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Top uranium miner Kazatomprom sells 49% interest in two mines to China’s CGN

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Image credit: Kazatomprom.

(Kitco News) - The world’s largest uranium producer Kazatomprom and China’s CGN Mining announced today that Kazatomprom will sell to CGN up to a 49% interest in its wholly owned subsidiary, Ortalyk, on market terms determined by a third-party valuation.

Ortalyk owns 100% interest in the Mynkuduk and Zhalpak uranium deposits in Kazakhstan. Mynkuduk has a designed capacity of 2,000 tons of uranium per year and has reached the designed capacity. Zhalpak has a designed capacity of 750 tons of uranium per year and is on the trial production phase.

Upon completing the sale of an interest in Ortalyk, Kazatomprom will retain a 51% interest and CGN will acquire a 49% interest, with each partner purchasing a proportionate share of uranium production from the operation according to interest.

The deal is expected to be completed by 30 June 2021.

CGN is the listed platform of nuclear fuel sector in CGN Group, which is the world’s third largest and China’s largest nuclear power group.

Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 24% of global primary uranium production in 2019. The group benefits from the largest reserve base in the industry and operates, through its subsidiaries, joint ventures and associates, 26 deposits grouped into 14 mining assets, all located in Kazakhstan.

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