Kazatomprom is the largest global producer of natural uranium with priority access to one of the world’s largest high-quality resource bases in the industry. Kazatomprom is the national operator of the Republic of Kazakhstan for на the importation and exportation of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special purpose equipment and technologies. The Company develops uranium deposits and their value chain components in accordance with principles of responsible and sustainable development, creating long-term value for all of its stakeholders.

Kazatomprom Business Model

GRI 102-2, 102-7

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

GRI 102-2

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.

Core operations5:

  • 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.

Asset Structure6

Company Structure

14 mining assets operating in 26 fields/sections located in Kazakhstan and applying in situ recovery (ISR) mining method, including:
3 wholly owned uranium mining subsidiaries operating 7 uranium mines
11 uranium mining companies partly owned by Kazatomprom that operate in 19 uranium mines

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

Operations Companies Description
Uranium mining
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:
  • 3,728 tonnes of U3O8
  • 317 tonnes of UO2 powder made from UF6
  • 155 tonnes of UO2
  • 108 tonnes of fuel pellets
  • 1 626.9 tonnes of beryllium products
  • 141.9 tonnes of tantalum products
  • 25.2 tonnes of niobium products
Trade House KazakAtom AG (THK), a uranium trading subsidiary Located in Zug, Switzerland
Ancillary businesses
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
Engineering and
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

Reason: completion of works at section No. 1 of the Moinkum deposit and the Uvanas deposit of Kazatomprom-SaUran LLP, a subsidiary of Kazatomprom

Number of uranium fields went up by two

Reason: Kazatomprom was awarded a contract to extract uranium at sections No. 6 and No. 7 of Budenovskoye Mineое

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

GRI 102-4

Mineral assets

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

GRI 102-6

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.

According to third-party data, 2020 global primary uranium production dropped by 13% compared to 2019 (a year in which supply and demand were generally balanced).

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.

Political developments

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

GRI 102-6

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.

The decline in production because of the COVID-19 pandemic did not affect the performance of the Company’s sales commitments in 2020. Kazatomprom completed all contractual obligations to customers in 2020.

Sales of uranium products by region, 2018–2020, %10

Regions 2018 2019 2020
America 15.6% 17.1% 24.2%
Asia 52.6% 52.5% 43.,0%
Europe 31.8% 30.4% 32.9%

10 Source: Company’s data

Find more about logistics solutions and product transportation routes in the 2019 Integrated Annual Report.


GRI 102-9, 102-10

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.

Development Strategy


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.

The Company focuses on setting production and sales targets based on market forecasts and adjusting uranium production and processing plans to take into account the changing market environment.
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.

.billion KZT
Kazatomprom supports an initiative by the International Social Security Association (ISSA) to improve safety, health, and well-being at work. It is a registered participant of the Vision Zero programme.

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
  • the consolidated inventory of U3O8 finished products stood at 7,537 tonnes across the Group, down by 24% from 2019. The stock of U3 O8 finished products at the company level (the balances of company-owned U3 O8 finished products in warehouses of subsidiaries, associates, joint ventures and processing plants) was 6,761 tonnes, down by 21% from 2019
  • continue of a program to dispose of non-core assets, including the sale of the Group’s interest in the Uranium Enrichment Centre JSC
Optimise mining, processing and sales volumes based on market conditions
  • in August 2020, a decision was made in connection with the COVID-19 pandemic to reduce production by 20% in 2022 against the targets set in subsoil use contracts
Create value through enhanced sales & marketing capabilities / channels
  • Kazatomprom’s trader, THK, was success fully operational
  • the Company entered a new sales market by signing a commercial contract to supply uranium products to the two U.S. companies
Implement best- practice business processes
  • the Company obtained ISO 45001 and ISO 14001 certificates
  • further enhancement of safety culture through the introduction of stops of unsafe works by employees (STOP cards)
  • Сonduct of 12,026 behavioural audits and recording of 35,529 unsafe conditions, unsafe acts
  • continued implementation of the board approved Environmental and Social Action Plan (ESAP):
    • studied the impact of production facilities on the environment and the local population
    • worked to build a sectoral system of environmental regulation and monitoring of uranium mining enterprises
    • continued developing corporate standards of occupational safety at operating sites
  • ulba Metallurgical Plant introduced SAP ERP
  • the head office introduced a CRM system
  • information security processes were automated based on the Information Security Operations Centre platform
  • the Company carried out the pre-project preparations for a data analysis project (Data warehouse)
  • we modified functions of the Integrated Planning System (IPS), including integration with SAP ERP, and put it in operation at JV Inkai LLP and Semizbai-U LLP. Business plans of subsidiaries, associates and joint ventures and the consolidated business plan of the Company for 2021-2025 are made in the IPS
  • in the future, we plan to cascade down the IPS gradually to the subsidiaries, associates and joint ventures of the Company. In particular, Baiken-U LLP is expected to introduce it in 2021
  • Kazatomprom implemented a number of projects to effectively manage production assets by applying the best technologies, methods, and digitalisation of production processes, in particular:
    • project Improving the quality of planning and doing maintenance and repair of technological equipment
    • project Recycling of materials and equipment during mine preparations works at mining subsidiaries, associates and joint ventures of Kazatomprom
    • project Online monitoring of power line icing at subsidiaries, associates and joint ventures by using the Internet of Things technology
    • project Automation and digitalisation of pump fleet control
  • supporting an initiative of International Social Security Association (ISSA), the Company is a registered member of the Vision Zero international programme and works to improve health, safety, and well-being at work
Develop industry leader corporate culture
  • the Company continued a programme to incentivize employees for identifying unsafe conditions, unsafe acts, and near-miss incidents, and for achieving motivational KPIs set for the executives of subsidiaries, associates and joint ventures
  • KAP is implementing a corporate safety culture development project. Jointly with the Human Resource Management Department, we trained and certified 24 internal coaches were selected from among the employees of the Corporate Centre, subsidiaries, and affiliates
  • in 2020, the Company approved a mentorship program that will be implemented from 2021. It seeks to ensure continuity and the transfer of knowledge and expertise from current leaders to future leaders and to foster the future leaders’ loyalty and commitment to corporate values

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.

Business Transformation

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
Timeline 2019-2023
  • no fatal and disabling injuries
  • reduced occupational injury rate
  • decreased the environmental footprint of production cycles
  • no use of prohibited equipment
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.
Coverage Kazatomprom-SaUran LLP
Timeline 2020-2021
Budget KZT 41,875,000
  • timely information about the radiation situation and potential radiation incidents
  • real-time monitoring of the radiation situation not only at industrial sites but also in the nearby localities
  • reduced labour costs and time for generating and submitting reports and data to the Corporate Centre and competent authorities
  • reduced risks of spontaneous exposure of staff
  • ability to analyse the levels of external gamma radiation during various technological operations
  • in-house automatic monitoring system for hazardous radiation factors that can be replicated across subsidiaries, associates and joint ventures
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.
  • NAC Kazatomprom JSC, mining subsidiaries, associates and joint ventures
  • Ulba Metallurgical Plant, Trade and Transport Company
  • KAP Technology
Timeline 2021-2025
  • stable engagement (not less than 60%) and social stability (not less than 80%)
  • the Company ranks among the top employers of choice in the industry
  • stable Leadership Index
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.
  • Semizbai-U LLP
  • Karatau LLP
  • JV South Mining Chemical Company LLP
  • JV Khorasan-U LLP
Timeline 2019-2020
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.
  • NAC Kazatomprom JSC
  • RU-6 LLP
  • Kazatomprom-SaUran LLP
  • JV Inkai LLP
  • Semizbai LLP
Timeline 2016-2021
Budget KZT 2,367,940,000
  • reduced time to adjust the Company’s business plans for an exchange rate and spot price at the level of subsidiaries, associates and joint ventures (when consolidating data) and the consolidated business plans
  • possibility to develop various scenarios of uranium mining based on the mineral resource base and market situation
  • possibility to develop an unlimited number of business plan scenarios both at the subsidiary/affiliate level and at the Corporate Centre level, depending on different management parameters (exchange rate, uranium prices, inflation rate, etc.)
  • reduced time to consolidate business plans
  • systemwide integration of mining development plans and business plans to ensure data consistency, reduce technical errors when production indicators of mining development plans are transferred to business plans manually
Project profile
  • regulating materials and equipment recycling at mining companies of NAC Kazatomprom JSC
  • developing uniform approaches to accounting for materials and equipment for recycling
  • making a uniform list of equipment planned for recycling
  • changing technological processes
Goal Build processes for recycling materials and equipment at the mining companies of NAC Kazatomprom JSC
Coverage Mining subsidiaries, associates and joint ventures
Timeline 2020
Benefits Reuse of materials and equipment Financial benefits:
  • KZT 1,813,586,000 by 2020
  • KZT 516,508,000 by 2021
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
Timeline 2020-2021
Budget 2,367,940,000
  • reduced MRO expenses
  • improved supplies of materials for repairs and improved quality of planning
  • higher rate of projected/manageable failures
  • standardised approaches to the efficient management of technological equipment
Financial benefits:
  • KZT 138,407,000 by 2020
  • KZT 195,172,000 by 2021
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.
  • JV Inkai LLP
  • JV Khorasan-U LLP
Timeline 2020-2021
Budget KZT 195,000,000 (aggregate amount)
KZT 157,500,000 (attributable to Kazatomprom’s shareholding)
  • reduced number of failures and breakdown rate of equipment
  • improved workload of repair personnel, standardization of works
  • increased service life of equipment
  • available factual data on the condition of equipment and materials to discuss with the Servicing Departments (transparency of services)
  • possibility to use the system for other types of equipment
  • 5-15% reduction in pump maintenance costs
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.
Coverage Uranenergo LLP
Timeline 2020-2021
Budget (actual) KZT 8,408,000 (attributable to Kazatomprom’s shareholding)
  • reduced production downtime
  • automated collection of meteorological data for immediate decision-making
  • immediate information about the actual situation on the power lines
  • improved monitoring of the grid and prompt response to combat ice formation
  • capacity to determine the load on individual structural elements
  • remote access to the monitoring system to check the power transmission line condition
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.
Coverage RU-6 LLP
Timeline 2016-2021
  • possibility to analyse the as-is processes to develop to-be processes and automate them later
  • foundation for the analysis and improvement of the efficiency of production business processes. The foundation is built, among others, with statistical analysis, forecasting and business analysis tools and helps eliminate distortions in source data and business information
  • reduced risks when other systems are introduced at the enterprise in future and integrate with existing systems
  • reduced spending on the elimination of errors and inconsistencies thanks to their early detection
  • foundation for developing internal regulatory documents that regulate production processes of a mining enterprise
Paper-free KAP
Project profile
  • reducing paper workflow in the Corporate Centre and five subsidiaries, associates and joint ventures
  • streamlining the approval processes
  • making a guide for holding working meetings and negotiations
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
Timeline 2020
  • improved printing culture
  • gradual quarterly reduction in paper consumption
  • optimised internal approval processes
  • respect for the environment
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.
  • NAC Kazatomprom JSC
  • Mining subsidiaries, associates and joint ventures
Timeline 2019-2021
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
Timeline 2021-2022
  • reduction in the cost of processing uranium-rich eluate into uranium-rich eluate in the refining shops
  • cutback on operating expenses of Kazatomprom-SaUran LLP and Corporate Centre on uranium processing from rich eluate to U3O8 during the modernisation
  • staff optimisation in refining shops of Kazatomprom-SaUran LLP after the upgrade, with the redundant employees redeployed to other production ships at Kazatomprom-SaUran LLP and/or subsidiaries, associates and joint ventures
  • increased recovery factor from 98.2% to 100% in uranium processing
  • reduced number of emergency stops and associated risks of production disruptions
  • reduced risks of disruptions in the supply of chemical reagents and the associated risks of production disruptions
  • lower injury rate in refining shops thanks to the absence of organic chemical reagents in the technology in 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.
  • Mining subsidiaries, associates and joint ventures
  • Volkovgeologia JSC
Timeline 2021-2022
Benefits The integrated production database will help:
  • improve the quality of management decisions on mine preparation works taken by the Corporate Centre
  • introduce a risk-based approach to repair and renewal planning at mining subsidiaries, associates and joint ventures
  • increased productivity of Volkovgeologia JSC in terms of technological drilling
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.
  • pilot: Kazatomprom-SaUran LLP, RU-6 LLP
  • LLP «MC «ORTALYK» , Trade and Transport Company LLP
  • replication 1: NAC Kazatomprom JSC, KapTechnology LLP
  • replication 2: other mining companies
Timeline 2020-2021
  • reduced procurement prices
  • reduced labour costs associated with procurement procedures
  • improved timeliness of supplies
  • greater number of suppliers
Financial benefits:
  • KZT 203,000,000 in 2021 (Pilot and Replication 1)
  • KZT TBD in 2022 (Replication 2)
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.
  • NAC Kazatomprom JSC
  • 17 subsidiaries, associates and joint ventures
Timeline 2019-2024
Budget KZT 464,667,000
  • increased time of information security monitoring
  • automated processes of the real-time escalation of information security incidents
  • quicker response to information security incidents
  • increased maturity level of information security in the Corporate Centre
  • higher awareness of users
  • reduced probability of unauthorised access to the internal corporate network
  • timely fixing of critical vulnerabilities upon the release of updates
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.
  • NAC Kazatomprom JSC
  • Ulba Metallurgical Plant
Timeline 2020-2022
Budget KZT 50,000,000
  • clear pricing framework for other uranium products
  • bigger market share thanks to the sales of other uranium products
  • higher revenues and net profit thanks to the sales of other uranium products
  • increased sales of U3O8 as feedstock for other uranium products
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.
Project owner
  • NAC Kazatomprom JSC
  • Subsidiaries, associates and joint ventures
Timeline 2020-2021
  • Kazakhstan’s stronger export potential driven by the Company’s higher competitiveness in the global uranium market
  • clear pricing framework for uranium concentrate
  • increase in sales and, consequently, in tax revenues of the national budget and in dividends to shareholders
Financial benefits:
  • KZT 5,921,623,000 by 2022

Results 2020

  • 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

GRI 102-12, 102-13
Professional nuclear power organisations

World Nuclear Association

London, UK

member since 1993

Tantalum-Niobium International Study Center

Brussels, Belgium

member since 1999

The World Nuclear Fuel Market

Norcross, GA, United States

member since 2002

Nuclear Energy Institute

Washington, D.C.

member since 2018

World Nuclear Transport Institute

London, UK

member since 2019
National sectoral organisations

Kazatomprom is also a member of the national sectoral organisations:

Nuclear Society of Kazakhstan

Nur-Sultan, Kazakhstan

member since 2002

Republican Association of Mining and Metallurgical Enterprises

Nur-Sultan, Kazakhstan

member since 2006

KAZENERGY Kazakhstan Association of Oil&Gas and Energy Sector Organisations

Nur-Sultan, Kazakhstan

member since 2009

Atameken National Chamber of Entrepreneurs of Kazakhstan

Nur-Sultan, Kazakhstan

member since 2013

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.