Cameo and UUU in KazakhstanWorld Nuclear Association March 2009 Uranium and Nuclear Power in Kazakhstan
- Kazakhstan has 15% of the world's uranium resources and an expanding mining sector, aiming for 15,000 tU annual production by 2010 and 30,000 tonnes by 2018.
- Its nuclear power reactor operated from 1972 to 1999, generating electricity and for desalination.
- Kazakhstan has a major plant making nuclear fuel pellets and aims eventually to sell value-added fuel rather than just uranium. It aims to supply 30% of the world fuel fabrication market by 2015.
- The government is committed to increased uranium exports, notably to Russia, and is considering future options for nuclear power.
Kazakhstan has been an important source of uranium for more than fifty years. Over 2001-2006 production rose from 2000 to 5279 tonnes U per year, and further mine development is under way with a view to annual production of 18,000 tU/yr by 2010 and 30,000 tU by 2018.
It has no national electricity grid, but a northern grid links to Russia and a southern one links to Kyrgystan and Uzbekistan. Electricity consumption is 48 TWh/yr, from 17 GWe of plant, mostly fossil fuel fired and now privatised.
Kazatomprom is the national atomic company set up in 1997 and owned by the government. It controls all uranium exploration and mining as well as other nuclear-related activities, including imports and exports of nuclear materials. It announced in 2008 that it aims to supply 30% of the world uranium by 2015, and through joint ventures: 12% of uranium conversion market, 6% of enrichment, and 30% of the fuel fabrication market by then.
Recent international collaboration
Kazatomprom has forged major strategic links with Russia, Japan and China, as well as taking a significant share in the international nuclear company Westinghouse. Canadian and French companies are involved with uranium mining and other aspects of the fuel cycle.
In June 2008 Cameco and Kazatomprom announced the formation of a new company - Ulba Conversion LLP - to build a 12,000 t/yr uranium hexafluoride conversion plant at the Ulba Metallurgical Plant in Ust-Kamenogorsk. Cameco will provide the technology and hold 49% of the project. A feasibility study is due to be completed mid 2009
The ISL mines and projects in the two central southern provinces are in four groups, as set out below. Production costs from these are understood to be low. Uranium One in September 2007 was quoting "cash cost" figures of $8.00 to $10.50/lb for three mines it is involved with. A further feature of Kazakh uranium mining is that Kazatomprom plans to establish new mines in three years, compared with twice this time or more in the West, due to regulatory hurdles.
ISL uranium production in Kazakhstan requires large quantities of sulfuric acid*, due to relatively high levels of carbonate in the orebodies. A fire at a sulfuric acid production plant in 2007 led to shortages, and due to the delayed start-up of a new plant, rationing continued until mid 2008. Extra supplies were sought from Uzbekistan and Russia. KazAtomProm expected the supply situation to be improved by the end of 2007 but uranium production well into 2008 was affected. Uranium One revised its 2008 production downwards by 1080 tU, which it said was "primarily due to the acid shortage" for its South Inkai and Kharasan projects (70% and 30% owned respectively) which were just starting up. Cameco reported that production at Inkai would remain depressed until 2010 due to acid shortage.
* 70-80 kg acid/kgU (comprising 15-20% of the operating expense), compared with Beverley in Australia at around 3 kg/kgU.
A new 1.2 million t/yr Canadian acid plant feeding from the Kazakhmys copper smelter in Balkhash started production at the end of June 2008, financed by an EBRD loan to abate sulfur dioxide emissions from copper smelting. A 360,000 t/yr acid plant at the Stepnogorsk Mining and Chemical Combine started in 2006.
Another new acid plant, of 500,000 t/yr capacity, is planned at Zhanakorgan, next to the Kharasan mines in the Western (#6) mining group region, to serve those mines from 2011. It will burn 170,000 t/yr of solid sulfur derived from oil and gas production by Tengizhevroil in western Kazakhstan. Uranium One is participating in a joint venture with Kazatomprom and others to build this US$ 200 million project and expects to have a 19% interest.
Uranium One is participating in a joint venture to build a US$ 100 million acid plant near Kharasan, expected to come on line in 2009. The company has a 19% interest. It is not clear whether this is the same project as Zhanakorgan.
Inkai: Early in 2004 it was announced that the Inkai Joint Venture (JVI) would develop the Inkai mine in this part of the Chu-Sarysu basin. JVI was set up in 1995 and now Cameco holds 60% with Kazatomprom. Following a 2-year feasibility study JVI is investing US$ 38 million in an ISL operation due to start commercial production in 2008 and ramp up to 2000 tU/yr in 2010. Total cost of the JVI development is projected as US$ 200 million. Cameco reports 52,000 tU3O8 proven and probable reserves plus 6450 t indicated and 122,000 t inferred resources (Dec 2006). A feasibility study completed in 2008 would double the production from JVI, with the increment being split 50-50, but no schedule for this is set.
In September 2005 UrAsia Energy Ltd of Canada agreed to pay US$ 350 million for 70% of the Betpak Dala joint venture which owns the South Inkai project and the Akdala mine. South Inkai has inferred resources of 24,000 tU, Akdala has proven & probable reserves of 9500 tU and 16,000 tU indicated & inferred resources. The company (UrAsia) is now Uranium One Inc.