Kazatomprom is the largest global producer of natural uranium with priority access to one of the world’s largest high-quality resource bases in the industry. Kazatomprom is the national operator of the Republic of Kazakhstan for import and export of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special purpose equipment and technologies. The Company develops uranium deposits and their value chain components in accordance with principles of responsible and sustainable development, creating long-term value for all of its stakeholders.
Combining in its arsenal the cost-effective technologies of in-situ leach recovery and a long-term reserve base, Kazatomprom remains one of the most advanced and low-cost uranium mining enterprises in the world.
The Company operates in the following areas:
Geological exploration
Natural uranium mining
The production of uranium products:
natural uranium concentrate and ceramic-grade uranium dioxide powders and fuel pellets
The production of beryllium, tantalum, and niobium products
Research and development, human resource development, and nuclear workforce training
Description of main products
Uranium products The production of uranium and the processing and sale of uranium products
Beryllium products Production based on beryllium and its alloys, the sale of beryllium products, and research and development
Tantalum products The production and sale of tantalum products and research and development
Power resources The production and sale of electric power and heat
Other operations The production and sale of other products, providing services related to primary production

Kazatomprom is the largest global producer of natural uranium, and has priority access to one of the world’s largest uranium resource bases. According to UxC data, the Company’s 2019 uranium production represented approximately 24% of global primary uranium production. As a country, Kazakhstan’s total production volume represented 42% of primary uranium supply

In 2019 the Company and its partners operated 13 mining assets with 26 deposits/areas located in Kazakhstan, mined using the ISR mining method, including:

At 31 December 2019, the Group’s attributable Proved and Probable Ore Reserves totalled 292.7 thousand tonnes of Uranium Metal Content Equivalent (“UME”). Attributable Measured and Indicated Mineral Resources (inclusive of those Mineral Resources modified to produce the Ore Reserves) totalled 462.4 thousand tonnes of UME. Each category is reported in accordance with the terms and definitions of the Joint Ore Reserves Committee (JORC) Code.
2 In this Report the Group refers to NAC Kazatomprom JSC (Kazatomprom, or the Company) and its consolidated subsidiaries, i.e. companies that the Group controls by having (i) the power to direct their relevant activities that significantly affect their returns, (ii) exposure, or rights, to variable returns from its involvement with these entities, and (iii) the ability to use its power over these entities to affect the amount of the Group’s returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether the Group has power over another entity.
The Group, joint ventures (JV), and associated companies are referred to as the Holding.
Main assets
  • subsoil use contracts that grant Group subsidiaries mining rights in relation to 19 uranium deposits located in the Shu-Sarysu and Syrdariya regions of Kazakhstan, containing as of 31 December 2019 proven and probable ore reserves of 370,700 tonnes of UME, as well as measured and estimated mineral resources of 509,800 tonnes of UME;
  • subsoil use contracts that grant joint ventures and Group associates mining rights in relation to seven uranium deposits in the Shu-Sarysu, Syrdariya, and North Kazakhstan Regions, containing as of 31 December 2019 proven and probable ore reserves (registered on a 100% basis) of 127,700 tonnes of UME and total mineral resources (including measured, estimated, and pre-estimated mineral resources) of 206,400 tonnes of UME;
  • Ulba Metallurgical Plant JSC, a uranium products and rare-earth metals production facility, with a capacity of 3,728 tonnes of U3O8 , 317 tonnes of UO2 powder made from UF6 , 155 tonnes of UO2 powder made from scrap, and 108 tonnes of fuel pellets, as well as 1,626.9 tonnes, 141.9 tonnes, and 25.2 tonnes of products from the rare-earth metals beryllium, tantalum, and niobium, respectively;
  • the uranium trading subsidiary Trade House Kazakatom AG (THK), located in Zug, Switzerland;
  • ancillary enterprises:
    – two sulphuric acid production plants, with a total annual production capacity of 680,000 tonnes;
    – Volkovgeologia JSC (a company that carries out geological work and technological drilling) and a transport and logistics company serving production assets.
The following table lists the Group’s subsidiaries, joint ventures, joint operations, and associates as at 31 December 2019. In all cases the share is equal to the Group’s voting rights, with the exception of Ulba Metallurgical Plant JSC and Volkovgeologia JSC, in which the Group has 100% voting rights.
Subsidiaries, joint ventures, joint operations, and associates of the Holding, 31 December 2019
Treatment Name Share (%)
Uranium mining and processing
Ortalyk LLP 100.00
 Kazatomprom-SaUran LLP(1) 100.00
RU-6 LLP (1) 100.00
Appak LLP 65.00
JV Inkai LLP (2) 60.00
Baiken-U LLP (4) (5) 52.50
JV Khorassan-U LLP (4) 50.00
Joint ventures JV Budenovskoye LLP 51.00
  Semizbai-U LLP 51.00
Joint operations JV Akbastau JSC (3) 50.00
  Karatau LLP (3) 50.00
  Energy Asia (BVI) Limited (4) (5) (6) 50.00
Associates JV Katco LLP 49.00
  JV South Mining Chemical Company LLP 30.00
  JV Zarechnoye JSC 49.98
  Kyzylkum LLP (5) 50.00
            Zhanakorgan-Tranzit LLP (7) 60.00
Nuclear fuel cycle and metallurgy
Subsidiaries Ulba Metallurgical Plant JSC 90.18
        ULBA-CHINA Co Ltd (7) 100.00
        Mashzavod LLP (7) 100.00
        Ulba-FA LLP (7) 51.00
Nuclear fuel cycle
Joint ventures Uranium Enrichment Centre JSC 50.00
        Ural Electrochemical Integrated Plant JSC (7) 25.00
  JV UKR ТVS Closed Joint-Stock Company 33.33
Investments International Uranium Enrichment Centre JSC 10.00
Ancillary operations
Subsidiaries High Technology Institute LLP 100.00
  Kazakatom TH AG or THK 100.00
  KAP-Technology JSC 100.00
  Trading and Transportation Company LLP 99.99
  Volkovgeologia JSC 90.00
        Rusburmash-Kazakhstan LLP (7) 49.00
  Korgan-KAP LLP 100.00
Joint ventures SKZ-U LLP 49.00
  Uranenergo LLP 77.52
        Shieli-Energoservice LLP (7) 99.17
        Taukent-Energoservice LLP (7) 99.95
        Uranenergo-PUL LLP (7) 100.00
Associates JV SKZ Kazatomprom LLP 9.89
1 The Company transferred its rights and obligations under the subsoil use licenses relating to Kanzhugan, Southern Moinkum, Eastern Mynkuduk and Uvanas deposits, along with the associated production assets to Kazatomprom-SaUran LLP and its rights and obligations under the subsoil use licenses relating to the Southern and Northern Karamurun deposits, to RU-6 LLP, in November 2018.
2 The Company increased its interest in JV Inkai LLP from 40% to 60%, and accordingly, started fully consolidating this entity in its financial statements effective 1 January 2018.
3 JV Akbastau JSC and Karatau LLP were classified as JOs, effective 1 January 2018.
4 In December 2018, the Company completed the acquisition of 40.05% shares in EAL and a 16.02% stake in the issued capital of JV Khorasan-U LLP from Energy Asia Holdings (BVI) Limited. As a result of these transactions, the Company increased its interests in Baiken-U LLP from 5% to 52.5% (direct ownership 5%, indirect ownership through Energy Asia (BVI) Limited 47.5%), its interest in JV Kyzylkum LLP from 30% to 50% (direct ownership 30%, indirect ownership through Energy Asia (BVI) Limited 20.0%), in JV Khorasan-U from 33.98% to 50% (direct ownership).
5 The Company holds 50% (direct ownership) in Energy Asia (BVI) Limited. Energy Asia (BVI) Limited holds 40% (direct ownership) in Kyzylkum LLP and 95% (direct ownership) in Baiken-U LLP.
6 In December 2019, PSIL was liquidated and its share in Energy Asia (BVI) Limited in the amount of 9.95% (direct ownership) was transferred to the Company. As a result, the Company's share in Energy Asia (BVI) Limited (direct ownership) increased to 50%.
7 These companies are 3rd level entities for the Company through the interests in subsidiaries, JVs and Associates presented above these companies in the table. The corresponding interests belongs to the 2nd tier entities, not the Company.
Assets for sale or subject to restructuring



Share (%)

Alternative energy sources


Kazakhstan Solar Silicon LLP (9)


MK KazSilicon LLP (9)


Astana Solar LLP (9)


     Uranenergo-PUL LLP (7) (11)


     Shieli-Energoservice LLP (7) (12)


     Taukent-Energoservice LLP (7) (12)


Auxiliary operations


Caustic JSC (10)


Nuclear fuel cycle

Joint venture

Uranium Enrichment Centre JSC (8)


8 In December 2019, Kazatomprom entered a contract, subject to conditions, to sell its 50% interest (minus one (1) share) in the Uranium Enrichment Centre JSC (UEC) to its partner in the JV, TVEL Fuel Company (TVEL), for RUB 6.253 billion (approximately USD100 million). The value of Kazatomprom's interest in UEC is based on an independent fair market valuation carried out by KPMG Tax and Advisory LLC. Kazatomprom is planning to retain one (1) share in UEC, which will preserve the Company's rights to access uranium enrichment services under the conditions previously agreed upon with TVEL. On 17 March 2020, Kazatomprom completed the sale of its stake (50% interest (minus one (1) share) in UEC.
9 In accordance with the privatisation plan of non-core assets as presented in Kazatomprom’s IPO Prospectus, a number of non-core assets have been or are to be disposed. This includes entities of the KazPV project: Astana Solar LLP, Kazakhstan Solar Silicon LLP and MK KazSilicon LLP. As disclosed in May 2019, the Company entered a contract to sell the assets, subject to conditions, which provides for the initial sale of 75% of the Group’s shareholding in the entities of the KazPV project. This transaction had not yet closed at 31 December 2019, as outstanding conditions had not yet been met. The assets and liabilities of the entities in the KazPV project are therefore presented as a disposal group in the consolidated financial statements. Meanwhile, at the time of the release of this Report, the sale and purchase contract, effective 17 May 2019 did not enter into force due to non-compliance with the suspensive conditions stipulated by this contract, and the implementation of the entities of the KazPV project under this contract may be revised.
10 The Group intends to sell its entire stake in Caustic JSC by the end of 2020.
11 Uranenergo-PUL LLP is a 3rd-level enterprise of the Company through stakes in Uranenergo LLP. In October 2019, the General Meeting of the Participants of Uranenergo LLP approved the reorganization of Uranenergo-PUL LLP. The Uranenergo-PUL LLP are expected to be reorganized in 2020.
12 Shieli-Energoservice LLP and Taukent-Energoservice LLP, are a 3rd-level enterprises of the Company through stakes in Uranenergo LLP. The companies are expected to be reorganized in 2020.
Uranium deposits
The Company’s uranium deposits are located in four administrative districts in Kazakhstan:
  • Kyzylorda Region (Shieli and Zhanakorgan districts);
  • Turkistan Region (Sozak and Otyrar districts);
  • North Kazakhstan Region (Ualikhanov District);
  • Akmola Region (Enbekshilder District).
Uranium deposits located in the ShuSarysu and Syrdariya regions contain proven and probable ore reserves of
tonnes of UME

Uranium deposits in Kazakhstan are grouped into six uranium provinces.

Apart from the Semyzbay field in Northern Kazakhstan, which is located in the North Kazakhstan and Akmola Regions, the Company’s fields are located in the south of Kazakhstan, in the Shu-Sarysu and Syrdarya Regions.

All mines are located in sparsely populated areas and have minimal vegetation cover; natural vegetation in mine areas varies from desert to shrub and steppes. Only six mines are located within 10 kilometres of populated centres, all of which are rural settlements and villages.

In all regions the climate is continental, with hot summers, harsh winters, and low rainfall levels (300 mm or less).

3 State Commission on Mineral Reserves of the Republic of Kazakhstan. The breakdown of reserves is shown in percentages.
Uranium Products Market

The sale of natural uranium and uranium products is Kazatomprom’s primary source of revenue and profit, with the uranium segment accounting for 87% of the Group’s consolidated revenue in 2019. As a result, the market prices for uranium products have a significant impact on the Company’s financial results.

As is the case for any commodity, the balance of supply and demand determines the market price for uranium products. However, the average sales price realised by any primary uranium producer is also highly dependent on the specific types of contracts they deliver into and the structure of their sales portfolio (terms, the price formulae used in each contract, the proportion of spot and term contracts, etc.). Kazatomprom expects that in years to come, nuclear power, as a reliable source of carbon-free, base-load electricity, will maintain and strengthen its position in the broader energy market, resulting in greater demand for uranium. Accordingly, uranium prices will need to rise from the current low levels, which represents a significant opportunity for Kazatomprom as a low-cost producer with a high degree of leverage to market prices.

In 2019 six nuclear reactors were commissioned globally (three in Russia, two in China, and one in South Korea), with a total capacity 5.2 GW, while 13 reactors (five in Japan, two in the USA, one each in Russia, Switzerland, Germany, Sweden, South Korea, and Taiwan), with a total capacity 10.2 GW, were officially shut down. In addition, the construction of four reactors (one each in Russia, China, Iran, and the UK) began in 2019 (total capacity: 4.8 GW). In total, 53 reactors are under construction.

Prices for uranium, 2002–2019, USD per pound of U3O8

Uncertainty in the uranium market, following an investigation by the US Department of Commerce under Section 232 of the 1962 US Trade Expansion Act, had a significant impact on the conclusion of long-term contracts on the uranium market in 2019. The investigation ended on 12 July, when the US President announced that trade restrictions would not apply to the uranium market. At the same time, however, the US President created a nuclear fuel working group to carry out a more comprehensive analysis. It was originally expected that respective recommendations would be submitted in mid-October, however, the initial deadline was extended.

The US Department of Commerce is also performing work to extend the licences of US reactors to 80 years. The US Nuclear Regulatory Commission authorised power units 3 and 4 at the Turkey Point nuclear power plant in Florida State to operate until 2053 – this is the first example of nuclear power plants receiving regulatory approval to operate for up to 80 years. The International Energy Agency contends that extending the service life of existing reactors is critical to facilitate a reduction in carbon emissions and improve energy security.

European Union leaders agreed to include nuclear power in the European Green Agreement, which aims to make Europe carbon neutral by 2050 and result in zero emissions of CO2 -equivalent by European economies by this year. Even though nuclear power will be considered green, a ruling that nuclear power projects do not qualify for financial support from the EU may jeopardise the attainment of the agreement’s goals. France, which has the secondlargest fleet of nuclear power plants globally, officially postponed plans to reduce by 2025 the share of electricity production from nuclear power plants from around 72% to 50%. The Climate and Energy Package of France, whose goal is to achieve zero carbon emissions by 2050, has deferred the planned reduction of nuclear power by at least 10 years until 2035.

Uranium production witnessed a number of changes in 2019. Rio Tinto sold a controlling stake in the Rossing uranium mine in Namibia to China National Uranium Corporation (CNUC). Compagnie minière d'Akouta (COMINAK), a subsidiary of Orano, announced an end to uranium production at its uranium mine in Niger in March 2021, owing to a depletion of reserves and high operating expenses. It was also announced that the Australian mine Ranger would cease operations in 2021.

Orano signed a partnership agreement with the National Committee of the Republic of Uzbekistan for Geology and Mineral Resources (Goskomgeologiya) to develop exploration and production in Uzbekistan. The agreement prescribes the creation of a joint venture, with 51% owned by Orano and 49% by Goskomgeologiya. The parties will operate jointly on uranium mining projects in Uzbekistan.

Kazatomprom announced an intention to continue to reduce output in 2021 by 20% compared to planned levels under subsoil use contracts. This decision will enable Kazatomprom to maintain output in 2021 at similar levels to 2019 and 2020.

On 10 December 2019 Kazatomprom performed the final shipment of low-enriched uranium to the IAEA LEU Bank at Ulba Metallurgical Plant JSC. The concept behind the IAEA LEU Bank is to enable IAEA member countries, using nuclear energy for peaceful purposes, to access IAEA LEU reserves if uranium cannot be acquired on the commercial market. The Fuel Bank, owned by the IAEA and located in Kazakhstan, is one of the most ambitious and complex projects ever carried out by the IAEA since it was founded in 1957.

Sales and distribution

In 2019 the Company sold its uranium products, directly and through its Swiss trading subsidiary Trade House Kazakatom AG (“THK”), to 23 customers in 11 countries, an increase of six customers and two countries compared to 2018. In 2019 Kazatomprom’s top-three and top-five customers accounted for 54% and 68% of uranium segment revenues, respectively.

The table shows the geographical division of customers for the Group’s uranium products by revenue, for the calendar years 2015 to 2019.

Sales of uranium products by region, 2015–2019, % of uranium segment revenues
Year ended 31 December


























South Korea

























* Sales to other countries, uranium funds, and sales of Kazakatom ТH AG on the spot market.
Sales and Marketing

In 2017 Kazatomprom established Trade House Kazakatom AG (THK), a subsidiary trading company based in Switzerland, to improve the Company’s marketing function, bolster its work with partners, facilitate sales of uranium and uranium products in Kazakhstan and, more generally, to boost the Company’s global reach. THK’s key activities consist of:

  • the sale and purchase of uranium on the spot market in order to generate additional profit, as a result of THK’s quick decision-making capabilities;
  • assistance in creating additional liquidity on the spot uranium market and enhancing the reliability of the Kazatomprom portfolio of uranium mining contracts;
  • boosting the Company’s global uranium market reach by offering a wider choice of pricing and contractual structures and providing additional market tools for Kazatomprom customers.

Since its launch, THK has helped the Company extend its customer base and achieve sales volume growth. THK also acquired new customers for the Company during this period, and concluded a number of long-term uranium supply contracts.

The scope of THK’s activity and its frequent interaction with the spot market allows the Company to better understand the market, thereby improving its analytical abilities and allowing management to make more informed decisions.


Kazatomprom deploys safe, secure, and reliable logistics solutions to deliver uranium products to its customers across the globe. Uranium products are shipped by rail or sea in 20-foot sealed containers and physically protected by armed guards and convoys until they reach their destination. All shipments are insured against any risks associated with the transportation of uranium products.

In 2019 Kazatomprom delivered U3O8 and finished uranium products to various destinations, based on customer needs and requirements:

Kazatomprom’s mission is to develop its uranium deposits and their value chain components in order to create longterm value for all of its stakeholders, in accordance with the principles of sustainable development.
Kazatomprom’s vision is to become the partner of choice for the global nuclear fuel industry.
Strategic goals

Kazatomprom is seeking to grow and consolidate its position as the leading company in the uranium industry, focusing on reliability, technical excellence, high occupational health and safety indicators, and good business practices with stakeholders.

In accordance with the Development Strategy of Kazatomprom for 2018–2028, which is based on sustainable development principles, the Company is committed to attaining the following strategic goals:

A strategic session entitled “Aspiration 2025” was held in September 2019, attended by members of the Board of Directors and management of the Company. The session confirmed that the strategic focus formulated when elaborating the Development Strategy of Kazatomprom was relevant, and that it was appropriate for the Company to continue to implement the strategic goals adopted.
Overview of 2019 Development Strategy implementation

In 2019 the Company elaborated an action plan to implement its Development Strategy over 2019–2020, with a focus on enhancing core business operations, continuing with a digital transformation, and improving corporate governance and human resource management processes. 98% of action plan items for 2019 were successfully implemented.

As part of the Development Strategy implementation action plan, Kazatomprom will continue to dispose of non-core assets. Based on a detailed analysis of services and works that can be moved to a more competitive environment, decisions will be taken vis-à-vis the medium-term development strategies of Kazatomprom service companies, in line with long-term Kazatomprom interests and development priorities.

Focus on uranium mining as the core business

Kazatomprom’s core business activity is the mining and sale of uranium. The Company has priority access to the largest uranium in-situ leach recovery (ISR) reserves in the world, and the second-largest uranium reserve base in the world if taking all mining methods into account.

All the Company’s uranium deposits lend themselves to the ISR extraction method, which is the cheapest and most environmentally friendly method of extraction. This is also the most flexible production method, allowing increases and decreases in production within shorter timescales and more cost-effectively than the traditional open cast and underground methods.

As a result, Kazatomprom enjoys a natural competitive advantage and ranks as the world’s leading uranium mining companies in terms of production and sales, and has among the lowest production costs globally.

Kazatomprom plans to focus on uranium mining, while retaining an ability to expand operations in other pre-reactor nuclear fuel cycle stages, should they become economically attractive in the future.

The Company is also engaged in the manufacture of rare metals. In 2019 it maintained a presence in target beryllium, tantalum, and niobium product market segments (commodities used in the building of condensers, aeronautics, high-purity tantalum, niobium for alloying, etc.). Also, Kazatomprom successfully passed a Responsible Minerals Assurance Process (RMAP) audit for compliance with Responsible Business Alliance (RBA) requirements.

At the end of 2019 the situation on the global market was most favourable for beryllium products; thus against a backdrop of high demand for traditional types of products (beryllium-containing ligatures) there was a shift in production focus towards products with high profit margins.

The Company, together with the Chinese company China General Nuclear Power Group (CGN), completed site construction and began installing and commissioning equipment for a fuel assembly manufacturing plant in Kazakhstan. This project will enable the Company to supply nuclear fuel to China’s nuclear power plant market, which in turn will expand Kazatomprom’s product offering in the front end of the fuel cycle.

Optimising production, processing, and sales volumes based on market conditions

In February 2018 Kazatomprom revised its traditional strategy, switching from a focus on everincreasing production and sales volumes towards having a more market-centric approach, and adjusting production and sales targets in response to supply and demand dynamics on the market: there was a shift in strategy from a focus on volumes to a focus on long-term value creation for stakeholders.

The Company currently focuses on setting production targets and sales volumes based on market forecasts, and adjusting uranium production and processing plans to take into account changing market conditions.

For 2018–2021 the Company is implementing a phased programme to reduce uranium output by 20% against planned volumes under subsoil use contracts.

As Kazatomprom’s uranium is ISR amenable, the change in production volumes had no significant impacts on per-unit costs of production; this is a significant commercial advantage over conventional mining methods.

The Company enjoys technical and legal flexibility when it comes to maintaining production at lower levels if market conditions dictate as, within the parameters set under the mining code and respective subsoil license agreements. These allow for an annual deviation of +/-20% against set annual production volumes. Changes beyond 20% would necessitate amendments to subsoil use agreements that require government approval.

Creating value by enhancing the marketing function and expanding sales channels

The Company continues to consolidate its position in a number of areas within its sales and distribution system. The Company is diversifying its contract portfolio, which is testament to the success of the market-centric approach it adopts. During the implementation of the Development Strategy, Kazatomprom expanded the reach of its sales representatives and bolstered the sales network in each of its main target geographical regions.

On 14-16 May 2019 Kazatomprom successfully accessed a new sales market, after signing a commercial agreement to supply uranium products to the Spanish company ENUSA. This was an important event within Kazakh-Spanish collaborative efforts to promote the peaceful use of nuclear power. The Company also expanded its working relationship with Indústrias Nucleares do Brasil (INB), which is responsible for the nuclear fuel cycle in Brazil, by winning a tender to supply it with uranium hexafluoride. Kazatomprom’s first supplies to INB were in 2018, when the Company delivered natural uranium concentrates – this represented a significant step in Kazatomprom’s efforts to develop its business in South American markets.

The new 2019 agreement enhances the Company’s reputation as a responsible manufacturer and reliable supplier in the global nuclear supply chain. In addition, with assistance from the trading company Kazakatom TH AG (ТНК), Kazatomprom has since 2017 been able to offer flexible salesformula pricing terms to customers. The Company plans to further develop these capabilities and to offer customers a wider range of pricing options than was previously available, due to domestic legislative restrictions.

Implementing best-practice business processes

Kazatomprom is the world’s leading uranium mining company and it will seek to consolidate this position in terms of scale, operating efficiency, and innovation. Access to highquality uranium deposits enables the Company to provide production facilities for many decades to come with the resource base that its entities need. The Company plans to continue investing in reserve exploration and in the development of deposits, in order to facilitate sustainable low-cost and long-term production at its mines. Kazatomprom intends to maintain low production costs by simultaneously streamlining production plans and implementing stringent cost controls, with a focus on creating value and ensuring a healthy economic return.

Kazatomprom remains focused on the ongoing streamlining and digitisation of its business processes and on further bolstering its sales and marketing functions.

Developing a corporate ethics culture commensurate with that of an industry leader

The Company pays close attention to corporate responsibility; in this area, profit is not the key performance indicator. In 2019 the corporate governance model was augmented by the inclusion of sustainable development principles. The creation of the Kazatomprom sustainability policy, whose approval is scheduled for 2020, was an important step in this direction.

During 2019 Kazatomprom continued work to develop its corporate culture, paying particular attention to creating a working environment of reliability, continuous improvement, proactive interaction, robust corporate governance, and a universal safety culture.

In its operations Kazatomprom focuses on improving employee awareness and understanding in relation to occupational health and safety. The Company also plans to pay greater attention to environmental protection, industrial safety, and environmental responsibility.

The Company supports an International Social Security Association (ISSA) initiative to improve safety, health, and well-being at work and has registered with the Vision Zero programme, whose goal is to achieve “zero accidents”. This reflects the Company’s conviction that a strong culture of preventative action can reduce the number of work-related accidents, workplace damage, and occupational diseases. Kazatomprom is constantly working with employees and managers at all levels to improve occupational health and safety and to ensure compliance with respective industrial safety requirements, and to help make a transition to proactively responding to risk factors arising as a result of violations of safe working conditions. The Company seeks to maintain the LTIFR at a low level and to curb the level of industrial accidents.

Kazatomprom launched an occupational health and safety investment programme in 2016, and since then has been continually increasing its level of investment in it. In 2019 total costs related to occupational health and safety measures stood at KZT 7.23 billion.

Overview of 2019 Development Strategy implementation

Strategic goals

Key actions to achieve strategic goals in 2019

Focus on uranium mining as the core business

  • In February 2019, аs a result of amendments to the foundation documents approved by JV Khorasan-U LLP participants, the Group attained a majority on the supervisory board.
  • The consolidated inventory of U3O8 finished products for the Group stood at 9,906 tonnes, up 26% on 2018. The inventory of U3O8 finished products at Company level was 8,571 tonnes, up 17% on 2018.
Optimising production, processing, and sales volumes based on market conditions
  • Based on an analysis of the uranium market and the supply demand model, the Company reduced total mined uranium volumes by 20% compared to the 2019 contracted production volumes indicated in its subsoil use contracts.
Creating value by enhancing the marketing function and expanding sales channels
  • Kazatomprom continued to expand the number of customers (six added) as well as the geographies (two new countries) in which it operates.
  • Kazatomprom also grew its product portfolio, with sales beyond U3O8 into UF6 and LEU.
  • Kazakatom TH AG increased its market activity in 2019, further enhancing market liquidity and price discovery activities.
Implementing best-practice business processes
  • In occupational safety the Company set in motion a process to conduct behavioural safety audits to identify hazardous conditions and actions, as well as potentially near-miss incidents. This is achieved with support from managers at various levels of the Company and its subsidiaries and affiliates; 10,528 behavioural audits were conducted, and 34,546 near-miss incidents of various severity were recorded. In 2019 the Company also elaborated the draft standard procedure for conducting a behavioural safety audit at entities.
  • In 2019 well construction and production maintenance costs at 13 mining entities stood at KZT 60.020 billion, a drop of 15% on 2018.
  • A revised Digital Transformation Portfolio was compiled and approved.
  • In June 2019 the Company launched the commercial operation of the eKAP information system, a unified platform to automate and consolidate business processes at the Corporate centre and subsidiaries and affiliates, based on the “one-stop-shop” principle.
  • SAP ERP and IPS information systems were implemented at the Corporate centre as well as separate subsidiaries and affiliates.
  • Business plans for 2020–2024 are drafted in the Integrated Planning System (IPS). The Company commenced corporate procedures to submit to supervisory boards business plans from firstwave subsidiaries and affiliates. In July 2019 user-defined mining plan scenarios for subsidiaries and affiliates (Kazatomprom-SaUran LLP, Ortalyk LLP, RU-6 LLP, and APPAK LLP) for 2020–2024 were created in the IPS.
  • The Company supported an International Social Security Association (ISSA) initiative to enhance safety, health, and well-being at work, and registered with the international Vision Zero programme, which seeks to enhance the safety culture at work and ensure compliance with respective industrial safety requirements.
Developing a corporate ethics culture that is commensurate with an industry leader
  • Since 2019 the Company has been recognising and rewarding employees who raise concerns and help identify hazardous conditions and actions or near-miss incidents. There are plans to introduce KPIs in this area.
  • A corporate safety culture project is under way. Internal trainers from the Corporate centre and subsidiary and affiliate employees are trained jointly with the HR Department. Based on the training results employees are recognised as certified trainers and are qualified to deliver the training to other staff members.
Ensuring a balance between shareholder returns and an optimal capital structure

The Company has high-margin and cash-generating operations, with a relatively limited capital-expenditure profile for expansion, and low leverage. The Company strives to uphold its main commitment to stakeholders – to create long-term value. One of Kazatomprom’s strategic priorities is to generate significant cash flows for shareholders, while at the same time retaining a conservative balance sheet structure and a comfortable borrowing level, so that it is ready to leverage market opportunities, if any, and to respond proactively to adverse changes in commodity prices.

Kazatomprom’s shares have been trading on the AIX and LSE since November 2018. At the annual General Meeting of Shareholders of the Company, which was held on 30 May 2019 in Nur-Sultan, shareholders approved a dividend size per ordinary share (one GDR equals one ordinary share) of KZT 308.46, payable from 2018 profits. The total size of dividend payments, based on 2018 results, was KZT 80 billion.


Kazatomprom’s goals for Transformation Programme include maximising long-term shareholder value, profitability and financial stability through building a culture of adoption and use of best practices throughout the Company.

Projects implemented within the programme have made the Company one of the most advanced international uranium mining companies in terms of technical and technological equipment. The Company’s Management Board and Board of Directors participate in the programme on a quarterly basis, and the CEO reports on the main lines of business of the Company.

Transformations at Kazatomprom are primarily carried out in the following areas:

During the first half of 2019 the Company’s Transformation Programme switched to being the Digital Transformation Programme, in accordance with Samruk-Kazyna’s wish to roll out the Transformation Programme at portfolio companies (which can also implement their own projects that enable them to attain respective strategic KPIs).

An updated Digital Transformation Portfolio was created and approved, based on the results of analysing the Company’s Development Strategy Implementation Plan at the beginning of the second half of 2019. The key factors taken into account during its creation were those indicators that impact the strategic KPIs of the Company.

Six activities
to implement strategically important Company initiatives to ensure production safety and a high productivity culture
Two projects, five activities
are being implemented to achieve the objectives of the four synergy focuses of Samruk-Kazyna (enhancing IT function performance, implementing the Cyber Shield of the Group of the Fund, and boosting operating efficiency through data analysis and the new procurement model)
Four projects, four activities
to boost production and operational efficiency and enhance the marketing and sales function

The portfolio consists of six projects and 15 events. Some of these were initiated as part of SamrukKazyna synergy drivers to achieve a cumulative effect from the scale of implementation at Samruk-Kazyna group companies.

Based on the performance in 2019 of the four projects aimed at resolving key production and operational tasks faced by the Company, the following results were achieved:

In 2020, based on the approved plans, the Company plans to continue implementing the following key projects and digital transformation activities:
  • developing SAP ERP, IPS, and ITSM implementation projects;
  • transitioning to using an aqueous ammonia solution instead of caustic soda at six mining entities;
  • optimising target information security processes;
  • industrial production safety, as part of industrial safety processes;
  • business initiatives aimed at optimising production activity;
  • enhancing a high productivity culture within human resource management.
HALF OF 2019,
Kazatomprom seeks to comply with and introduce industry best practice in sustainable development in its operations, including the key principles of the International Council of Mining and Metals (ICMM) and the World Nuclear Association (WNA), and also to expand its competencies in partnership with the international community.
Kazatomprom is currently an active member of a number of professional industrial nuclear power organisations:
World Nuclear Association
London, UK. Member since 1993.
Tantalum-Niobium International Study Center
Brussels, Belgium. Member since 1999.
Nuclear Society of Kazakhstan
Nur-Sultan, Republic of Kazakhstan. Member since 2002.
World Nuclear Fuel Market
Norcross, Georgia, USA. Member since 2002.
Nuclear Energy Institute
Washington, DC, USA. Member since 2018.
World Nuclear Transport Institute
London, UK. Member since 2019.
World Nuclear Transport Institute

Kazatomprom has been a member of the World Nuclear Transport Institute (WNTI) since 2019.

WNTI is an international organisation that represents the collective interests of the nuclear power and packaging industries as well as any entity that relies on them for the safe, effective, and reliable transportation of radioactive materials.

The Company participates in WNTI events to discuss best practices in this area. These events act as a platform for meetings with key representatives from the radioactive substances transportation market.

In 2019 the Company participated in semi-annual WNTI meetings (in the summer in St. Petersburg, and in the winter in London), where the issues discussed included cargo transit in Europe, the transportation of enriched uranium products for the IAEA LEU Bank project, and other issues related to the transportation of radioactive substances.

Membership of business communities enables Kazatomprom to receive support from the organisations in relation to legal matters and regarding the guaranteed protection of the Company’s rights and legal interests in state bodies, as their respective powers are stipulated by the Company’s Charter and accreditation with respective ministries. The associations also facilitate participation in the drafting of legislative and other commercial regulations.

Kazatomprom is also a member of a number of industry organisations at national level:
The Association of Legal Entities, Republican Association of Mining and Metallurgical Enterprises
Nur-Sultan, the Republic of Kazakhstan. Member since 2006.
The Association of Legal Entities, Kazakhstan Association of Oil-Gas and Energy Sector Organisations KAZENERGY
Nur-Sultan, the Republic of Kazakhstan. Member since 2009.
The National Chamber of Entrepreneurs of the Republic of Kazakhstan Atameken
Nur-Sultan, the Republic of Kazakhstan. Member since 2013.
The Company adheres strictly with key agreements on the peaceful use of nuclear energy to which Kazakhstan is a party.
International agreements on the peaceful use of nuclear energy to which Kazakhstan is a party
Name of document Place and date of signing Date document came into effect
Agreement on the Privileges and Immunities of the IAEA


1 July 1959

Law No. 178-I of the Republic of Kazakhstan dated
30 October 1997 “On Ratification”

Convention on the Physical Protection of Nuclear Material

Vienna, New York,

3 March 1980

Law No. 17 of the Republic of Kazakhstan dated
22 December 2004, “On Accession”.
Law No. 416-IV of the Republic of Kazakhstan dated
19 March 2011 “On Ratification of the Amendments to the Convention”

Convention on the Early Notification of a Nuclear Accident


26 September 1986

Law No. 243-IV of the Republic of Kazakhstan dated
3 February 2010 “On Ratification”, effective
9 April 2010

Convention on Assistance in the event of a Nuclear Accident or Radiological Emergency


26 September 1986

Law No. 244-IV of the Republic of Kazakhstan dated
3 February 2010 “On Ratification”, effective
9 April 2010

Agreement on Basic Principles of Cooperation in Peaceful Uses of Atomic Energy (of member states of the CIS)


26 June 1992

Became effective on the date of signing

Treaty on the Non-Proliferation of Nuclear Weapons (NPT) (Washington, London, Moscow, Geneva, 1 July 1968) 13 December 1993

Resolution No. 2593-ХІІ of the Supreme Soviet of the Republic of Kazakhstan dated
13 December 1993 “On Affiliation”.
Became effective on the date of signing

Convention on Nuclear Safety


17 June 1994

Law No. 245-IV of the Republic of Kazakhstan dated
3 February 2010 “On Ratification”, effective
8 June 2010

Memorandum on security guarantees in connection with the accession of the Republic of Kazakhstan to the Treaty on the Non-Proliferation of Nuclear Weapons

5 December 1994 Became effective on the date of signing

Agreement between the Republic of Kazakhstan and the IAEA for the Application of Safeguards in connection with the Treaty on the Non-Proliferation of Nuclear Weapons


19 June 1995

Decree No. 2344 of the President of the Republic of Kazakhstan dated 19 June 1995

Comprehensive Nuclear-Test Ban Treaty

New York,

30 September 1996

Law No. 270 of the Republic of Kazakhstan dated
14 December 2001 “On Ratification”

Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management


5 September 1997

Law No. 246-IV of the Republic of Kazakhstan dated
3 February 2010 “On Ratification”, effective
8 June 2010

International Convention for the Suppression of Acts of Nuclear Terrorism (General Assembly of the United Nations, 13 April 2005)

New York,

14 September 2005

Law No. 33-IV of the Republic of Kazakhstan dated
14 May 2008 “On Ratification”

Central Asian Nuclear-Weapon-Free-Zone Treaty


8 September 2006

Decree No. 176 of the President of the Republic of Kazakhstan dated
7 September 2006 “On Signing”.
Law No. 120-IY of the Republic of Kazakhstan dated
5 January 2009 “On Ratification”

Additional Minutes to the Agreement between the Republic of Kazakhstan and the IAEA for the application of Safeguards in connection with the Treaty on the Non-Proliferation of Nuclear Weapons


Law No. 229 of the Republic of Kazakhstan dated
19 February 2007

Vienna Convention on Civil Liability for Nuclear Damage of 1997 (Consolidated text of the Vienna Convention on Civil Liability for Nuclear Damage dated 21 May 1963 as amended per the Minutes dated 12 September 1997)

February 2011

Law No. 405-IV of the Republic of Kazakhstan dated
10 February 2011 “On Ratification”, effective
29 June 2011