Webb reported that Kazakhstan’s uranium major, Kazatomprom, on Tuesday (April 7, 2020) announced that its uranium production volumes would decrease by about 4 000 t, owing to measures imposed to combat Covid-19. The previous guidance for 2020 was 22 750 tons (aka 45.5 million pounds U3O8) to 22 800 tons (aka 45.6 million pound U3O8), on a 100% basis to circa 18,800 tons (aka 37.6 million pounds U3O8). The reduced production level should not impact on Kazatomprom’s 2020 sales obligations, CEO Galymzhan Pirmatov said, noting that its full contractual requirements to the nuclear industry would be met.
“Measures imposed by the government of Kazakhstan, including restrictions on the movement of people and strict hygiene directives, are now covering all regions where Kazatomprom operates and have been enforced at all of our sites and offices,” he said. In order to abide by local lockdown requirements and reduce the risk of a localized outbreak, all Kazatomprom’s subsidiaries are reducing the number of staff on site to minimum possible levels. All nonessential staff will return home with full pay, while those remaining on site will operate within strict physical distancing and hygiene practices.
“We are now working with our joint venture partners on assessing the full impact and detailed implementation of this decision across all of Kazakhstan's uranium mines, and we appreciate their support during these challenging times.” These measures are expected to remain in place for three months, resulting in a lower level of well-field development activity and, as a consequence, a reduction in production volumes.
Kazatomprom would provide an updated 2020 guidance for attributable production, revenue, capital expenditure and costs on May 4.
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