% of the 'Budinovskoye' mine, which is one of the largest uranium extraction mines in Kazakhstan. According to Reuters, Russia has stakes in six out of fourteen uranium extraction mines in Kazakhstan and still controls approximately 255,000 tons of uranium in the country's mines. Based on this report, Russia produced 4,831 tons of uranium in Kazakhstan last year and remains one of the six largest uranium producers in the world, holding about 44% of the total uranium enrichment capacity.