Kazatomprom Business Model
3 Includes unconsolidated enterprises - joint ventures and joint-stock companies, 100%, as well as liquidation funds and closure costs.
4 Includes expenses for employee professional development, training and retraining, preservation and transfer of knowledge in the Group.
Core Operations and Products
Kazatomprom is the national import-export operator for uranium, rare metals, and nuclear fuel for nuclear power plants. The Company operates numerous enterprises, managing the complete production chain from extraction to final products.
Kazatomprom is the largest global producer of natural uranium with priority access to one of the world’s largest uranium reserves.
- natural uranium mining
- production of uranium products: uranium concentrate, uranium dioxide powders, fuel pellets and fuel assemblies
- prospecting and exploration to expand and replenish the reserve base of the uranium industry and a portfolio of solid minerals in the Republic of Kazakhstan
- production of beryllium, tantalum, and niobium products
5 For more about core products, see the 2019 Integrated Annual Report.
6 Вin this Report, the Group refers to NAC Kazatomprom JSC (Kazatomprom, or the Company) and its consolidated subsidiaries, i.e., companies, which the Group controls by having (i) the power to manage their core operations that have a significant impact on their profits, (ii) risks of variable profits from its participation in equity of these entities and rights to receive their profits, and (iii) the ability to use its power over these entities to impact the Group’s revenues. The existence and impact of substantive rights, including substantive potential voting rights of the Group, should be considered when assessing whether the Group has power over another entity. The joint ventures (JVs), and associates are jointly referred to as the Holding.
Kazatomprom’s key assets in 20207
|Subsoil use contracts that grant the Group’s subsidiaries mining rights in relation to 17 uranium deposits located in Shu-Sarysu and Syrdariya regions of Kazakhstan||Proven and probable ore reserves: 355,800 tonnes of UME||Measured and estimated mineral resources: 495,300 tonnes of UME|
|Subsoil use contracts that grant Group’s joint ventures and associates mining rights in relation to nine uranium deposits in the Shu-Sarysu, Syrdariya, and North Kazakhstan regions||Proven and probable ore reserves: 123,200 tonnes of UME||Total mineral resources, inclusive measured, indicated, and inferred resources: 256,700 tonnes of UME|
|Ulba Metallurgical Plant JSC, a uranium products and rare-earth metals producer located in Oskemen, Kazakhstan||Annual productivity:
|Trade House KazakAtom AG (THK), a uranium trading subsidiary||Located in Zug, Switzerland|
|Two sulphuric acid production plants||680,000 tonnes annually in total|
|Volkovgeologia JSC||A prospecting and drilling company|
|Trade and Transport Company LLP||Transport and logistics company serving production assets|
|Korgan-Kazatomprom LLP||Security services for NAC Kazatomprom JSC, its subsidiaries, associates and joint ventures|
|KAP Technology LLP||It provides local and corporate telephone communications, data transmission, and VHF radio communications services to Kazatomprom’s entities|
|High Technology Institute LLP||It addresses strategic objectives in Kazakhstan’s nuclear sector to drive its innovative development, technological upgrade, a dramatic improvement in the quality and competitiveness of knowledge-intensive products, conducts R&D activities, works to introduce innovations in the sector, trains and retrains personnel|
7 As of 31 December 2020.
Changes in the number of developed deposits in 2020
Number of uranium fields decreased by two
Number of uranium fields went up by two
Location of mineral assets and mines
Uranium deposits and mining and processing facilities8
8 The breakdown of reserves (as a percentage of total uranium reserves in the Republic of Kazakhstan), according to the State Commission on Mineral Reserves of the Republic of Kazakhstan.
Geography and Market Presence
The Company’s mineral assets are located in four key administrative districts in Kazakhstan:
- Kyzylorda Region (Shieli and Zhanakorgan districts)
- Turkistan Region (Sozak and Otyrar districts)
- North Kazakhstan Region (Ualikhanov District)
- Akmola Region (Enbekshilder District)
Uranium Products Market
As the sale of natural uranium and uranium products is one of Kazatomprom’s principal businesses, the market prices for uranium products have a significant impact on the Company’s financial performance.
The average sales price of U3O8 realised by any primary uranium producer depends upon the types of contracts and the structure of their sales portfolio (including and conditions, price formulae used in every contract, and the proportion of spot and term contracts, etc.).
Kazatomprom expects that nuclear power, as a reliable source of carbon-free, base-load electricity, will reinforce its position in the broader energy market, resulting in greater demand for uranium in years to come. Kazatomprom is well placed to benefit from any increase in demand, as it is a low- cost producer with the ability to flex uranium production to meet demand, and it has access to significant undeveloped reserves.
Uranium prices, 2010–2020, USD per lb Uranium prices, 2010–2020, USD per lb U3O89
9 Source: TradeTech, UxC.
Reactor commissioning and decommissioning
In 2020, five nuclear reactors were put into operation globally (two in China and one in each of Russia, Belarus, and the United Arab Emirates), with a total capacity of 5.5 GW. Six reactors with a capacity of about 5.2 GW in total were officially phased out (two in each of the United States and France, one in each of Russia and Sweden). In addition, the construction of four reactors that will add 4.5 GW of total capacity started in 2020, three in China and one in Turkey. In total, 53 reactors were under construction at the end of 2020.
The COVID-19 pandemic had a significant impact on the entire world in 2020, with governments taking steps to prevent the spread of the virus by imposing restrictions on the movement of people, and declaring regional and nationwide lockdowns. Most companies, in turn, implemented mandatory social distancing and strict sanitary rules for disinfection at production facilities and offices, with the widespread transfer to teleworking for administrative personnel.
In April 2020, Kazatomprom took measures to minimise the health risks for workers at its mines and the locals by keeping the number of employees involved in production as low as possible. In March, shortly before Kazatomprom’s announcement, Cameco and Orano Canada announced the suspension of operations at the Cigar Lake uranium mine and McClean Lake uranium mill in northern Saskatchewan, Canada. A number of African countries, including South Africa and Namibia, introduced a lockdown to counter the spread of COVID-19, resulting in the suspension of mining operations for most minerals, including uranium.
Measures to mobilise workers at Kazatomprom’s production facilities began in early August, in compliance with strict health and safety protocols to reduce the risk of a potential outbreak on-site or among the population living in the regions of the Company’s operations. Cameco Corporation and Orano Canada resumed operations at Cigar Lake and McClean Lake in September. However, the companies announced further shutdowns in December 2020 because of rising risks associated with the COVID-19 pandemic.
Notably, Kazatomprom announced its intention in August 2020 to continue cutting production by 20% in 2022 against targets under subsoil use contracts. The decision to cut production for another year will reduce the projected global primary uranium output by 5,500 tonnes in 2022 but maintain uranium production in Kazakhstan at a level similar to that expected in 2021.
The U.S. administration announced the end of sanction exemptions for three Iranian projects: the modernisation of a heavy water nuclear reactor in Arak; Russian supplies of uranium to fuel the Tehran Research Reactor; and Iran’s export of spent nuclear fuel from the Research Reactor to Russia.
The U.S. Department of Commerce and Rosatom signed an Amendment to the Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation. This amendment extends the Agreement until 2040 and reduces U.S. dependence on uranium and nuclear fuel cycle services from Russia during this period. According to the amended Agreement, restrictions will apply to all stages of the nuclear fuel cycle (not only to enrichment). It is expected that total Russian uranium exports will cover, on average, about 17% of the US needs for enrichment annually over the next 20 years (not more than 15% from 2028).
The U.S. Administration passed the Consolidated Appropriations Act 2021, which included US$75 million in funding to establish a uranium fund in the United States, as recommended earlier in 2020 by the Nuclear Fuel Working Group. The recommendation sought to create domestic demand for uranium and ramp up uranium production within the country to ensure national security.
South Korea’s Ministry of Commerce, Industry and Energy announced its ninth basic plan for long-term electricity supply and demand from 2020 to 2034. To achieve zero carbon emissions by 2050, South Korea plans to decommission ageing coal-fired power plants and nuclear reactors, which will accelerate the transition to renewable energy by 2034.
Sales and Distribution
In 2020, the Company sold uranium products directly and through its Swiss trading subsidiary, Trade House KazakAtom AG (THK), to twenty customers in ten countries, including three new customers. The quantity of uranium sold by the Group was 16,432 tU, which was slightly higher than the 2019 figure of 16,044 tU due to a higher volume sold to consolidated JV partners.
Sales in excess of attributable production were sourced from inventories, from Company’s subsidiaries under contracts and agreements with JV partners, and from other third party purchases.
Sales of uranium products by region, 2018–2020, %10
10 Source: Company’s data
Kazatomprom deploys safe, secure, and reliable logistics solutions to deliver uranium products to its customers across the globe. Uranium products are shipped by rail or sea in 20-foot sealed containers and physically protected by armed guards and convoys until they reach their destination. All shipments are insured against any risks associated with the transportation of uranium products.
In 2020 Kazatomprom delivered U3O8 and finished uranium products to various destinations, based on customer needs and requirements:
- Converters. The Group transported U3O8 to licensed conversion facilities owned by companies such as Honeywell (US), Cameco (Canada), and Orano Cycle (France), first by rail from the Company’s operations in Kazakhstan, generally to the port of St. Petersburg in Russia, then by sea to various ports in the US, Canada and Europe. The material was then moved by rail or road to the processing facilities and was transferred to the customer’s accounts
- China. When transporting material to China, the Company delivered its cargo to the Alashankou railway station near the Kazakhstan-China border
- Russia. When shipping to the Russian Federation (recipients include Siberian Chemical Combine JSC (SCC)) the Group delivered its cargo by rail from its operations to the Tomsk-2 railway station in Russia
- India. The Company generally delivered U3O8 to destinations in India by rail to the port of St. Petersburg, Russia, then by sea to the port of Mumbai, India. The customer took title at the port and organised transportation to the final destination.
The average cost of shipping products to the destinations indicated in the map ranges from USD 0.5 to USD 3.5 per kilogram of U3O8. Where practical, the roup enters swap agreements in order to minimise delivery times (the physical transportation of materials takes, on average, 100 days, while deliveries under swap agreements can take up to 25 days), reduce transportation costs, and lower risks related to the transportation of uranium products.
Company’s Strategic Goals
Kazatomprom is committed to supporting the long-term value growth for all stakeholders and reinforcing its position as the leading company in the uranium sector, focusing on reliability, technical excellence, high occupational safety, and fair business practices.
In accordance with the Kazatomprom Development Strategy 2018–2028 based on the sustainable development principles, the Company is committed to the following strategic goals:
- refocus on core business
- optimise mining, processing and sales volumes based on market conditions
- create value through enhanced sales & marketing capabilities / channels
- implement best-practice business processes
- develop industry leader corporate culture
Overview of Development Strategy Implementation in 2020
In 2020, Kazatomprom delivered on 99.5% of its 2020 targets under the Development Strategy 2020-2028. The targets dealt with improvements in core operations, continued digital transformation, and improvements in corporate governance and human resource management.
Focus on uranium mining as the core business
Uranium mining and sales are Kazatomprom’s core business. The Company has priority access to the world’s largest uranium reserves for in situ leaching (IRS) and the second-largest uranium reserve base if all mining methods are taken into account.
All the Company’s uranium deposits are amendable to the ISR extraction, which is the cheapest and most environmentally efficient method. ISR is also the most flexible production method, allowing increases and decreases in production within a shorter time frame and with a smaller impact on unit costs than the traditional open-pit or underground mining.
The ISR-amenable deposits and National Operator status provide Kazatomprom with a natural competitive advantage, ranking as the world’s leading uranium mining company in terms of uranium production and sales, having the lowest production costs globally.
We are set to focus on uranium mining while retaining the ability to expand our operations in other pre-reactor nuclear fuel cycle stages, should they become economically attractive in the future.
Kazatomprom continues a project implemented jointly with China-based CGN to build a plant for the manufacture of fuel assemblies (FA).
The pandemic restrictions introduced in March 2020 both in Kazakhstan and globally adversely impacted the project delivery time, but significant progress was achieved during the year:
- the fuel assembly plant was commissioned, with the commissioning certificate registered with the Department of Justice of the East Kazakhstan Region
- a government license to produce nuclear fuel and its components was obtained
- a long-term contract for the supply of fuel assemblies was signed with CGN-Uranium Resources Co., Ltd
- the Company completed the initial stages of certification of the fuel assembly plant by its technology supplier, Framatome
If the pandemic does not worsen in Kazakhstan, France, and Germany in 2021, the certification of the plant is expected to be completed in the first half of 2021, thus making it possible to start production of the first fuel assemblies.
By the end of 2020, Kazatomprom completed the reorganisation of three companies to streamline the structure of assets under the Asset Restructuring Plan 2020-2022 (outsourcing non-core auxiliary operations): Uranenergo-PUL LLP, Taukent-Energoservice LLP, and Shieli-Energoservice LLP merged into the parent company, Uranenergo LLP.
In March 2020, the Company completed an arrangement with TVEL JSC to sell 50% minus one share in the Uranium Enrichment Centre JSC. The Company reserved one share in the Centre, which entitles Kazatomprom to access uranium enrichment services as previously agreed with TVEL.
Currently, the Company is completing liquidation procedures for Kazatomprom-Damu LLP and plans to sell off non-core assets, including enterprises of the KazPV project: Astana Solar LLP, Kazakhstan Solar Silicon LLP, and MK KazSilicon LLP, as well as a 40% shareholding in Caustic JSC by the end of 2021.
Optimising mining, processing, and sales volumes based on market conditions
Kazatomprom is able to quickly respond to price changes in the uranium market and adjust production rates accordingly. In 2018 through 2020, the Company committed to reduce uranium output by 20% against targets specified in its subsoil use contracts with the Kazakh Government. After meeting this commitment in 2018 and 2019, in 2020, because of the impact of the COVID-19 pandemic on production (the suspension of mine preparation works, repair and renewal operations for four months), uranium output decreased even further below 20% compared with the contracted volumes. Kazatomprom has announced its intention to keep uranium production 20% below contracted volumes in 2021 and again in 2022.
Create value by enhancing the marketing function and expanding sales channels
Despite the COVID-19 pandemic, Kazatomprom met all its uranium sales commitments to customers in 2020. The Company continued to diversify its contract portfolio.
Kazatomprom successfully completed its first ever physical delivery of uranium products to Argentina for Dioxitek. In addition, acting through its trading company, Trading House Kazakatom AG (TNK), Kazatomprom signed contracts for the supply of uranium products with two new American companies. These contracts contribute to the development of Kazakh-American cooperation in the peaceful use of atomic energy and diversify Kazatomprom’s client base. The new contracts made in 2020 showcase the Company’s reputation as a responsible producer and reliable supplier in the global nuclear supply chain. In 2020, Kazatomprom continued supplies of its new product, uranium hexafluoride (UF6), to Brazil-based Indústrias Nucleares do Brasil (INB).
Implementing best-practice business processes
Kazatomprom is the world’s leading uranium mining company, and it will seek to consolidate this position in terms of scale, operating efficiency, and innovation. The Company has access to high-quality uranium deposits and will continue investing in reserve exploration and development of deposits to facilitate sustainable, low- cost and long-term production at its mines. We intend to maintain low production costs by streamlining production plans and implementing stringent cost controls, with a focus on creating value and ensuring a satisfactory economic return with advanced business practices.
The Group continued in 2020 to improve operational efficiency, at its production assets through a variety of initiatives including:
- technical management of production assets
- maintenance and repair of production equipment
- energy supply
- capital management
- process automation
The Group’s Operations Department began preparations in early 2020 for a gradual transition to a new model of production asset and maintenance, repair and operations management (MRO) based on the international quality standard, ISO 55000 Asset management, and leading business practices in maintenance, Reliability Centered Maintenance (RCM), Risk Based Inspection (RBI), and Total Productive Maintenance (TPM).
Kazatomprom remains focused on adopting the best practices of continuous improvements under our Digital Transformation Programme which is focused on the continuous improvement of Kazatomprom’s operations through automation, digitalisation, and optimisation of processes.
Developing the corporate ethics culture commensurate with that of an industry leader
Throughout 2020, Kazatomprom continued fostering its corporate culture that creates an environment of reliability, continuous improvements, clear communications, strong corporate governance, and the safety culture of our employees and contractors.
Kazatomprom places a significant focus on raising employee awareness and understanding of occupational health and safety, with a strong emphasis on HSE issues.
Membership in Vision Zero reflects the Company’s belief that a strong culture of preventative action can reduce the number of work-related accidents and occupational diseases.
Overview of Development Strategy Implementation in 2020
|Strategic goals||Key actions to achieve strategic goals in 2020|
|Refocus on the core business||
|Optimise mining, processing and sales volumes based on market conditions||
|Create value through enhanced sales & marketing capabilities / channels||
|Implement best- practice business processes||
|Develop industry leader corporate culture||
11 Reserves include the volumes of the Company and TNK.
Ensuring a balance between shareholder returns and an optimal capital structure
The Company has high-margin cash-generating operations, with a relatively limited capital expenditure profile and low leverage. One of Kazatomprom’s strategic priorities is to maintain financial stability in the short, medium and long term through the balanced use of equity and debt capital using debt management and financial risk management mechanisms.
Our shares have been traded on the AIX and LSE since November 2018. The Company’s Annual General Meeting of Shareholders held on 18 May 2020 in Nur-Sultan approved a dividend per ordinary share (one GDR equals one ordinary share) of KZT 381.72 is payable from 2019 profits in 2020. The total dividends based on the 2019 performance were KZT 99 billion.
Kazatomprom’s goals under its Transformation Programme are to maximise long-term shareholder value, profitability, and financial stability by fostering a culture of adoption of the best practices across the Company.
Kazatomprom’s Digital Transformation Initiatives
|Implementing a safety culture development plan based on the Golden Safety Rules of the Vision Zero international concept|
|Project profile||Measures fostering the conscious attitude to the observance of HSE requirements by the Company’s employees to achieve zero injuries.|
|Goal||Adopt the best business practices in occupational health and safety.|
|Coverage||Subsidiaries, associates and joint ventures|
|Development of an automatic monitoring system for hazardous radiation factors|
|Project profile||Developing and testing a system of automatic monitoring of hazardous radiation factors using RKS- 01IM, direct-reading threshold dosimeters of gamma radiation. The system can measure and control the equivalent dose (absorbed dose) and the equivalent dose rate of external gamma radiation.|
|Goal||Adopt the best business practices to control the radiation environment and potential radiation accidents.|
|Developing the corporate culture|
|Project profile||Promoting the target corporate culture of the Company that contributes to the corporate strategy implementation and business development and helps preserve the social stability through a succession plan, measures to enhance the employer’s brand, and participation in surveys of the Social Stability and Leadership Index.|
|Goal||Develop the corporate culture appropriate to an industry leader.|
|Substituting caustic soda with 25% aqueous ammonia solution|
|Project profile||Substituting sodium hydroxide (caustic soda) with 25% aqueous ammonia solution (ammonia water) in the uranium production technology.|
|Goal||Reduce the production cost of the finished uranium products.|
|Budget (actual)||KZT 468,304,000 (attributable to Kazatomprom’s shareholding)|
|Benefits||Reduced costs to buy the principal reagent at seven production subsidiaries, associates and joint ventures by KZT 286 million thanks to substitution with the aqueous ammonia solution.|
|Integrated Planning System|
|Project profile||Planning and modelling system designed for production and financial modelling, setting and tracking short- term and long-term goals.|
|Goal||Introduce targeted medium-term planning processes and the information system as an integrated planning tool.|
|Goal||Build processes for recycling materials and equipment at the mining companies of NAC Kazatomprom JSC|
|Coverage||Mining subsidiaries, associates and joint ventures|
|Benefits||Reuse of materials and equipment
|Improving the quality of planning and doing maintenance and repair of technological equipment|
|Project profile||Preparing for the implementation of ISO 55000 standards and methodology for reliability-centred maintenance (RCM)|
|Goal||Reducing MRO costs and ensuring the reliability of technological equipment|
|Coverage||Mining subsidiaries, associates and joint ventures|
|Automated control system for the pumping fleet|
|Project profile||Introducing equipment control and operation process using Big Data for predictive analytics and reduction in maintenance and repair costs.|
|Goal||Reduce the cost of maintenance of pumping equipment by 5% and the number of urgent repairs by 40% by automating the real-time collection of pump data and conducting predictive analytics by the end of 2021.|
KZT 195,000,000 (aggregate amount)
KZT 157,500,000 (attributable to Kazatomprom’s shareholding)
|Introducing a system for power line monitoring at Uranenergo LLP|
|Project profile||Implementing and scaling up an integrated tool that will provide actual meteorological data to dispatchers and departments. Installed on power line supports, weather parameter monitoring posts will transmit data via a GSM channel to dispatchers.|
|Goal||Reduce the number of switches to the backup supply in winter by 30% by the end of Q1 2021 by receiving immediate information about the actual situation on power lines, which will enable prompt preventive action to combat ice formation.|
|Budget (actual)||KZT 8,408,000 (attributable to Kazatomprom’s shareholding)|
|Modelling production processes in mining companies|
|Project profile||Updating the production process model (production and processing) in ARIS at RU-6 LLP.|
|Goal||Adopt the best business practices in production processes.|
|Goal||Reduce paper workflow in the Corporate Centre and five subsidiaries, associates and joint ventures and streamline approval processes.|
|Coverage||NAC Kazatomprom JSC, five subsidiaries, associates, and joint ventures|
|Pre-project preparations for a data analysis project|
|Project profile||This data model is key to introducing toolkits for connecting data streams from various sources, data analysis, filtering, transformation and modelling to retrieve useful information and make decisions.|
|Goal||Adopt the best business practices through data analysis.|
|Benefits||The initiative helps finding solutions for the application of data analytics, which, in turn, can bring both qualitative and financial benefits.|
|Upgrade of refining capacity at Kazatomprom-SaUran LLP|
|Project profile||Modernising the refining capacity at Kazatomprom-SaUran LLP by substituting the extractive refining technology with a simpler and cheaper peroxide refining technology to reduce the cost of uranium processing from uranium-rich eluate to uranium concentrate in the form of U3O8|
|Goal||Adopt the best business practices in reprocessing uranium products.|
|Project owner||Kazatomprom-SaUran LLP|
|Digitisation of technological drilling data|
|Project profile||Building an integrated production database for technological drilling at production subsidiaries, associates and joint ventures to improve the operating efficiency.|
|Goal||Adopt the best business practices in drilling.|
|Benefits||The integrated production database will help:
|Centralisation of supplier selection|
|Project profile||The project seeks to reduce procurement costs, improve the quality of procurement by centralising procurements for the subsidiaries, associates and joint ventures of NAC Kazatomprom JSC under the umbrella of a central service centre, and increase the share of competitive procurements.|
|Goal||Adopt the best business practices in procurement.|
|Introducing and developing cybersecurity|
|Project profile||Consolidating a number of information security functions (24/7 monitoring of information security events, identifying and investigating infosecurity incidents, analysing malicious software, auditing the source code of information systems, etc.) under the umbrella of a single Information Security Operations Centre (ISOC) of Samruk-Kazyna JSC, as well as increasing the maturity of information security processes at NAC Kazatomprom JSC (training and raising user awareness, managing infosecurity incidents and events, identifying, assessing, processing, and monitoring information security risks, coordinating the development and implementation of infosecurity control measures, managing vulnerabilities, monitoring updates, network security, and configuration management).|
|Goal||Increase the information security maturity in the Corporate Centre, subsidiaries, and affiliates by transferring domains/processes from maturity level 2 to maturity level 3 by the end of 2024.|
|Developing new pricing rules (methodology) for other uranium products (UF6, enriched uranium product, fuel pellets, fuel assemblies, etc.)|
|Project profile||Developing and obtaining approval from the Government of Kazakhstan of the new pricing rules (methodology) for other uranium products (UF6 , enriched uranium product, fuel pellets, fuel assemblies, etc.) by mid-2022, for Kazatomprom to enter markets of raw and enriched uranium hexafluoride (UF6 ), fuel pellets, and fuel assemblies.|
|Goal||Create value by enhancing the marketing function and expanding sales channels.|
|Updating the pricing rules (methodology) for natural uranium concentrate|
|Project profile||The Company has repeatedly faced challenges in selling uranium products to potential customers because it should comply with the pricing rules (methodology) for natural uranium concentrate.|
|Goal||Change the pricing rules (methodology) for natural uranium concentrate to boost the Company’s competitiveness in India, South Korea, the United States, and France.|
- launch of the SAP ERP system in the Corporate Center and 8 subsidiaries. There is a current transfer of the accounting to SAP ERP at Ulba Metallurgical Plant JSC undergoing
- launch of SAP ERP at Ulba Metallurgical Plant
- launch of the IPS system at Semizbai LLP and JV Inkai LLP
- launch of CRM
- full transition to ammonia water in three subsidiaries, associates and joint ventures, APPAK LLP, Semizbai LLP, and LLP «MC «ORTALYK»
- completion of actions under the Corporate Culture Development Roadmap 2020 that were centred around the Company’s commitment to social partnership and the Year of the Volunteer announced in Kazakhstan
- launch of new projects and initiatives. Looking for new business initiatives, the Company included six new projects into its portfolio in H1 2020, of which two bring financial benefits. In H2 2020, Kazatomprom added four more projects/actions, of which three have financial benefits
- new mechanisms are in place to reduce ineffective maintenance and repair costs and manage production assets in 2020-2021
- cost reduction by KZT 1,813,586,000 thanks to materials and equipment recycling at mining companies
- 30% reduction in paper use in the Corporate Centre, subsidiaries, and affiliates, with the Corporate Centre accounting for the biggest share in this reduction (67%)
- automation of information security processes on the basis of the Information Security Operations Centre platform
- updated production process models (mining and processing) in ARIS at RU-6 LLP
Plans for 2021
In 2021, the Company plans to continue implementing key digital transformation projects and initiatives and take the following actions based on the approved plans:
- continue implementation of targeted information security processes in the Corporate Centre, subsidiaries, and affiliates
- modify the ISP and replicate it in Baiken LLP
- continue transforming the safety culture and improving occupational health and safety
- digitalise production data for technological drilling at mining subsidiaries, associates and joint ventures to improve the operating efficiency
- start upgrading the refining processes at Kazatomprom- SaUran LLP
- complete development of the automatic monitoring system for hazardous radiation factors at Kazatomprom- SaUran LLP
- complete the development of the production process architecture (mining and processing) and data architecture at RU-6 LLP to meet high-level requirements for the information system integration at the mining enterprise
- complete the centralisation of procurements for the subsidiaries, associates and joint ventures of NAC Kazatomprom JSC under the umbrella of the central service centre to increase competitive procurements, reduce procurement costs, and improve the quality of procurement procedures
- develop the pricing methodology for other uranium products (UF6, enriched uranium product, fuel pellets, fuel assemblies, etc.) to boost the Company's market share, increase the revenues and net profit thanks to the sales of other uranium products
- update the pricing methodology for natural uranium concentrate to enhance Kazakhstan's export potential driven by the Company's higher competitiveness in the global uranium market
Associations Membership and International Compliance
Professional nuclear power organisations
World Nuclear Association
Tantalum-Niobium International Study Center
The World Nuclear Fuel Market
Norcross, GA, United States
Nuclear Energy Institute
World Nuclear Transport Institute
National sectoral organisations
Kazatomprom is also a member of the national sectoral organisations:
Nuclear Society of Kazakhstan
Republican Association of Mining and Metallurgical Enterprises
KAZENERGY Kazakhstan Association of Oil&Gas and Energy Sector Organisations
Atameken National Chamber of Entrepreneurs of Kazakhstan
Kazatomprom is in strict compliance with key treaties and agreements on the peaceful use of atomic energy, to which the Republic of Kazakhstan is a party.