Cameco seeks clarification on Kazakh mine suspension
Cameco Corp. [CCO-TSX, CCJ-NYSE] is reporting that output has been suspended at the Kazakh Uranium joint venture mine in the Republic of Kazakhstan.
Inkai is owned 40% by Cameco and 60% by Kazatomprom, which is majority owned by the Kazkh government. Production in the third quarter of 2024 on a 100% basis was 2.0 million pounds for the quarter and 5.5 million pounds for the first nine months of the year, compared to 2.0 million pounds and 6.3 million pounds respectively in the same periods last year.
In a press release Thursday, Cameco said it has been informed by partner Kazatomprom, and Joint Venture Inkai that as of January 1, 2025, Inkai has suspended production activity.
“On December 31, 2024, JV Inkai formally notified us that it had not received an extension of the timeline to submit its updated Project for Uranium Deposit Development documentation, an extension that was expected prior to 2024 year end,’’ Cameco said. “We were informed by Kazatomprom that the extension was not received as expected due to the delayed submission of the necessary documentation to the Ministry of Energy,” the company said. “As majority owner and controlling partner of the joint venture, on December 30, 2024, Kazatomprom directed JV Inkai to plan for a halt of operations as of January 1, 2025, to avoid potential violation of Kazakhstan legislation.’’
Cameco went on to say in a press release that based on the information it had been receiving from JV Inkai and Kazatomprom, a process to address the update of the Project Documentation was underway and a positive outcome was expected. “Reports received by Cameco as recently as December 26, 2024, made no mention of a production suspension being a risk in relation to this process.’’
“We are disappointed and surprised by this unexpected suspension and we will be seeking further clarification on how this transpired, as well as the potential 2025 and 2026 production and financial impacts (including on future dividends), and what Cameco can do to help Kazatomprom and JV Inkai restart mining operations,” Cameco said.
Cameco shares edged up 0.87% or 65 cents to $74.56 and trade in a 52-week range of $88.18 and $48.71.
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean air world. The company’s competitive position is based on its controlling ownership of the world’s largest high-grade uranium reserves and low/cost operations.
The company has interests in tier-one mining and milling operations that have licensed capacity to produce more than 30 million pounds (its share) of uranium concentrates annually, backed by more than 469 million pounds of proven and probable mineral reserves.
The company’s assets in the Athabasca Basin in northern Saskatchewan include two of the highest-grade mines in the world – Cigar Lake and McArthur River/Key Lake. Cameco also has interests operations located in Kazakhstan and the United States.