Kazatomprom JSC

Kazatomprom JSC is a senior uranium producer headquartered in Astana, Kazakhstan, operating primarily in Asia. The company's portfolio consists of 15 projects, comprising 14 operating mines and 1 exploration project, in addition to several early-stage exploration prospects. Key assets include Inkai LLP JV, Karatau LLP, and Sauran LLP. The business model leverages national operator status for preferential access to one of the world's most significant resource bases, utilizing a low-cost and scalable in-situ recovery (ISR) mining method. This approach supports a competitive position as a low-cost producer with industry-leading operational efficiency. The organization is vertically integrated, with assets encompassing the entire product chain from geological exploration and mining to the manufacture of nuclear fuel cycle products and rare metals. A key component of the business model is the creation of value through an enhanced marketing function and expanded sales channels, managed via a Switzerland-based trading subsidiary that engages in long-term, short-term, and spot market contracts. The company actively pursues strategic participation in other stages of the nuclear fuel cycle to diversify long-term revenue streams and mitigate geopolitical risks. This includes the production of high-value-added products like fuel assemblies, which reached full design capacity of 200 tonnes in 2024, demonstrating the capability to manufacture world-class products and strengthen its position in the global energy market.

The updated Development Strategy for 2025–2034 maintains a commitment to the “Value over Volume” principle while adapting to shifts in the nuclear fuel market. Strategic objectives include maintaining focus on the core mining business, with efforts concentrated on replenishing and efficiently using the resource base through new exploration rights. The strategy also calls for expanding presence across the nuclear fuel cycle, considering opportunities supported by economic viability, and developing the rare and rare-earth metals segment under the critical minerals agenda. A key pillar is the continued diversification of sales and further enhancement of the trading function to mitigate risks and strengthen market position. The organization aims to improve and strengthen leading business and ESG practices to ensure and uphold business integrity. This strategic framework is designed to ensure continuous growth amid a transforming industry, optimize current operations, and explore opportunities for strategic partnerships to significantly replenish its resource base in response to growing demand and strengthen its competitive standing.

The corporate governance framework is structured around a Board of Directors comprising 7 members, including 3 independent directors, ensuring a strong independent oversight. The Chairman of the Board is an independent director, further reinforcing the protection of minority shareholder rights. Board oversight is facilitated through 4 specialized committees: Audit; Nomination and Remuneration; Health, Safety, and Environment (HSE); and Strategic Planning and Investment. An annual performance evaluation of the Board is conducted, with the 2024 assessment resulting in a Grade AA rating and a 96.4% efficiency score. The Management Board, as the executive body, is responsible for day-to-day operations and implementing the resolutions of the Board and shareholders. The company has established a clear conflict of interest management policy, requiring employees and directors to report any potential conflicts, which are then subject to a comprehensive review and mitigation process. The Ombudsman Institution functions as an independent mechanism for handling employee appeals related to human rights and ethics, reporting directly to the Board of Directors.

The sustainability approach is guided by a Decarbonisation and Carbon Neutrality Strategy aiming for a 10% reduction in Scope 1 and 2 greenhouse gas emissions by 2030 from a 2021 baseline, and carbon neutrality by 2060. In 2024, the company purchased International Renewable Energy Certificates (I-REC) to offset 20% of its total electricity consumption. Key environmental initiatives include corporate programs for bird protection, a Zero Waste production culture, and an Environmental and Social Research Program (ESRP) to assess operational impacts. The organization implements a comprehensive occupational health and safety management system aligned with ISO 45001 and the Vision Zero concept, with KZT 12.95 billion allocated to safety measures in 2024. On the social front, the company joined the UN Women’s Empowerment Principles (WEPs) initiative in 2024 to advance gender equality. Educational support for local communities is provided through the “Murager” grant program and the “IQANAT” educational camp for children. Human rights are upheld through a dedicated policy and an Ombudsman Institution that addresses employee grievances and promotes ethical conduct.

Major shareholders include Samruk-Kazyna JSC (62.99%) and the Ministry of Finance (12.01%), with a 25% free float of shares and Global Depositary Receipts (GDRs) on the Astana International Exchange and the London Stock Exchange. In 2024, the group's structure evolved with the acquisition of control over JV Budenovskoye LLP, which became a consolidated subsidiary as of January 1, 2024, while the ownership stake remained at 51%. The company also restructured its holdings in Taiqonyr Qyshqyl Zauyty LLP, a sulfuric acid plant project, by selling a 60% stake to a local partner of Ballestra S.p.A., reducing its indirect stake to 40%. Strategic partnerships were advanced through a memorandum with Orano Group, signed in 2024, to cooperate on education and workforce development for the nuclear industry. A strategic agreement was also signed with Siemens in October 2024 for the phased localization of high-tech equipment production. Additionally, an agreement was reached in October 2024 to establish a partnership with Mon-Atom LLC of Mongolia to explore cooperation in the minerals sector.