Responsible and sustainable development principles are at core of Kazatomprom's business. The consistent integration of these principles into key processes and corporate decision-making system allows the Company to enhance health and safety at production sites, improve its environmental management, social corporate responsibility and stakeholder management practices, which forms the foundation for sustainable development of our business and contributes to socio-economic development of the regions where the Company operates.
Kazatomprom, as a responsible uranium mining company, recognises that its operations have an impact on the environment, society, and the livelihoods of local communities as well as the socio-economic development of the regions in which it operates, and takes measures to mitigate such impacts, and to ensure sustainable growth in shareholder value and create longterm added value for the benefit of all stakeholder groups.

The Company remains committed to building a coherent and balanced business in accordance with sustainable and responsible development principles, focused on creating and enhancing long-term economic, social, and environmental benefits for both current and future generations. Kazatomprom, as the world's leading uranium company, carries out its business and operational activities in a way that not only generates sustainable returns for its shareholders, but also strives to make a positive contribution to the sustainable development of the country, society, and the uranium mining industry. Its activities are geared towards:

The Company seeks to align its strategic development priorities with a long-term sustainability focus and does its utmost to enhance the corporate sustainability management practice and to gradually embed sustainable and responsible development principles into its key processes and corporate decisionmaking.
Key sustainability highlights in 2019
In 2019 the Company continued with work to enhance its sustainability management practice and integrate sustainable development principles into its key business and operating practices:
KZT 1.4 billion
Kazatomprom’s approach to sustainability management is based on aligning the Company's strategic development priorities and operations with fundamental corporate responsibility and sustainable development principles and national and regional development priorities, and is geared towards:

The sustainability management approach is consistent with Kazatomprom’s corporate values – safety, responsibility, development, professionalism, and teamwork – and underpins the development of corporate sustainability management practices and increasing the Company’s sustainability.

Sustainability forms an integral part of the Company’s development strategy. Kazatomprom acts in a sustainable and responsible way as it continues to implement its development strategy, and seeks to embed sustainability considerations and to integrate economic, environmental, and social goals and objectives in key processes and the corporate decision-making system.

The Company’s approach to developing sustainability priorities is based on an analysis of the key sustainability risks facing the business and engaging with internal and external stakeholders to identify environmental, social, and governance (ESG) issues that are of critical importance to its stakeholders and business. This process helps Kazatomprom prioritise its efforts and to drive progress in the areas where it can make the biggest impact.

Kazatomprom continues to enhance its corporate sustainability practice, as it develops and implements internal policies governing various sustainability aspects, and integrates sustainable development principles into its corporate management system.

In 2019 Kazatomprom made significant progress towards improving its approach to sustainability management. The Company developed a sustainability policy, which encompasses its business intentions and aspirations for sustainability, including long-term goals and objectives, fundamental principles, and the key priority areas on which Kazatomprom will focus its sustainability efforts. In addition, in order to enhance the Company's approach to sustainability, a Sustainable Development Department was set up, and a Sponsor and Curator appointed, who are responsible for bolstering the Company's practices in this area.

The Company's sustainability management model facilitates the incorporation of sustainability considerations in Kazatomprom's governance structures. The Board of Directors has primary responsibility for managing sustainable development.

The Board of Directors and its committees play a central role in setting and shaping the Company’s sustainability agenda and in identifying priority areas, assessing risks, and conducting sustainability performance reviews. At the Corporate centre level, the Management Board is responsible for overseeing all decisions and processes related to managing environmental, social, and economic sustainability issues; identifying and assessing sustainability risks; and monitoring progress on sustainability performance.

Sustainability-related responsibilities are distributed among corporate functions, which are ultimately accountable for developing and implementing the sustainability agenda, and monitoring target attainments in their respective functions. The Sustainable Development Department coordinates implementation and provides methodological support for sustainability initiatives and activities, and also ensures sustainability information transparency and disclosure.

At the subsidiary level, structural divisions that oversee various sustainability-related areas (including operations, health and safety, environmental protection, human resources, and economic stability) are responsible for putting the sustainability agenda into operational action, as well as monitoring and reporting on progress in their respective areas.

In 2019 Kazatomprom completed the implementation of the three-year corporate social responsibility Sustainable Development Programme for 2017–2019.
This programme aims to create the prerequisites for the Group’s sustainable development, through implementing sustainable development initiatives at subsidiaries and affiliates in the following areas:
During the reporting period subsidiaries and affiliates implemented over 600 sustainable development initiatives, projects, and activities.
Sustainability initiatives implemented at the Group in 2019
Direction Examples of implemented sustainability initiatives
149 sustainability initiatives implemented at the subsidiary level

Developing HR potential and social stability within the workforce:

  • Actions under the remuneration policy and employee motivation measures:
    1) indexation of the tariff component of staff wages;
    2) corporate and industry awards;
    3) bonuses for carrying out particularly important tasks;
  • organising the retraining and advanced training of employees to foster professional growth;
  • organising rehabilitation sanatorium/resort treatments and recreation for employees, and promoting healthy lifestyles and regular exercise and sports;
  • corporate social security and health insurance for personnel;
  • actions to improve the social and labour conditions of employees.

Ensuring harmonious social conditions among workforces in companies to be restructured.
Anti-corruption and anti-fraud measures, settling corporate conflicts and conflicts of interest:

  • entities updating the anti-corruption and fraud policy, based on Kazatomprom recommendations;
  • elaborating new and updating existing internal documents related to ethics and anti-corruption;
  • testing employee knowledge of the Code of Ethics;
  • establishing anti-corruption standards and culture.
189 sustainability initiatives implemented at the subsidiary level
Health, safety,
and the

Ensuring that appropriate labour conditions are in place:

  • applying preventative measures to prevent work-related injuries;
  • determining potentially hazardous situations, conditions, and actions or potentially dangerous near-miss accidents;
  • behavioural safety audits;
  • elaborating documentation as part of implementing the LOTO “Lock out/Tag out” system (locking equipment and placing warning signs on it);
  • training, teaching, and testing employee knowledge on occupational health and safety;
  • ensuring nuclear and radiation safety.

Environmental protection:

  • environmental work to minimise adverse production-related impacts on the environment;
  • collecting and transferring production and consumption waste to specialised organisations for disposal and/or burial;
  • monitoring emissions of pollutants and wastewater discharges;
  • instrumental measurements at sources of environmental impacts (atmospheric emissions, effluent discharges into underground filtration fields, production waste);
  • environmental monitoring.
317 ustainability initiatives implemented at the subsidiary level
Socio-economic development

Targets achieved:

  • the target EVA indicator (Economic Value Added);
  • production targets;
  • the net consolidated income/loss target.
  • also, the target cost of production was not exceeded.

Supporting the socio-economic development of the regions where the Company operates:

  • complying with the terms and conditions of subsoil use contracts.

Interaction with stakeholders:

  • interacting with local executive authorities, promptly submitting reports to state, departmental, and regulatory authorities throughout the year;
  • meetings with representatives from communities, public organisations, and the media;
  • sponsorship and charity events.

Procurement management as part of sustainable development:

  • preparing and approving the Annual Procurement Plan for goods, work, and services;
  • assisting with concluding contracts with local suppliers on the procurement of goods, works, and services and increasing the share of local content for 2019;
  • systematic and uninterrupted material and technical support, with a view to averting supply disruptions as a result of late, incomplete, or poor quality supplies of inventory;
  • reducing the risk of surplus inventory building up.

Science and innovation:

  • science-based recommendations on how to enhance the extraction and processing of production solutions in deposits;
  • pilot tests to improve technologies and upgrade production;
  • promoting employee proposals to boost efficiency;
  • publishing scientific publications and reports, participating in scientific and practical conferences.

Risk management:

  • elaborating and implementing a risk management action plan;
  • elaborating and implementing measures to enhance the internal control system;
  • measures to improve the risk culture and consistently adopting a risk-based approach in operations;
  • risk management trainings for the key employees of structural divisions / heads of enterprises.

In 2019 an independent external consultant was engaged to assess the Company’s corporate governance system, in order to obtain an independent review of progress achieved on ongoing corporate governance improvement efforts and to assess the implementation of corporate Governance Code principles. As part of this assessment, the Company's progress towards building a corporate sustainability management practice and its efforts to ensure the integrity of economic, environmental, and social goals related to long-term sustainable development were reviewed.

The assessment results and improved rating for the corporate governance system’s sustainability component (based on the assessment methodology) confirmed the success of the Company's ongoing efforts to enhance its sustainability management practice.

Based on the independent assessment of the corporate governance system, Kazatomprom elaborated recommendations and an action plan to further improve its corporate governance system in 2020, including the corporate sustainability management practice. The action plan is being implemented by structural divisions, with progress monitored by the Management Board and reviewed by Board of Directors.

In order to develop sustainability management practices at the Company’s subsidiaries and affiliates level, in 2019 internal diagnostics to ascertain the maturity level of sustainable development practices were conducted at 11 Group entities. Based on the results, the current condition and maturity level of the key components of the sustainability management system were assessed, and recommendations elaborated on how to enhance and replicate internal best practice in sustainable development.

In 2019 internal diagnostics to ascertain the maturity level of sustainable development practices were conducted at 11 Group entities
Going forward, Kazatomprom will continue its work to further enhance its sustainability management practice and performance, paying particular attention to the following:

Kazatomprom supports the UN’s 2030 agenda for Sustainable Development and achievement of the 17 Sustainable Development Goals (SDGs). The Company also recognises the importance of the joint efforts that governments, business, and society must make to address mankind’s fundamental social, environmental, and economic challenges and opportunities to drive progress in sustainable development.

The Company seeks to contribute to attaining global sustainable development goals by implementing sustainable development principles and values and applying good business practices, adopting economically feasible measures to mitigate impacts from operating activities on the environment and local communities, and increasing value for all stakeholders.

While recognising the importance of all 17 SDGs, Kazatomprom focuses its efforts on six goals that are of particular significance to its business and the uranium mining industry and in relation to which it can make meaningful progress. In the table below the Company discloses how its activities and sustainability initiatives contribute to achieving SDGs. Going forward, Kazatomprom will be reviewing its sustainability targets and initiatives to ensure that they reflect the priorities of the most pertinent SDGs.

Most relevant UN Sustainable Development Goals
SDG 3: Ensure healthy lives and promote well-being for all at all ages.
SDG 7: Ensure universal access to affordable, reliable, sustainable and modern sources of energy for everyone.
SDG 8: Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all.
SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
SDG 12: Ensure sustainable consumption and production patterns.
SDG 13: Take urgent action to combat climate change and its impacts.

Kazatomprom’s sustainability-related activities and initiatives that positively contributed to attaining UN SDGs in the reporting period chiefly included a range of activities related to environmental protection, health and safety, human capital development, and the socio-economic development of the regions where the Company operates.

Company’s contribution to attaining UN sustainable development goals
UN SDGs Integration of sustainable development goals in the governance system


See the sections:
Social Responsibility. Employees, Social Policy, Occupational Health and Safety,
Environmental Stewardship.

  • Development Strategy.
  • Occupational health and safety code.
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety.
  • Practical guidelines for the management of radioactive waste prior to landfill.
  • HR policy.
  • Sustainable development programme in corporate and social responsibility for 2017–2019.
  • Environmental and Social Action Plan (ESAP).
Relevant SDG target Key initiatives and projects
3.4 By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and supporting mental health and wellbeing.
  • Provision to employees and their family members of voluntary health insurance.
  • Implementation of corporate rehabilitation and health resort treatment programmes for employees and their families.
  • Implementation of measures to preserve and promote the physical and mental health of employees (organise the work of medical facilities, implement compulsory shift medical check-ups for employees at the Company’s subsidiaries and affiliates).
3.6 By 2020, halve the number of global deaths and injuries from road traffic accidents.
  • Implementation of occupational health and safety actions at entities in order to prevent injuries.
  • Identification of hazardous conditions and actions, or potentially dangerous nearmiss accidents.
  • Improvements to the safety culture level through training employees and boosting their skills in this area.
  • Behavioural safety audits.
  • Compliance with the rules and regulations governing the provision of special clothing and personal protective equipment for workers.
  • Analysis of industrial injuries and traffic accidents, prepare and implement actions to prevent and monitor workplace injuries and accidents.
3.9 By 2030, substantially reduce the number of deaths and illnesses due to hazardous chemicals and air, water and soil pollution and contamination.
  • Introduction of the Environmental and Social Action Plan (ESAP), based on risk assessments, for the proactive management of occupational health and safety, environmental, and social sectors.
  • Implementation of measures to protect atmospheric air, and also conserve and ensure the rational use of water resources in the context of the ESAP Roadmap.
UN SDGs Integration of sustainable development goals in the governance system


See the sections:
Environmental Stewardship.

  • Development Strategy.
  • Policy for innovative and technological development.
  • Sustainable development programme in corporate and social responsibility for 2017–2019.
  • Action plan on energy conservation and energy efficiency at the mining entities of Kazatomprom as a part of the Implementation plan of the 2018-2028 Development Strategy
Relevant SDG target Key initiatives and projects
7.1 By 2030, ensure universal access to affordable, reliable and modern energy services.
  • Focusing the Group's activities on guaranteeing the stable generation of low-carbon electricity.
7.3 By 2030, double the global rate of improvement in energy efficiency.
  • Implementation of projects to boost energy efficiency and promote energy conservation (compensation for heat and electricity energy losses, introducing energy recovery technologies, seeking advanced energy-conservation technologies).
  • Implementation of regular energy audits to assess energy conservation opportunities and potential and to boost energy efficiency.
7.a By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investments in energy infrastructure and clean energy technology.
  • Collaborations with the WNTI, IAEA, and other international organisations and scientific research institutions on the transportation of enriched uranium products and the supply of nuclear fuel.
  • Use of alternative energy sources (photovoltaic power stations, solar water heaters, heat pump installations).
UN SDGs Integration of sustainable development goals in the governance system


See the sections::
Socio-economic contribution.
Science and innovation, Procurement practice.
Social responsibility. Employees, Occupational Health and Safety.

  • Development Strategy.
  • Occupational health and safety code.
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety.
  • HR Policy.
  • Policy for Innovative and Technological Development.
  • Sustainable development programme in corporate social responsibility for 2017–2019.
Relevant SDG target Key initiatives and projects
8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.
  • Implementation of projects to boost productivity and operational efficiency based on the approved and updated Digital Transformation Portfolio.
  • Automation and digitisation of key business processes (Digital Twins – Geological and Mining Information System (GMIS), Integrated Planning System (IPS), Digital Platforms – the systems eKAP, SAP ERP; SAP HCM, digital service for employees).
  • Production upgrades, including via commissioning new equipment for nuclear materials, modernising sites for highly enriched uranium processing, renovating facilities and equipment, replacing corroded and obsolete equipment, and renovating and modernising ventilation systems.
  • Innovation as a means to improve and upgrade production.
  • Developing value chain components (invest in expanding the Company’s activities in the area of new segments of front-end NFC and in activities related to rare metals).
8.4 Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead.
  • Implementation of measures to protect atmospheric air, and conserve and sustainably use water resources, in line with the ESAP Roadmap.
  • Monitoring indicators of the condition of technological facilities and the environment, deploying the best available technologies.
  • Maintenance of an inventory of nuclear materials, monitoring the level of nuclear and radiation safety measures at facilities.
  • Monitoring radiation at the workplace, premises, and production facilities.
  • Use of innovative activities to establish environmentally sound production.
8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and people with disabilities, and equal pay for work of equal value.
  • Decent remuneration for work, improvements to the remuneration system and employee motivation.
  • Establishment of equal opportunities in hiring, remuneration, and when making promotions.
  • Establishment of equal education and skill development opportunities, accumulate and retain key competencies and knowledge.
8.8 Protect labour rights and promote safe and secure working environments for all employees, including migrant employees, in particular women migrants, and those in precarious employment.
  • Implementation of current occupational health and safety actions.
  • Proactive responses to incidents and prevent emergencies; analyse, monitor, and control occupational health and safety risks.
  • Implementation of programmes to improve the social conditions of employees, comply with the high standards of working conditions, and implement regular and pre-shift medical health checks.
  • Provision of social support for workers, including measures to maintain and enhance the physical and mental health of employees and raising living standards.
UN SDGs Integration of sustainable development goals in the governance system


See the sections:
Socio-economic contribution. Science and Innovation, Digitisation and Automation,
Social responsibility. Social Stability.

  • Development Strategy.
  • Digital Transformation Programme.
  • Management of scientific and technological activities policy.
Relevant SDG target Key initiatives and projects
9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human wellbeing, with a focus on affordable and equitable access for all.
  • Implementation of projects to develop infrastructure in the regions where the Company operates (for example, the construction of sports facilities and children’s playgrounds) jointly with the Samruk-Kazyna Trust Social Development Foundation.
  • Implementation at subsidiaries and affiliates of separate charity and other initiatives aimed at supporting local communities in the regions where the Company operates (support of veterans, assistance for children, low-income families, and families with several children).
9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.
  • Investment in expanding, renovating, and retooling mining assets, including the building of new wells and maintaining the operability of mining infrastructure.
9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.
  • Implementation of research and development work and feasibility studies aimed at bringing about performance improvements.
  • Finance programmes aimed at developing sectoral research in geology, geotechnology, NFC, rare-earth products, and the legal protection of new generation technologies.
9.b Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.
  • Collaborations with Kazakhstan’s research institutes, universities, and developers (Nazarbayev University, Satbayev University).
  • Scientific and innovation management contributions from Kazatomprom’s scientific divisions – increasing the added value and technological intensity of Kazakhstan's uranium products.
UN SDGs Integration of sustainable development goals in the governance system


See the sections:
Sustainable Development,
Socio-economic contribution. Science and innovation, Environmental Stewardship.

  • Development Strategy.
  • Occupational health and safety code.
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety.
  • Rules on the Management of Consumption and Production Waste at the enterprises of Kazatomprom.
  • Sustainable Development programme in corporate social responsibility for 2017–2019.
  • Environmental and Social Action Plan (ESAP).
Relevant SDG target Key initiatives and projects
12.2 By 2030, achieve the sustainable management and efficient use of natural resources.
  • Improvements in the energy efficiency of the extraction and production of rare and rare-earth metals.
  • Transition to more rational production models, apply new technologies and technological solutions.
  • Implementation of pilot testing to introduce improved technologies and modernise production.
  • Introduction of environmentally sound technologies into production activities (waste-free production, closed water supplies, etc., at subsidiaries and affiliates).
  • Elaboration of scientifically-based recommendations on how to develop and enhance production and processing.
12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.
  • Measures (projects) to protect atmospheric air and to ensure the conservation and rational use of water resources.
  • Improvements in the efficiency of existing dust and gas capture systems.
  • Collection and transfer of waste to specialised organisations for recycling and disposal.
  • Implementation of industrial environmental controls to monitor the environment.
  • Research into the environmental and social impacts of the Company’s production facilities and develop a project to introduce an automated monitoring system of stationary source emissions into the environment.
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
  • Organisation of collecting, recycling, and disposal of waste in order to minimise and prevent the generation of industrial waste.
  • Introduction of low-waste technologies and implement environmentally friendly methods of industrial waste disposal (including signing contracts with organisations to transfer hazardous industrial waste and municipal and solid household waste).
  • Implementation of an action plan to reduce industrial waste for 2019–2020, including through reusing and recycling products at subsidiaries and affiliates.
12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
  • Introduction of sustainability principles and values and good business practices.
  • Implementation of sustainable development actions.
  • Transition to rational production models, implement new technologies and technological solutions.
UN SDGs Integration of sustainable development goals in the governance system


See the sections:
Environmental Stewardship.

  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety.
Relevant SDG target Key initiatives and projects
13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
  • Use of a more environmentally friendly technology (the ISR method) in uranium production processes, which expedites minimal CO2 emissions.
  • Transition to using low carbon energy sources, e.g. gas.
  • Monitoring greenhouse gas emissions and prevent significant emissions.
  • IAEA membership and support established development methods vis-à-vis developing sustainable solutions to adapt to the impacts of climate change.
13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.
  • Contributions to the development of nuclear energy as one of the most environmentally friendly and low-carbon industries.
  • Implementation of actions to reduce and compensate for Company impacts on the climate, including the implementation of technologies (the ISR method), energy conservation and energy efficiency measures, and participating in campaigns to develop environmentally friendly habits (such as “Car-free days”, “Earth Hour”) that reduce the Company’s contribution to climate change.
Kazatomprom stakeholder map
The extent of stakeholder influence on the Company
The extent of Company influence on the stakeholder

An effective stakeholder communications system plays an important role in attaining the Company’s strategic goals and in fostering a positive reputation on global markets. When determining the list of key stakeholder groups, Kazatomprom takes into account aspects such as the extent of mutual influence and areas of mutual interest.

The key stakeholder groups of the Company consist of employees and labour unions, shareholders, partners, creditors, suppliers and customers, subsidiaries, management and staff, public and local authorities, the media, local communities, investment analysts, business communities, and international organisations.

The Company has developed a Stakeholder Map that takes into account the interests and needs of all stakeholders. The Company, aware of the consequences of its activities, interacts with stakeholders on the basis of materiality principles when assessing the issues that they face and when providing appropriate response to their requests.

The Company’s Stakeholder Map (which assesses the mutual influence of Kazatomprom and its stakeholders) and communications plan are updated annually. As a result of the Company’s expanding global presence, three new stakeholder groups emerged in the reporting period: business communities, international organisations, and investment analysts.

Also, during the reporting period the extent of stakeholders’ mutual influence was reassessed, information was consolidated on the mechanisms and measures to be implemented in 2020 regarding interaction with the Company’s stakeholders, and the list of mechanisms and the plan for communicating with stakeholders were updated.

Direct economic value created and distributed, KZT million
Item 2018* 2019
  Direct economic value created    
1 Revenue** 846.03 621.13
  Distributed economic value, including    
2 Operational costs*** 292.81 273.42
3 Wages 42.78 49.15
4 Interest and dividend costs 12.67 11.96
5 Taxes, excluding income tax 23.56 27.79
6 Corporate income tax 28.80 33.51
7 Miscellaneous expenses 19.99 8.51
8 Investments in local society (social expenditure) 0.73 1.07
  Retained economic value (profit for the year) 424.69 213.75

* Recalculated compared to data in the Annual Report for 2018, in connection with the following: In December 2018 the Group gained control over Baiken-U LLP. As at 31 December 2018, the Group applied the carrying amount to account for assets and liabilities acquired, since the valuation report had not been completed at the end of the reporting period. In June 2019 an independent appraiser completed an assessment of the fair value of the assets and liabilities acquired, and comparative information was restated.
** Revenue is calculated in accordance with the GRI methodology and includes sales revenue and all other Company revenues.
*** Operating costs include the following items: cost of sales (except for wages and taxes), distribution costs (except for wages and taxes), and general and administrative costs (except for wages and taxes).

As part of its obligations under subsoil use contracts, Kazatomprom remitted in 2019 KZT 1.4 billion to local regional budgets for socio-economic and infrastructure development in the regions where it operates.
Full version of the audited consolidated financial statements is available in the section "Investors > Reports and Results > Financial Results" on the Company's corporate website www.kazatomprom.kz
Contributions to the local budget for socio-economic and infrastructure development of regions of operation, KZT million
Company name Remitted
 Turkestan Region
 1  NAC Kazatomprom JSC  154.5
 2  Appak LLP  37.9
 3  JV Akbastau JSC  194.9
 4  JV South Mining Chemical Company LLP  86.5
 5  Volkovgeologia JSC  2.5
 6  JV Zarechnoye JSC  10.1
 7  JV Inkai LLP  58
 8  Kazatomprom-SaUran LLP  387.1
 9  Karatau LLP  52.3
 10  DP Ortalyk LLP  76.4
 11  JV Katco LLP  11.4
 Kyzylorda Region
 12  Baiken-U LLP  38.6
 13  RU-6 LLP  102.8
 14  Semizbai-U LLP  26.5
 15  Kyzylkum LLP  116.2
 Almaty Region
 16  LLP MC KazSilicon  0.3
 East Kazakhstan Region
 17  Ulba Metallurgical Plant JSC  6.6
 North Kazakhstan Region
 18 Semizbai-U LLP 18.9
Akmola Region
 19 Semizbai-U LLP 18.9
  Total 1,400.4
Charity and sponsorship

The charitable activities of Kazatomprom as a Corporate centre are currently being implemented by the Samruk-Kazyna Trust Social Development Foundation, which implements socially significant projects that are selected on a competitive basis.

The Samruk-Kazyna Trust is the only charity operated by SamrukKazyna, and it implements projects and programmes to resolve socially significant issues.

To support local communities, subsidiaries and affiliates can implement charity initiatives independently.

In 2019 subsidiaries and affiliates carried out the following targeted charity projects and initiatives:

In 2019, at the initiative of Karatau LLP and with support from the Samruk-Kazyna Trust Social Development Foundation, a children’s sports facility was built in Karatau village, Suzak District, Turkestan Region.

The facility was opened as part of Children’s Day celebrations. The sports complex is a modern mini-town for children: a mini-football field with an artificial pitch on which various sports and games can be played. This project will give the children and teenagers of the village an opportunity to engage in fun and healthy leisure activities.

Science and development

Kazatomprom and its subsidiaries and affiliates are committed to the scientific and technical development of their production methods. Each year, the Group increases its financing of scientific and technical programmes in fields such as geology, geotechnology, natural resource processing, the nuclear fuel cycle, rare and rare-earth metal products, and the legal protection of new-generation technologies.

The main areas of scientific, technical, and innovative development and the tasks established for the scientific and technical divisions of the Group are set forth in the strategy and policy for innovative and technological development of Kazatomprom for 2014–2022. The Group has also developed its own policy, entitled managing scientific and technological activities.

The Group’s strategy and policy for innovative and technological development is carried out by Kazatomprom’s main scientific and technical division, the Institute of Advanced Technologies LLP, as well as research and production divisions of subsidiaries and affiliates: the Scientific Centre of Ulba Metallurgical Plant JSC and Volkovgeologia JSC. In total, 486 employees deal with research and development activities at these divisions, including six PhDs and 76 doctoral candidates.

The Group’s research is divided into priority areas, coordinated by a separate research centre:
In 2019 in order to improve the coordination of scientific activities and to implement research and development (R&D) results at the Company’s production facilities, the regulation Platform for listening to the results of R&D conducted by Kazatomprom subsidiaries was elaborated.
Key results for 2019

In 2019 Kazatomprom and its subsidiaries and affiliates concluded 109 R&D agreements, having a total value of KZT 3.2 billion. The Group filed 28 applications for patents for inventions, receiving 20.

The Group regularly evaluates and updates its activities in accordance with the Strategy and policy for innovative and technological development. For example, in 2019 one meeting of the Scientific and Technical Council of Kazatomprom was held, in addition to 12 meetings of specialised scientific and technical councils on priority areas of the Group’s scientific and technological activities.

In order to commercialise the results of scientific and technological activities in 2019, the Company continued to focus on signing licence agreements between Kazatomprom and various subsidiaries and affiliates (Karatau LLP, JV South Mining Chemical Company LLP, JV Inkai LLP, and Appak LLP) to grant the right to use the invention “Method for obtaining natural uranium concentrate from uranium solutions”. The patent holder is Kazatomprom.

Also, work began on an audit of the fair use and commercialisation of the intellectual property of Kazatomprom and its subsidiaries and affiliates.

Scientific developments

Practically all the R&D of the Group is geared towards improving and modernising production.

In 2019 a number of large R&D projects were implemented:

“Introducing new technologies, materials, and equipment to reduce the cost of the chemical concentrate of natural uranium and uranium oxide”
Laboratory studies demonstrated the effectiveness of this method for solution filtration, and pilot tests conducted in 2019 yielded positive results, reducing the chloride content and excessive acidity in finished rich eluate.
“Developing low-acid leaching technology using cavitation-jet technologies in combination with special purpose chemical reagents”

In 2019 the Institute of Advanced Technologies LLP held pilot tests of the developed technology and the activation of leaching solutions with reagents for special purposes. The tests yielded positive results. Use of the technology facilitated a rise in the redox potential of leaching solutions and reduced by up to 20% the consumption of sulphuric acid in the leaching process.

In 2019 work was carried out through a number of studies, with a view to making production more environmentally friendly:

“Study of the environmental and social impacts of the mine’s production facilities on the environment”
As part of this study, information was collected to determine the impacts of mining entities on the environment and the social environment. The results are being used to update the environmental monitoring programme and management and response plans and to prepare and implement stakeholder communications plans.
“Study of an option to revamp mine boiler plants”
This project was aimed at converting hot water boilers from diesel fuel to liquefied gas, in order to boost energy efficiency and increase the environmental friendliness of production.

Kazatomprom actively monitors international industry trends and challenges, as well as innovative ways to resolve them. To this end, in November 2019 the IX International scientific-practical conference, Topical Issues Facing the Uranium Industry, was held in Almaty. Over 270 participants from various countries attended seven different sections of the conference, and 140 reports were delivered.

Scientific cooperation

The Group engages its employees in innovation activities through mechanisms for the feeding, processing, assessment, and review of rationalisation proposals. An additional incentive in this area is an annual contest to enhance efficiency, which is held at subsidiaries and affiliates. In 2019 Group employees submitted 2,567 rationalisation proposals, of which 2,251 were accepted, and 1,412 have been implemented. The expected economic effect is KZT 2.17 billion.

In 2019 a cooperation agreement was signed with the management company of the Atomredmetzoloto JSC, mining division of the state corporation Rosatom. The agreement seeks to foster cooperation vis-à-vis the mining and processing of mineral raw materials.

Development plans

In 2020, with a view to implementing a new approach to managing scientific activities, the Group will:

  • perform qualitative assessments of the scientific innovation of planned and implemented R&D;
  • revise the working format and structure of scientific and technical councils, and elaborate a methodology to assess the effectiveness of R&D activities;
  • coordinate the implementation of R&D results through a platform to showcase completed research work.
The Group endeavours to ensure that procurement procedures are open and transparent by publishing on its website the Procurement Rules, procurement plans and long-term procurement plans, regulatory acts, as well as information on tenders and their results. Procurement management at the Group is carried out by the Procurement Department, which comprises specialised divisions tasked with the effective implementation of all procurement stages.
New procurement model

The new model will be introduced at Kazatomprom’s Corporate centre and at all its subsidiaries and affiliates.

In the reporting period new regulatory documents were elaborated that govern the entire procurement process – from consolidating the requirements of the Group’s structural divisions to inventory management. These documents will come into force in early 2020.

In 2019 a new procurement management model continued to be implemented. The model seeks to achieve the following long-term goals:
Improving procurement efficiency by adopting best practices
Monitoring and ensuring the transparency of purchases
Reducing inventory costs
Drawing up and developing a qualified list of suppliers

Under the new procurement model, all Group procurement activities will be regulated by three main documents: the Procurement procedure of Samruk-Kazyna, the Procurement management standard of Samruk-Kazyna, and the Procurement management rules of Kazatomprom. The last of these was elaborated by the Company based on Samruk-Kazyna documents, and are to be submitted for approval; they will regulate the following key procurement processes:

management of procurement categories:
determining procurement categories and lists of categories as a whole, developing and implementing category procurement strategies;
procurement planning:
regulating issues related to consolidation requirements for goods and services, preparing a procurement plan, and determining marketing prices;
supplier management
establishing the qualifications potential suppliers need to have, creating and managing databases of potential suppliers;
supplier selection:
the procedure for selecting a supplier and the specifics of single source procurement;
contract and supply management:
issues related to executing and amending procurement contracts, as well as claims management issues;
inventory management:
issues related to safety and inventory accounting and managing the logistics infrastructure, material flows, and storage facilities.
Key results for 2019
The main procurement priorities of the Group in the reporting period comprised:

In 2019 the project Category Based Procurement Management of the Roadmap for the Group’s Transformation Programme was successfully completed and implemented as part of operational activities. At the end of 2019, 15 category based procurement strategies had been implemented, including five related to the Fund.

The implementation of procurement strategies in 2019 resulted in a preliminary economic benefit of KZT 1.86 billion.

In 2019 the Group concluded a total of 11,305 contracts with 3,209 Kazakh and foreign suppliers to supply goods and services, with a total value of KZT 229.1 billion.

Category based procurement strategies for 2019
Group strategies
  • • Oils and lubricants (fuel)
  • • Transportation and distribution services
  • • Tantalum
  • • Pumps, components and spare parts
  • • Pipes
  • • Flow meters
  • • Production assemblies
  • • Sulphuric acid
  • • Ion exchange resin
  • • Hydrogen peroxide
Fund strategies
  • • Electricity
  • • Cars and buses
  • • Health insurance
  • • Safety shoes
  • • Cabling and wiring products
Number of Kazakh
and foreign suppliers
Suppliers from
the Republic of Kazakhstan
Foreing suppliers
Digitisation of procurement

The complete transition of all stages of the procurement process to the E-procurement information system 2.0 portal was an important step in the optimisation and automation of the procurement process in 2019. The Electronic Procurement Plan and Automated Reporting System, which had been previously used for certain procurement procedures, were discontinued.

In 2019 testing also began on the SAP ERP system deployed at eight subsidiaries and affiliates, with a view to automating procurement planning. The deployment of this system within the procurement process will facilitate the following changes: procurement plans will be created, then adjusted and approved in the SAP ERP system, then automatically integrated into the E-procurement information system 2.0, where all subsequent procurement processes will take place.

The automation of the procurement process can allow significant time and cost savings, thereby facilitating a consolidation of all necessary information, as well as rapid access to it.

Supplier engagement

As part of the selection of suppliers and contractors, the Group works closely with counterparties, that is, participants in respective markets for goods, works, and services.

Taking a responsible approach to procurement, the Group has formalised a prequalification procedure for potential suppliers. In accordance with the procedure, all contractors and suppliers are divided into three criticality levels, depending on the goods or services they supply. Within each criticality level, the Group qualifies process for suppliers under the criteria established for a level.

The Company adheres to the following principles when screening candidates during the prequalification procedure:
In order to discuss problematic business and interaction issues, the Company and subsidiaries and affiliates annually hold open door days for suppliers. In January 2019, 13 subsidiaries and affiliates held open days for potential suppliers.
Local content of purchased goods and services

In compliance with state policy, the Company assists in concluding contracts for the procurement of products, work, and services between its subsidiaries and affiliates and local suppliers in order to support domestic suppliers in the regions.

In 2019, in order to support domestic producers, and drawing on import substitution groups of experts, the Company created a Central Project Office (including subsidiaries and affiliates) at the site of Samruk-Kazyna Contract LLP. Here off-take contracts (stipulating that a certain quantity of goods should be purchased) are concluded with producers; for example, in 2019, 14 off-take contracts were concluded, for KZT 102.3 million.

Percentage of local-origin products, work, and services purchased
Indicator 2017 2018 2019
Local-origin products, works, and services purchased 77% 80% 77%
Development plans
The Group’s procurement development plans for 2020 comprise:
Percentage breakdown of local-origin purchasers by Kazakh regions, 2019
Region Percentage of local origin in purchases, %
Akmola Region 91%
Aktobe Region 64%
Almaty Region 20%
Atyrau Region 34%
West Kazakhstan Region 97%
Zhambyl Region 97%
Karagandy Region 87%
Kostanay Region 61%
Kyzylorda Region 95%
Mangystau Region 97%
South Kazakhstan Region 84%
Pavlodar Region 92%
North Kazakhstan Region 69%
East Kazakhstan Region 81%
Nur-Sultan city 89%
Almaty city 78%
Total for Kazatomprom (in Republic of Kazakhstan)  77%

The Group has mines at 26 fields (sites). Field development is carried out using the ISR method, with a subsequent division into technological blocks. On average, one technological block at a field is depleted after three-to-four years.

The extraction of uranium using the ISR method is a complex operation, and includes:

Scheme: the leaching of uranium directly in the subsoil and the production of productive solutions

The uranium mining technology used by the Group has a lower impact on the earth and the environment than other known mining methods. Nevertheless, conditions at production sites and the functioning of infrastructure and mining processes are constantly monitored.

A mandatory stage in the lifecycle management of deposits is the implementation of measures to decommission facilities and to rehabilitate land after a decision has been taken to close a production site.

Closure management

Once a field’s reserves are depleted, the closure of the field's production facilities (site) at the end of its operational life must be carefully planned.

For each field (site), the subsidiaries and affiliates of the Company develop a liquidation and restoration project to mitigate the consequences of subsoil use, which stipulates the liquidation of wells, capital structures and other infrastructure, and environmental field (site) remediation, in accordance with Kazakh law requirements. An internal standard related to performing restoration work has been developed and applies to the Company and its subsidiaries and affiliates. Under the terms and conditions of subsoil use contracts, the Company annually transfers funds to a special deposit account (liquidation fund) in any bank of the Republic of Kazakhstan.

Developed projects are coordinated inside the Company with structural divisions, and then sent for approval to the Committee for Sanitary and Epidemiological Control of the Ministry of Health of the Republic of Kazakhstan and the Committee for Environmental Regulation and Control of the Ministry of Ecology, Geology, and Natural Resources of the Republic of Kazakhstan.

During project development and approval, the Group communicates with various stakeholders, participates in public hearings, and publishes the closure project in regional media.

The process of closing fields (sites) begins after the full depletion of in-place uranium reserves prescribed in subsoil use contracts. Initially, measures are taken to reallocate and employ discharged employees. Subsequently, in accordance with the project developed to eliminate the consequences of subsoil use, a package of measures related directly to the closed site is implemented.

Kazakh law stipulates requires the restoration of a field to its initial condition prior to development.

After completing the full scope of work stipulated in the liquidation project, a system is installed to monitor the condition of groundwater. For this purpose, a network of observation wells is created at a site. Checking background radiation is also carried out as part of this monitoring system.

Key results for 2019

In 2019 the development of reserves was completed at two fields (sites), where the subsoil user is Kazatomprom-SaUran LLP: Site No. 1 of the Moinkum field, and the Uvanas mine – the first uranium deposit in Kazakhstan to be fully depleted using the in-situ leaching method.

All contractual obligations to the state related to these sites have been fulfilled, measures have been taken to reallocate and employ the discharged employees, and work has begun to eliminate the consequences of subsoil use.

Development plans
In 2020 the Group plans to carry out restoration work at fields (sites) that were closed in 2019.
Kazatomprom was one of the first production companies in Kazakhstan to digitise its enterprises. The introduction of digital information systems helps optimise the time and resources spent on the implementation of everyday tasks, thereby boosting the efficiency of business processes across the Company.
Digitisation management

Digitisation is a key area within the Group’s transformation programme, and it was first introduced in 2015. As part of this process the Company and its subsidiaries and affiliates create IT solutions that enhance the efficiency of managing, collecting, and analysing information; simplify interaction between departments; and increase transparency.

The organisational structure of Kazatomprom has three departments responsible for implementing and supporting information solutions: the Information Technology Support Department, the Business Transformation Department, and the Digitisation and IT Architecture Department. The Chief Transformation and IT Director oversees the overall coordination of the activities of departments charged with implementing the Group’s digital transformation projects.

In 2019 the Digitisation Strategy of Kazatomprom up to 2028 was elaborated and approved. This strategy defines the concept Digital Kazatomprom, which consists of three programmes:

Key results for 2019
Digital Twins programme
Geological and Mining Information System

As part of implementing the Digital Twins programme, the software package Geological and Mining Information System (GMIS) was launched in 2019 at RU-6 LLP.

The implementation created a digital twin of the geotechnological field of the mining complex, containing up-to-date and fairly complete geological and geotechnological information about the field being developed as well as the technological facilities of the mining complex. RU-6 LLP specialists now have access to an automated system to replenish and allow the end-to-end propagation of source information on the structure of the operated facility at all development stages.

The system performs a comprehensive analysis of geological and geotechnological data at all stages of the lifecycle of a technological block.

Integrated planning system

As part of the Fund’s digital transformation programme, Kazatomprom implements the Integrated Planning System (IPS) project and is working to roll it out across all subsidiaries and affiliates.

The main goal of the IPS project is to create a tool to provide information and analytical support for procedures and processes, which makes it possible to quickly analyse, model, predict, and visualise various mediumterm planning scenarios pertaining to production and financial indicators, thereby facilitating the adoption of timely and effective management decisions.

For example, at the beginning of 2019 the IPS was commissioned at the Corporate centre level, as well as at Appak LLP, RU-6 LLP, Ortalyk LLP, and Kazatomprom-SaUran LLP. The production programmes and business plans of these enterprises have been updated for the planning period 2019–2023, taking into account the deployment of the IPS system. In May 2019 a consolidated Business Plan for 2019–2023 was generated in the system.

In July 2019 system users from the production blocks of these mining entities drafted their production programmes in the IPS for 2020–2024. In November 2019, on the basis of production programmes compiled by economists from mining entities, the Business Plans of subsidiaries and affiliates for the period 2020–2024 were generated in the IPS and approved by their governing bodies.

Digital Platforms
eKAP Information System

As part of implementing the Digital Platform Programme, in 2019 the eKAP Information System was launched, which comprises a single platform for automating and combining the business processes of the Corporate centre and the subsidiaries and affiliates of Kazatomprom on a “one-stop shop” principle, through basic modules.

The basic eKAP modules comprise Inventory, Occupational Health and Safety, HR-recruiting, Lean Manufacturing, and Employees.

The system makes it possible to cover 100% of employees from nuclear holding entities that use personal computers in their work or have mobile devices – a mobile app has been developed for iOS and Android platforms, which allows software products to be accessed remotely.

SAP ERP system

In addition, the Group continues to actively implement the SAP ERP enterprise resource management system. This is an effective tool in the planning and accounting of corporate resources, and comprises a single platform for collecting, storing, processing, and presenting information, thereby enabling users to analyse data and supporting decision-making at all management levels.

Since April 2019 the SAP ERP system has been in commercial operation at Ortalyk LLP and RU-6 LLP. In 2019 it was launched at seven production subsidiaries.

During the implementation period, entities automated target processes in all areas of activity: sales, procurement, financial and economic activities, production, repairs, personnel business processes, and investments.

Kamila Syzdykova, Managing Director for Economics and Planning at Kazatomprom, on the impact of IPS implementation on the financial and economic processes of the Company

“Through the IPS, we automate the calculation of mining plans. The main change is expected in the production programme of our entities – transitioning to medium-term planning.

Prior to the introduction of the system, a detailed mining plan was drawn up for one year. Also, financial and production indicators were extrapolated for the next four years. Under this approach, calculation errors were significant from the perspective of consolidation throughout the Holding.

The IPS system enables us to create various scenarios and to choose the best one, based on a three-year horizon and not just one year, and factoring in a large number of geological, geotechnical, and technological parameters, as well as factors affecting the results of production activities.

The IPS helps us create various scenarios for the correlation of technological blocks and the sequence of their development, so as to be able to evaluate and compare key performance indicators (cost and total profitability) over a time horizon of over a year. This boosts the quality and speed of decision-making, given that on average one technological block at a field becomes depleted within three-to-four years.”

Service approach to IT management

The IT Service Management (ITSM) project is being implemented within the digital transformation programme. This is a service approach to IT management, which recommends focusing on business requirements and services delivered via information technology to users. The project covers the implementation of 12 automated IT management processes that are aimed at improving the quality and speed of IT services. At the same time, service level agreements (SLA) enable IT providers to offer quality services and the IT departments of the Company to measure, monitor, and improve quality.

Since May 2019 an IT management system has been in operation at the central office, KAP-Technology LLP, and RU-6 LLP. In December the ITSM system was launched for commercial operation at Semizbai-U LLP, Trade and Transport Company LLP, Baiken-U LLP, Kazatomprom-SaUran LLP, Appak LLP, and Ortalyk LLP.

ITSM allows users to register service/access requests and incidents through a self-service portal and to track the status of their request. The system includes a feedback function to evaluate results and improve the quality of services. The system reduced the execution time of access requests from five-to-seven to one-to two business days.

Use of the system at subsidiaries and affiliates will be monitored until the end of May 2020.


The SAP ERP system implementation project has received a number of commendations: in 2019 Kazatomprom received a “gold” award at the annual systems developer awards SAP Value Awards.

The SAP Value Awards were held for the fourth time. Projects in seven categories are evaluated based on various criteria: the effect of the changes, the impact on a company’s operating activities and strategic development, and a strong link between the implementation of SAP solutions and business results.

Development plans

The Company has extensive plans to develop the IT architecture of the Group and to implement digitisation projects. In 2020 plans include:

Management approach

Employees play a key role in production processes and they are the main driver of success at Kazatomprom. The Company strives to maintain comfortable working conditions and provide career advancement opportunities for all employees, and to build open and transparent internal relationships.

The Company’s guiding document in HR management is the Kazatomprom HR policy for 2018–2028 (HR policy), whose purpose is to facilitate the attainment of the Company’s strategic goals by fostering effective individual and team work among qualified and motivated employees that share the Company’s values. The HR policy complies with the adopted Development Strategy of Kazatomprom for 2018–2028.

The most ambitious human resources management goals reflected in the Company's Development Strategy until 2028 are to develop a corporate culture and to bolster the role of HR as a strategic business partner.

During staff recruitment and development, and when supporting the corporate culture, the Company adheres to the provisions of the collective bargaining agreement, the Code of Ethics and Compliance, and Corporate Social Responsibility principles. The Company is also governed by international initiatives on employee interaction.

Within HR management Kazatomprom seeks to achieve a number of objectives, including:
A key area is ensuring employee safety and improving social conditions, which contributes to the wellbeing of employees and their families and has a positive impact on each employee, thus contributing to attaining the production and operating results of the Company.
Human rights

When interacting with employees, Kazatomprom pays close attention to employee interests and rights.

The Company categorically rejects discrimination based on gender, age, nationality, religion, or physical characteristics, as well as forced and child labour. In this regard Kazatomprom complies with respective international human rights standards as well as the provisions of the Code of Ethics and Compliance of the Company.

The safeguarding of employee interests and rights is monitored by the Ombudsman, compliance services, and trade unions. The Ombudsman regularly holds meetings with the workforces of subsidiaries and affiliates in order to clarify the norms of the Code of Ethics and Compliance, and also holds individual meetings with the employees of entities on personal issues.

In the reporting period no cases of discrimination or other human rights violations were recorded.

Total headcount

At the end of 2019 the Group’s total headcount, including joint operations, ventures and affiliates, stood at 20,592, up 0.4% on the previous year, but lower than 2017 due to the disposal of assets (MAEC LLP, KAES JSC, and SARECO LLP). The majority of work is executed by Group employees, and outsourcing is used to perform work that is not of a permanent nature (based on the conclusion of paid service agreements).

At the end of 2019 the share of employees on paid service agreements made up 2.6% of total headcount, while 97.4% of Group staff had openended employment contracts.

At the end of 2019, only 0.07% of Group employees worked part time.

A significant percentage of Kazatomprom employees (around 66%) work in the South Kazakhstan Region (including the city of Shymkent, 2%), where the country’s main uranium deposits and, therefore, the Company’s operations, are located.

Kazatomprom regularly analyses staff breakdowns in terms of main categories of gender, age, minoritygroup affiliation, and other signs of diversity.

As at the end of 2019, 81% of Group employees were men and 19% were women, the same level as in 2018. This gender ratio imbalance is primarily due to the specific production activities that prevail within the extractive industry.

The average age of Group employees was 39.4 years as at the end of 2019, down 1.5% on the previous period (2018: 40 years).

In 2019 the number of employees leaving the Group was down 3% on the previous reporting year, indicating a higher level of social stability.

Out of the 2,899 individuals that left the Group, the largest proportion (42%) were men aged between 30 and 50. As Kazakhstan’s uranium mining entities are located in its southern region (including Shymkent), most of the employees that left the Group were from this region (66%).

In 2019, 3,027 employees joined the Group. Of these, 57% were hired in the southern region (including Shymkent).

Group headcount dynamics, 2017–2019
Structure of governing positions and staff of the Group by gender, end of 2019
Structure of governing positions and staff of the Group by age,
end of 2019
Structure of governing positions and staff of the Group by nationality, end of 2019
Staff turnover at Kazatomprom, 2017–2019, %
Total headcount by employment agreement and gender, end of 2019
Indicator Number (people) Including
Men Women
Headcount at end of reporting period (staff), of which: 20,592 16,753 3,839
- Workers on open-ended employment contracts 19,794 16,188 3,606
- Workers on temporary contracts (fixed term) 798 565 233
- full-time 20,577 16,745 3,832
- part-time 15 8 7
Supervised employees (under paid service agreements, non-staff) 546 372 174
Total headcount 21,138 17,125 4,013
Total headcount by region and gender, end of 2019
Indicator Number (people) Including
Men Women
Almaty 602 330 272
Nur-Sultan 942 510 432
Shymkent 502 270 232
Northern Region 1,111 866 245
Southern Region 13,210 11,876 1,334
Eastern Region 4,209 2,892 1,317
China 11 5 6
USA 2 2 0
Switzerland 3 2 1
Total 20,592 16,753 3,839
Number of employees that left the Group in 2017–2019, by gender
Indicator 2017 2018 2019 Change
Women 727 566 521 –8%
Men 2,604 2,418 2,378 –2%
Total 3,331 2,984 2,899 –3%
Number of Group employees hired, 2019, by region
Regions Number Share, %
Almaty 118 4%
Nur-Sultan 249 8%
Shymkent 120 4%
Northern Region 387 13%
Southern Region 1,597 53%
Eastern Region 555 18%
PRC 1 0%
Total 3,027 100%

This information is based on information technology (IT) reports and official documentation from the subsidiaries and affiliates of the Company, in line with Global Reporting Initiative (GRI) indicators on social impacts.

Remuneration system

Material compensation is one of the most important components of employee motivation, and Kazatomprom discharges its financial obligations to employees in full and on time. The remuneration system in the Company complies with international best practice, and the remuneration level of Group employees is competitive on the labour market.

In 2019 the monthly wages of production workers was up 8% on the 2018 level, to an average of KZT 263,997. This growth related to 10% growth in the wages of production workers, which came into effect on 1 June 2019.

Three pilot Kazatomprom entities began implementing the long-term project “Systematisation of the remuneration of the employees of mining entities” in 2019. The project aims to unify the overall cumulative incentive system, linking individual/collective performance and the behaviour of employees, while at the same time retaining the annual aggregate remuneration level.

Ratio of base salary of men to women on average by employee category, KZT ‘000

When establishing and developing the remuneration system, the Company does not discriminate between employees based on gender, and pays men and women equally for their work.

In addition to wages, the Company pays routine bonuses to employees, based on performance and the attainment of planned targets as well as the strategic and operational goals of the Group. As part of the system of material incentives, a bonus policy is implemented to reward employees for innovative ideas, exemplary performance, and consistent and excellent work.

Additional incentives include:

  • financial assistance for annual leave to support the health of employees;
  • additional payments for concurrent employment and mentoring allowances established by the Group’s management;
  • additional payments to employees living in environmental disaster zones, depending on the region of residence, in accordance with Kazakh law;
  • additional payments to production staff in accordance with Kazakh law if they work in harmful or hazardous conditions.
Average monthly salary of production staff, KZT*
Indicator 2017 2018 2019 Change
Average monthly salary of production staff 238,492 244,543 263,997 8%

* The indicator is calculated based on the payroll fund of production staff in accordance with the labour report (Statistical Reporting)/actual number of production staff.

Total accrued wages, KZT million*
Indicator 2017 2018 2019 Change
Total payroll 61,829 63,413 64,884 2,3%

* Accrued wages, including all related taxes and deductions.

Ratio of standard wage of entry-level employee to established minimum wage, 2019, KZT
Indicator Including
Men Women
Minimum wage in Republic of Kazakhstan 42,500 42,500
Average wage of entry-level Group employee* 42,500 42,500
Ratio 1 1
* Basic wage rate of an entry-level production employee.
Transformation projects

In order to transform the business and attain the Company’s strategic goal “To develop a corporate culture commensurate with that of an industry leader”, from 2016 to 2018 the project “Implementing a target personnel management model” was rolled out at Kazatomprom and five of its subsidiaries. The project encompassed updating and improving HR policies, processes, and tools. This project was followed in 2019 by the project “Replication of the target personnel management model”, which continued the implementation of key HR processes in remaining subsidiaries and affiliates in accordance with the target personnel management model.

In the reporting period the Company also continued to roll out the Business Process Automation project: the base volume of the SAP HCM automated system, including the implementation of HR administration, organisational management, time management, and payroll processes, was replicated at eight entities. The new automated system aims to integrate all HR management processes, such as employee evaluation, training and development, and managing leave and business trips, and it also overviews employee benefits. In 2020 there are plans to roll out the automated system at one of the largest entities of the Group, Ulba Metallurgical Plant JSC. In addition, the phased launch of the employee HR self-service system is planned.

Corporate culture

In order to attain strategic goals, Kazatomprom proactively continues to develop a corporate culture that is commensurate with that of an industry leader. The Company’s corporate culture is based on five values: safety, responsibility, professionalism, development, and team.

Kazatomprom compiled the Roadmap of the Corporate Culture Project for 2018–2022, which stipulates the creation of favourable working conditions, updating the competency model, career advancement and development opportunities, succession management, improvements to the employee training and performance assessment system, increasing employee engagement, managing material and non-material motivation, developing the communications system, developing a leadership programme, and strengthening the employer brand.

As part of the Corporate Culture Project, in 2019 the Company updated the competency model, consisting of a set of behavioural characteristics that combines the requirements of a specific position that are necessary to achieve successful work, with a view to attaining the strategic goals of the Company set forth in the Development Strategy of Kazatomprom for 2018–2028.

The succession programme, which has been in place at the Group since 2012, plays an important role in staff development. The programme is aimed at finding suitable candidates to succeed management team members, by identifying Group employees with excellent potential and clearly driven by a desire to advance professionally.

The updated competency model aims to develop:
six corporate competencies:
  • • change management;
  • • a results-orientated approach;
  • • planning;
  • • teamwork and communication;
  • • information research and analysis;
  • • professionalism and development.
two management competencies:
  • • leadership;
  • • strategic decision-making.
Staff development and training
Average annual training hours per employee, man hours, 2019

Staff development and training is a priority area for Kazatomprom within the transformation programme and developing the corporate culture.

In order to improve HR management, Kazatomprom has a staff appraisal system in place, which determines an employee’s training requirements as well as further career opportunities. Employee performance appraisal includes assessing an individual’s professional competencies as well as personal, business, and management competencies. The appraisal makes it possible to not only determine the level of employee competencies and to enable employees to obtain new necessary skills, but also enables an individual to gain an understanding of the career opportunities available within the Group.

Updating the knowledge and skills of employees has a positive impact on Group performance. Accordingly, in the reporting period the Company approved the Comprehensive Educational Programme for 2019–2023 (“the Programme”). The Programme aims to systematise employee training, retraining, and further education processes and includes such components as learning and development at universities and colleges, further education, and the retention and transfer of knowledge.

Employee training costs, 2019
Staff category Number of people Training costs,
KZT ‘000
Administrative and managerial staff 5,021 507,951
Production staff 22,128 939,032
Total 27,149 1,446,983
Average annual training hours per employee by gender, 2019
Staff Average annual training hours
Women 27.6
Men 43.2
Total 35.4
Collaboration with educational institutions

At present Kazatomprom collaborates with 34 universities and 12 colleges in the Republic of Kazakhstan and abroad. Currently, at the Group’s expense, 392 students are being trained in specialist areas relevant to the industry and the region, including 234 employees from Kazatomprom and its subsidiaries and affiliates, and 158 individuals who are not employees. In 2019 training costs at universities and colleges amounted to KZT 468 million.

Kazatomprom annually hosts the School of Young Specialists organised by the Institute for High Technologies LLP, a branch of Kazakhstan Nuclear University. In 2019, over five days, 65 promising young professionals from 17 Group entities participated in brainstorming sessions and did case studies; the main topics were creating a corporate culture and implementing and supporting corporate values.

Students studying at the expense of the Company do on-the-job training at production facilities, where each student is assigned an experienced mentor. Kazatomprom plays an active role in the Zhas-Orken internship programme for young professionals: 17 participants did internships at Group entities in 2019, leading to the hiring of eight young professionals.

Professional education

In addition to bachelor’s and master’s educational programmes, the Company pays significant attention to the continuing education of employees. Further education programmes are implemented both in professional areas, including compulsory training in accordance with the legislation of the Republic of Kazakhstan, and target areas, such as leadership development, lean manufacturing, corporate culture, and safety culture.

2019 also saw the launch of the School of Internal Trainers at Kazatomprom, whose purpose is to share within the Group the professional knowledge and skills required to resolve production and management tasks. The school will allow the Company to facilitate the direct transfer of knowledge and experience, thereby maintaining succession principles and complying with the modern standards of a self-learning organisation.

Furthermore, Kazatomprom creates all the necessary conditions for the selftraining of employees. The Company has an electronic corporate library that can be accessed by all employees through an app on a computer or phone/tablet. Also, in 2020 there are plans to open a special reading room, which will create a learning and development space in which, employees can access a wide range of books on current topics and modern business issues.


Large-scale work to develop professionals in the nuclear industry is being carried out not only at the Company, but also at national level. An important event in the reporting year was the participation of Kazatomprom in the development and expert examination of the Professional standard uranium mining, which was first approved in 2019 by the National Chamber of Entrepreneurs Atameken (Order No. 263 dated 26 December 2019). The standard is a single industry document that serves as the basis for defining key industry professions and their requirements, enhancing the quality of labour resources, raising the professional level of employees, and improving the quality of education during the training stage of highly qualified specialists.

In the modern world, a social policy that enhances the social and living conditions of employees, as well as their engagement levels, underpins the prosperity of any production company, and also creates benefits for employers. Kazatomprom, as a leading uranium mining company, annually implements social support measures for employees, and as a result ensures a high level of social stability within the Group.
Collective bargaining agreement and trade unions

Kazatomprom supports the freedom of trade unions and workforces. Around 73% of the Group’s employees are members of the Sectoral Union of Nuclear Industry Workers public association. Employment relations between Kazatomprom and its employees are regulated by a collective bargaining agreement. In the reporting period, 98% of employees were party to collective bargaining agreements, the same level as in 2018.

Currently the collective bargaining agreements of the Group are valid on average for three years and subject to regular renewal. In addition, collective bargaining agreements require the Company to notify employees in advance about any significant changes in the activities of the Group. The minimum notification period for employees at most entities is at least four weeks and, in some cases, two weeks.

Social support
The collective bargaining agreements regulate social support measures provided to employees and include such regulatory aspects as:

A number of Kazatomprom entities provide additional benefits to those required under Kazakh law.

Additional social benefits are prescribed for certain categories of employees. For example, the Company provides additional paid leave to single parents and mothers with three-or-more children under the age of 12. Material assistance is furnished to large families and families with disabled children under the age of 18. At the same time, Group entities apply the same approach to full-and part-time employees.

Kazatomprom also provides social benefits to retired employees upon the termination of their employment contract due to age or disability.

In order to provide social guarantees and benefits to employees, the collective bargaining agreements stipulate annual payments to the trade union, equivalent to at least 2.5% of the annual payroll of Kazatomprom. In the reporting period the trade union was allocated KZT 230 million, a rise of KZT 30 million on 2018.

The Company also annually allocates funds for employee medical insurance. In 2019, over KZT 852 million was allocated for these purposes, a rise of KZT 30 million on the previous reporting period.

As the Group is a group of manufacturing enterprises, the Company has obligations towards employees during the liquidation/restructuring of subsidiaries and affiliates. Employees are helped to find employment at other Group entities or at the Company’s service providers, and are invited to attend professional retraining programmes or receive compensation packages.

Total number of employees that took vacation and returned to work after the vacation ended, including parental leave, by gender















Took a
parental leave
8 332 336 14 258 272 21 236 257
Returned to
work after
the vacation
parental leave
2 121 123 3 115 118 7 95 102
Sports and cultural events

Kazatomprom makes significant investments in developing sports and cultural events at the Group, thereby contributing to an increase in employee motivation and engagement.

The main sports event in 2019 was the XIX Spartakiad among employees of the nuclear industry, which was held for the first time in Shymkent.

In the reporting year a number of creative contests were held at the Group; in particular, a video contest on the topic Our Best Scientific Work, a poetry contest, and the Sparkle of Talent competition. In 2019 a gala event was held at Kazatomprom, in honour of the Day of Nuclear Workers, with awards presented to the best employees of the Group.

Another exciting event was a two-day visit by the families of employees to JV Katco LLP.

Internal communications

Internal communication channels are the main tool for exchanging information among the management, employees, and divisions of the Group. The unified system is designed to not only provide timely information to employees about current Group events, but also to promote a cordial atmosphere within the workforce and to bolster the Company’s image as a successful and socially responsible organisation.

Since March 2019 a weekly news bulletin has been published at the Group. The Company also publishes the QazAtomNews corporate magazine, which has a circulation of 2,000.

Internal communication channels are also used to notify employees, such as town halls, meetings, management meetings with the workforce, events aimed at strengthening the corporate culture, and newsletters/appeals on behalf of management.


Kazatomprom has created a feedback system on the Company’s website, which enables external stakeholders to leave a written request or complaint or to call a hotline. The monitoring and analysis of requests is carried out by the Group’s entities, which submit quarterly reports to the Kazatomprom’s central office. Based on the results of the analysis, each request is monitored to eliminate violations, and respective recommendations are issued.

In 2019 the Group received 40 requests from the employees of enterprises. Most of these requests were personal in nature (requests for financial assistance, finding employment for relatives, etc.). Eight requests related to remuneration, the termination of employment, and relations with management. In the reporting period all requests were dealt with by the deadlines prescribed under Kazakh law.

Action plans have been developed at the Group’s entities to enhance social and labour conditions, foster positive psychological attitudes, improve wellbeing and safety, organise catering facilities, provide finance-related qualifications for employees, and raise their overall qualification level. The heads of Group subsidiaries and affiliates are responsible for implementing action plans.
Social stability rating (index), %

Every year, in order to determine the level of social development at Kazatomprom, a study is conducted to determine the social stability rating (index). In 2019 the Centre for Social Interaction and Communications conducted a study at 17 Group enterprises, and put the Group’s social stability rating (index) at 80%, in line with the 2018 level.

The result ranks the Company as above average in terms of social stability. This means that the Company’s actions to develop a corporate culture, boost employee engagement, and improve working conditions have been successful and welcomed by employees.

Development plans

In 2020 Kazatomprom will continue to implement projects as part of the business transformation programme, including the automation of HR management processes.

The development of the corporate culture will be another significant area of work in the coming year. There are plans to improve the succession programme, introduce a culture of personal responsibility at all management levels, and foster a culture of mentoring and social partnership.

It is expected that the large-scale work carried out in 2019 and the planned initiatives will bring about a high level of employee satisfaction and commitment to the Kazatomprom’s values, which will in turn contribute to attaining a high level of production efficiency at the Group.

Approach to occupational health and safety management

Kazatomprom prioritises occupational health and safety and industrial, nuclear, and radiation safety at production facilities.

The Group strives to comply with international best practices, adhere strictly to national and international requirements, and continuously enhance the health, safety, and environment (HSE) management system.

Group’s occupational HSE management system

The principal HSE document is the Kazatomprom policy on occupational health and safety, environmental protection, radiation, and nuclear safety, approved by the Chairman of the Board of Kazatomprom. This policy consists of nine basic principles and applies to all Group employees and contractors. The Company’s occupational health and safety code at Kazatomprom is also binding on employees.

Performance in HSE and the HSE plan are regularly reviewed by the Production Safety (HSE) Committee under the Board of Directors of Kazatomprom and the Risk Management Committee under the Management Board of Kazatomprom. Production safety and risk management reports are submitted to the Board of Directors for review and approval.

The role of the Company’s Industrial Safety Department was strengthened in 2019. The department now reports directly to the Chairman of the Management Board, has been vested with additional powers, and performs a wider range of tasks, including responding proactively to incidents and preventing emergencies and analysing, monitoring, and controlling risks in the area of occupational safety.

Similar improvements were introduced at the structural divisions of subsidiaries and affiliates.

In order to boost the efficiency of HSE activities, in 2019 the Company analysed the occupational safety services of the Group’s subsidiaries and affiliates. Based on the results of this analysis, recommendations were sent to subsidiaries and affiliates to align their structures, reporting, and employee numbers in occupational safety services with Kazakh legislative requirements and international best practices. The structures of occupational safety services were bolstered and reassigned to the heads of subsidiaries and affiliates.

Compliance of the management system with international standards

The Group extensively implements occupational health and safety management systems, based on international standards. An occupational health and safety management system is implemented at production entities, in line with OHSAS-18001.

In 2019 the Group began preparing to obtain accredited certification under the new ISO 45001 Health & Safety Standard. In January 2020 the first stage of the audit to ascertain that the Kazatomprom management system complies with the standard was completed. Completion of the audit and ISO 45001 certification is scheduled for March 2020.

HSE Risk Assessment

The key HSE risk management process forms an integral part of both the corporate risk management system and the Group’s occupational health and safety management system.

The Company’s Risk Register identifies work-related injuries as being a major risk. The Group has drafted a list of actions to prevent risks and to mitigate their consequences, including:

Golden Safety Rules in HSE

In order to reduce risks of safety violations related to the human factor, the Company has held behavioural audits since 2018. These monitor workers’ behaviour during the performance of production assignments; the organisation and conditions of workplaces; the technical condition of equipment, tools and devices, and check that all necessary internal regulations (instructions, procedures, standards, etc.) are in place. In 2019, with support from various management levels, the Company and its subsidiaries and affiliates conducted 10,528 behavioural audits. In 2019 the Industrial Safety Department of Kazatomprom also elaborated a draft standard entitled Procedure for Conducting a Behavioural Safety Audit at Kazatomprom Enterprises.

HSE Performance

Production activities at Group entities are carried out in compliance with occupational health and safety requirements. A wide range of measures are carried out on an ongoing basis to prevent accidents and injuries. The Group carries out systematic work to align the safety culture with international best practices and to increase the level of conscious compliance with production safety requirements by employees and managers at all levels. In 2019 the occupational health and safety management system covered 100% of the Group’s employees.

Supporting an International Social Security Association (ISSA) initiative to improve safety, health, and wellbeing at work, the Company is registered as a member of the Vision Zero international programme. This membership is testament to the Company's belief that a well-developed culture of prevention can reduce the number of accidents and occupational diseases.

In order to preserve the lives and health of employees, and as part of implementing the Vision Zero concept, the Company has determined and adopted the Golden Safety Rules, which are binding on all Group employees and contractors.

In 2019, KZT 7.23 billion was spent on HSE actions. The main investments were in special power supplies (42%), purchasing personal protective equipment (15%), and improving working conditions (14%).

Kazatomprom annually drafts a range of measures to improve the HSE management system. On 20 February 2019 a corporate meeting was held entitled “Results of the work of Kazatomprom enterprises in 2018 and tasks for 2019 related to occupational health and safety, environmental protection, and industrial, radiation, and nuclear safety”. Based on the results of the meeting, a protocol was adopted, containing 30 instructions on how to improve production safety.

Scheduled inspections of subsidiaries and affiliates for compliance with HSE regulations are carried out on an ongoing basis.

In 2019 the Lock out/Tag out system (the locking of hazardous energy sources, with warning tags posted) was installed at all subsidiaries and affiliates, together with a procedure for recording hazardous actions, hazardous conditions, and potentially dangerous near-miss accidents.

The effectiveness of Group employees, from management to rank-and-file staff, is also viewed through the prism of HSE. For example, the corporate key performance indicator of the Chairman of the Management Board of Kazatomprom is “Improvement in the safety culture”, whose components are “The number of identified hazardous conditions, hazardous actions, and potentially dangerous near-miss accidents” and “Corrective measures”. This high-level KPI is further cascaded down to the management and employees of the Company and subsidiaries and affiliates.
Breakdown of HSE costs, 2019
Preventing work-related injuries

The Group, in both Kazatomprom and its subsidiaries and affiliates, has adopted the practice of holding regular meetings (in the form of video conferences) with the heads of occupational safety services, to analyse the root causes of accidents and to elaborate measures to prevent them.

Based on the analysis results of work-related injuries and accidents, information letters are prepared and sent to all subsidiaries and affiliates, containing a list of measures to prevent accidents. The circumstances and causes of the incidents are also discussed with employees in all Group divisions. In addition, ad-hoc safety briefings are held.

The comprehensive HSE measures implemented made it possible to prevent industrial accidents at Group entities in 2019 (uncontrolled explosions, emissions of hazardous substances, or the destruction of buildings). However, despite the significant amount of work accomplished, in 2019 eight accidents were registered, with 10 employees sustaining various injuries, and one employee fatality.

Procedures to register incidents at entities and the notification and creation of relevant reporting, based on the results of an investigation, are implemented at the Company and its subsidiaries and affiliates. In 2019 investigations were conducted into every accident, and the root causes of accidents were identified and measures taken to prevent them from happening again. Conclusions and the necessary measures to be taken were communicated to all Company entities and implemented on time.

Injury rates
Indicator 2017 2018 2019 Change
LTIFR (per 1 million man hours) 0.15 0.31 0.24 –22.6%
Accident rate (per 1 thousand workers) 0.27 0.59 0.49 –17.0%
Unsafe conditions, unsafe actions, near-miss reporting* 6,200 34,546 457%
Number of accidents** 7 12 8 –33.0%
Fatalities 1 1

* The rise in the number of identified unsafe conditions (UC), unsafe actions (UA), and nearmiss reports was primarily due to the fact that in 2018 reporting processes were still at the implementation stage (employee training), and in 2019 these processes were functioning in all subsidiaries and affiliates.

** Defined as the impact on the employee of a harmful and/or dangerous production factor in the performance of their work (job) duties or tasks of the employer, which resulted in an industrial accident, a sudden deterioration in health, or the poisoning of the employee, which led to temporary or persistent disability, or death.

Preventing occupational diseases and protecting health

At Group entities special attention is paid to the health of employees. For example, the employee benefits package includes full medical insurance, and employee health improvement and health resort treatment programmes are also available. The terms of these programmes are set out in collective bargaining agreements. Additional health improvement and health resort treatment programmes are organised for employees through the trade union for nuclear industry employees. Employees of subsidiaries and affiliates are given three healthy and nutritional meals a day. In 2019 the Company allocated KZT 3.2 billion for these purposes.

Medical facilities are organised at all subsidiaries and affiliates. In 2019, over 12,500 employees applied for medical care. The main causes of treatment were coughs, headaches, and high blood pressure.

Preliminary, periodic, and extraordinary medical examinations of employees are regularly conducted at the Group’s production facilities. Based on the results, employees are sent if necessary for in-depth preventative examinations. In 2019, KZT 637 million was spent in the area of disease prevention.

Mandatory pre-shift physical examinations are frequently conducted at Group subsidiaries and affiliates. Employees that have not undergone a medical examination are not allowed to work.

Developing a Safety Culture

Kazatomprom actively involves its employees in health and safety management. In accordance with the Kazakh Labour Code, Group entities have established production safety councils, which include on a parity basis representatives of the employer and employees, including technical inspectors. Production councils do not replace occupational safety services, but instead supplement their occupational health and safety activities, work-related injuries, and occupational diseases. In addition, production councils organise occupational health and safety inspections at workplaces by technical labour inspectors. Decisions of the production council related to occupational health and safety are binding on the employer and employees.

In 2019, as part of the implementation of continuous improvements to the HSE system, the Company assessed the HSE system of Kazatomprom in accordance with the protocol order of the Production Safety Committee of Samruk-Kazyna. As part of this event, ways to question the employees of subsidiaries and affiliates about production safety issues were tested. An analysis of likely systemic noncompliance with HSE requirements and SWOT-analysis were conducted during the HSE system assessment.

In order to reach the goal of zero work-related injuries and to ensure production safety, a safety culture is successfully being implemented at Group entities, based on the Golden Safety Rules of the Vision Zero international concept. In 2019 cascading communications were held in subsidiaries and affiliates, with the participation of senior management, to explain the Golden Safety Rules.

The Company has developed and successfully implements the training programme “Development of occupational health and safety culture skills and competences”. In the reporting period CEOs and other employee categories in subsidiaries and affiliates were trained on how to enhance the safety culture, including through holding behavioural safety audits and identifying potentially dangerous near-miss accidents, hazardous actions, and hazardous conditions. Trainings and HSE knowledge testing was delivered to the Group’s employees, as well as a master class on the topic “Developing a safety culture at Kazatomprom”.

Kazatomprom is constantly improving its HSE system, including through adopting international best practices. From 9-13 September 2019 in Almaty the IAEA conducted a training course for Company employees on protecting employees in mining and processing enterprises of the uranium industry from radiation exposure. And from 9-16 June 2019 the Company took part in the IAEA technical meeting on the topic “Annual Meeting on the Regulation of the Safety of Uranium Production and Natural Radioactive Material (REGSUN)” in Vienna in Austria.


In November 2019 at the Tortkuduk site JV Katco LLP hosted the annual workshop for contractors on occupational health and safety, environmental protection, and radiation safety. The first half of the day consisted of presentations: participants shared their achievements in occupational health and safety, environmental protection, and radiation safety. The second part was practical: participants were divided into teams and visited drilling sites, where they had to spot inconsistencies and fill out STOP cards.

The STOP card is an important safety tool. An employee who finds any instance of non-compliance or hazardous conditions that carry a health risk, damage to property, and/or other incident, fills out a STOP card, provides details, and gives it to the safety supervisor for registration. As part of the workshop, JV Katco LLP recommended that contractors use this experience and apply this tool in the daily activities of their employees working at the Company.

In 2019 JV Katco LLP also elaborated and implemented Golden Safety Rules in HSE for contractors. These rules are binding on contractors working at JV Katco LLP facilities.

Occupational health and safety management at contractors

The contractors of the Group are covered by the HSE management system and Company standards in this area. Information on the Group’s contractors is taken into account in statistics on incidents, during risk assessments and goal-setting, and also in the planning of health and safety training.

Compliance by contractors working at Group facilities with environmental protection and production safety standards and norms is compulsory. When it comes to managing HSE aspects, suppliers of goods, works, and services, as well as contractors, are required to comply with the Corporate production safety system standards and production safety requirements for contractors.

In accordance with an order from the Company’s management, which came into force in 2019, all contracts with contractors must be approved by the Industrial Safety Department for compliance with respective HSE requirements. During the term of a contract, contractors’ compliance with HSE norms and rules is also constantly monitored during regular inspections by employees from the Industrial Safety Department and subsidiaries and affiliates. At Company enterprises a system for evaluating the contractors of subsidiaries and affiliates on production safety issues has been introduced, and mutual checks of contractors are implemented by subsidiaries and affiliates.

The strategic approach the Company adopts to interacting with contractors is based on the principles of partnership. Representatives of contractors regularly participate in HSE meetings, and the Company provides HSE trainings for the employees of contractors.

Nuclear safety

In order to ensure nuclear safety, Group enterprises that carry out activities involving nuclear materials monitor compliance with technological regulations and requirements related to nuclear safety instructions.

Ulba Metallurgical Plant JSC currently has nuclear materials. The monitoring and supervision of nuclear fissile material (NFM) falls within the remit of the Chief Physicist’s Department (GFS). In 2019 this department carried out the following safety-related activities:

Inventories of nuclear materials and nuclear safety inspections are carried out at the Group’s enterprises on a regular basis in order to ensure nuclear safety. The absence of any faults and violations during the reporting year demonstrates the effectiveness of the measures implemented.
Radiation safety

In 2019 the Group carried out systematic process monitoring of the radiation environment in its workplaces, premises, production territories, and monitored areas.

Radiation factors at the production site and in sanitary protection and residential zones were unchanged and the same as in 2018. No radiation accidents or incidents occurred at the Company’s enterprises in 2019, and there were no recorded values above the annual radiation dose limits set by the sanitation and hygiene standards and sanitary and epidemiological requirements for radiation safety.

In 2019 measures were taken to improve the radiation environment: renovations of rooms and equipment, replacing corroded or obsolete equipment, renovating and upgrading ventilation systems, taking low-level radioactive waste to disposal areas, purchasing new radiation monitoring instruments, and radiation safety and protection training for staff. In 2019, 3,700 tonnes of low-level radioactive waste was taken from Kazatomprom enterprises to low-level radioactive waste disposal areas, 13 new radiation monitoring instruments were purchased, and 1,605 employees completed radiation safety and protection training at licensed organisations.

The average radiation dose to which Kazatomprom’s staff were exposed in 2019 was 1.51 mSv per year, including natural background radiation. At the same time, the level of natural background radiation in areas where the Company operates ranged from 0.4 to 1.02 mSv per year.

In 2019 the maximum annual effective dose of Group-A staff at Group entities was 4.94 mSv per year, the same level as in 2018 (4.97 mSv per year).

Radiation safety indicators, 2019
Indicator Value
Average dose of radiation exposure –1.51 mSv per year
Level of natural background radiation in areas where the
Group operates
–1.02 mSv per year
Maximum annual effective dose of group-A staff at Group
–4.94 mSv per year
Emergency response

Uranium mining is a hazardous production process. Kazatomprom takes all necessary measures to ensure that its enterprises are prepared for emergencies.

As part of preparations and measures to prevent emergencies, the Company checks the level of production safety and emergency response level, elaborates Emergency Response Plans, regularly conducts training exercises, and concludes contracts with professional emergency response services.

Contracts have been concluded with professional emergency response services. In addition, voluntary emergency rescue teams and units have been created at the Company’s subsidiaries and affiliates.

Training schedules are compiled annually at each subsidiary and affiliate, with the involvement of a representative from the regional Industrial Safety Department, and in accordance with the Law of the Republic of Kazakhstan “On Civil Protection”.

Development plans
HSE remains the No. 1 priority for Kazatomprom. The Company will continue to implement measures to enhance its culture of industrial safety, and to maintain an open and honest dialogue with all stakeholders.

As part of ongoing work to improve the production safety system and to implement the Development Strategy in 2020, the Company has planned the following activities:

The adopted measures will make it possible to focus on preventative measures and, as a result, boost the safety culture for Group employees.

Environmental protection forms an integral part of the Company’s operations and approach to sustainability management. Kazatomprom recognises the importance of taking responsibility for the impact its business has on the environment, health, safety, and living standards of local communities, and carries out a range of measures and actions to ensure environmental safety, protect and maintain the natural environment at the Group’s production sites, facilitate the rational use of natural resources, and minimise environmental impacts.

The underlying principles of the Group’s environmental management approach are set forth in the Kazatomprom policy on occupational health and safety, environmental protection, radiation and nuclear safety.

The Company has elaborated and begun implementing an Environmental and Social Action Plan (ESAP), based on risk assessment for the preemptive management of health, labour, environmental, and social issues.

The environmental management system operates as part of the Group’s integrated HSE Management System4, which allows its environmental protection efforts to be coordinated with industrial, nuclear, and radiation safety measures and related activities. At Corporate centre level, the environmental management of operations is overseen and coordinated by a dedicated environmental protection department within the Company's industrial safety department. At the Group's subsidiary level, there are similar dedicated departments in place overseeing environmental management and performance.

Kazatomprom's senior management engages regularly in addressing environmental issues. Thus, as part of weekly operational and production meetings, the Industrial Safety Department reports to the Management Board on environmental management issues. In addition, on a quarterly basis a progress report on the implementation of the ESAP Roadmap is prepared and submitted for review and consideration to the Board of Director's Production Safety (HSE) Committee.

4 Operational Safety and Health, Process Safety and Environmental Protection Management System.
  • The Policy of Kazatomprom on occupational health and safety, environmental protection, radiation, and nuclear safety
  • The Corporate social responsibility policy of Kazatomprom
  • Corporate standard for General requirements for ensuring environmental safety at subsidiaries and affiliates of Kazatomprom
  • The Corporate production safety system standard. Production safety requirements for contractors
  • The Corporate standard with methodology for calculating waste generation standards per unit of production at Kazatomprom entities
  • The Corporate standard with guidelines for the management of radioactive waste until its disposal
  • The Sustainable Development Programme of Kazatomprom for corporate social responsibility for 2017–2019
  • Rules for managing production and consumption waste at Kazatomprom entities

The environmental management system, based on the ISO 14001 standard, has been implemented at the Company’s production assets, and an energy management system has also been introduced at all entities, in accordance with the ISO 50001 standard. As part of a commitment to further enhance the environmental protection practice, the Company decided to obtain ISO 14001 certification to ensure that the environmental management system fully complies with the ISO 14001 environmental management standard, and necessary preparations have begun in this area. In 2019, as part of preparations for external certification, the first stage of an external audit was conducted and respective internal governing documents were reviewed and updated.

Kazatomprom expects that its suppliers and contractors comply with the corporate standard on occupational safety and contractor occupational safety requirements.

Key results

The Group invests significant resources in the area of environmental protection. In 2019 Kazatomprom spent a total of KZT 1,880.3 million on environmental protection activities, out of which KZT 1,124.6 million (around 60% of costs) was allocated to improving technological processes, including reducing unexpected emissions into the environment; KZT 51.0 million was spent on boosting the efficiency of existing dust and gas traps and water treatment plants, and KZT 112.9 million was spent on research and development activities in environmental protection.


Kazatomprom does its utmost to minimise adverse impacts from its production activities and to preserve the environments at uranium mining fields. The environmental activities of the Group’s entities have more than once received prizes and awards.

In December 2019 the high-profile award ceremony of the winners of the Annual Republican Competition for Social Responsibility of Business, Paryz was held in the Kazakh capital. Baiken-U LLP was recognised as the best company in the nomination For Contributions to the Environment.

In the past three years the entity has implemented a number of activities to improve the environment, and to increase and develop a culture of environmental safety at work. One of the most recent actions in 2019 was the introduction of an automated environmental control system, as part of the online transfer of information to a controlling state authority.

In 2019, in accordance with Kazakh environmental law, the Group’s subsidiaries and affiliates regularly carried out production environmental control (PEC). PEC is carried out quarterly with contractors (laboratories) that hold a valid accreditation certificate, based on the PEC schedule. In 2019 fines and economic penalties of KZT 17.6 million for non-compliance with environmental legislation were imposed on Group entities as a whole. The Group incurred no non-financial penalties during the reporting period.

Kazatomprom improved its environmental impact assessment as part of work to improve the forecasting and monitoring of environmental impacts and to improve mine closure planning. In 2019 the Environmental Design and Monitoring Centre was created, and work began on developing the draft corporate standard Methodological guidelines on calculating the cost of restoration and environmental monitoring after the liquidation of uranium mining entities. In addition, the topic “Research on the environmental and social impacts of production facilities at the ISR mine on the natural environment and local communities” was approved by the Specialised Scientific and Technical Council of the Company for inclusion in the Research and Development Plan for 2019–2020. This study will be conducted in 2019–2020, as part of the implementation of the ESAP Roadmap.

As part of implementing the ESAP Roadmap in 2019, Kazatomprom also began work to create a database system to monitor the environment at the Group’s uranium mining entities. In 2019 Baiken-U LLP implemented a liquidation programme at the Kharasan-2 field. In the reporting period work was carried out to study the environmental and social impacts of production facilities on the environment and local communities living near the Group’s fields and mines.

In 2019, in order to obtain necessary competencies and knowledge about the study and application of Good International Industry Practice (GIIP) in the activities of the Company, 175 Group employees from the heads of subsidiaries and affiliates and specialists responsible for subsoil protection, environmental, and social issues were trained in the following areas:

  • GRI certification training: Sustainability Reporting;
  • AA1000SES certification training: Organisation of stakeholder engagement;
  • optimising the planning of closure/liquidation/reclamation and organising work to complete the lifecycle of an enterprise;
  • developing environmental information exchange processes, based on ISO 14063:2006. Internal audit.

Company representatives also received training in the course Managing Environmental Remediation Projects in Dushanbe, Tajikistan, and organised under the IAEA technical cooperation project “Support for the creation of HR infrastructure for the development and implementation of integrated land reclamation programmes affected by the development of uranium mines”.

In 2019 the Company analysed the activities of entities from the perspective of compliance with the IAEA Specific Safety Guide “Criticality Safety in the Handling of Fissile Materials”. Based on the results of the analysis, it was established that the Group’s activities comply with this Specific Safety Guide, and remedial measures were not required.

Development plans

In 2020 the Company plans to implement the following environmental protection and industrial safety actions:

  • establish key performance indicators for the heads of subsidiaries and affiliates, focused on implementing ESAP Road Map points;
  • continue the training of dedicated environmental protection staff at subsidiaries and affiliates on the following topics: managing production and consumption waste, assessing biodiversity at uranium mining fields, and environmental monitoring at entities;
  • conduct scientific and research work to assess the extent of environmental and social impacts of production facilities on the environment;
  • analyse environmental monitoring programmes at subsidiaries and affiliates to assess respective levels and to identify target areas;
  • conduct work to create an Industrywide System of Environmental Regulation and Monitoring;
  • set up an internal group to plan the closure of production facilities and the decommissioning of entities;
  • complete the draft corporate standard methodological guidelines for calculating the estimated cost of liquidation and procedures for the regular analysis of the current liquidation costs of entities (assessment of ARO obligations);
  • elaborate the standard methodological guidelines for organising the monitoring of the impacts of ISR uranium on surface and ground waters;
  • extend the certified audit from the perspective of compliance with international standards ISO 45001 and ISO 14001;
  • develop criteria to compile an environmental rating of Kazatomprom entities;
  • register in the RSE KazInMetr5 and further implement the methodology for the analysis of staff urine for uranium content at the Institute of Advanced Technologies LLP and Ulba Metallurgical Plant JSC;
  • continue work to create a database system of environmental monitoring at uranium mining entities of Kazatomprom.

In 2020 the Group’s specialists also plan to participate in IAEA technical meetings, seminars, and training sessions on safety, the decommissioning of uranium production facilities, and the reclamation of uranium fields and uranium heritage sites.

5 The Republican State Enterprise Kazakhstan Institute of Metrology.

Global climate change carries a large number of risks, primarily related to an increased number of hazardous climatic phenomena. A key factor in global climate change is an annual rise in the volume of accumulated greenhouse gases (GHGs) in the atmosphere.

In order to prevent global climate change and to adapt to its consequences, the Paris Agreement in accordance with the Framework Convention on Climate Change was signed by 197 countries. The Republic of Kazakhstan also ratified the agreement and determined a low-carbon development trajectory for the country. Transitioning to a lowcarbon economy and adapting to the consequences of climate change are strategic objectives for Kazakhstan.

At the national level, there is an online system for monitoring, reporting, and verifying GHG emission sources. The country reports annually to the UN FCCC Secretariat on GHG emissions, and major GHG emissions are limited by the National Quota Allocation Plan.

Kazatomprom seeks to contribute to implementing the provisions of the Paris Agreement. As part of the global nuclear fuel cycle, and as a supplier of fuel for nuclear power plants, the Company strives to foster the development of nuclear power as one of the carbon-free sectors of the economy.

Kazakhstan is a member of the IAEA and supports the intentions and actions of the international agency to apply nuclear science and technology to monitor climate change, mitigate its consequences, and adapt to them6, while making its own contribution to mitigating impacts on the climate.

Kazatomprom understands the danger of the occurrence of climate risks, which necessitates managing GHG emissions and implementing measures to adapt production to the potential consequences of climate change.

The production processes of the Group regarding the extraction of raw uranium materials are based on the most environmentally friendly ISR technology, whose use facilitates minimal GHG emissions.

The Group regularly monitors greenhouse gas emissions and quantifies direct emissions from facilities controlled by Kazatomprom (Scope 1). For example, in 2019 the GHG emissions of the Company stood at 107,600 tonnes of CO2-equivalent. The reporting of GHG emissions covers the parent company Kazatomprom and its subsidiaries and affiliates.

The dynamics of GHG emissions are related to changes in the Group’s asset structure: in 2017, MAEK-Kazatomprom LLP was included in the assets of Kazatomprom. The Company disposed of the entity in H2 2018. A reduction in emissions in 2019 compared to 2018, in addition to the disposal of MAEK-Kazatomprom LLP, was attributable to a decline in the consumption of fossil fuels by boilers at subsidiaries and affiliates.

Throughout the calculation period, annual GHG emissions for each subsidiary and affiliate remained at a level significantly below 20,000 tonnes of CO2-equivalent – the value accepted at the national level as a threshold for reporting emissions and participating in the Kazakhstan Emissions Trading System. As a result, Kazatomprom has for a long time maintained an insignificant volume of GHG emissions.

The monitoring and registration of greenhouse gas emissions is carried out by the Industrial Safety Department, which reports directly to the Chairman of the Management Board of Kazatomprom. Indicators related to the condition of technological and environmental objects are also monitored, while the best available technologies, resources, and energy-conservation technologies are implemented.

In 2019 the Group implemented a number of low-carbon initiatives, including transitioning to using low-carbon energy sources such as gas. Wind generators have also been installed at the Group’s production sites, where appropriate.

In addition, a number of campaigns were conducted in 2019 to help reduce the Company’s contribution to climate change.

For example, Kazatomprom joined the following initiatives of the Minister of Ecology, Geology, and Natural Resources of the Republic of Kazakhstan: #Birge, #TazaQazaqstan and #Birge, #JasylQazaqstan – and planted trees in its fields and in surrounding towns.

The Company held a “Car-Free Day” campaign, where they proposed that stakeholders give up their personal cars for a day and use public transport, thereby reducing greenhouse gas emissions from the burning of fuel in engines.

Kazatomprom also participated in the global Earth Hour event. People switched off their lights for an hour in order to save electricity and to reduce the consumption of greenhouse gas emissions. The event was also held to draw the public’s attention to the issue of climate change.

These campaigns were aimed at fostering environmentally friendly lifestyles and were backed by Group employees.

Volume of direct greenhouse gas emissions, 2017–2019, tonnes of CO2-eq.
Indicator 2017 2018 2019 Change
Volume of direct greenhouse gas emissions, tonnes of CO2-eq. 3,929,000 132,480 107,600 –18.8%

The Group sells its products to 11 countries where nuclear power is used, thereby playing an important role in reducing atmospheric pollutant emissions. Kazatomprom also seeks to reduce the adverse impacts of its production on air quality, thereby constantly introducing technological improvements, and helping reduce emissions of harmful substances.

The Group’s entities use gas treatment systems, apply energy-conservation technologies, and use photovoltaic stations to reduce atmospheric pollutant emissions.

Dust and gas traps are one example of effective solutions being deployed at Group entities. An installation with a pulse ceramic filter (FKI-45) is successfully operating in refining shops at Kazatomprom-SaUran LLP. The system is designed for dust cleaning and the treatment of process gases emanating from calcining furnaces of RHTF7 . This installation eliminates emissions of radiation dust into the atmosphere and reduces emissions into the environment by 20%.

The Group’s entities proactively use solar power to generate electricity, thus reducing atmospheric emissions of pollutants from the consumption of traditional fuels, such as fuel oil and coal. Annual energy production from the Group’s solar photovoltaic plants stands at 3.66 MW*h. The electricity generated is used for internal needs, and creates annual savings of KZT 53 million. Excess electricity is supplied to local electric grids for public consumption and to entities in the regions where the Group operates.

7 RHTF – Rotary Horizontal Thermal Furnace.

Structure of pollutant emissions, %, 2019
Structure of pollutant emissions into the atmosphere, 2019
Pollutant emissions, ‘000 tonnes*  
NOx emissions, ‘000 tonnes 0.118
SOx emissions, ‘000 tonnes 0.064
Solid emissions, ‘000 tonnes 0.054
СО emissions, ‘000 tonnes 0.175
Volatile organic compounds, ‘000 tonnes 0.827
Hazard class 1 substances, ‘000 tonnes 0.010
Total, ‘000 tonnes 1.248
Specific emissions, kg/t 18.00
* Taking into account the pollutant emissions of entities from the extraction and processing of natural uranium only. This table does not include emissions from ancillary and service entities: Ulba Metallurgical Plant JSC, Volkovgeologia JSC, Caustic JSC, SKZ-U LLP, Uranenergo LLP, and Trade and Transport Company LLP.

Group enterprises use water in their production activities. In 2019 the volume of water consumption stood at 5,923,200 m3.

Water is used in accordance with permits issued by authorised bodies for the protection of water resources. Enterprises exercise strict controls over all water used and recycled. The quality of wastewater is determined by specialised and accredited laboratories.

In 2019 the volume of wastewater discharged by Group entities stood at 5,674,500 m3. The entire volume of discharges was treated and met regulatory requirements on the quality of discharged water. In 2019 no cases were registered at subsidiaries and affiliates of the Group where limits on discharges of hazardous substances were exceeded.

Kazatomprom endeavours to reduce the volume of water that it uses in production. To this end, a number of enterprises use closed water cycles.

Structure of water withdrawal, 2019
Volume of reusable and reused water dynamics, ‘000 m3
Total water withdrawal, by source, ‘000 m3
Source 2017 2018 2019 Change
Surface water 1,200,372 951.1 865.7 –9.0%
Ground water 14,806 9,955.4 8,992 –9.7%
Municipal and other water
supply systems
1,330 1,311.5 836.6 –36.2%
Total water withdrawal 1,216,508 12,218 10,694.3 –12.5%
Total volume of reusable and reused water, ‘000 m3
Indicator 2017 2018 2019 Change
Total volume of reusable and
reused water
20,447 19,840 14,512 –26.9%
Contamination of groundwater
The monitoring of groundwater is the most important environmental activity in uranium mining using the ISR method, and this activity is included in the Production Environmental Control Programmes of the Company’s entities. All the Company’s uranium mining operations have observation wells to monitor the contamination of groundwater. The wells were drilled into neighbouring (higher and lower) aquifers, as well as around the perimeters of fields. To monitor the contamination of groundwater, samples are taken from wells and measurements taken. Radionuclide contamination in water samples taken from monitoring wells should not exceed the norm established by the national sanitary and epidemiological requirements for radiation safety.
The production activities of Kazatomprom entities generate processing and municipal waste, including:

Solid radioactive waste generated during mining occurs in:

  • radioactive contaminated soil at sites where pregnant solutions are delivered through pipes;
  • used ion-exchange resins removed from the production cycle;
  • radioactive contaminated slurry from collecting tanks;
  • fragments of equipment and metal constructions removed from production.

These types of solid radioactive waste are characterised as “low active” and are considered the least hazardous forms of solid radioactive waste. The Group’s mining entities dispose of solid radioactive waste in special disposal facilities, in accordance with Kazakh law.

Waste generation dynamics, ‘000 tonnes

The Company’s subsidiaries and affiliates manage industrial and radioactive waste in line with the corporate standards developed by the Company, namely the rules of production and consumption waste management at Kazatomprom enterprises and practical guidelines for the management of radioactive waste prior to landfill.

In 2019, in order to establish standard requirements on the management of production and consumption waste at Kazatomprom enterprises, a corporate standard was developed: the Methodology on calculating waste generation standards per unit of production at Kazatomprom enterprises. This standard establishes a unified approach to calculating specific waste generation criteria, based on the application of the statistical calculation method, which stipulates that generated waste should be comparable in volume with the established standard for its generation.

The treatment of production and municipal waste, temporary storage, transportation, recycling, and disposal is carried out in accordance with the current regulatory and legislative documents of the Republic of Kazakhstan and does not pose a threat to the environment or the health of staff and the public. The safety of these events is confirmed by inspections held by the state authorities and internal audits by responsible persons of the Group.

The temporary storage of production and consumption waste at the sites of subsidiaries and affiliates is carried out in specially designated and equipped places. A separate waste collection system has been adopted. Hazardous production waste is transferred to specialised enterprises for storage, recycling, and disposal.

Passports have been developed for the entire list of hazardous waste; a passport provides basic information about the waste: name, list of hazardous properties, composition, toxicity, and waste management precautions.

Solid Low-Level Radioactive Waste (SLRW) is only generated during production activities at uranium mining entities.

Total mass of waste broken down by type, ‘000 tonnes
Waste type 2017 2018 2019 Change
Process waste 797.1 1,253.5 936.38 –25%
Municipal 2.7 2.5 3.12 25%
Solid radioactive 11.5 3.9 4.13 6%
Liquid radioactive 125.5 106.1 120.48 14%
Total 936.8 1,366 1,064.11 –22%
Contribution of various types of SLRW to total radioactive waste (RW) at the Group’s uranium mining entities, 2019
SLRW types Contribution to total RW, %
Sand and sludge from the sand trap 32
Contaminated soil from spills, drilling slurry 33
Ion-exchange resin 19
Contaminated equipment, metal waste 7
Overalls, PPE, rags, filters 7
Plastic waste (pipes, etc.) 2

The specifics of the Company’s production processes involve significant power consumption.

The following energy consumption and energy efficiency KPI has been established for the Company’s senior management: annual planned threshold norms of energy consumption for the production of uranium must not exceed actual norms.

An energy management system has been introduced at entities of the subsidiaries and affiliates of the Group that complies with the ISO 50001 standard. Kazatomprom complies strictly with applicable legislation, in particular, the laws of the Republic of Kazakhstan “On the Electric Power Industry” and “On Energy Conservation and Energy Efficiency Improvement”.

In accordance with legislation and in order to ascertain the potential for energy savings, Group entities conduct energy audits every five years. The results of these audits are used to elaborate the Energy Conservation and Energy Efficiency Action Plan for Kazatomprom Mining Enterprises. The Company drafts this plan annually, as part of the Implementation Plan of the Development Strategy of Kazatomprom for 2018–2028.

The main actions of the Implementation Plan of the Development Strategy of the Company are:

  • compensating for heat energy losses;
  • compensating for electrical energy losses;
  • seeking advanced energy-saving technologies.

The implementation of these actions to boost energy efficiency in 2019 yielded an economic effect of KZT 2,512 million and exceeded the forecast effect9 by 11%. Analysis of the implementation by mining entities of the Energy Efficiency and Energy Efficiency Action Plan for 2019 demonstrated that all planned work had been completed. In 2019 electricity savings as a result of energy consumption reduction and energy efficiency improvement plans stood at 509,000 GJ.

In 2019 the total consumption of fuel and energy resources10 at the Group was 3,994,000 GJ11. The reduction in heat, coal, and fuel consumption was due to the transfer of ownership rights and the state shareholding of MAEK-Kazatomprom LLP to the Ministry of Energy of the Republic of Kazakhstan.

Energy consumption8, ‘000 GJ
Indicator 2017 2018 2019 Change
Heating 11,775 11,551 11,628 1%
Electricity 5,936 5,766 5,257 –9%
Total energy consumption 17,711 17,317 16,885 2.5%

8 The calculation of the consumption of fuel and energy resources was made without including MAEK-Kazatomprom LLP.

Use of primary energy sources, ‘000 GJ
Source type 2017 2018 2019 Change
Coal 2.6 2.5 1.8 –28%
Natural gas* 75,438 77,434 0
Fuel (gasoline, fuel oil, diesel) 177 170 155 –9%
Hydrogen** 30 112 44 –61%

* Natural gas was consumed by MAEK-Kazatomprom LLP. On 14 November 2019 the rights of possession and use of the state shareholding in MAEC-Kazatomprom LLP were transferred to the Ministry of Energy of the Republic of Kazakhstan under Kazakh Government Resolution No. 851.

** Hydrogen consumption is indicated in tonnes.

Energy intensity
Indicator 2017 2018 2019 Change
Energy consumption for the
production, mining and processing
of raw materials, ‘000 GJ
2,003.04 1,854.19 1,943.29 4.8%
Production, mining and processing
of raw materials, tonnes
23,390.7 21,698.8 22,761.1 4.9%
Specific energy intensity,
‘000 GJ/tonne
0.0856 0.0855 0.0854 –0.1%

9 The forecast effect for 2019 was KZT 2,263 million.

10 Total consumption does not include hydrogen consumption of 38.28 tonnes. This hydrogen is produced at UMP JSC and is used for production purposes.

11 When calculating the total consumption of fuel and energy resources, the formula was taken from the GRI 302 standard: Energy.


Case No. 1. The Roadmap of best practices used at Kazatomprom entities consists of over 20 actions. For example, as a result of the transfer of hot water boilers from diesel fuel to liquefied gas at the shift camp of the Karatau mine, the following quantitative effect was achieved:

• cash savings due to differences in prices for diesel fuel and gas (twofold);

• quick project payback: 2.8 years;

• no need to heat diesel fuel in the cold season;

• reduction in harmful substances: 3.9 times.

Case No. 2. Another example of the use of energy-efficient solutions at the Group’s enterprises is the introduction of technology to reuse energy resources at the sulphuric acid plant of SKZ-U LLP. The hot vapour resulting from the combustion of block sulphur is sent to an installed steam turbine generator to generate electricity. Turbine capacity is 18.5 MW, and the annual generation of energy for 2019 was 117,772,000 kW*h. Some generated electricity is used to meet the plant’s needs, while any surplus is distributed among third-party consumers. Additionally released heat is used to meet the production needs of the sulphuric acid plant, in the work of the deaerator, and to heat water for heating and ventilation.

SKZ-U LLP also operates its own solar power plant, with a capacity of 418.6 kW, which covers all the lighting requirements of the working camp. Annual energy production stands at 550,000 kW*h.

Case No. 3. The main load in industrial power grids consists of asynchronous electric motors and distribution transformers. The inductive load during the operation of this equipment creates an additional load and interferences on power supply lines. In order to reduce power losses from the inductive load, Group entities are gradually installing reactive power compensators (RPC). The economic effect of RPC in 2019 was KZT 141,831,000.

Case No. 4. As an alternative energy source, Kazatomprom enterprises commissioned photovoltaic stations, solar heaters, and heat pump units, which save fuel and energy resources for heating water and reduce emissions of harmful substances into the atmosphere.

The effect of using alternative energy sources by the Company in 2019:

• photovoltaic stations (or solar stations) (FES, SES): KZT 96,765,000;

• solar water heaters: KZT 10,138,000;

• thermal pumping units (TPU): KZT 24,106,000.


The total area of land owned, leased, and managed by the Group is 51,923.55 hectares. No national parks or other specially protected natural areas are located on sites or border the uranium deposits of the Group. At the same time, the Company understands the importance of maintaining biological diversity in the regions where it operates, and endeavours to study the condition of the flora and fauna in areas of uranium deposits.

In 2019, as part of a study of the environmental and social impacts of the Group’s production facilities on the natural environment and local communities, the following work was carried out:

  • an environmental impact analysis of the production activities of the Karamurun, Kharasan-1, and Kulanda mines;
  • the collection and analysis of available background data;
  • surveying local residents on the environmental impacts of deposits on the social environment;
  • an expedition to study vegetation, wildlife, and grazing areas;
  • identifying control points and background areas for environmental research in 2020.

Plans for the liquidation of deposits prescribe a series of tasks to be carried out after land reclamation, including:

  • monitoring aquatic organisms (hydrobionts) in adjacent water bodies;
  • monitoring vegetation and microflora in the soil at enterprises and adjacent territories;
  • monitoring the condition of animals at enterprises and adjacent territories.

The Group’s subsidiaries and affiliates work actively to restore green spaces and to enrich the soil.