Make Kitco Your Homepage

Top uranium miner Kazatomprom meets 2020 guidance, production drops 19%

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - The world's largest uranium producer Kazatomprom reported Monday that its full-year 2020 uranium production of 10,736 tonnes of uranium (reported as U3O8) was within the guidance despite a 19% production drop over 13,291 tonnes mined in 2019.

The company said that on both a 100% and attributable basis, production volumes for the fourth quarter and for 2020 were significantly lower, related to the expected impact of the pandemic and the company's decreased wellfield development activity and lower staff levels from April through July 2020.

Kazatomprom noted that there is a four- to eight-month lag between the wellfield development phase and production phase of the in-situ recovery mining process and as a result, the safety measures implemented during the first half of 2020 had a more significant production impact in the second half of the year, compared to the first half.

The company added that all of its annual operational and sales results were in line with the company's 2020 guidance.

In 2021, Kazatomprom expects to produce between 22,500 tU and 22,800 tU on a 100% basis, and between 12,550 tU to 12,800 tU on an attributable basis.

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.