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.
07
SUSTAINABLE DEVELOPMENT

Sustainable Development

Kazatomprom is the biggest social responsible business in Kazakhstan that has always given priority to people and their welfare as the highest values. Economic performance, social and environmental responsibility are key pillars of the sustainable development.

As the world’s leading uranium mining company, Kazatomprom is aware of its role in the development of society and recognises its significant impact on the environment, people, and life in the regions of operations. Therefore, sustainable development is a fundamental component of the Group’s Development Strategy. The Company’s sustainable development initiatives are geared towards:

  • consistent reduction of environmental impact of subsidiaries, associates and joint ventures
  • environmental protection (including effective water and land resources management, ecosystem and biodiversity conservation)
  • rational subsoil use
  • increase energy and resource management
  • growth of socio-economic prosperity in the regions where the Company operates
  • facilitation of access to affordable, reliable, sustainable and modern energy sources, and enhancement of energy security

For Kazatomprom, the ongoing improvement of sustainable development practices is the dominant factor to ensure the long-term stability and competitiveness of the Company, as well as its ability to create incremental benefits for all stakeholders, making a positive contribution to the sustainable development of the country, society, and the uranium industry.

Key Sustainability Highlights 2020

Kazatomprom’s fundamental objective in the area of sustainable development is to implement the Company’s Development Strategy to ensure sustainable growth of shareholder value, and create long-term added value for the benefit of all stakeholders through active management of economic, social, and environmental impact.

To achieve this goal, the Company continued enhancing its sustainability management practices and integration of sustainable development principles into its key business and operating processes in 2020:

Sustainability management:

The Company:

  • Developed and approved its Corporate Sustainable Development Policy
  • Undertook a pilot assessment of the maturity level of sustainable development practices at the Company’s subsidiaries, associates and joint ventures (see details in the Sustainability Management Diagnostics section)
  • Undertook a high-level assessment of compliance with the requirements of ESG ratings, using such methodologies as Sustainalytics, MSCI, RobecoSAM, and FTSE Russell
Human rights
  • Assessed the current human rights situation in the Company: a review of international human rights standards and documents, analysis of internal corporate regulatory documents related to the human rights issues, an overview of the main aspects shaping the approach of mining companies to human rights, and the analysis of complaints filed with Kazatomprom in the past three years
Social development
  • Supported sociо-economic and infrastructure development initiatives in the regions where the Group operates by allocating KZT 1.537 billion to local regional budgets in order to meet obligations arising from subsoil use contracts
Research & development
  • Kazatomprom approved R&D Management Policy
  • The Company concluded 76 research and development agreements with a total value of KZT 3.7 billion
  • The Group filed 17 applications for the registration of intellectual property items and received 18 titles of protection
Responsible procurement:
  • All stages of the procurement process were transferred to the EPIS 2.0 procurement portal
  • The Company made its 2021 procurement plans fully in SAP ERP
Environmental protection, occupational health and safety
  • Kazatomprom approved its Green Finance Policy
  • Kazatomprom successfully passed the certification audit of the integrated occupational safety management system and received a certificate from TÜV International Certification, certifying that the integrated occupational safety management system of Kazatomprom complies with the requirements DIN EN ISO 14001:2015 and DIN EN ISO 45001:2018
  • With support of managers at various levels of the Company and its subsidiaries, associates and joint ventures, 12,026 behavioural audits were conducted
  • The Company invested KZT 7.63 billion in occupational health and safety actions in 2020
  • Invested KTZ 259.5 million to implement the Environmental and Social Action Plan (ESAP)
Human capital development
  • The Group invested KTZ 2.1 billion in employee training
  • The Company launched a range of training programmes: Izbasar for the development of young professionals and School of Mine Directors for managers of production facilities and maintenance staff
  • The Social Stability Index was transformed into the SRS (Samruk Research Service) Index, while retaining the main parameters of the social stability study: engagement index, social well-being index, and social tranquillity index. In 2020, the SRS index was 79% according to a study conducted at 16 group companies
  • To support the staff amid the COVID-19 pandemic, the Qasyndamyz2020 programme was implemented to ensure psychological and physical support of employees
  • Within the framework of the Management Succession Programme of NAC Kazatomprom JSC, the Company:
    • updated a list of management and functional succession pool members
    • drafted plans for their development
    • implemented mentorship programmes

Sustainability Management

Approach to sustainability management

Kazatomprom’s Corporate Sustainable Development Policy approved in early 2020 lies at the heart of our approach to sustainability management.

In 2020, NAC Kazatomprom JSC approved its Corporate Sustainable Development Policy.

The document defines the main corporate principles, which make the foundation for the Company’s sustainable development actions, identifies Kazatomprom’s sustainability priorities, and presents approaches to integrating sustainability principles into key aspects of the Company’s operations. The Policy reflects the Company’s vision of further development and improvement of its sustainable development actions.

Kazatomprom’s Sustainable Development Principles

Openness

Transparency

Respect

Respect for human rights

Accountability

Ethical behaviour

Legitimacy

Conflict of interest prevention

Zero tolerance to corruption

Personal example

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

Kazatomprom’s key sustainability priorities

Kazatomprom consistently implements sustainable development principles in the corporate governance system, management decision-making, and risk management.

Priority Company’s approach
Economic sustainability Implementation of strategic objectives to improve production and operational efficiency and implementation of continuous operations improvement process (business transformation).
Human capital and culture development Effective HR management and establishment of an appropriate corporate culture.
Occupational health and safety Enhancement of safety culture in line with the world's best practices by implementing a set of measures to prevent accidents and incidents, injuries and health deterioration among employees, as well as by introducing the latest technologies, developing and implementing targeted programmes and measures in the area of occupational health and safety.
Environmental consciousness Implementation of targeted environmental protection programmes and measures to comply with the principles of environmental consciousness, careful and rational use of natural resources and environmental risks minimisation.
R&D, innovations, and technological development Implementation of measures for the consistent development of R&D, technological, and innovative potential to ensure long-term competitiveness in the global market, diversification of core operations, as well as increase production and operational efficiency.
Effective corporate governance and risk culture Consistent integration of sustainable development principles into the corporate governance system, decision-making processes, and risk management system.
High ethical standards and anticorruption measures Implementation of the best practices and measures to prevent corruption offences as part of the corporate compliance system development.
Responsible procurement Development of mutually beneficial partnerships and improvement of engagement with suppliers and contractors. Enhancement of efficiency, control, and transparency of procurements in the supply chain.
Responsible business practices – engagement with stakeholders and local communities and reporting Investment in the development of regions and related industries, in the construction of community facilities and infrastructure, as well as creation of jobs, payment of taxes, and social development.
Stakeholder engagement rests on mutual trust, responsibility, and respect for interests of parties.

Sustainability Governance Structure

Kazatomprom manages sustainability at all levels:

  • strategic level – tactical guidance and control of ESG issues
  • management level – management and operational decisions in the field of sustainable development, monitoring and control of efficiency and development of initiatives and activities
  • operational level – implementation of initiatives and activities in order to attain sustainable development goals, objectives, and KPIs
Decision-Making System

When adopting management decisions, we make a thorough analysis of the correlation between Kazatomprom’s internal strategic priorities and sustainable development priorities. The analysis covers three dimensions:

  • assessment of key sustainability risks in terms of potential impact on employee’s health, occupational safety, environment, welfare of local communities, reputation, compliance with legal and regulatory requirements, and ensuring business continuity
  • assessment of expected benefits and contributions to the achievement of sustainable development goals, objectives, and opportunities
  • assessment of the efficiency of use of financial, natural and human resources

Approach to Sustainable Development Risk Management

In 2020, Kazatomprom decided to identify sustainability risks. For this purpose, during the elaboration of Kazatomprom’s Sustainable Development Policy, the Company established procedures for ESG risk management. Kazatomprom will manage sustainable development risk within the framework of its corporate risk management system. To identify and assess sustainability risks, the Company plans to conduct regular analysis of both internal and external factors affecting the achievement of sustainability goals and objectives.

Kazatomprom stakeholder engagement system envisages active involvement of different groups of stakeholders in the identification and assessment of significant sustainable development risks (for more information, see the Stakeholder Engagement subsection). The Company will continue identifying and assessing ESG risks in 2021.

Kazatomprom is taking steps to transition to a risk-based approach in sustainability management, which involves:

  • identification and assessment of risks that have a direct impact on the Group’s long-term financial performance and sustainable development
  • development and implementation of measures for effective management of these risks
  • enhancement of sustainability risk management practices and development of a risk culture to identify new opportunities to improve performance and gain significant competitive advantages

In 2020, Kazatomprom implemented the following measures as part of the consistent development of the sustainability management corporate practices:

  • the Company approved and put into effect the Corporate Sustainable Development Policy
  • we updated the following internal regulatory documents governing sustainability:
    • Kazatomprom Stakeholders Map
    • regulations on the development of Sustainability Initiatives Programme, based on the Company’s sustainability goals and KPIs
    • updating the Regulations on the integrated annual reporting
    • the Company developed a matrix of sustainable development competencies of the Board of Directors and the Management Board

Sustainability Management Diagnostics

Seeking to improve the practices of sustainable development management at the subsidiaries, associates and joint ventures of NAC Kazatomprom JSC, the Company’s Sustainable Development Department has initiated diagnostics of the sustainability practices maturity level. Carried out on a regular basis, the diagnostics are based on the Methodology for corporate governance diagnostics at legal entities 50%+ owned, directly or indirectly, by Samruk- Kazyna JSC.

In June 2020, as part of the first stage of the pilot diagnostics, the Company covered five subsidiaries, associates and joint ventures: Ulba Metallurgical Plant, ORTALYK, Semizbai, RU-6, and High Technology Institute.

The findings were as follows:

  • all the subsidiaries, associates and joint ventures under review had no sustainable development function represented by a separate structural unit, and in some cases it is not envisaged in job descriptions. As a rule, employees of related structural units (corporate governance, business administration, risk management, etc.) dealt with sustainable development issues
  • sustainable development practices at all the subsidiaries, associates and joint ventures under review were based on outdated methodologies. The recommendations of international industry standards were not fully applied
  • sustainable development management practices at all the subsidiaries, associates and joint ventures under review needed updating and improvement, because the subsidiaries, associates and joint ventures did not have (at the time of assessment) a built-up system of internal documents regulating sustainable development actions

Based on the diagnostics findings, the Sustainable Development Department made the following recommendations for subsidiaries, associates and joint ventures:

  • improve sustainable development management functions by establishing a separate division or, at the first stage, assigning an employee responsible for sustainable development from a structural unit of a subsidiary or affiliate
  • update internal regulatory documents on sustainable development, taking into account the latest updates and recommendations of Kazatomprom (develop policy documents, update maps of stakeholders, identify sustainability risks, and update risk maps)
  • enhance transparency and openness to stakeholders by creating sustainable development sections on websites and publish key sustainability documents, including non-financial reporting
  • assess the human rights situation among employees, including workers as to their satisfaction with remuneration, transparency of employment relations, etc
  • provide training on sustainable development management to executives and staff involved in goal setting, sustainable development risk management, and corporate governance

Sustainability Management Development Plans

Kazatomprom consistently strives to secure further development and enhance its sustainability management practices. The Company’s sustainability management plans include:

  • conducting the first extended observation audit of environmental management system (EMS) and occupational health and safety management system (OHSMS) as to their compliance with DIN EN ISO 14001:2015 and DIN EN ISO 45001:2018
  • continuing research of environmental and social impacts of mining operations
  • developing recommendations to update production environmental control programmes (PEC), taking into account potential risks
  • pursuing works for the establishment of an Automated Environmental Monitoring System Database (AEMS)
  • elaborating on guidelines for a stakeholder engagement plan for Kazatomprom subsidiaries, associates and joint ventures in environmental and social aspects
  • completing the development of a corporate standard, Methodological Guidelines for Biodiversity Assessment at Uranium Deposits, Production Sites, and Adjacent Areas
  • reviewing rules and procedures, as well as the composition of research and technical councils and development of a methodology for R&D efficiency evaluation
  • coordinating the implementation of R&D projects through a platform where completed R&D projects can be presented
  • pursuing works to enhance the R&D competence of employees at subsidiaries, associates and joint ventures involved in R&D
  • continuing transforming the culture and ensuring the occupational safety
  • completing the centralisation of procurement procedures for subsidiaries, associates and joint ventures under the umbrella of one service centre to increase the share of competitive procurements, reduce procurement costs, and improve the procurement procedure quality
  • implementing the Management Succession Programme
  • holding events dedicated to effective communications, which, among other things, will be aimed at training managers of the Corporate Centre and its subsidiaries

Contribution to UN Sustainable Development Goals

Kazatomprom recognises its role in shaping the sustainable future and strives to contribute to the achievement of the UN Sustainable Development Goals (UN SDGs) and the implementation of the principles of the UN Global Compact.

While recognising the importance of all 17 SDGs, Kazatomprom has highlighted six priority goals for its business.

Kazatomprom’s Priority UN Sustainable Development Goals

Ensure healthy lives and promote well-being for all at all ages

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Ensure access to affordable, reliable, sustainable and modern energy for all

Ensure sustainable consumption and production patterns

Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all

Take urgent action to combat climate change and its impacts

The Company strives to implement the best sustainability practices of the industry in its operations, including the key principles of the International Council on Mining and Metals (ICMM) and the World Nuclear Association (WNA). We build our competencies in partnership with the global community on an ongoing basis.

Recognising the importance of the joint efforts to achieve UN SDGs, we create conditions for partnership with all stakeholders, including representatives of governments, business, international and public organisations, and the society to rise to mankind’s fundamental social, environmental, and economic challenges.

Kazatomprom’s actions and initiatives that have positively contributed to attaining UN SDGs in 2020 included a range of activities related to the environmental protection, occupational health and safety, human capital development, and socio-economic development of the regions where the Company operates.

Company’s contribution to attaining UN Sustainable Development Goals

GRI 203-1
UN SDG SDG integration in the governance system

Priority

See the sections:

Social Responsibility:

  • Employees
  • Social policy
  • Occupational Health and Safety

Environmental Protection

  • Development strategy
  • Sustainable development policy
  • 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
  • Environmental and Social Action Plan (ESAP)
Relevant SDG target Key initiatives and projects Results in 2020

3.4

By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and supporting mental health and well-being

  • 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, associates and joint ventures, etc.)
  • funding of corporate health improvement and recreation programmes amounted KZT 3.12 billion
  • the cost of activities to preserve the health of staff and prevent diseases amounted to more than KZT 1 billion
  • the Company held the first online Sports Contest for employees of Kazatomprom and its subsidiaries, associates and joint ventures, bringing together more than 600 participants
  • to support workers amid the Covid-19 pandemic, the Qasyndamyz2020 programme was implemented, which included measures of psychological and physical support for employees

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 near-miss 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, preparation and implementation of actions to prevent and monitor workplace injuries and accidents
  • 12,026 behavioural audits were conducted, of which 132 were conducted by the top decision- makers of subsidiaries, associates and joint ventures
  • 35,529 unsafe conditions, acts or near misses were reported
  • together with Kazakhstan Nuclear University, a training programme, Leadership in Occupational Health and Safety, was developed for the management of Kazatomprom, its subsidiaries, associates and joint ventures
  • 185 managers, including Chairman of the Kazatomprom’s Management Board, were trained in occupational safety
  • in 2020, the Company developed and implemented procedures for all subsidiaries, associates and joint ventures that enabled employees to suspend or stop hazardous work (STOP Card)

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
  • in 2020, the Company invested KZT 259.5 million in the implementation of the corporate Environmental and Social Action Plan (ESAP). For more about the implemented projects, see the Sustainable Development section, Environmental Protection subsection
  • Kazatomprom developed a project for automated monitoring of environmental emissions from stationary sources at APPAK LLP and Khorasan-U LLP
  • Baiken-U LLP introduced an automated environmental control system

Priority

See the sections:

  • Environmental Protection
  • Development strategy
  • Policy for innovative and technological development
  • Sustainable development policy
  • 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 Results in 2020

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
  • in 2020, photovoltaic power plants produced 3.52 MWh of electricity
  • initiated in 2020, the Green Mindset project seeks to support the global trend of a green economy development

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
  • the measures taken in 2020 to improve energy efficiency generated the actual economic effect of KZT 847 million. For more, see the Sustainable Development section, Environmental Protection subsection
  • all the entities of the Group have implemented the energy management system in line with the ISO 50001 international standard. Energy audits are regularly carried out at the entities of the Group as part of the energy management efforts

7.а

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)
  • participation in the IAEA International Conference on Radiation Safety

Priority

See the sections:

Socio-economic contribution:

  • Science and Innovation
  • Procurement practice

Social Responsibility:

  • Employees
  • Occupational Health and Safety
  • Development strategy
  • Sustainable development policy
  • 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
Relevant SDG target Key initiatives and projects Results in 2020

8.2

Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labourintensive 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)
  • implementing a project to modify SAP MDG master data management system
  • SAP ERP was launched at Ulba Metallurgical Plant
  • The Digital Mine IS was put into operation in the Corporate Centre, Kazatomprom SaUran LLP, RU-6 LLP, DP LLP «MC «ORTALYK» , and the laboratories of IVT-Zerde, a branch of High Technology Institute LLP
  • Kazatomprom successfully completed a project of customer relations automation on the basis of CRM platform
  • the Company was implementing a project to introduce the Integrated Planning System for production and financial modelling, as well as for setting and tracking short-term and long-term goals
  • the Group filed 17 applications for intellectual property items and received 18 IP titles of protection

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
  • the Company developed a digital base map of the mines located in Syrdariya and Shu-Sarysu regions and a plan for creating cartographic materials
  • Kazatomprom developed a project for the automated monitoring of environmental emissions from stationary sources at APPAK LLP and Khorasan-U LLP to control chemical emissions into the air
  • Baiken-U LLP introduced an automated environmental control system to prevent pollution of air, water, and soil
  • emergency training of personnel and units in response to emergency alarms in case of a selfsustaining nuclear chain reaction at all nuclear installations of Ulba Metallurgical Plant JSC

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
  • within the framework of the project for the systematisation of staff remuneration at mining enterprises of NAC Kazatomprom JSC, three pilot Company’s entities saw the review of a staff evaluation system, checked employees’ fitness to work and evaluated personnel efficiency. In Q4 2020, the Company started rolling out replication of the new remuneration system in other mining companies
  • in 2020, the competition was 68 people per vacant position in the Corporate Centre and 8 people per vacant position in subsidiaries, associates and joint ventures. The average number of candidates for a vacant position rose by 2.5 times, showcasing the effectiveness of measures taken to attract candidates
  • the number of vacant positions closed through internal competition exceeded 65% of the total number of vacant positions announced
  • in 2020, 24 internal trainers were certified to train and implement corporate training programmes

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
  • the Company fully implemented occupational health and safety measures under the ESAP Roadmap 2020
  • 12,026 behavioural audits were conducted, of which 132 were conducted by top decisionmakers of subsidiaries, associates and joint ventures
  • 35,529 unsafe conditions, acts or near misses were reported
  • the Company implemented the Qasyndamyz2020 programme covering measures of psychological and physical support for employees

Priority

See the sections:

Socio-economic contribution:

  • Science and Innovation
  • Digitisation and Automation

Social Responsibility:

  • Social Stability
  • Development strategy
  • Sustainable development policy
  • Digital Transformation Programme
  • Management of scientific and technological activities policy
Relevant SDG target Key initiatives and projects Results in 2020

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, associates and joint ventures 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)
  • in 2020, Kazatomprom supported social, economic, and infrastructure development in the regions of operations by allocating KZT 1.537 billion to local budgets
  • Katco financed the construction of three sports facilities and a children’s playground to the amount of KZT 63.7 million, and allocated KZT 22.3 million for redevelopment of the city of Turkistan
  • RU-6 LLP built a children’s playground for the residents of Kokshoky microdistrict in Shieli villageу
  • South Mining Chemical Company allocated KZT 1m for redevelopment of Turkistan. It financed the construction of an alley dedicated to 75th Anniversary of Victory in the Great Patriotic War and installation of a playground in Babata village of Zhartytobe village, Sozak District, Turkistan Region (KZT 16m)
  • Inkai provided assistance to Mombekov School and the Community Centre in Taikonyr village
  • Baiken-U allocated KZT 2 million to repair a library in Baikenzhe rural district
  • as part of the fight against COVID-19 pandemic, the Group’s companies supported medical institutions, people in need, veterans, and pensioners, in particular:
    • RU-6 LLP purchased and donated an oxygen device to the Central District Hospital (KZT 0.3 million)
    • Ulba Metallurgical Plant sent food packages to the retired employees of the enterprise
    • Kyzylkum LLP and Khorasan-U LLP refilled 500 oxygen tanks for Zhanakorgan District Hospital (KZT 1.2 million)
    • Katco purchased six ventilators for hospitals in Turkistan Region and Shymkent (KZT 102.5 million)

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
  • KZT 58,682 million in wellfield construction and sustaining costs for 14 mining enterprises

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 R&D workers per 1 million people and public and private R&D 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
  • the Company signed 76 R&D contracts to a total of KZT 3.7 billion
  • the total number of employees engaged in R&D was 486 people, including 6 Doctors of Sciences and 76 Candidates of Sciences
  • the Group’s employees submitted 1,596 innovation proposals, of which 1,410 were accepted and 821 were implemented
  • two license agreements for the right to use patent No. 25660 were concluded with Baiken LLP and APPAK LLP

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
  • Kazatomprom continued cooperation with Satbayev University, which operates the country’s first International R&D Educational Centre for the Nuclear Industry
  • Memoranda of cooperation in R&D and innovations were concluded with:
    • Ust-Kamenogorsk Titanium and Magnesium Plant
    • Bolashak Centre for International Programmes
    • Centre for Technological Development of Intellectual Systems
    • National Centre for High Technologies and Energy Saving

Priority

See the sections:

Sustainable Development

Socio-economic Contribution:

  • Science and Innovations

Environmental Protection

  • Development strategy
  • Sustainable development policy
  • 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
  • Environmental and Social Action Plan (ESAP)
Relevant SDG target Key initiatives and projects Results in 2020

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 (wastefree production, closed water supplies, etc., at subsidiaries, associates and joint ventures)
  • elaboration of scientifically-based recommendations on how to develop and enhance production and processing
  • in 2020, the Company conducted several cleaner production researches:
    1. a study of the influence of underground uranium leaching processes on underground and ground waters, accompanied by the development of methodological guidelines
    2. development of a system for automatic monitoring of radiation hazards using gamma radiation threshold dosimeters with the ability to measure and control the equivalent dose and the equivalent dose rate of external gamma radiation
  • the Corporate Centre implements the Green Office principles

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
  • implementing an R&D initiative «Development of low acid leaching technology using cavitationjet technologies in combination with special chemicals», High Technology Institute LLP expects to reduce consumption of sulphuric acid for the leaching process by up to 20%
  • the Company implemented the Environmental and Social Action Plan 2020 in terms of improving the quality of waste management:
    1. we studied the sources of waste generation and environmental measures taken by subsidiaries, associates and joint ventures
    2. the Company held an online training session, Management of Industrial Waste at Kazatomprom’s Companies (33 attendees)
  • we conducted a study of the environmental and social impacts of the Company’s production facilities and now are developing projects for the implementation of automated environmental monitoring systems

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 2019–2021, including through reusing and recycling products at subsidiaries, associates and joint ventures
  • Kazatomprom classified all industrial wastes according to the degree of hazards, developed and registered environmental passports in line with the environmental laws of the Republic of Kazakhstan
  • many subsidiaries, associates and joint ventures have their own landfills for placement and long-term storage of drill cuttings classified as non-hazardous waste (the main components are minerals, clay and sand particles that are nontoxic and non-radioactive)
  • in accordance with Waste Management Programmes and approved Waste Management Action Plans, the Company undertook the following activities:
    • we arranged separate collection points and special places for temporary storage of industrial waste in the territory of Kazatomprom’s mines
    • we dispose of industrial waste regularly and timely

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 more rational production models, apply new technologies and technological solutions
  • Kazatomprom’s uranium extraction processes are based on the most environmentally friendly ISR technology
  • the Company publishes annual integrated reports, where it discloses its influence in ESG areas. In particular, it shows how the Group’s resource consumption evolves over several years due to the implementation of rational management approaches, lean production, and production upgrade

Priority

See the sections:

Environmental Protection

  • Sustainable development policy
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety
Relevant SDG target Key initiatives and projects Results in 2020

13.1

Strengthen resilience and adaptive capacity to climaterelated 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
  • in order to save electricity, diesel fuel and provide hot water supply of rotational camps due to the use of solar energy, for 7 solar water heaters have been installed in our factories. Total savings from the use of solar water heaters in 2020 amounted to 800 tons of fuel equivalent
  • Kazatomprom developed a project for automated monitoring of environmental emissions from stationary sources at APPAK LLP and Khorasan-U LLP to control the chemical emissions into the airх
  • the Group’s companies widely use solar and wind energy to generate electricity. The annual energy output generated by the Company’s PV power plants averages 3.52 MWh

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 Day, Earth Hour) that reduce the Company’s contribution to climate change
  • to raise public awareness of the need to reduce greenhouse gas emissions, employees of Kazatomprom and its subsidiaries annually support international initiatives such as Earth Hour and Car-free Day, as well as organise their own events to draw attention to the problem, planting trees and green areas

See the sections:

Social responsibility:

  • Employees
  • Occupational Health and Safety
  • Development strategy
  • HR policy
  • Comprehensive educational programme for 2019–2023
  • Sustainable development policy
  • Corporate social responsibility policy
  • Rules on the rotation of the Company and subsidiaries, associates and joint ventures employees
  • Rules on internships at on-the-job training at NAC Kazatomprom JSC and its subsidiaries, associates and joint ventures
  • Rules for the competitive selection of candidates for management and administrative vacancies at Kazatomprom
  • Rules on providing educational grants
Relevant SDG target Key initiatives and projects Results in 2020

4.4

By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship

  • corporate scholarships for tertiary education students, organising industry placements at Kazatomprom’s companies
  • implementation of programmes to recruit and onboard promising graduates and to develop young professionals
  • participation in developing educational and training programmes for technical universities
  • engagement of the Company’s highly specialised experts as teachers
  • participation in implementing dual education principles
  • the Company implements a Comprehensive Educational Programme 2019–2023ы
  • Kazatomprom continues cooperation with Satbayev University, which operates the country’s first International R&D Educational Centre for the Nuclear Industry. In 2020, 15 employees of the subsidiaries, associates and joint ventures enrolled in the master’s degree programme, majoring in Chemical Technology of Inorganic Substances
  • in 2020, Kazatomprom launched the Izbasar Young Specialist Development Programme offering a unique internship experience at several entities of the Company
  • Kazatomprom widely participates in the Zhas- Orken Young Specialists Internship Programme: 27 young specialists started their rotations in the Company, its subsidiaries, associates and joint ventures in 2020
  • in 2020, Kazatomprom and its entities employed five young specialists, graduates of the Zhas-Orken Programme

See the sections:

  • Environmental Protection
  • Occupational health and safety code
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety
  • Environmental and Social Action Plan (ESAP)
Relevant SDG target Key initiatives and projects Results in 2020

6.3

By 2030, improve water quality by reducing pollution, eliminating dumping and minimising release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally

  • implementation of actions to conserve and foster the rational use of water resources and the use of closed water supply systems
  • improvements to the efficiency of existing water treatment plants
  • implementation of production environmental controls (PEC) and control over surface and groundwater within contract areas, implement environmental surveys outside the boundaries of production plants that might be polluted due to entities’ operations
  • a number of subsidiaries, associates and joint ventures introduced a closed-loop drainless scheme in their technological processes: the industrial waste water is returned to the technological process
  • in 2020, Inkai LLP cleaned sewage septic tanks, removing 150 tonnes of sludge
  • Kazatomprom regularly performs industrial environmental monitoring and control of surface and groundwater to prevent discharges of pollutants into water bodies

6.4

By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity, and substantially reduce the number of people suffering from water scarcity

  • transition to more environmentally friendly technologies and introduce water use enhancement projects (closed water supply, wastewater treatment)
  • monitoring wastewater quality, measure withdrawn and recirculating water
  • the Company regularly monitors the quality of waste water in accordance with legal requirements, develops automated environmental monitoring systems for continuous accounting of collected and recycled water, as well as takes immediate response in case of emergency situations

See the sections:

Social Responsibility:

  • Employees
  • Sustainable development policy
  • HR policy
  • Corporate social responsibility policy
Relevant SDG target Key initiatives and projects Results in 2020

10.2

By 2030, empower and promote the social, economic and political inclusion of all irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

  • establishment of equal opportunities and working conditions during selection, hiring, remuneration, and promotions
  • improvements to the remuneration system and employee motivation levels; increase the employee engagement level
  • elaboration and implementation of a wide range of external social programmes to develop a socio-cultural environment, education, health, and sports, as well as projects to support vulnerable groups and encourage entrepreneurship
  • compliance with international standards on human rights and with the Company’s Code of Ethics and Compliance
  • in 2020, the Sustainable Development Department of Kazatomprom assessed the current status of human rights, analysed international standards and documents on human rights, reviewed internal regulatory corporate documents related to the human rights issues, analysed key aspects shaping the approach of mining companies to human rights, and considered complaints filed with NAC Kazatomprom JSC
  • in 2020, the Ombudsman considered 16 relevant complaints, of which three were resolved in favour of the claimants, arguments were not confirmed or partially confirmed in seven complaints, and recommendations and explanations were provided regarding six complaints
  • in 2020, the Company considered 61 reports received via the whistleblowing hotline

See the sections:

  • Environmental Protection
  • Sustainable development policy
  • Occupational health and safety code
  • Policy on occupational health and safety, environmental protection, radiation and nuclear safety
  • Environmental and Social Action Plan (ESAP)
Relevant SDG target Key initiatives and projects Results in 2020

15.1

By 2020, ensure conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements

  • measures (projects) to conserve and foster the rational use of land and water resources, the conservation of ecosystems and biodiversity, and creating a map that shows the location of habitats disturbed by mining activities
  • assessment of environmental conditions and biodiversity at Kazatomprom uranium deposit
  • studies into the environmental and social impacts of the Group’s production facilities on the environment and local communities
  • assessment of the level of impacts from mining activities on habitats, vegetation, endangered species, and the mapping of location of habitats affected by mining
  • the Kazatomprom Environmental Design and Monitoring Centre completed the development of a corporate standard, Methodological Guidelines for Calculating the Cost of Reclamation and Environmental Monitoring during Liquidation of Uranium Mining Entities
  • three years before the closure of a mine (exhausted of reserves), Kazatomprom should develop draft liquidation plans, which include information on the fauna and flora of the site, the consequences of subsoil use, which are subject to liquidation, measures to rehabilitate flora and fauna, and plans for the reclamation of disturbed land (asset retirement obligations)

15.5

Take urgent and significant action to reduce degradation of natural habitat, halt the loss of biodiversity, and by 2020 protect and prevent the extinction of threatened species

  • implementation of actions to conserve and restore biodiversity, vegetation, and soils in the regions where the Company operates (in areas where exploration is completed and in decommissioning areas)
  • research to assess environmental conditions and biodiversity at the uranium deposits of the Company
  • implementation of the Environmental and Social Action Plan (ESAP)
  • the Company carried out in-depth environmental studies of the territories adjacent to the uranium mines of South Kazakhstan. As a result, it established no environmental footprint of production operations beyond the boundaries of the buffer zones
  • since 2019, Kazatomprom has been actively working to establish the level of impact of mining operations on habitats, vegetation, and protected animal species. The study is scheduled to be completed in 2021
  • the Company conducted a training course, Biodiversity Assessment at Uranium Deposits, for 14 subsidiaries, associates and joint ventures (32 attendees)

See the sections:

  • Sustainable Development

Corporate Governance and Ethics:

  • Corporate Ethics
  • Sustainable development policy
  • Code of Ethics and Compliance
  • Corporate Governance Code
  • Anti-corruption and fraud policy
Relevant SDG target Key initiatives and projects Results in 2020

16.5

Substantially reduce corruption and bribery in all their forms

  • strict compliance with the Code of Ethics and Compliance, elaborate new and update current internal documents on ethics and anti-corruption issues, and effectively apply anti-corruption mechanisms
  • awareness-raising among members of the Board of Directors and Management Board, as well as other employees, about the Company’s current anti-corruption practices, and deliver respective training courses
  • updates to the anti-corruption and fraud policy at entities, in accordance with the recommendations of Kazatomprom
  • elaboration of anti-corruption standards as well as an anti-corruption culture, and implement respective anti-corruption activities
  • implementation of control procedures to early identify and proactively respond to security threats and signs of corporate fraudи
  • Kazatomprom approved an updated Anti- Corruption and Fraud Policy. The document defines the main vectors of the Company’s operations and the general rules of conduct for officials and employees to combat corruption and fraud
  • in 2020, Kazatomprom conducted training sessions for the Company’s management and employees engaged in processes involving compliance risks and provided explanations to the management and representatives of the Group’s entities
  • the Company has Regulations on the settlement of corporate conflicts and conflicts of interest in place. The document outlines the causes of corporate conflicts and conflicts of interest and procedures for conflict prevention, as well as regulates the actions taken by the Company’s bodies as part of the conflict resolution measures

See the sections:

About the Company:

  • Association Membership and International Compliance

Sustainable Development:

  • Contribution to the achievement of the UN SDGs
  • Stakeholder Map
  • Agreements/memoranda of participation in international organisations and industry associations
  • Sustainable development policy
Relevant SDG target Key initiatives and projects Results in 2020

17.16

Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries

  • interaction with legislative and executive authorities, civil society institutions, local communities, and business communities
  • participation in international associations in order to share experience and to integrate best sustainable development practices
  • publication of non-financial reporting in accordance with GRI Standards
  • Kazatomprom is a member of international associations, seeking to exchange practices, knowledge and expertise, and adopt the best sustainable development practices, including key principles of the International Council on Mining and Metals (ICMM) and the World Nuclear Association (WNA). The Company is a supplier of low-enriched uranium to the IAEA LEU Bank
  • the Company annually publishes its integrated annual reports, where it discloses non-financial information in accordance with GRI standards

17.17

Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

  • membership of working groups, special state committees, and associations, which allows the Company to participate in developing legislative and other commercial initiatives
  • engagement in regular dialogues with the state authorities, municipal authorities of the regions where the Company operates, local communities, and business representatives about both sustainable development issues and developing a common agenda
  • in February 2020, the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan and Kazatomprom signed a Memorandum of cooperation in environmental protection
  • under ESAP Roadmap 2020, the Company made a social scan in 25 localities in Shieli, Zhanakorgan, and Sozak districts, identified stakeholders, and developed a draft Stakeholder Engagement Plan

Stakeholder Engagement

GRI 102-21, 102-40, 102-42, 102-43

Stakeholder engagement is one of the strategic ways to ensure Kazatomprom’s sustainable development. We understand that achieving a positive reputation in the global nuclear market is possible only through direct cooperation with all our stakeholders.

Thanks to its well-established system of continuous stakeholder engagement, the Company is aware of the opinions, perception, interests, needs, and expectations of its stakeholders.

Kazatomprom strictly adheres to the principles of the Company’s corporate social responsibility policy. Seeking to strike a balance between achieving its strategic goals of highquality supplies of strategic metal and implementing social goals, the operations determines the groups of stakeholders interested in its decisions and activities to understand its influence and ways to take action. Among these stakeholders are all actors of the nuclear energy industry: regulators, equipment suppliers, consumers, NGOs, government, and society.

Regular open communications with stakeholders play an important role, allowing the Company to better understand their expectations and take a bespoke approach to shaping the corporate social responsibility agenda. We regularly use all communication channels – participation in congresses and exhibitions, multilateral discussions, publications and announcements in mass media – and provide an opportunity for dialogue with key audiences.

Kazatomprom annually publishes its integrated annual report. When drafting its reports, the Company follows international standards for the disclosure of non-financial reporting indicators: GRI Guidelines, GRI Sector Standard for energy sector, and AA 1000 SES.

List of stakeholders

shareholders

partners

creditors

suppliers of goods, works and services

customers

subsidiaries, associates and joint ventures

management and staff

public authorities

local executive authorities

labour unions

mass media

public organisations and local communities

business communities

international organisations

investment analysts

foundation for the development of social project Samruk-Kazuna Trust

To identify and select stakeholders for further engagement, the Company assesses their impact on its current operations and strategic development and relies on the established practices of Kazatomprom’s interaction with external stakeholders and their dependence on the Company’s performance.

We have developed a Stakeholder Map that takes into account the interests and needs of all stakeholders.

Being aware of the consequences of its operations, the Company adheres to the following principles when engaging with its stakeholders:

  • materiality of issues and topics, and
  • appropriate response to the requests of stakeholders

The Company annually updates its Stakeholder Map and Stakeholder Engagement Plan, considering the mutual impacts of Kazatomprom and its stakeholders. In 2020, the relevance of the current map was confirmed by a management survey.

Kazatomprom’s engagement with different stakeholder groups relies on an ongoing stakeholder dialogue introduced in the Company’s daily practices in accordance with international stakeholder engagement standards, as well as on AccountAbility52 and GRI principles of responsibility.

52 AA1000AP (AA1000 Accountability Principles), AA1000SES (AA1000 Stakeholder Engagement Standard).

Levels and methods of stakeholder engagement

Engagement level Engagement method
Consultations
  • questionnaires, surveys
  • meetings with representatives of the Company’s shareholders, other stakeholders
  • meetings with partners, investors, and creditors
  • holding an Investor Day or participating in an Investor Day
  • strategy Implementation Reports
Negotiations
  • meetings with partners, investors, creditors, and other collective negotiations based on the principles of social partnership
Engagement
  • multilateral forums, joint decision-making, meetings with subsidiaries, associates and joint ventures to discuss sustainability issues, e.g. occupational health and safety
Collaboration
  • joint undertakings
  • participation in educational programmes of partners, participants/shareholders of subsidiaries, associates and joint ventures
  • joint projects
Integration
  • integration of subsidiaries, associates and joint ventures into its Group’s Strategy implementation process

Kazatomprom continues an ongoing dialogue with key stakeholders, receiving feedback through various communication channels.

Stakeholder engagement in preparations of integrated annual reports

Seeking to improve the efficiency of engagement with key stakeholders and the quality of information disclosure in the integrated annual reports, Kazatomprom collects feedback from its stakeholders to:

  • assess the level of information disclosure regarding various aspects of the Company’s operations in the 2019 Integrated Annual Report
  • identify material topics to be disclosed in the 2020 Integrated Annual Report, reflecting the significant Company’s economic, environmental and social impact or having a substantive influence on the assessment and decisions of stakeholders

When the Company prepares its integrated annual reports, it sends forms for the stakeholders to fill out:

  • questionnaires on the level of information disclosure regarding various aspects of the Company’s operations in the integrated annual report for the previous reporting period
  • questionnaires to determine the material topics to be disclosed in the next integrated annual report

The structural unit in charge of sustainable development consolidates feedback provided to Kazatomprom by its stakeholders. Copies of the feedback forms are sent to structural units involved in collecting reporting information to consider inclusion of suggestions and recommendations contained in the feedback forms into the information prepared by the relevant structural unit and further consideration of this feedback when preparing information for the next Report.

After an integrated annual report is published on the Company’s corporate website, Kazatomprom ensures the receipt and consideration of stakeholder feedback on the published report.

To do so, the Company sends feedback questionnaires to stakeholders specified in Annexes to the report within thirty calendar days from the date of the report’s publication on the website. Feedback questionnaires are published on the corporate website and an internal portal for online surveys of management and staff, as well as being sent to key stakeholder groups by an official letter.

Grievance Mechanisms

Kazatomprom has several channels for stakeholders to file their complaints or suggestions, with the most commonly used channels being:

  • written requests and reports to the managers
  • whistleblowing hotline/grievance box
  • office of Ombudsman
  • hotline of the Compliance Service
Consultations between stakeholders and the Company

Kazatomprom has adopted specific procedures for holding consultations on economic, environmental, and social issues between key stakeholder groups and the Company’s highest governing body.

Specialised committees of the Board of Directors and supervisory boards of subsidiaries, associates and joint ventures regularly consider economic, environmental, and social issues. Following the preliminary efforts taken by committees, namely the preliminary examination, elaboration of the most important issues falling within the Board of Directors’ competence and development of recommendations for decisions in the issues, the Board of Directors is able to successfully cope and quickly adapt to constantly changing circumstances and comply with particularly important principles of corporate governance.

Production Safety (HSE) Committee

The main objective of the Committee is to develop and submit recommendations to the Company’s Board of Directors on the status of occupational safety across the Company, its subsidiaries, associates and joint ventures, as well as on social and sustainability issues. In the reporting period, the Committee’s members held five face-to-face meetings and addressed 23 issues. Every day, in the course of its operations, the Company fully recognises its responsibility towards stakeholders to ensure occupational health and safety and environmental protection.

Socio-economic Contribution

Creating economic value for stakeholders

GRI 201-1

Kazatomprom recognises that the long-term success of its business depends on social and economic stability maintained in the regions of operations53 and in the country as a whole, on mutually beneficial relations with representatives of the central and local authorities, as well as on the quality of working and living conditions for its employees. In 2020, the Company consistently implemented measures aimed at ensuring long-term productive relations with the regions where it operates and strengthening its image as a socially responsible business.

53 Kazatomprom operates in five regions of Kazakhstan: Turkistan, Kyzylorda, East Kazakhstan, Akmola, and Almaty regions, as well as in the cities of Nur-Sultan, Almaty, and Shymkent.

KZT .billion
IN TOTAL, KAZATOMPROM ALLOCATED IN 2020 AS PART OF ITS COMMITMENTS UNDER SUBSOIL USE CONTRACTS FOR SOCIO-ECONOMIC AND INFRASTRUCTURE DEVELOPMENT TO THE BUDGETS OF THE REGIONS WHERE IT OPERATES

Kazatomprom makes a significant contribution to the wellbeing and socio-economic development of the regions of operations by:

  • generating significant tax revenues for regional budgets
  • making payments to regional budgets under subsoil use contracts
  • providing jobs for the local population

Direct economic value generated and distributed, KZT million

Expenditure 2018 2019 2020
Direct economic value generated
Incomes 846.03 621.13 667.12
Distributed economic value, including
Operating expenses 292.81 273.42 288.11
Salary 42.78 49.15 50.72
Interest and dividend expenses 12.67 11.96 7.68
Taxes, except income tax 23.56 27.79 24.73
Income tax expenses 28.80 33.51 63.78
Other expenses 19.99 8.51 9.73
Social expenditures (investment in local communities) 0.73 1.07 1.01
Retained economic value (profit for year) 424.69 213.75 221.37

Contributions to the local budget for socio-economic and infrastructure development of regions of operations, KZT million

Company 2018 2019 2020
Turkistan Region
NAC Kazatomprom JSC 504.1 154.5 165.4
APPAK LLP 32.7 37.9 40.3
JV Akbastau JSC 185.9 194.9 214.7
JV South Mining Chemical Company LLP 83.5 86.5 96.3
Volkovgeologia JSC 4.2 2.5 2.8
JV ZARECHNOYE JSC 17.4 10.1 20.8
JV Inkai LLP 11.2 58.0 59.9
Kazatomprom-SaUran LLP 0.2 387.1 427.8
Karatau LLP 45.2 52.3 52.9
LLP «MC «ORTALYK» 70.2 76.4 83.1
JV Katco LLP 11.2 11.4 3.96
JV Budenovskoe LLP - - 21.5
Kyzylorda Region
NAC Kazatomprom JSC 92.99 - -
Baiken-U LLP 37.1 38.6 42.2
RU-6 LLP 2.0 102.8 107.5
Semizbai-U LLP 23.3 26.5 26.7
Kyzylkum LLP 171.1 116.2 126.1

Charity and sponsorship

GRI 413-1

To support local communities, subsidiaries, associates and joint ventures can implement charity initiatives independently. Subsidiaries, associates and joint ventures participate in annual charity events and cultural activities in the regions where they operate. In particular, they assist children from orphanages and large families and provide social support and sponsor communities, thus, helping improve local public services and amenities. They also play an active role in environmental campaigns and volunteer clean-up days, as well as in organising public events and celebrations.

Throughout 2020, Kazatomprom’s employees participated in the following public events as part of the Corporate Culture Development Project Roadmap and the Year of Volunteering:

  • a master class in a Shymkent-based orphanage, titled Communication Skills, Leadership, Public Speaking and Choice of Future Profession, with a demonstration of a career guidance video (APPAK LLP)
  • a range of master classes for schoolchildren in Turkistan, Kyzylorda, and East Kazakhstan regions as part of career guidance for students and awareness raising among the population in the regions of operations (volunteers of NAC Kazatomprom JSC, Ulba Metallurgical Plant JSC, Karatau LLP, APPAK LLP, and Kazatomprom-SaUran LLP)
  • provision of 10,000 medical masks to residents of Sozak District, Turkistan Region, in summer 2020
  • transfer of 15 oxygen cylinders of 50 litres each and 75 rapid tests to the central district hospital, more than 500 FFP2 masks and 80 overalls with shoe covers to the Sanitary and Epidemiological Service (SES) of Sozak District and the Provisory Centre of Taukenta village, Turkistan Region
  • purchase and delivery of six ventilators for hospitals in Turkistan Region
KZT million
JV KATCO LLP, A KAZAKH-FRENCH JOINT VENTURE, ALLOCATED TO THE BIRGEMIZ PUBLIC FOUNDATION, AND SIX VENTILATORS WERE PURCHASED FOR HOSPITALS IN TURKISTAN AND SHYMKENT (THREE PER CITY) FOR A TOTAL OF 100 MILLION TENGE
KZT million
WERE TRANSFERRED BY JV SOUTH MINING CHEMICAL COMPANY LLP FOR THE ARRANGEMENT OF A VETERAN’S ALLEY OF THE GREAT PATRIOTIC WAR WITH THE MONUMENT ERECTED IN HONOUR OF THE 75TH ANNIVERSARY OF VICTORY DAY, AS WELL AS A CHILDREN’S PLAYGROUND, CONSTRUCTION OF WHICH WAS COMPLETED IN AUGUST 2020 IN THE BABATA SETTLEMENT OF SOZAKSKY DISTRICT
  • filling and delivery of 500 oxygen cylinders to Zhanakorgan District Hospital in Zhanakorgan village, Kyzylorda Region, by employees of Kyzylkum LLP
  • transfer of masks, sanitizers, and other personal protective equipment to a school in Taikonyr village, Turkistan Region, by employees of JV Inkai LLP
  • regular volunteer clean-up days throughout the year by employees of all enterprises, with waste sorting in the territory of mines and other production facilities
  • landscaping of mines as part of area improvement efforts
  • a series of events as part of the World Environment Day by JV ZARECHNOYE JSC’s employees:
    • 350 tree seedlings were planted in a park in Timur village, Otrar District, Turkistan Region
    • 40 tree seedlings and 110 rose bushes were planted in a mine base of JV ZARECHNOYE JSC
    • 10 lilac bushes, 80 fruit trees (apple and apricot), and ash seedlings from our own nursery were planted in the territory of the mine and rotation camp
  • the employees of RU-6 LLP worked to improve the territory as part of the Birge-Taza-Kazakstan event in a village Kok Shoky microdistrict, Shieli, Kyzylorda Region
  • assistance provided by Kazatomprom-SaUran LLP employees to improve the coast of Lake Taukent, Turkistan Region
  • snow removal by employees of Ulba Metallurgical Plant JSC in Aliya kindergarten, Ust-Kamenogorsk

Regional infrastructure development
GRI 203-1

One-day salaries were allocated by Kazatomprom employees to medical workers in the cities of Nur-Sultan and Almaty who are fighting the spread of the pandemic in Kazakhstan during the country’s emergency regime related to the coronavirus pandemic.

R&D and Innovations

Managing R&D and innovations

R&D and innovations play a significant role in the implementation of Kazatomprom’s strategic priorities for maintaining production output, increasing efficiency, and reducing a negative environmental footprint.

The following companies contribute the most in achieving the strategic objectives in the field of R&D and innovations management, which are an increase in added value and knowledge intensity of Kazakhstani uranium products:

  • Volkovgeologiya JSC in geology, geo-technology, and mining operations
  • High Technology Institute LLP in extraction and processing of pregnant solutions, associated extraction of rare-earth metals
  • Ulba Metallurgical Plant JSC in advanced technologies of the nuclear fuel cycle, production and processing of rare metals

The Science Coordination Department of Kazatomprom is responsible for the general coordination of R&D activities, as well as the management and commercialisation of intellectual property.

In 2020, Kazatomprom held two events where subsidiaries, associates and joint ventures presented their implemented R&D projects, as a move that sought to improve the coordination of R&D activities and implement R&D projects.

Key results in 2020:

The Group regularly evaluates and updates its R&D activities in line with the Innovative and Technological Development Strategy and Policy:

  • it held two meetings of the Scientific and Technical Council of Kazatomprom, in addition to 13 meetings of specialised scientific and technical councils on priority areas of the Group’s R&D activities
  • the Company updated Kazatomprom’s internal regulatory documents: its Science and Technology Development Management Policy, ST-NAC 01-2020 Standard «Arrangement and Conduct of Research and Development Activities», and others
  • Kazatomprom developed a new document, Procedures for consideration and arrangement of pilot tests of new technologies, equipment, materials, and chemical reagents for the mining and processing of uranium and associated elements of rare metals and rare earth metals
employees
IN TOTAL, DEAL WITH THE RESEARCH AND DEVELOPMENT AT VOLKOVGEOLOGIA JSC, HIGH TECHNOLOGY INSTITUTE LLP, ULBA METALLURGICAL PLANT JSC, INCLUDING 6 PHDS AND 76 DOCTORAL CANDIDATES
KZT ,billion
TOTAL AMOUNT OF 76 R&D CONTRACTS CONCLUDED IN 2020 BY KAZATOMPROM, ITS SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES, OF WHICH 65 CONTRACTS WERE MADE BY SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES (KZT 3.19 BILLION) AND 11 CONTRACTS BY KAZATOMPROM (KZT 0.51 BILLION)

Striving to commercialise the results of R&D activities in 2020, two contracts were signed between Kazatomprom, Baiken-U LLP and APPAK LLP for the right to use the invention «Recovery of natural uranium concentrate from uranium-bearing solutions». Negotiations were underway between Kazatomprom and its subsidiaries, associates and joint ventures (Karatau LLP, JV Southern Mining and Chemical Company LLP, and JV Inkai LLP) to sign license agreements for the right to use the invention «Recovery of natural uranium concentrate from uranium-bearing solutions».

For more information about Kazatomprom’s Innovative and Technological Development Strategy and Policy 2014-2022, as well as the R&D Management Policy, see the 2019 Integrated Annual Report.
applications
FOR INTELLECTUAL PROPERTY WERE FILED BY THE COMPANY AND RECEIVED 18 TITLES OF PROTECTION

In addition, work and negotiations are ongoing to conclude license agreements with LLP «MC «ORTALYK» and Semizbai-U LLP.

Because of the COVID-19 pandemic, audits were suspended to evaluate the lawful use and commercialisation of the intellectual property of Kazatomprom and its subsidiaries, associates and joint ventures.

R&D projects

Almost all R&D projects of the Group are geared towards improving and modernising production. In 2020, the Company implemented a number of large R&D projects:

  • «Introducing new technologies, materials, and equipment to reduce the cost of the chemical concentrate of natural uranium and uranium oxide»

Kazatomprom started industrial testing of a rich, eluate nano-filtration unit and of technological modes of nanofiltration, as well as works to develop a feasibility study for this technology.

  • «Developing low-acid leaching technology using cavitation-jet technology in combination with special purpose chemical reagents»

In 2020, the Company continued industrial testing followed by the feasibility analysis of the technology. It plans to complete the works in Q2 2021.

Environment is another significant area for the Group’s R&D efforts. In 2020, the Company conducted a number of studies of how to make production more environmentally friendly:

  • Study of the impact of uranium leaching on groundwater and development of guidelines (standard) for:
    • contamination control of aquifers in uranium deposits and minimisation of contamination risks thanks to ISR uranium mining
    • development of an action plan to obtain convincing evidence that ISR mining has no irreversible negative impact on groundwater
    • development of a methodology for interpreting aquifer monitoring data applicable to mining operations and deposit liquidation plans
  • Development of a system for automatic monitoring of radiation hazards using gamma radiation threshold dosimeters with the ability to measure and control the equivalent dose and the equivalent dose rate of external gamma radiation

The purpose of this R&D project is to develop an automatic monitoring system powered by individual RKS01IM dosimeters. This is an informational system that controls and records individual radiation doses of personnel to obtain objective data about individual radiation doses to which staff is exposed to when working with radiation sources, taking into account the occupational route of personnel, as well as the radiation situation in the workplace.

This system will provide:

  • impact assessment of the radiation factors on various categories of personnel and the population
  • collection of information about the gamma radiation in the area with its automatic referencing to the geographic coordinates during the gamma screening when an employee is walking
  • automatic generation of electronic reports and cartograms via a convenient and user-friendly software interface. The use of dosimeters developed as individual dosimeters gives a number of advantages to an employee such as:
    • real-time display of direct indication of accumulated dose and dose rate
    • dose rate alarms that can alert a person wearing the dosimeter, when the specified dose rate or accumulated dose is exceeded
    • measurement with high accuracy of a wide range of accumulated radiation doses from normal (μSv) to emergency levels (hundreds of mSv or Sv)
,
INNOVATION PROPOSALS WERE SUBMITTED BY THE GROUP’S EMPLOYEES. OF WHICH, 1,410 WERE ACCEPTED AND 821 WERE IMPLEMENTED. KZT 2.43 BILLION IS THE EXPECTED ECONOMIC EFFECT OF THE IMPLEMENTED PROPOSALS
Innovations

The Group encourages its employees to innovate, using mechanisms for submitting, processing, evaluating, and reviewing innovation proposals.

An additional incentive for innovations is an annual competition of innovations held among subsidiaries, associates and joint ventures.

Key results for 2020:
  • Kazatomprom’s Management Board approved the Innovations at Kazatomprom Standard (Decision No. 21/20 of 30 June 2020).

Reasons for the implementation of the standard:

  • the standard is to be applied to all subsidiaries, associates and joint ventures and introduces uniform principles, unlike the Regulations previously in force
  • automated submission of innovation proposals to the eKAP system, which allows eliminating paper routines as much as possible
  • introduction of two new nominations in the Contest of Innovations:
    • the best innovation proposal within the Green Mindset initiative: innovation proposals are selected when they have combined benefits and effects: economic, social and branding
    • the best digital solution to manufacturing: innovation proposals are selected when they have a large economic benefit by reducing the production costs or there are significant quality improvements

Contest of Innovations

In winter 2020, the Company held a contest of 2019 innovations among subsidiaries, associates and joint ventures and awarded winners.

The annual contest had three stages:

1) Internal selection of contestants at an enterprise

2) Selection of contestants by the organizing committee

3) Selection of winners in nominations by the expert committee

The proposal «Manufacturing a mobile technological node for solution preparation» by JV ZARECHNOYE JSC was recognised as the best innovation proposal creating an economic effect.

The proposal «Irrigation improvement by sedimentation of solid particles in pos.515» by Baiken-U LLP was recognised as the best innovation proposal creating social or other effects.

RU-6 LLP was recognised as the most innovative enterprise based on the 2019 results and received a winner’s cup. All winners were awarded diplomas and certificates, and the best innovators were awarded merit badges.

  • the Company signed memoranda of cooperation in R&D and innovations with:
    • Ust-Kamenogorsk Titanium-Magnesium Plant
    • Bolashak Centre for International Programmes
    • centre for Technological Development of Smart Systems
    • national Centre of High Technologies and Energy Saving
  • Kazatomprom and Bolashak Centre signed a memorandum to improve the research competencies of the Company’s employees involved in R&D
  • the Company arranged and put into force procedures for enrolment in specialised universities of the Russian Federation in PhD and postgraduate programmes as part of its efforts to train the R&D staff pool at Kazatomprom, subsidiaries, associates and joint ventures
Plans for 2021:

In 2021, Kazatomprom is set to take the following actions as part of its new approach to R&D management in the Group::

  • a qualitative assessment of the scientific novelty of the planned and implemented R&D projects
  • a review of the format and composition of scientific and technical councils; development of regulations for assessment of R&D efficiency and effectiveness of R&D in accordance with the approved Policy
  • coordination of the implementation of R&D projects through a platform where the implemented R&D projects are presented

ВIn 2021, Kazatomprom will work to improve the scientific competencies of subsidiaries, associates and joint ventures‘ employees involved in R&D. This will contribute to the improvement of the quality of R&D.

Procurement Practices

GRI 102-9

Given the scale of Kazatomprom’s business and the vast geography of its operations, efficient, timely, and complete provision of the necessary resources, combined with the best procurement terms and conditions, is paramount to the success of the Company’s business.

The Group’s key procurement priorities in the reporting period:

  • enhancing the transparency of processes via automation and digitalisation
  • optimising the procurement management structure at the Company, subsidiaries, associates and joint ventures
  • developing the category management in procurement

20 procurement category strategies were developed in 2020, of which 9 procurement category strategies of NAC Kazatomprom JSC and 10 procurement category strategies of the Fund were implemented. KZT 26.1 billion is the actual volume of category procurement for the Group

For more information about the new procurement management model, see the 2019 Integrated Annual Report.

Supplier Selection Centralisation Project

Seeking to improve the efficiency of procurement management and secure the uninterrupted competition-based supply of goods and materials to the Group, Kazatomprom started centralising the procurement functions under the umbrella of one service centre.

NAC Kazatomprom JSC’s Business Modernisation and Transformation Council adopted decision No. 05/20 on 09 December 2020 to include the Supplier Selection Centralisation Project in the Company’s digital transformation portfolio. The enterprises of Kazatomprom-SaUran LLP, RU-6 LLP, LLP «MC «ORTALYK», and Trade and Transport Company LLP were included in the pilot project. The project is expected to generate financial benefits by the end of 2021, thanks to the reduction of procurement prices. In case of success of the pilot in 2021, the project will be replicated in other subsidiaries, associates and joint ventures.

This project will reduce single-source procurements and improve the quality of procurement processes thanks to the clear regulation of processes and procedures for interaction between the Service Centre and subsidiaries/affiliates.

Category-based procurement strategies for 2020

Group strategies Fund’s strategies
Oils and lubricants (fuel) Electricity
Transportation and distribution services Cars and buses
Tantalum Health insurance
Pumps, components and spare parts Safety footwear
Pipes Cabling and wiring products
Flow meters Communication services
Production assemblies IT equipment and communication equipment
Ion exchange resin IT software
Hydrogen peroxide Oils and greases
Safety clothing Trucks and special equipment
Ammonia products Safety clothing and PPE
KZT .billion
ACTUAL BENEFIT BASED ON THE 2020
KZT ,million
TOTAL AMOUNT OF SINGLE-SOURCE CONTRACTS
KZT ,million
TOTAL AMOUNT OF PROCUREMENTS UNDER INTRA-GROUP COOPERATION PROCEDURES

Kazatomprom concluded contracts of more than KZT 92,882 million in total under competitive procurement procedures (open tenders and quote requests).

To increase the share of competitive purchases, Kazatomprom interacts with potential suppliers to clarify the terms and conditions of tender documents, eliminates excessive requirements for suppliers and administrative costs that do not affect the production process. Planned single-source procurements are transferred to tender procedures.

Digitalisation of Procurement

In 2020, the Company made its procurement plans for 2021 fully in the SAP ERP system. This functionality enables the quick consolidation of the planned procurements, taking into account the goods in transit and in stock.

Work is currently underway on the direct automated integration of SAP ERP and ISEZ 2.0 information systems, where a method of direct data exchange on procurement planning and contracts will be implemented.

For more information about supplier engagement, see the 2019 Integrated Annual Report.
Local content in procurement
GRI 204-1

In compliance with the public policy, the Company assists in concluding contracts for the procurement of products, works, and services between its subsidiaries, associates and joint ventures and local suppliers to support domestic suppliers in the regions.

The Group also ensures procurements of goods produced by domestic producers in the light, furniture, and food industries and the production of construction materials by manufacturers listed on the Samruk-Kazyna’s Register.

As part of the implementation of the Economy of Simple Things Programme, products and goods (furniture, clothing, food, building materials) are purchased from the manufacturers of the Holding. The Corporate Centre instructed subsidiaries, associates and joint ventures to establish the appropriate priorities and remove these goods from the works and services.

In 2020, the Central Project Office, in which the Company’s subsidiaries, associates and joint ventures participate, continued its work to support domestic producers at the platform of Samruk-Kazyna Contract LLP. Here, offtake contracts are concluded with producers, stipulating that a certain quantity of goods should be purchased.

Plans for 2021:

In 2021, the Group plans the following actions as part of procurement development efforts:

  • continue optimising procurement processes
  • automate procurement processes
  • centralise procurement processes

Percentage of local suppliers, %

contracts
WITH SUPPLIERS UNDER THE ECONOMY OF SIMPLE THINGS (EST) PROGRAMME WERE CONCLUDED BY KAZATOMPROM

%
OF THE TOTAL PROCUREMENTS UNDER THE EST LIST IN ACCORDANCE WITH THE ESTABLISHED INDICATORS IN PROCUREMENT WERE ACCOUNTED FOR
KZT ,million
TOTAL AMOUNT OF 26 OFFTAKE
CONTRACTS CONCLUDED IN 2020


Field lifecycle management

KAP1

The Group operates 26 deposits (sites) subsequently divided into technological blocks and uses the ISR mining method. On average, one technological block at a deposit is depleted after three to four years.

The ISR uranium mining is a complex operation that includes:

  • mine preparation works (drilling technological wells, installing main and intra-block binding, acidification of the ore masses)
  • uranium leaching directly in the subsoil and the production of productive solutions (active leaching, leaching, and preleaching)
For more information about the field lifecycle management, see the 2019 Integrated Annual Report.

Digitalisation and Automation

The development of digital technologies is one of the most significant modern trends in the economy. In a medium term, digital solutions can significantly impact the global chains of labour divisions and become a key factor in increasing labour productivity.

Kazatomprom was one of the first production companies in Kazakhstan to digitalise its enterprises.

Results in 2020:

Digital Maturity Assessment

The Company worked to measure its digital maturity. Based on the measurements, it developed a Maturity Improvement Plan and a number of initiatives to increase the level of digital maturity.

Architectural Committee

Kazatomprom set up an Architectural Committee tasked to develop and control the Company’s architecture in accordance with the uniform rules, requirements and standards of the Company in the context of the following domains: business processes, data, applications, and infrastructure.

CRM implementation

We completed the project to automate customer relations based on the CRM platform. The CRM system enables us to:

  • control processes from the receipt of quote requests
  • receive notifications from clients
  • set deadlines for completing tasks under current business processes

Collection and visualization of Baiken-U LLP’s data

Together with Baiken-U LLP, the Company developed tools for the collection and visualization of geotechnological data from the Kharasan-2 mine, including automated data collection forms and analytical dashboards for real-time tracking of the main geotechnological indicators.

Automation of operational safety reporting in the corporate information system E-CAP

The E-CAP information system has developed periodic reporting forms for operational safety, which has reduced the time for collecting, consolidating and analyzing information on the state of operational safety in subsidiaries, associates and joint ventures.

COVID-19 Dashboards

We developed analytical dashboards reflecting the main indicators on the current situation in Kazakhstan and the Company to promptly monitor the spread of COVID-19. Based on the daily questionnaire data, we developed a tool to promptly track the health of employees.

FlashReport and MMR management dashboards

Kazatomprom developed management dashboards based on FlashReport and MMR reports containing the main production, financial, and economic indicators for the management of Corporate Centre, subsidiaries, associates and joint ventures.

RPA robots

In cooperation with the Treasury Department, RPA robots were developed for the automatic uploading of bank statements and deposit transactions into the SAP ERP system. RPA robots are designed to automate the routine algorithmic work of employees.

Information Security Operations Centre

The Company worked to automate information security processes based on the platform of the Security Operations Centre (SOC). Devices of the Corporate Centre and 18 enterprises of the Company were connected to the SOC system.

SAP ERP

SAP ERP system is an effective tool for the planning and accounting of corporate resources, a unified platform for collecting, storing, processing, and presenting information, which provides the ability to analyse data and support decision-making at all management levels. SAP ERP was deployed in the Corporate Centre and eight subsidiaries. Currently, efforts are underway at Ulba Metallurgical Plant JSC to transfer accounting to SAP ERP. The system automates the main and auxiliary business processes of the enterprise, covering more than 800 users.

SAP MDG

The system is configured to automatically generate short and full names of the directories of goods, works, and services using the classifiers of goods, works, and services, maintain the chart of accounts and primary costs reference books, integrate with public databases, as well as processes for coordinating applications based on master data with the participation of business divisions of companies. Kazatomprom greatly simplified the system interface and took other actions. All this significantly helped improve the quality of master data, which has a great impact on the procurement, production, logistics, and other business processes of the Company.

For more information about digitalisation management processes, see the 2019 Integrated Annual Report.
Results of Digitalisation Strategy initiatives in 2020:
  • implementation of the corporate data storage (CDS). The goal of the project is to create a single information space that ensures high transparency and accessibility of quality data serving as a basis for decision-making. The main objectives of the project are to create a system to maintain corporate data storage, develop a unified CDS data model and integrate data via an integration bus. The project will make it possible to retrieve data from various systems in an optimal format, which will provide quick access from a single source to full and transparent data of Kazatomprom, its subsidiaries, associates and joint ventures. On 6 February 2020, the Company made contract No. 59/ NAC-20 for the procurement of works «Phase 1. Implementation of a single turn-key CDS and integration bus within the framework of intra-holding cooperation” with QazCloud LLP. Phase 1 is expected to be completed before 30 June 2022. Phase 2 is scheduled for 2022-2023
  • a digital platform for effective communications. One of the strategic goals of Kazatomprom JSC is to foster a corporate culture appropriate to an industry leader. The Corporate Portal is one of the tools for the development of corporate culture, communications between management and employees, the Corporate Centre and subsidiaries, associates and joint ventures. It is an essential component in maintaining the IR and HR-brand of the Company. Today, this is the most relevant and effective tool that can significantly increase employees’ commitment to the priorities, principles, and values of Kazatomprom, its subsidiaries, associates and joint ventures. To achieve the above strategic goal, we launched a project in 2020 to upgrade the Corporate Portal of Kazatomprom. This project will improve the technological and architectural implementation of the system (by switching to a new platform), migration of functionality (current sections/ modules) and databases, as well as the development of new sections/modules in accordance with new business requirements. Meanwhile, the upgraded Corporate Portal will become a single information space for the Corporate Centre, subsidiaries, associates and joint ventures, improving internal communications, increasing the efficiency of employees’ tasks, simplifying and facilitating the daily duties of employees, streamlining the corporate information management system, etc. The completion date is Q3 2021
  • in 2020, Ernst&Young conducted an audit of IT in the Corporate Centre and six subsidiaries, associates and joint ventures, as requested by the Chairman of the Management Board of Samruk-Kazyna JSC, and identified the potential for cost and risk optimisation

Digital Mine

In 2020, the Group deployed a Digital Mine information system in the head office, Kazatomprom-SaUran LLP, RU-6 LLP, Ortalyk LLP, and the laboratories of IVT-Zerde, a branch of High Technology Institute LLP.

Digital Mine is a production management system based on Wonderware MES and Labware LIMS platforms. Developed for Kazatomprom’s mining companies, the system helps get a full real-time analytics of production processes and save human and material resources significantly.

Plans for 2021:
  • continue to search for and implement advanced digital technologies applicable to the Group’s operations to enhance business opportunities, provide competitive advantages, and increase product value, as well as solutions for applying data analytics

Key activities for 2021

Project Goal Benefits
«AR&VR»
  • help solve problems of varying levels and urgency, online and without exposing employees to danger
  • reduced travel expenses
  • reduced risk of occupational injuries
  • reduced cost of training
«Automation of pumping fleet operation and control using the Big Data technology and elements of artificial intelligence»
  • consolidate data storage
  • visualize the fleet operation parameters in an online mode
  • provide predictive analytics of pump fleet failure
  • reduced number of equipment failures and accidents
  • increase in the efficiency of repair personnel workload, standardization of work
  • increased life cycle of equipment
  • reduce maintenance costs by 5-15%
«Automation of nitrate concentration control in the rich eluate solution»
  • reduce the consumption of ammonium nitrate 0.06 to 0.025 kg per kilogram of uranium
  • savings of 2.5% to 10% of ammonium nitrate per kg of uranium
  • reduced ammonium nitrate consumption from 100 to 400 tonnes
  • decision on further replication at other mining enterprises
Information Security

The pace of development of digital technologies and their subsequent introduction into the business processes of subsidiaries, associates and joint ventures, as well as jointly controlled entities under the Group’s umbrella requires increased attention to the information security.

Kazatomprom continuously monitors compliance with information security requirements and strives to develop an information security management system in accordance with the laws of the Republic of Kazakhstan and international standard ISO/IEC 27001.

Results in 2020:

The Company developed an action plan to launch an integrated information security management system as part of its digitalisation and transformation efforts aimed at achieving a strategic goal of adoption of the best business practices in activities as envisaged by Kazatomprom’s Development Strategy 2018-2028. As a result, the Implementation and Development of Cybersecurity project was updated, and subsidiaries, associates and joint ventures were connected to the Security Operations Centre to reduce risks by enhancing cyber protection.

Since the beginning of 2020, NAC Kazatomprom JSC and its subsidiaries, associates and joint ventures, as well as jointly controlled enterprises, have registered 297 information security incidents (of which 10 were high, 84 were medium, 203 were low) and 0 realized incidents entailing financial losses for the Company (1,000 MCI or more). The Company recorded and neutralized 86,110 threats, blocked 5,622,136 Internet resources, received and transmitted 3,243,032 e-mail messages, with 1,362,483 of them blocked.

To raise employees’ awareness of information security issues, foster cyber culture, and inform them about changes in internal information security regulations, the Company held a training session for members of the Board of Directors, the Management Board, as well as key employees of subsidiaries, associates and joint ventures in 2020. Within the framework of the agreements of intent for cooperation in the field of information security, Kazatomprom takes measures to improve the level of cyber hygiene and digital security, participates in forums and meetings to discuss issues of the digitalisation of the nuclear industry, plans for the IT and information security development, both during the pandemic and in the post-quarantine period.

Plans for 2021:

Kazatomprom will continue monitoring compliance with information security requirements across all existing and developing IT systems, as well as reach out to its employees on information security issues.

In addition, the Company intends to:

  • continue improving and replicate the integrated information security management system in accordance with the Kazatomprom Information Security Strategy 2019-2028
  • take actions under the Implementation and Development of Cybersecurity project
  • implement the 2021 Work Plan to improve the information security management system
  • continue automation of the ISMS processes

Social Responsibility

Human Resources Management

Management approach

Kazatomprom’s current production performance and its future growth depend on the Company’s key asset, skilled staff.

Continuous improvement of working conditions, social support, career growth and professional development opportunities, attention to each employee’s interests and needs have the highest priority for the Company in its approaches to building the management system, in particular staff and social policy.

Highly skilled specialists are paramount to the success of Kazatomprom, and effective HR management is among the Company’s priorities.

Kazatomprom’s HR Policy 2018-2028 (the HR Policy) is one of the most important tools for achieving the strategic goals of the Company. It is designed to motivate employees, achieve high labour efficiency with due regard to their interests and capabilities, and stimulate the active engagement of personnel in the Company’s life.

According to Kazatomprom Development Strategy 2018- 2028, the 2020 priority tasks in the field of human resources management were the development of the Company’s culture and the transformation of the HR role into a strategic business partner. The latest initiative seeks to transform the purely administrative function of staff management into the expert consulting, development and implementation of progressive HR practices.

Human Resources Management Department, a structural unit of Kazatomprom, is responsible for direct relations with personnel.

Staff recruiting, maintaining a corporate culture and relationships with employees are also based on the Collective Bargaining Agreement, the Code of Ethics and Compliance, the principles of the Corporate Social Responsibility Policy, as well as international initiatives.

Key objectives in human resources management at Kazatomprom:

  • recruiting staff on a competitive basis and reducing staff turnover
  • ensuring equal working conditions and promoting the professional, career and personal growth of employees
  • providing training and professional development opportunities
  • accumulation and preservation of in-house knowledge
  • improving employees’ remuneration and motivation system
  • providing social support to employees, including measures to preserve their physical and mental health, as well as improving their quality of life
  • developing the corporate culture and increasing the employee engagement level
  • maintaining an effective dialogue with employees

The Company strives to maintain the safest and most comfortable working space, guarantees equal employment conditions to everyone, and provides personnel with decent and competitive wages. All these help to attract the most talented staff and motivate them to grow professionally and personally.

Human Rights
GRI 408-1, 409-1, 411-1, 412-1, 412-3

The key principles in relations between Kazatomprom and its employees are the protection of human rights, social partnership, mutual respect, trust to each other, as well as prevention of any discrimination. The Company prohibits any restriction of employees’ labour rights and freedoms or any benefits and advantages received on the ground of gender, race, nationality, language, origin, as well as property, family, social and official status, age, place of residence, religion, beliefs, affiliation/non-affiliation with any public association or social group, as well as other circumstances not related to the employee’s professional qualities.

Kazatomprom does not restrict the employees’ rights to found or join public organisations that represent their interests. The Group’s staff can engage in any political, educational, charitable or social activity, as long as this engagement does not affect the performance of official duties and does not harm society.

The Company operates a remuneration system in accordance with national requirements related to minimum wages, working hours, and overtime.

The Ombudsman monitors the human rights situation in the Company, working with staff to clarify the provisions of the Code of Ethics and Compliance, as well as conducts individual meetings with employees on personal matters. In addition, the Company’s Compliance Service, as well as trade unions control the observance of employees’ rights and international standards in this area. In case of violations of their rights, employees can use all the Company’s feedback channels to report them.

In the reporting period, no cases of discrimination or other violations in the field of human rights were recorded. The Company has no cases of forced or compulsory labour, as well as violations of the indigenous and small peoples’ rights. Kazatomprom does not use child labour.

In 2020, the Company’s Sustainable Development Department implemented a number of measures to improve the corporate governance system in the context of human rights – detailed work with reports and complaints to Kazatomprom, analysis of internal regulatory corporate documents governing this area, monitoring of international standards and documents, advanced approaches to the protection of human rights in extractive companies were all carried out.

The Company’s responsible attitude to the principle of respect for human rights is confirmed by its desire to attract for cooperation those partners and counterparties that comply with the law and the Group’s norms of corporate and business ethics. Kazatomprom supports long-term partnerships only with those suppliers who share and adhere to the Group’s ethical principles, do not accept corruption, respect human rights, and care about the occupational safety and health of personnel.

In addition to complying with the law, the Company requires its suppliers and contractors operating at the Group’s facilities to comply with its own corporate standards for occupational safety.

There are no special human rights assessments of the Group’s subsidiaries or suppliers and contractors.

NAC Kazatomprom JSC’s agreements and contracts do not include human rights provisions and are not evaluated for human rights compliance.

Personnel Structure
102-7, GRI 102-8, 202-2

In 2020, the headcount of the Group’s personnel dropped by 1.94% year on year. At the end of the reporting year, the workforce amounted to 21,019 people, including joint ventures and associates.

Most of the work is carried out by the Group’s employees, while outsourcing is used to perform non-core activities (based on the conclusion of paid service contracts).

In late 2020, the share of employees on paid service agreements was 3.5% of the total headcount, while 91% of the Group’s headcount staff was hired under open-ended employment contracts.

In late 2020, only 0.04% of the Group’s workforce worked part-time.

The share of senior executives of the Group’s hired from among the representatives of the local community54 amounted 85.7% in 2020.

54 Members of the Management Board are considered senior executives. Local communities are members of the public who have citizenship of Kazakhstan.

Because of the location of the main uranium mining deposits and Group’s production facilities, a significant part of employees, about 66.8%, work in South Kazakhstan (including 2.6% in Shymkent).

Kazatomprom adheres to the principle of non-discrimination and constantly monitors the staffing structure according to both gender and age.

Due to the specifics of production operations in the mining industry, the female share decreased by 1% in the Group year on year, making 18% at the end of 2020, while the men’s share was 82%.

The average age of the Group’s employees was 41 years at the end of 2020, up by 4% against the previous period (2019, 39.4 years).

The Company saw a positive trend in staff continuity. In 2020, the number of employees leaving the Group decreased by 17.2% year on year to reach 2,857 people.

51% of the employees who left the Group were men aged 30-50 years, its largest proportion (66%) was in the southern region (including Shymkent), as the Company’s uranium mining enterprises are located there.

In 2020, the Group hired 2,467 employees. Of these, 69% work in the southern region (including Shymkent).

Kazatomprom headcount and staff composition*, employees

GRI 102-8, 405-1
Regions 2018 2019 2020
Headcount at the end of the reporting period, employees 20,507 20,592 21,019
Total number of employees (headcount + independent contract agreements) 20,956 21,138 21,788
men 16,642 16,753 17,228
women 3,865 3,839 3,791
Managers and executives 119 108 119
Workers 20,388 20,484 20,900
Under 30 3,547 3,632 3,201
30 to 50 11,545 11,707 12,260
Over 50 5,415 5,253 5,558
Average age of employees, years 40 39.4 41
Long-term contract 19,572 19,794 19,821
men 15,974 16,188 16,227
women 3,598 3,606 3,594
Term contract 935 798 1,198
men 668 565 1 001
women 267 233 197
Full-time employment 20,488 20,577 21,011
men 16,629 16,745 17,222
women 3,859 3,832 3,789
Part-time employment 19 15 8
men 13 8 6
women 6 7 2
Independent contractor agreements 449 546 769
men 339 372 518
women 110 174 251

* For detailed explanations of the table, see Annex «ESG Performance Indicators 2018-2020»


Kazatomprom headcount broken down by region and gender, employees

GRI 102-8
Region 2018 2019 2020
M W M W M W
Almaty 379 276 330 272 477 326
Nur-Sultan 518 421 510 432 460 389
Shymkent 306 220 270 232 323 216
North Kazakhstan Region 940 258 866 245 811 240
South Kazakhstan Region 11,709 1,358 11,876 1,334 12,185 1,280
East Kazakhstan Region 2,781 1,326 2,892 1,317 2,963 1,333
China 5 5 5 6 5 6
United States 2 0 2 0 2 0
Switzerland 2 1 2 1 2 1
Total 16,642 3,865 16,753 3,839 17,228 3,791

Structure of governing bodies and employees, %

GRI 405-1
Indicator 2018 2019 2020
Governing bodies Employees Governing bodies Employees Governing bodies Employees
Men 92% 81% 93% 81% 92% 82%
Women 8% 19% 7% 19% 8% 18%
Kazaks 77% 67% 80% 69% 74% 70%
Russians 14% 26% 11% 25% 13% 25%
Other 8% 7% 9% 6% 13% 6%
Under 30 3% 17% 0% 18% 1% 15%
30 to 50 63% 56% 71% 57% 64% 58%
Over 50 34% 26% 29% 25% 35% 26%

Staff turnover across the Group, %

GRI 401-1
Remuneration system

Kazatomprom seeks to ensure decent and timely pay for its employees and applies transparent approaches to material remuneration, striving to maintain wages at a highly competitive level on the labour market and in the industry.

In 2020, the average monthly wages of production staff amounted to KZT 279,202, up by 6% YOY. The increase is due to the payment of downtime for reasons beyond the control of employees and employers related to the restriction of access to workplaces, as well as payment to non-regular workers on weekends during a pandemic/quarantine period.

To improve the system of staff remuneration and motivation, three enterprises of Kazatomprom have been implementing the Systematisation of Remuneration of the Employees of Mining Entities project since 2019. Its goal is to unify the overall cumulative incentive system based on individual/ collective performance and behaviour of employees, subject to the preservation of the annual aggregate remuneration level.

The rewards paid to employees for meeting planned targets, strategic and operational goals of the Group’s companies, as well as for generating innovative ideas, high professionalism, and a responsible attitude to work are the key components of the financial remuneration system, which fuels the long-term motivation of personnel.

Kazatomprom payroll fund*, KZT

Indicator 2018 2019 2020 Change 2020-2019
Average monthly salary of production staff 244,543 263,997 279,202 106%
Payroll fund, KZT million 63,413 64,884 65,707 101%

* For detailed explanations of the table, see Annex «ESG Performance Indicators 2018-2020»

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 an environmental disaster zone, depending on the region of residence, in accordance with Kazakh law
  • additional payments to production staff if they work in harmful or dangerous working conditions as prescribed by the laws of the Republic of Kazakhstan

Benchmarking Kazatomprom’s minimum salary against Kazakhstan’s minimum salary*, KZT

Indicator 2018 2019 2020
M W M W M W
Minimum salary in Kazakhstan 28,284 28,284 42,500 42,500 42,500 42,500
Salary of entry-level employee across the Group 29,360 29,360 42,500 42,500 42,500 42,500
Ratio 1.03 1.03 1 1 1 1

* For detailed explanations of the table, see Annex «ESG Performance Indicators 2018-2020»

For more information, see the 2019 Integrated Annual Report.

Female to male base pay at Kazatomprom, ‘000 KZT

Employee category 2018 2019 2020
M W M W M W
Top management (Board of Directors, management committee or similar body) 809 809 837 837 848 848
Middle management 358 358 362 362 377 377
Administrative staff 153 153 180 178 180 180
Production staff 72 72 81 82 84 84

Transfer to remote work

Amid the pandemic, a remote work format has been introduced in the Corporate Centre and central offices of the Company’s subsidiaries, associates and joint ventures since the beginning of 2020. Kazatomprom developed rules for teleworking and sent recommendations for subsidiaries, associates and joint ventures. During 2020, most of the employees of the Corporate Centre worked remotely, and the efficiency of employees did not decrease, according to the Company’s management. Based on the results of the engagement survey, employees confirmed a high level of satisfaction with the remote work (97% of employees).

Transformation projects

The expertise and best practices gained by Kazatomprom in the process of business transformation in previous periods (the projects Implementing a Target Personnel Management Model And Business Process Automation, for more information, see the 2019 Integrated Annual Report drive not only further improvements in the area of HR management, but also lay a solid foundation for the Company’s rapid adaptation to work amid new challenges, like the SARS-CoV-2 pandemic in 2020.

Corporate Culture

Kazatomprom determines another area that contributes to production efficiency and the achievement of strategic development goals, the building of a strong corporate culture. To achieve this, the Company promotes actively within the team, such basic values as safety, responsibility, professionalism, development and teamwork.

Kazatomprom has developed a Roadmap for the Corporate Culture Project 2018-2022.

Due to its high level of development, the Company’s corporate culture was quickly adapted to the conditions of the COVID-19 pandemic. During the crisis, the Company was able to provide its employees with safe working conditions and showed support and care.

Work in the context of the COVID-19 pandemic

Thanks to the Company’s effective communication system, the transition to teleworking caused by the need to distance was smooth and quick. Every employee retained the ability to communicate with colleagues and senior management to resolve urgent issues, receive useful information, and feel involved in important tasks.

In times of crisis, employees need a behavioural guide. In this connection, the top managers of the Company, subsidiaries, associates and joint ventures held more than 50 online meetings with employees to support employees and strengthen their commitment to corporate values.

Seeking to support employees, Kazatomprom implemented the Qasyndamyz 2020 programme that offered psychological and physical support to employees:

  • online breathing and physical exercises for employees and their families
  • support of a volunteer group of the Company’s employees: assistance in finding medicines, providing psychological support
  • conducting webinars to support loved ones, how to keep yourself in a resourceful state, how to replenish energy, fight stress and many others
  • holding meetings with medical professionals
  • daily survey on the well-being of employees, monitoring of the emotional state, individual consultations with psychologists

The main element of the corporate culture is social volunteering, which unites employees and helps to increase the involvement of staff in the formation of a positive internal atmosphere and image of Kazatomprom as a socially responsible Company.

Throughout the year, employees of the Company, its subsidiaries, associates and joint ventures took part in largescale volunteer projects. RU-6, South Mining and Chemical Company, and Ulba Metallurgical Plant were rewarded for active volunteering during the Uzdik Volunteer 2020 competition organised by the Centre for Social Interaction and Communications.

The Company has a Leadership Development Programme aimed at developing managers at the level of CEO, CEO-1, and CEO-2. It is implemented through a number of projects, for example, working sessions in the format of business games aimed at team searches for solutions to problematic issues, improving the leadership system and increasing employee engagement.

The leadership development programme for 2018-2021 provides the training of managers for CEO, CEO-1, and CEO-2 in three areas: self-management, people management and task management. The purpose of the programme is to transfer the knowledge gained by managers to subsequent levels, as well as the subsidiary, associates and joint ventures of Kazatomprom.


Executive training in 2020

As part of Action Plan 2020 to improve the corporate governance system at Kazatomprom, the London Stock Exchange Group conducted training for the Company’s Board of Directors in Practice in International Listing. Additionally, training on information security management was conducted for the Company’s Board of Directors and members of the Management Board within the framework of the KAP.06.01 P project for implementation and development of cybersecurity, as well as the implementation of the 2020 Work Plan to improve the information security management at Kazatomprom.

The Company not only implements advanced modern practices in the Group’s management system, but also relies on its own long-term experience in staff development at a leading mining company.

For more information, see the 2019 Integrated Annual Report.

Management Succession Programme
at Kazatomprom

Purpose: Identify candidates from among the Group’s employees with high potential and a desire to improve professional qualities and career growth to ensure succession and continuity in the Company’s management system.

Start of the project: 2012.

Implementation: for every successor, a mentor is assigned responsible for the development of the employee. The mentor monitors his/her progress and supports in the implementation of ideas. The succession pool is based on the results of the employee’s performance assessment. Pool owners, the Chairman of the Management Board and heads of functional areas, make a major contribution to the development of the succession programme.

The Company took the following actions under the programme in 2020:

  • it updated the composition of the management and functional pool
  • the Company prepared development plans for pool members
  • Kazatomprom introduced mentoring programmes. As part of the successors’ development, pool owners, acting as mentors, interacted with the successors and shared their knowledge and expertise with them, discussed their initiatives and helped them implement their ideas

The Corporate Centre annually checks the number of appointments from the succession pool: the percentage of appointments of successors was 86% in 2020 (against 60% in 2019).

Staff Development and Training

GRI 404-2

To maximize the professional potential of each employee, the HR policy of Kazatomprom provides conditions for continuous training and development of personnel competencies. The Company has procedures for assessing each employee’s professional, personal, business and managerial qualities based on an analysis of the collective and individual activities, which determine his need for training and further career opportunities. As a result, it makes a development plan or a corrective plan and changes the size of remuneration or promotes/demotes.

Responsibility for the training and development of the employee and the compliance of his skills with the position held is vested in an employee and his manager.

KZT .billion
WAS INVESTED IN EMPLOYEE TRAINING IN 2020

The HR Department is responsible for supporting managers in training employees, organizing the training process and choosing educational programs, as well as educational service providers. Training is based on the principle of selflearning, according to which 70% of training takes place at work, 20% of skills are acquired by employees through the mentoring and coaching programmes, and 10% through training courses and other training programmes.

Average number of hours spent on training of one employee*

GRI 404-1
Employee category 2018 2019 2020
M W
Top management 59,6 51,3 21 22
Middle management 45,2 35,1 101 22
Administrative staff 31,2 30,8 43 30
Production staff 31,1 35,7 37 20
Average across all categories 32.5 35.4 40.4

* For detailed explanations of the table, see Annex «ESG Performance Indicators 2018-2020»

.man-hours
AVERAGE ANNUAL NUMBER OF TRAINING HOURS PER EMPLOYEE IN 2020

The Company has a Comprehensive Training Programme 2019-2023, which is aimed at systematizing the processes of training, retraining and advanced training of employees and includes such elements as training in universities and colleges, advanced training, as well as the preservation and transfer of knowledge.

Cooperation with educational institutions

Kazatomprom traditionally cooperates with Kazakh universities and colleges, as well as foreign educational institutions, where the Group’s employees are trained at the expense of the Company.

As of today, 310 people are being trained in industry-specific specialties, of which 168 are employees of Kazatomprom, its subsidiaries, associates and joint ventures and 142 individuals not employed by Kazatomprom.

KZT ,,
WAS SPENT ON TRAINING SPECIALISTS IN UNIVERSITIES AND COLLEGES IN 2020

Kazatomprom continues cooperation with the country’s International R&D Educational Centre for the Nuclear Industry, where employees of the Company, its subsidiaries, associates and joint ventures, as well as individuals are trained at the expense of subsoil users in priority specialties for the nuclear industry. In 2020, 15 employees of subsidiaries, associates and joint ventures enrolled on the master’s programme, majoring in chemical technology of inorganic substances.

As part of the replication of the Zhas-Orken programme initiated by Samruk-Kazyna in 2020, Kazatomprom launched its local Izbasar development program for young specialists. The goal of the program is to nurture talented leaders with the prospect of gradual career growth at the enterprises of Kazatomprom. The program provides a unique experience of internship at several Company’s enterprises and undergo special training. So, as of today, the first 5 participants of the program are undergoing a 15-month paid internship at the Company and at its enterprises.

Kazatomprom also continues to actively participate in the Zhas-Orken internship programme for young specialists. In 2020, 27 young specialists began their rotations in the Company and its subsidiaries, associates and joint ventures. In addition, it should be noted that in 2020, Kazatomprom and its enterprises employed 5 young specialists, graduates of the Zhas-Orken program. By the end of 2020, three Kazatomprom employees, graduates of the Zhas-Orken programme, received letters of thanks from Samruk-Kazyna..

Professional Training

Kazatomprom pays great attention to improving employees’ practical skills and abilities in connection with the constantly increasing requirements for their qualifications. The company implements advanced training programs in professional areas, including compulsory training under Kazakh law. Alternative educational programmes are equally relevant: leadership development, lean production, corporate culture, safety culture and others.

As part of the knowledge preservation and transfer in 2020, 24 employees of the Company, its subsidiaries, associates and joint ventures received certification as internal trainers of the Group at the School of Internal Trainers.

In 2020, 15 employees were trained under the School of Mine Directors’ programmes, another 19 managers of production facilities and engineering and technical personnel are also currently attending the training sessions.

At the same time, the Company’s employees traditionally held 30 master classes in 2020. All master classes were recorded and posted on the corporate portal as additional training materials featuring unique knowledge and best practices.

Social Policy

Social policy is one of the key factors Kazatomprom’s stable operation and sustainable development.

The country’s leading industrial company is constantly improving its approaches to social security and HR management policies.

A special role in the development of a social policy is assigned to efforts improving the working and social conditions of the Group’s enterprises employees and measures to increase staff motivation, and creating a favourable psychological climate and positive working environment.

Effective and mutually beneficial relations between the Company and staff contribute to personnel stability and attraction of highly skilled specialists and make Kazatomprom an employer of choice.

Collective Bargaining Agreement and trade unions
GRI 102-41, 401-2, 402-1

The Collective Bargaining Agreement, which has been developed for three years’ period and is subject to regular renewal, is key to protecting labour rights, economic and social guarantees of employees, as well as regulating labour relations and effective dialogue between the Company and employees.

%
SHARE OF EMPLOYEES COVERED BY THE COLLECTIVE BARGAINING AGREEMENTS IN THE REPORTING PERIOD, JUST LIKE THE LEVEL IN 2019

An integral condition of the collective bargaining agreement of Kazatomprom is the obligation to notify employees in advance about significant changes in working conditions no later than one month prior to the proposed changes, and in some cases fifteen calendar days.

The Sectoral Union of Nuclear Industry Workers, which currently includes 12,000 employees of the Group’s enterprises, provides active participation in protecting the interests of employees and reliable partnership of Kazatomprom in observance of labour legislation.

Social support

In accordance with the Collective Bargaining Agreements, Kazatomprom provides social support for personnel aimed at continuous improvement of working conditions and the quality of life of employees. The Company also undertakes to make annual payments to the trade union in order to support its activities and provide support to employees, members of the trade union.

A special direction in the social policy of Kazatomprom is to support certain categories of employees: single parents, representatives of large families, parents of disabled children, as well as non-working pensioners upon termination of their employment contract. At the same time, the Group’s enterprises operate a unified approach to employees with full and part-time employment.

employees
TOOK PARENTAL LEAVE IN 2020

For single parents and mothers of three or more children under the age of 12, the Company provides additional social security leave. Large families and families with disabled children under the age of 18 receive financial assistance.

The Company provides medical care and additional financial assistance on special occasions and holidays for nonworking pensioners, upon termination of employment due to retirement or disability.

For more information about the Company’s social support, see the 2019 Integrated Annual Report, the Sustainable Development section

The company makes every effort to staff retention even in case of liquidation/restructuring of subsidiaries, associates and joint ventures. In such cases, employees are assisted in finding employment at other entities of the Group or in organisations providing services to the Company, such employees are invited to attend educational professional retraining programs or receive compensation.

Sports and cultural events
GRI 403-6

Kazatomprom encourages not only the professional development of employees, but also the realisation of their personal potential. Corporate sports and cultural events also help to increase staff motivation and engagement.

In 2020, taking into account the pandemic, all events were conducted online, while realizing the importance of maintaining the required level of communication, the channels and formats of interaction were significantly expanded.

Activities aimed at maintaining traditions and corporate spirit within Kazatomprom:

  • open online meetings on the digital transformation programmes, New Realities, New Challenges, and Digitalization and People, corporate competitions for employees of the Company’s enterprises
  • conducting more than 20 corporate challenges: support for a healthy lifestyle, on the 175th anniversary of Abai, on personal development tools, etc.

Healthy lifestyle support:

  • conducting the first online sports and athletic contest for employees of the Company and its affiliates. Over 600 employees took part in the event. The competitions included the following e-sports as PUBG Mobile and Clash Royale, online chess, and individual exercises. This project was included in the top three cases for managing employee engagement remotely at the HR for Leadership international business conference

Developing a culture of feedback:

  • implementation of online projects of gamification of the feedback process for employees
  • online rewarding of the best employees of the Group’s enterprises in the nominations “Professional”, “Mentor” and “Perspective” as part of the annual corporate event, Zhyl Kyzmetkeri-2020, to mark the professional holiday, the Day of Nuclear Industry Workers

Employer Brand

To enhance the engagement and attract the best candidates in the labour market, the Company is actively working to shape its employer brand. In 2021, it plans a number of relevant events, including the formation of an EVP and a communication strategy for its promotion. Kazatomprom was recognised as the most attractive employer in the mining and metals industry and metallurgy of Kazakhstan by an independent research Randstad Employer Brand Research 2020.

Internal Сommunications

In the context of the pandemic, the internal communications system of Kazatomprom remained the main tool designed to ensure the timely informing of employees about current events in the Group and to help maintain a positive working environment.In 2020, the Company used an online format for holding large organizational events for employees (meetings, management meetings with the team, events aimed at strengthening the corporate culture). A series of interviews with the first heads of subsidiaries, associates and joint ventures was organized to inform about the measures taken at the enterprises to prevent the spread of the coronavirus infection. Online meetings of employees with top management were held, the RHYTHM of Kazatomprom program was launched, aimed at informing employees about the Company’s projects. A corporate employee support program Qasyndamyz-2020 has been implemented, which includes volunteer and charitable initiatives to support employees during a pandemic.

To maintain awareness of the current situation and events important for the industry, an electronic corporate magazine QazAtomNews was distributed among employees via e-mail, as well as regular newsletters and appeals on behalf of the management.

Feedback

The Company has built an effective system of internal communications, which provides several channels for feedback. The main communication channel is the Company’s website, kazatomprom.kz, which allows external stakeholders to leave a written request or complaint, as well as, if necessary, make a phone call via the hotline.

The monitoring and analysis of requests is carried out by the Group’s enterprises, which then submit quarterly reports to the central office of Kazatomprom. Based on the analysis of each request, the elimination of violations is monitored and the appropriate recommendations are given.

Social Stability

Kazatomprom’s actions in the area of corporate culture development, enhancing social and labour conditions, improvement of safety level, remuneration, motivation and engagement are implemented in accordance with the developed Plans and are welcomed by employees. The annual positive results are confirmed by regular studies to determine the social stability index. In 2020, due to the need to update the index, the Centre for Social Interaction and Communications was transformed into the SRS Index (SamrukResearchService), while retaining the main parameters of the study on social stability: engagement index, social well-being index, and social tranquillity index. According to the results of a study of 16 enterprises of Kazatomprom Group in 2020, the SRS index was 79%.

Development Plans

In 2021, one of Kazatomprom’s main tasks will be to preserve and develop human resources, as well as maintain the level of employee engagement, including by strengthening the employer’s brand, further automate HR management processes, implement management continuity programmes, ensure personnel and leadership development, systematise remuneration, and work to improve working conditions.

In accordance with the Company’s priorities, a large-scale implementation of measures for the development of effective communications is planned, which, among other things, will be aimed at training the heads of the Corporate Centre, subsidiaries, associates and joint ventures.

Projects for staff support, mentorship, improvements in the current system of interactions, strengthening risk management and developing a common corporate culture will remain the focus of the Company’s HR management efforts.

High production achievements and further development of the Company, adoption of new lines of business, development and implementation of promising projects will directly depend on the effectiveness of social investments aimed at ensuring a high level of employee engagement and their commitment to the Company’s values.

For more details about feedback, see the 2019 Integrated Annual Report, the Sustainable Development section

Occupational Health and Safety

Approach to HSE Management

One of Kazatomprom’s priorities is to ensure strict compliance with nuclear, radiological and conventional health and safety (H&S) standards and thus provide a high level of health and safety for its workforce. The Group is committed to complying with national and international requirements and seeks to continually improve the H&S management to meet high standards and achieve world-class performance in health and safety.

The key H&S regulation documents include Kazatomprom’s Policy for HSE, Radiological and Nuclear Safety, as well as the H&S Code. The documents are binding on all employees and contractors of the Group.

The health and safety of employees is the highest priority for Kazatomprom. The HSE of the Board of Directors and the Risk Management Committee of Kazatomprom Management Board regularly review and analyse all health and safety measures, as well as the results of H&S performance monitoring. The reports on H&S improvements and risk management are submitted to the Board of Directors for consideration and approval.

The Management Board Chairman pays particularly close attention to the occupational health and safety issues. He chairs quarterly meetings of the CEOs and executives of subsidiaries, associates and joint ventures that are held to prevent accidents and injuries and improve the health and safety culture in the Company.

The HSE Managing Director is responsible for the overall coordination of the activities aimed at improving the H&S system in the Company and its subsidiaries, associates and joint ventures.

Kazatomprom has strengthened the role of the H&S Department in the Company by making it subordinate directly to the Chairman of the Management Board and granting additional functions and powers. The function of the H&S Department includes, among other things, prevention of violations of H&S standards and rules, prompt response to incidents, as well as the monitoring, analysis and control of the H&S risks.

The functions and powers of the structural units of subsidiaries, associates and joint ventures responsible for H&S operational management have also expanded.

The Company regularly analyses the structure of qualifications and competences of the H&S units at its subsidiaries, associates and joint ventures to ensure continuous improvements in the health and safety performance. Following the analysis, the Company introduces the respective changes to remain in line with the requirements of national laws and the best world’s practices.

Compliance of the Management System with International Standards

The Company is currently certified to OHSAS-18001 and ISO 45001 (occupational health and safety management systems).

Kazatomprom Group is ISO 14001, ISO 45001, and OHSAS 18001 certified.

In early 2020, we engaged a third-party organization, TÜV International Certification, to conduct an audit of our integrated H&S management system for compliance with ISO 45001 and ISO 14001. The audit results confirmed the compliance of the Company’s occupational health and safety management system with the requirements of international standards.

H&S Risk Assessment
GRI 403-2

Kazatomprom is actively working to prevent industrial injuries and occupational diseases, as well as to identify, assess, and minimise industrial risks. The H&S risk management process is an integral part of the H&S management system, as well as of the corporate risk management system.

The main legal acts in the field of occupational health and safety are the Labor Code and the Law of the Republic of Kazakhstan «On Civil Protection». In addition, there are a number of subordinate laws and regulations governing compliance with occupational health and safety requirements. Among them - the Rules of industrial safety for various operations, including geological exploration, mining and processing of uranium, the operation of lifting mechanisms, equipment working under pressure.

According to these regulations, accidents and incidents are investigated. Every lost-time accident is reported in a timely manner to the authorized state body. In group incidents or accidents with a serious or fatal outcome, a special investigation with the participation of the state labor inspector is carried out.

In addition, the Company conducts additional analysis of accidents and near misses, using various methods, including the ‘‘FiveWhys’’ methodology to determine causes.

The circumstances of accidents are discussed at meetings with the first managers and heads of occupational safety services of subsidiaries, associates and joint ventures. Information on the accident investigation results shall be provided to the authorized state body.

Kazatomprom keeps a register of risks, with occupational injuries being marked as one of the major risks in the Company. To minimise the risks, the Company annually develops and implements comprehensive measures to achieve the established H&S standards, improve the health and safety, and prevent occupational injuries. These actions include:

  • developing measures to prevent the recurrence of accidents
  • conducting regular inspections of the Group’s assets for compliance with H&S regulatory acts
  • regular informing of subsidiaries, associates and joint ventures about the results of the investigation of industrial injuries and provide proposals for the prevention of work-related injuries
  • holding valid and up-to-date workplace certification, which means audits of working conditions and provision of suitable work-ware and protective equipment to employees of subsidiaries, associates and joint ventures
  • implementing a corporate plan for the development of the H&S culture
In 2020, Pandemic Risk was added to the corporate risk register. This risk is associated with the spread of SARS-CoV-2 and the start of COVID-19 pandemic.
  • keeping records of potentially unsafe conditions, acts, and near-miss incidents at Kazatomprom companies (Near Miss reporting)
  • introducing behavioural H&S audits

In 2020, the Company continued replicating new target business processes for managing occupational (integrated) safety at its subsidiaries, associates and joint ventures. To this end, the Company has Kazatomprom Transformation Programme in place, which introduced a process for hazard identification and risk assessment and management at the workplace and process safety management (PSM).

Human factor is the most frequent source of risk at any production company. Since 2018, the Company has been conducting behavioural safety audits to analyse the behaviour of employees at work (when they are performing production tasks) and thus to prevent the risks. In addition, the Company monitors the working conditions at workplaces and production sites, the technical condition of equipment, the availability of all necessary internal documents, including instructions, procedures and standards. In 2020, the Company conducted 12,026 behavioural audits with engagement of the Company’s managers and executives of subsidiaries, associates and joint ventures to minimise the risk of the human factor.


Kazatomprom joins Vision Zero international programme
GRI 403-2

Kazatomprom became a member of the Vision Zero international programme initiated by the International Social Security Association (ISSA) to improve the health and safety of its staff. The Company decided to participate in the initiative to improve the culture of disease prevention and reduce accidents and occupational diseases among employees. GRI 102-12

As part of the Vision Zero concept implementation, the Company adopted the Golden Rules to protect the health and safety of its employees. The Rules are binding on all employees and contractors of the Group.

Kazatomprom has introduced a risk-based approach to improve the H&S system across the Company. As part of this initiative, the Occupational H&S Department of the Group has developed a register of functional risks, which includes the major occupational H&S hazards and risks. The risk-based approach also integrates an approach to planning and conducting inspections/audits. They are carried out as preliminary inspections/audits of the Company’s assets to identify the most dangerous production areas. The audit results help focus on the major risks, improve quality, and reduce the waste of time resources.

HSE Performance

The health and safety of staff is a top priority for Kazatomprom. The Company regularly implements comprehensive measures to prevent accidents and incidents and meet the H&S objectives. New solutions are being introduced to improve the safety culture and comply with the international health and safety standards. Kazatomprom conducts campaigns to raise the health and safety awareness of its personnel and secure compliance with the H&S requirements.

%
OF THE COMPANY’S EMPLOYEES WERE COVERED BY THE H&S MANAGEMENT SYSTEM IN 2020

In 2020, the Company conducted the awareness raising campaign with engagement of executives of subsidiaries, associates and joint ventures to explain the Golden Safety Rules to its employees. The TV channels broadcast videos on H&S culture, personal responsibility and leadership to raise the H&S awareness of the Group’s employees in the rotation camps of subsidiaries, associates and joint ventures.

The health and safety awareness activities require both a systematic approach and investment.


Golden Safety Rules
  • Take leadership – demonstrate commitment
  • Lientify hazards – control risks
  • Define targets – develop programmes
  • Ensure a safe and healthy system– be well-organised
  • Ensure safety and health in machines, equipment and workplaces
  • Improve qualifications – develop competence
  • Invest in people – motivate by participation
KZT ,billion
WAS INVESTED IN HEALTH AND SAFETY IN 2020

We take a responsible approach to the health and safety matters, investing heavily in health and safety measures.

Health and safety issues are among the factors used to assess the performance of the Group’s employees. This performance factor applies to all employees of the Company, starting with the Chairman of Kazatomprom Management Board. Safety culture improvement is the main performance factor in H&S, including such elements as the «number of identified unsafe conditions, unsafe acts, and near-miss incidents» and «implementation of corrective measures». This high-level performance factor is further cascaded into key performance indicators (KPIs) for the management and employees of the Company and subsidiaries, associates and joint ventures.


Breakdown of health and safety expenses, 2020

We make effective plans and implement measures to improve the health and safety management system. To this end, Kazatomprom holds annual corporate meetings to discuss health and safety performance and plans for the next year. On 19 February 2020, the meeting adopted a protocol, including specific instructions aimed at improving the health and safety in the Company.

Throughout the year, all subsidiaries, associates and joint ventures of the Company carried out scheduled inspections of compliance with health and safety regulations. With the COVID-19 pandemic in 2020, subsidiaries, associates and joint ventures conducted the inspections in the form of a desk audit in compliance with anti-epidemic measures.

The Company also introduced a procedure for peer inspections of health and safety to help increase the efficiency of inspections and gain a wider coverage of companies across the Group. The inspection results are used to develop recommendations and eliminate detected nonconformities.

In addition, the Company introduced the Stop Card system at all subsidiaries, associates and joint ventures in 2020. According to the system, any works are stopped if things are unsafe for workers.

STOP card is an important safety tool designed to allow any employee who finds non-compliance or an unsafe condition, which may result in injury to health, damage to property and/ or other incidents, to stop work, provide his/her explanations of the situation and submit them to his/her safety supervisor for registration and response. Refusal to perform unsafe work does not lead to disciplinary liability.

Preventing Occupational Injuries
GRI 403-2, 403-4, 403-9

The Group constantly implements measures aimed at preventing occupational injuries. In particular, these include:

  • conducting scheduled and unscheduled safety briefings
  • organising meetings of occupational H&S services to analyse the root causes of accidents and develop prevention measures
  • informing employees about preventive H&S measures

Monthly meetings are held with the heads of occupational safety services of subsidiaries, associates and joint ventures to discuss actual occupational safety issues, including the circumstances and causes of accidents, as well as serious incidents without consequences. In addition, appropriate measures are developed to prevent their recurrence, and if necessary, risk registers are updated. All recommendations for the implementation of events are secured by protocol orders. Subsidiaries, associates and joint ventures provide information to the CC about their performance as part of the approved reporting.

According to the Labor Code of the Republic of Kazakhstan, the Company regularly conducts introductory briefings on safety and labor protection with employees, regardless of their education and work experience in this profession or position.

Introductory briefing is conducted by the health and safety service or a person entrusted with such duties by the order of the organization, according to the program developed by the health and safety service. The program is approved taking into account the requirements of safety regulations, standards, rules and instructions on safety and labor protection, as well as the requirements for the safe operation in the workplace.

In addition, instructional videos are available to Group employees. The H&S measures implemented across the Group made it possible to prevent industrial accidents (uncontrolled explosions, emissions of hazardous substances or destruction of buildings).

The major causes of personal injuries at Kazatomprom’s subsidiaries, associates and joint ventures, as well as at their contractors, include handling sulphuric acid, falling from height and falling on slippery surfaces. In 2020, the Company recorded eight accidents that resulted in eight injuries, of which one was fatal.

Occupational accidents in 2020

Description Number of accidents
Chemical burns 3
Fall from height 2
Fall on slippery surfaces 1
Moving objects 1
Traffic accidents 1
%
LTIFR INCREASE IN 2020, COMPARED TO 2019. THIS SLIGHT INCREASE IN LTIFR RESULTED FROM THE FACT THAT EMPLOYEES WORKED FEWER HOURS THAN IN 2019 BECAUSE OF THE COVID-19 PANDEMIC

All accidents were investigated in accordance with the established procedures to determine their root causes and develop prevention measures..

The Company used the investigation results to develop a set of measures that were then communicated to all companies of the Group and implemented in a timely manner.

Occupational Diseases Prevention and Health Improvement
GRI 403-3, 403-5, 403-6

In its operations, the Group follows primarily the principle of protecting worker’s life and health. To this end, the Company uses such tools as medical insurance, health improvement, and spa treatment programmes for employees. These benefits are included in the social benefit package. In addition, as part of a collective bargaining agreement between the Group and the trade union, the employees can enjoy additional programmes for health rehabilitation and treatment. Also, employees of subsidiaries, associates and joint ventures are provided with three meals a day.

Health 180⁰ / 360⁰ Program

In line with VisionZero’s goal of continuous improvement of occupational health and safety, the Health 180⁰ / 360⁰ Program Concept was developed in 2020.

The program is designed for 5 years. Its implementation is planned in two stages:

  • first stage - 2021-2023
  • second stage - 2024-2025

The Concept presents eight thematic areas of program implementation:

  1. Health in the workplace
  2. Sanitary-educational work on formation of healthy lifestyle skills, increase of sanitary-hygienic culture
  3. Medical support
  4. Hygiene of nutrition
  5. Communal hygiene
  6. Occupational hygiene
  7. External epidemiological risk management of the COVID-19 pandemic
  8. Enterprise impact on public health in regions of operation

The program’s thematic areas are structured based on factors determining individual health, then the group health of the workforce, to external threats and factors covering the territorial population’ health in the regions of operation.

In 2020, the Company allocated KZT 3.12 billion to finance the health improvement and treatment programmes. The Group’s production facilities have an effective health and safety system in place. The occupational H&S services are specifically designed to identify and eliminate hazards, minimise risks, and inform personnel about the social package and additional services and benefits. In addition, all subsidiaries, associates and joint ventures have medical posts in place to administer urgent medical aid to employees. Medical stations are equipped with defibrillators, ECG, oxygen cylinders with humidifying apparatus (oxygen concentrator), pulse oximeters and other necessary devices, equipment and materials for providing medical care. There are also staffed ambulances.

NAC Kazatomprom JSC medical provision in 2020, ‘000 KZT

Cost item Amount
Medicaments 44,782
Medical care 653,669
Medical equipment 195,520
Total 893,971

In subsidiaries and dependent companies, the total number of medical personnel is 200 people, including: doctors – 39, paramedics – 133, nurses – 28.

All subsidiaries, associates and joint ventures have contracts for employee accident insurance while performing their work (job) duties. In addition, voluntary health insurance contracts are signed.

KZT billion
WAS INVESTED IN H&S INITIATIVES AIMED AT PREVENTING OCCUPATIONAL DISEASES IN 2020

One of the most important health and safety objectives is to ensure that all employees attend annual health check-ups. Following the results of medical examinations, employees, if necessary, can go through an in-depth medical examination.

The Group’s subsidiaries, associates and joint ventures organise pre-shift checks of employees, which are a mandatory element of the permit-to-work system. Some enterprises have introduced e-medical examination systems that include modules for automatic measurement of blood pressure and detection of alcohol or other drug intoxication, etc. Other subsidiaries, associates and joint ventures of the Group plan to install similar digital systems for pre-shift checks.

In accordance with the requirements of the Labour Code of the Republic of Kazakhstan, employees of the Group’s contractors who are engaged in hazardous work or who work with machines and mechanisms are also obliged to have preshift and post-shift medical check-ups.

Promoting the H&S culture
GRI 403-1, 403-3

It is impossible to achieve a high level of health and safety without the active engagement of staff in the H&S management. According to the requirements of the Labor Code of the Republic of Kazakhstan, special occupational safety councils were created for this purpose that include representatives of the employer, workers, and technical inspectors. The councils are designed to ensure that H&S inspectors conduct audits of working conditions and workplaces to check their compliance with the H&S requirements. Decisions of the inspectors are binding on the employer and employees.

As part of the implementation of Kazatomprom’s Development Strategy 2018-2028, the Company conducted works aimed at improving the H&S system. In particular, the Company took the following actions in 2020:

  • the Company engaged Germany-based TÜV International Certification, an internationally accredited certification body, to get certified according to ISO 45001 (occupational health and safety) and ISO 14001 (environmental management)
  • works were carried out to improve environmental and social stability in the regions of operations within the framework of the ESAP Roadmap
  • the Company analysed the nature and frequency of detected unsafe conditions, unsafe acts, and near misses and the level of completeness and sufficiency of the corrective measures
  • the staff questionnaires and the survey methods were reviewed and improved to develop better mechanisms that help determine the level of the health and safety awareness of employees and managers
  • the STOP card system was introduced that allows workers to stop work if any unsafe condition exists
  • the MAL ZHAN AMAN project was implemented to prevent accidents with livestock. The project helped introduce reflective collars for domestic animals to ensure better visibility of animals
  • in addition, the Company implemented a number of measures to reduce the risks of COVID-19 infection among employees
For more about the work of the councils, see the 2019 Integrated Annual Report, the Sustainable Development section

The Company launched HSE Club for the heads of H&S departments of subsidiaries, affiliates, and the head office to exchange practices and knowledge on health and safety at the corporate level. HSE Club seeks to facilitate sharing of practices and development of measures to improve the occupational safety management system in the Group.

All these measures helped improve health and safety, promote the safety culture of the Group’s employees, and avoid incidents.

In addition, the Company has developed and is implementing an educational Leadership e-course in the sphere of Health and Safety at work of NAC Kazatomprom JSC, to develop the safety culture and leadership of managers. In addition, in 2020, as part of improving the system for ensuring the understanding of safety, the Company organised special training for managers and employees of subsidiaries, associates and joint ventures to help promote a positive health and safety culture, identify potentially dangerous situations (near misses), unsafe acts and conditions, as well as conduct behavioural safety audits. Moreover, special compulsory health and safety courses have been organized. To measure the effectiveness of the training, all participants had to complete a knowledge test at the end of the course.

The Company conducts HSE training on a regular basis, which may be mandatory or optional.

,employees
TOOK PART IN TRAINING SESSIONS ON H&S CULTURE IMPROVEMENT AND LEADERSHIP IN 2020

Mandatory – related to compliance with the legislation of the Republic of Kazakhstan in the field of occupational safety, labor protection, radiation, nuclear safety, etc.

Optional training is provided at the Company in the areas of safety culture development, leadership and responsibility in HSE matters. In all cases where it is required by the Law of the Republic of Kazakhstan «On Permits and Notices», organizations that provide education and training have the necessary licenses, certificates and other permits.

The Company organised the HSE-Club for the heads of occupational H&S services of subsidiaries, associates and joint ventures and Kazatomprom. The goal is to exchange practices, expertise and knowledge on health and safety within the organisation. The HSE-Club helps share and use information and knowledge and develops measures to improve the H&S management system at the group companies.

The effectiveness of the training is monitored by a follow-up knowledge check and/or testing.

Managing the Health and Safety of Contractors
GRI 403-7

All contractors without exception are obliged to comply with the Group’s high health and safety requirements, as well as H&S standards and regulations. Thus, the Company’s contractors and suppliers of goods, works and services have to comply with the corporate standard, Occupational Health and Safety Standards. Health and Safety Requirements for Contractors.

The Company checks if the contractor complies with the H&S requirements as early as at the stage of signing the contract, which is to be approved by the Occupational Health and Safety Department to ensure its compliance with the H&S requirements. When the work is being performed or services rendered, the employees of the Occupational H&S Department and subsidiaries, associates and joint ventures also conduct regular audits and exercise control over compliance with the health and safety standards and rules. The Company assesses the risks and sets goals, as well as plans H&S training sessions with account of the information about the incidents relating to the work of contractors.

To improve the H&S knowledge, the Company organises H&S training courses for employees of contractors, while the authorised representatives of contractors participate in the H&S meetings on a regular basis.

Nuclear Safety

To ensure a high level of nuclear safety, the Group’s enterprises handling nuclear materials monitor the compliance with the respective technical regulations and nuclear safety requirements. At present, there is one company in the Group that has nuclear materials, Ulba Metallurgical Plant.

Kazatomprom conducts an inventory of nuclear materials in a timely manner and monitors the nuclear safety performance to ensure the nuclear safety and security of the Group’s companies.

The Chief Physicist’s Service (CFS) provides supervision and control over the work connected with handling nuclear fissile materials (NFM). In 2020, the Service:

  • conducted regular H&S knowledge testing for specialists of the finished product warehouse, uranium production (UP), the IAEA LEU warehouse, and auxiliary units of Ulba Metallurgical Plant
  • conducted an inspection of nuclear safety at Ulba Metallurgical Plant
  • organised emergency response drills for the staff and services that addressed the situation with a spontaneous chain reaction (SCR) signalled by the emergency alarm system at all nuclear hazardous units of Ulba Metallurgical Plant

The absence of breakdowns and violations in the reporting year is a signal of the effectiveness of these measures.

Radiation Safety
KAP3

In 2020, Kazatomprom provided the regular monitoring of the radiation situation at workplaces, in premises, production sites, and the supervised areas. All radiation indicators are within normal limits and have not changed since 2019.

In 2020, the Company did not register any radiation accidents or incidents at its enterprises. The annual dose of ionising radiation exposure did not exceed reference levels.

In 2020, the average radiation exposure for staff was 1.45 mSv/year, including natural radiation sources. The radiation from the natural background sources ranged from 0.38 to 1.43 mSv/year.

In turn, the maximum annual effective dose for Group A personnel at the Group’s assets was 4.94 mSv/year, at the level of 2019.

To improve radiation safety and protect personnel, Kazatomprom takes the following measures:

  • conducting repair work on the premises and modernising equipment
  • replacing corroded or obsolete equipment
  • repairing and upgrading ventilation systems
  • moving low-level radioactive waste to disposal sites
  • purchasing new sophisticated radiation monitoring devices
  • providing radiation safety training for employeesи

In 2020, the Company moved 2,850 tonnes of low-level radioactive waste to low-level radioactive waste disposal sites, purchased 22 new radiation monitoring units, and engaged licensed organisations to train 3,973 employees of the Group on the radiation protection and safety.


Engagement with the IAEA

In 2020, the IAEA released Safety Reports Series. No. 100. Occupational Radiation Protection in the Uranium Mining and Processing Industry. The Report was developed as part of the IAEA’s Occupational Radiation Protection Program to ensure that its safety standards are applied in a phased approach to protecting workers from the impacts associated with uranium mining and processing. The expert group, which includes representatives of the IAEA and major uranium producers, including NAC Kazatomprom JSC, has been working on the document for the last 5 years.

In November 2020, employees of the Occupational H&S Department took part in the IAEA International Conference on Radiation Safety 2020 titled “Improving Radiation Protection in Practice” The goal of the event was to exchange information on the practices of the world’s leading specialists in applying the radiological protection systems.

At the conference, the Company’s H&S Department presented an overview of the radiation protection and monitoring at uranium mining plants using the ISR mining method.

Emergency Preparedness and Response
KAP2

Emergency Response and Fire Safety Measures in 2020

The Company takes regular action to maintain a high level of emergency preparedness. To this end, Kazatomprom conducted an external fire safety audit and an individual fire risk assessment in 2020. The audit findings showed no dangerous fire safety conditions threatening the lives of people.

The Company carries outs regular inspections of the fire safety systems in its buildings. In the reporting period, Kazatomprom inspected the following systems: fire water supply four times (pump operation twice and fire hoses twice); sprinkler-based fire suppression once; fire alarms twice, emergency fire-fighting equipment eight times; educational and training drills with safe evacuation of people from the building once.

Following the results of an international fire safety audit the Company’s office building was certified in compliance with ISO 14001:2015, and ISO 45001:2018 standards.

In the reporting year, the Company updated the Fire safety Guide for the Kazatomprom Administrative Building located at 17/12, E-10 Street, Nur-Sultan.

COVID-19

With the outbreak of COVID-19 in Kazakhstan, the Company took all preventive measures to reduce the risk of exposure to coronavirus among its employees:

  • we provided personal protective equipment and disinfectants to our employees
  • the Company held an awareness raising campaign to inform employees about the quarantine and rules of conduct
  • employees not involved in technological processes were transitioned to teleworking

Since 17 August 2020, 20% of employees have had to take PCR testing before coming to the office and 80% continued working remotely.

All activities, plans, and working hours of the Group were promptly corrected and updated in accordance with the Resolutions of the Chief State Sanitary Doctor of the Republic of Kazakhstan.

As of the end of 2020, 1,077 coronavirus cases were registered. Of them, 1,042 people recovered and 30 people had an active coronavirus infection. In the reporting period, five employees of the Group died from COVID-19: two in each of Caustic JSC and Ulba Metallurgical Plant JSC and one in Kazatomprom-SaUran LLP.

The Company conducted daily health monitoring using the respective information systems at all subsidiaries, associates and joint ventures to protect the health of its staff and reduce the risk of exposure to infection. The Company introduced a special COVID-19 analytical platform to predict the incidence rate in areas where Kazatomprom subsidiaries, associates and joint ventures operate and to assess the effectiveness of anti-epidemic measures. The system provides visualisation of outbreaks and analytical predictions and thus helps take preventive measures and prepare for a possible increase in the incidence rate.

The Company implemented the following preventive measures to reduce the risk of exposure to infection:

  • introducing contactless video thermometry
  • installing disinfection tunnels, introducing PCR testing for staff before coming to work
  • introducing supply of disinfectants, PPE, and antiseptics for personnel
  • ensuring social distancing at work
  • offering vaccinations against influenza. In H2 2020, 25% of the Group’s employees were vaccinated
  • setting up quarantine zones in subsidiaries, associates and joint ventures, developing action algorithms in case of the detection of COVID-19 among employees, and conducting training drills
  • taking preventive measures according to the approved schedules of shift rotation, with mandatory PCR testing

The implemented preventive measures against COVID-19 allowed the Company to reduce the coronavirus incidence rate among employees, ensure its uninterrupted operations, and maintain the production capacity.

Environmental Protection

Kazatomprom is committed to providing clean energy to people and protecting the planet for future generations. Environmental protection is a top priority for the Group, and the Company does everything it can to achieve a zero environmental footprint. To this end, we implement a number of measures and work consistently to minimise the negative impact on the environment, continuously increase the level of environmental safety and sustainable development of our companies.

Kazatomprom introduces new technologies and the world’s best practices to improve environmental protection (EP) processes and ensure rational use of natural resources. Being the world’s leading company in the extraction of natural uranium, the Company uses the most environmentally friendly method for the extraction of uranium, in-situ recovery of uranium (ISR), also known as in-situ leaching. This technology reduces the risk of harm to the health and safety of employees and the population and allows for natural restoration of groundwater following the completion of mining. It is also known as the technology that does not lead to radioactive contamination of vast areas.

The long-term goals for environmental protection, radiation and nuclear safety are in line with the UN Sustainable Development Goals 3, 7, 8, 9, 12, and 13. The Group identified them as the major EP objectives within the framework of the 2030 Agenda for Sustainable Development.

Environmental Management System

Environmental management is an integral part of Kazatomprom’s occupational health and safety system. The Environmental Management System (EMS) is a part of the Integrated HSE Management System of the Group. An integrated approach allows the Company to coordinate environmental works with the activities related to industrial, nuclear and radiation safety, as well as other areas.

The Board of Directors of the Company includes the Production Safety (HSE) Committee. The Committee’s meetings review the reports on the implementation of the goals and objectives of the environmental policy and analyse the state and ways of improving the environmental management system. The Board of Directors takes the necessary measures to improve and increase the efficiency of the environmental policy. The Chairman of Kazatomprom Management Board approves the environmental protection policy and monitors the implementation of its requirements.


Green Mindset Project

Initiated in 2020 by the Operations Department, the initiative seeks to support the global green trend. The project covers the following areas:

  • green energy
  • energy efficiency of production processes
  • reduction of emissions to the environment (emissions, discharges, waste)
  • recycling of materials and equipment (Reuse)
  • measures aimed at «greening the consciousness» of Kazatomprom employees

The Occupational H&S Department of Kazatomprom’s Corporate Centre is responsible for the overall management of environmental protection activities. The department organises the environmental protection activities of the Group, analyses their effectiveness, and prepares reports for the Company’s senior management. Subsidiaries, associates and joint ventures have special units in place that are responsible for the implementation of environmental policy, the compliance of all production processes with environmental requirements of the laws and internal corporate procedures.

Environmental Policy

The policy on occupational health and safety, environmental protection, nuclear and radiation safety outlines the main approaches and principles of EMS. The document contains the environmental goals and objectives of the Company and also emphasises the importance of the active engagement of employees, both senior and junior, for the successful implementation of the Policy.

Key principles of Kazatomprom’s Environmental Protection Policy

Priority of HSE over production performance

Leadership and commitment of leaders at all levels to the implementation of environmental principles

Compliance with the applicable legislation of the Republic of Kazakhstan and the national legislation of the countries where Kazatomprom operates

Mitigating the environmental footprint and minimising the impact on the population living in the places adjacent to Kazatomprom’s production facilities

For over three years, the environmental policy of Kazatomprom has allowed the Company to achieve significant results, which is confirmed by the positive public and state environmental appraisals. The policy is reviewed every five years. In 2020, the Company did not make any random amendments or supplements to the environmental policy.

Kazatomprom operates in accordance with the national environmental laws of the Republic of Kazakhstan.

In addition, the Company has been implementing the Roadmap for the implementation of the environmental and social action plan (ESAP Roadmap) since 2018. The ESAP Roadmap helps bring the Group’s health, environmental and social management systems in line with the international environmental requirements and best practices (GIIP: Good International Industry Practice, International Finance Corporation’s Environmental and Social Sustainability Standard).


ESAP Roadmap includes:
  • Corporate area (environmental protection training for staff)
  • Biodiversity (vegetation, wildlife, nomadic cattle raising)
  • Monitoring of water, soil and air
  • Waste management (removal and disposal)
  • Planning the completion of the life cycle of enterprises (closure/ liquidation)
  • Social area and stakeholder engagement
  • Environmental protection management and interaction with local communities
  • Occupational health and safety

For the full list of other internal environmental protection regulations of Kazatomprom, see the 2019 Integrated Annual Report, the Sustainable Development section

Kazatomprom is certified by TÜV International Certification

In March 2020, Kazatomprom successfully passed an occupational health and safety management audit and received the certificate of TÜV International Certification. The audit was carried out by experts of Intercertifica-TÜV LLP (Germany) together with TÜV Thüringen in Kazakhstan.

It certifies that the Company has the environmental management system and occupational health and safety systems in place that comply with the requirements of DIN EN ISO 14001:2015 (Environmental management systems certification) and DIN EN ISO 45001:2018 (Occupational health and safety management system certification) and use them to organise export supplies of natural uranium.

The certification will allow Kazatomprom to improve the processes that help prevent and reduce risks to the environment, personnel or other stakeholders that may be exposed to hazards associated with the Group’s activities, and more effectively perform its environment and H&S obligations.

All production facilities of the Group have the environmental management systems and energy management systems in place that are ISO 14001 and ISO 50001 certified. As part of its commitment to improving the environmental management approaches, in 2020, Kazatomprom completed the implementation of the integrated H&S management system, which includes an integrated approach to environmental management in the Company.

Kazatomprom’s integrated HSE management system complies with the requirements of DIN EN ISO 14001:2015 and DIN EN ISO 45001:2018.

Environmental risk assessment and management is based on the unified risk management system of the Company and it takes place once a year. According to Kazatomprom’s Risk Management Policy the Risk Management Committee of the Management Board reviews and prepares proposals to improve the action plan developed for adverse environmental impacts. In 2020, no significant environmental risks were identified.

Precautionary Principle
GRI 102-11

When planning the construction of new facilities, the Company takes into account possible environmental risks as early as at the stage of conducting an environmental impact assessment (EIA). To discuss possible environmental impacts, the Company holds a public hearing with the engagement of stakeholders in accordance with the Environmental Code of the Republic of Kazakhstan.

The Company has the environmental management policy in place to work with suppliers and contractors. The corporate standard, The System of HSE Standards. The HSE Requirements to Contractors, establishes the environmental requirements for the procurement of products and services. These requirements are binding on all contractors.

KZT ,.million
KAZATOMPROM’S ENVIRONMENTAL PROTECTION EXPENDITURES AND INVESTMENTS IN 2020
KZT .million
WAS PAID BY KAZATOMPROM IN ENVIRONMENTAL TAXES FOR EMISSIONS IN 2020

The Company works closely with contractors to inform them about the Group’s environmental requirements and ensure compliance with the H&S requirements. The process starts at the stage of selecting a supplier and concluding a contract. The Occupational H&S Department is also obliged to participate in the contract negotiation process to ensure that the necessary safety conditions and commitments are included in the respective contracts with contractors and suppliers.

The Occupational H&S Department, together with the occupational H&S services of subsidiaries, associates and joint ventures, control the activities of contractors directly on the ground by conducting the respective inspections. The inspection results are then included in the reports, which provide the assessment of the contractors work and their compliance with all corporate environmental protection standards.

Assessing the Effectiveness of the Environmental Management System

Kazatomprom provides regular assessment of the environmental management system’s effectiveness. The Occupational H&S Department provides weekly environmental management reports to the Chairman and members of the Management Board of the Company during the board or production meetings. In addition, the department prepares a quarterly report on the implementation of the ESAP Roadmap and submits it to the members of the HSE of the Kazatomprom Board of Directors.

Key results
GRI 307-1

Trying to mitigate its environmental footprint, Kazatomprom annually makes investments to improve technological processes, increase the efficiency of treatment facilities and conduct environmental R&D projects and initiatives.

In 2020, the total environmental protection expenditures and investments rose by 15% year on year. Half of the funds, KZT 1,137.3 million, was invested to improve technological processes, in particular reduce fugitive emissions. Also, the Company spent KZT 64.3 million to improve the efficiency of the existing dust and gas traps and water treatment equipment. In addition, we allocate funds annually for the environmental R&D works. In 2020, we invested KZT 273.7 million. In addition, the Company channelled KZT 695 million for various activities, including disposal/burial of production and consumption waste, radioecological drilling services, construction of observation wells, landscaping, and the promotion of environmental protection issues.

Kazatomprom environmental protection expenditures, KZT million

Environmental Cooperation
Memorandum

In February 2020, the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan and Kazatomprom signed an Environmental Cooperation Memorandum at Kazatomprom’s 22nd corporate meeting on HSE issues.

The Memorandum pursues the goal to improve the environmental situation in the regions of the Company’s operations and mitigate the environmental footprint and the impact on the population caused by the production operations of Kazatomprom subsidiaries, associates and joint ventures. As part of the Memorandum, the Company will implement a project for the disposal of solid radioactive waste from Ulba Metallurgical Plant in the territory of the former Semipalatinsk Test Site. Following the launch of this project, the plant will stop placing solid radioactive waste in special structures of the tailing facilities of Ulba Metallurgical Plant. This will minimise the risk of the negative impact of radioactive waste on the environment and the population of the region.

The Minister of Ecology, Geology and Natural Resources of the Republic of Kazakhstan Magzum Mirzagaliyev stated: «It is really good that the company is committed to introducing modern technologies in production to minimise harm to the environment».

In 2020, Kazatomprom signed the Memorandum of Environmental Cooperation with the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan.

The Group’s subsidiaries, associates and joint ventures carry out industrial environmental control (IEC) on a regular basis to comply with the legal requirements. It is carried out on a quarterly basis as specified by the approved Schedule Plan and requires the engagement of accredited laboratories.

In 2020, the Company did an outstanding job to analyse the industrial environmental control at Kazatomprom uranium mines. The Company analysed the IEC at Karamurun, Khorasan, Kulandy and Western Mynkuduk uranium mines for the last three to four years. In 2021, the Company will use the analysis findings to develop recommendations for updating the industrial environmental control programmes.

In 2020, Kazatomprom paid in total KZT 11.5 million in fines and economic sanctions for non-compliance with the requirements of environmental laws, 35% down year on year (KZT 17.6 million in 2019). There were no non-financial sanctions. There were no legal proceedings.

The Company developed the basic diagrams of the automated monitoring system (AMS), technical design specification for the AMS and design estimates for Karatau, Khorasan-1 and Western Mynkuduk uranium deposits.

In 2020, the Company developed a digital map of the territory showing the location of the deposits in Shu- Sarysu and Syrdariya regions of Kazakhstan as part of a project for creation of the automated environmental monitoring system database (AEMS). The total area of the digitised territory was about 165,000 km2 (480 km x 340 km). The Company also made a plan for the development of cartographic materials.

In 2019-2020, as part of the implementation of the ESAP Roadmap, the Company conducted a study of the environmental and social impacts of the ISR mining facilities. In June 2020, the employees of the Institute of High Technologies visited the settlements adjacent to RU-6 LLP. They visited the Akimat of the Shieli Region and the settlements of Gigantsky, Kargalinsky, Akmainsky, Kerdelinsky, Enbekshinsky, and Zhuantobinsky village districts.

During the trip, they performed the following tasks:

  • conducting consultations with land users
  • identifying types of water and land use in the surrounding areas, including migration routes of nomadic livestock
  • identifying the sources of water and land use (potential sources of impact), including the population employed in nomadic livestock raising
  • identifying monuments of cultural heritage
  • identifying stakeholders among local communities and non-governmental organisations that are concerned with the environmental and social impacts of the Company

Seeking to build a dialogue with stakeholders, the Company made a video “Environmental Protection at Kazatomprom” in 2020. The video demonstrated the Group’s commitment to environmental protection and provided a full overview of the major environmental safety management tools. The first presentation of the video took place at Kazatomprom’s final 23rd annual corporate meeting on HSE. The video is now available in public domain to all stakeholder groups.

Environmental Training

In 2020, 156 employees of the Group, in particular, the heads of subsidiaries, associates and joint ventures and specialists responsible for subsoil protection, environmental and social issues attended the environmental safety training sessions. The goal of the training sessions was to provide more effective environmental management and obtain the necessary competencies and knowledge about the Good International Industry Practice (GIIP). The sessions included the following topics:

  • Managing production and consumption waste at Kazatomprom companies
  • Implementing industrial environmental control (monitoring) at Kazatomprom companies
  • Assessing biodiversity in uranium deposits
  • Developing processes for the exchange of environmental information based on ISO 14063:2020. Internal audit (new version of the standard)
  • Certification course “Organising stakeholder engagement based on the AA1000SES standard”
  • Roadmap for the Environmental and Social Action Plan (ESAP) at Kazatomprom, key areas and its implementation

Online workshop for the senior executives of subsidiaries and affiliates as part of ESAP

On November 10-11, Kazakhstan Nuclear University, together with the Occupational H&S Department of Kazatomprom, held an online workshop, ESAP Roadmap at Kazatomprom, key areas and its implementation, for the senior managers of subsidiaries, associates and joint ventures.

The goal of the training was to enhance the role and engagement of senior managers in the implementation of the ESAP. During the training, the experts provided an overview of the key concepts to form a general understanding of the context for the implementation of the respective objectives: ESAP goals and objectives, the requirements of the Good International Industry Practice (GIIP), the International Finance Corporation (IFC) standards, and the concept of environmental and social risk management.

The workshop was attended by 37 executives and senior managers of the subsidiaries, associates and joint ventures. The training participants showed great interest in the workshop, and exchanged their views and information, which helped increase the efficiency and productivity of the online training.

As part of the ESAP Roadmap implementation, 294 representatives of the Corporate Centre and the companies of the Group were trained between May 2019 and October 2020.

Environmental Contribution Awards

The companies of the Group implement modern technologies to mitigate the environmental footprint and promptly respond to emergency situations. The Group can boast some major achievements in this area. In particular, in 2020, the Company developed a project for an automated emission monitoring system at APPAK LLP and Khorasan-U LLP stationary sources, as well as introduced an automated environmental control system at Baiken-U LLP. These measures helped us make an online transfer of the key environmental data to the supervisory government authority.

Based on their performance in 2020, JV Inkai LLP and Baiken-U LLP received letters of appreciation from Algys Khat – Paryz, an annual republican competition on business social responsibility.

Raising Environmental Awareness

Kazatomprom develops the environmental culture and promotes environmental values among employees, partners, customers and other stakeholders. All employees of the Company, from senior managers to ordinary workers, help maintain and develop the environmental culture and awareness. The Company encourages environmental actions and employee initiatives, as this helps achieve the Group’s key environmental goal – to protect the planet for future generations.

In 2020, employees of Kazatomprom and its subsidiaries, associates and joint ventures implemented a number of initiatives to raise the environmental awareness of the population.

Every year almost all subsidiaries, associates and joint ventures of the Group take an active part in environmental campaigns.


Earth Day at Katco

The United Nations General Assembly designated 22 April as the International Mother Earth Day. Earth Day has grown into a global day of environmental actions which are carried out all over the world and intend to ensure worldwide support of the fight against climate change, the spread of environmental education, and the development of a sustainable closed-loop economy. Kazatomprom has not stood aside. On this day in 2020, Katco employees planted 50 seedlings in the territory of the rotation camp at Tortkuduk site. Katco follows this initiative every year. Since 2015, more than 500 seedlings have been planted at Tortkuduk and Moinkum sites.


Voluntary clean-ups on the World Cleanup Day

On the occasion of the World Cleanup Day, which is celebrated on 21 September, Kazatomprom-SaUran organised a voluntary clean-up day to draw attention to the problem of environmental pollution, the importance of a clean environment, and promotion of the environmental culture. The workers of Kanzhugan (52 people), Central Moinkum (22 people), Mynkuduk (43 people), Uvanas (9 people) mines and the Company’s executives (36 people) took part in the cleanup action. The Company used five units of equipment for the cleaning activities and complied with all of the necessary safety measures.

In total, the participants collected about 8,700 kg of solid household waste, which was then sorted out for further disposal. Waste not subject to disposal was moved to the industrial non-radioactive waste landfill.

In addition, a major cleanup day was held on September 19 at Inkai JV LLP, with the engagement of all employees. Trade and Transportation Company LLP, APPAK LLP, ZARECHNOYE JSC, and JV South Mining Chemical Company held similar events.


World Environment Day

To mark the World Environment Day, which takes place on 5 June every year, Kazatomprom and its subsidiaries, associates and joint ventures prepared a photo report on nature and the environment. The photos show magnificent landscapes and the variety of flora and fauna in the southern region of Kazakhstan. Children of Kazatomprom employees also contributed to the great cause. They made drawings and paintings in which they expressed their love for the planet and their concern about environmental pollution.

A quote of a participant: «Our common task is to embrace our responsibility to address the environmental issues and preserve the pristine beauty of our nature for future generations».


Green Office

Kazatomprom’s Corporate Centre is implementing the Green Office project, which includes modern solutions for energy efficiency and efficient use of resources. In particular, the project helped organise separate collection of household waste and install motion sensors in the offices to save energy and water.

In early 2020, the Company secured the support of Samruk-Kazyna JSC to launch an initiative to reduce paperwork.

For example, JV Inkai LLP has had the Internal Controlled Document module in place since 2018. Powered by the Dokumentolog e-document management system, it is designed to streamline and automate the procedures for coordination and the approval of internal regulatory documents. Over the first two years of its use, the Company approved about 1,000 documents through the system and thus saved about 10,000 sheets of paper.

Development Plans

In 2021, the Company plans to implement the following HSE measures:

  • conduct the first extended observation audit of the environmental management system (EMS), health and safety management system for compliance with the requirements of DIN EN ISO 14001:2015 and DIN EN ISO 45001:2018
  • update the corporate standard, Methodological Guidelines for the Management of Radioactive Waste Prior to Landfill
  • continue analysing the environmental and social impacts of mining operations
  • develop recommendations for updating the IEC programmes, taking into account potential risks
  • continue work on the creation of the Automated Environmental Monitoring System Database (AEMS)
  • develop and get approval of the corporate standard, Methodological Guidelines for Monitoring of the Impact on Ground and Underground Water in ISR Mining of Uranium
  • approve the Guide on developing a plan for the engagement of stakeholders of Kazatomprom’s subsidiaries, associates and joint ventures in environmental and social activities
  • update emergency response plans and the plans for the preliminary assessment of cumulative impacts
  • approve the Guide «Procedures for the development of processes for the exchange of environmental information at Kazatomprom»
  • develop criteria of the environmental rating system to assess Kazatomprom enterprises
  • complete the development of the corporate standard, Methodological Guidelines for Biodiversity Assessment at Uranium Deposits, Production Sites and Adjacent Areas

Climate Change

Climate change is altering patterns of weather and water around the world, causing water scarcity, food shortages, biodiversity loss and natural disasters, which happen more and more often every year. This leads to serious economic consequences, hunger and wars.

Kazatomprom shares UN Sustainable Development Goal 13 and supports the Paris Agreement, which calls for taking urgent actions to tackle climate change and its impacts.

Nuclear energy is one of the carbon-free sectors and helps significantly reduce greenhouse gas (GHG) emissions. As the world’s leading producer of uranium raw materials and supplier of fuel for nuclear power plants, Kazatomprom helps develop nuclear energy and thus makes a significant indirect contribution to the fight against climate change.

Kazatomprom uses the most environmentally friendly technology of in-situ leaching to extract uranium raw materials. The technology allows the Company to have minimal emissions of greenhouse gases. In the course of the Group’s operations, GHGs are generated as a result of consumption of fuel (diesel, fuel oil, coal) by boiler houses, drilling operations, as well as waste incineration at some subsidiaries, associates and joint ventures. Other sources to be taken into account include mobile sources and transport vehicles.

The Group regularly monitors the situation with greenhouse gas emissions, calculates the volume of direct emissions from Kazatomprom facilities (Scope 1). The Occupational H&S Department is responsible for monitoring and accounting greenhouse gas emissions.

,tonnes
OF CO2-EQUIVALENT IN GREENHOUSE GAS EMISSIONS WERE GENERATED IN 2020, DOWN BY 13.95% YEAR ON YEAR

Direct GHG emissions, t СО2 eq

In 2020, there was a decrease in greenhouse gas emissions associated with scaled-down operations because of the COVID-19 pandemic, the shift of some subsidiaries, associates and joint ventures to gas fuel, and warmer weather conditions. At the same time, the reason for the decrease in GHI emissions was the transfer of two boilers to the balance of the Akimat of the Sozak region, on the basis of a memorandum between Uranenergo LLP and the Akimat of the Turkestan region.

The annual greenhouse gas emissions of each subsidiary/ affiliate do not exceed the threshold of 20,000 tonnes of CO2-eq as established by the national laws for emissions reporting and participation in the Kazakhstan Emissions Trading System.

Kazatomprom uses renewables, applies energy-saving technologies, and invests in energy efficiency to reduce greenhouse gas emissions.

The Group’s companies use solar energy to generate electricity. In 2020, PV power plants produced 3.52 MWh. The generated electricity is used to cover in-house needs of the Company, thus saving about KZT 53 million a year. If there is a surplus of green energy, it is supplied to local power grids for the households and businesses in the regions of Kazatomprom’s operations.

The employees of Kazatomprom and its subsidiaries take actions to mitigate climate change and raise the awareness of the population about greenhouse gas emissions. To this end, they annually support international initiatives such as Earth Hour and Car-Free Day and also organise their own events to place emphasis on the respective problems. They are also engaged in tree planting and landscaping improvements.

Air Emissions
GRI 305-7

Reducing air emissions is an important aspect of Kazatomprom’s environmental efforts. The Group seeks to reduce the adverse impacts of its production on air quality, constantly introducing technological improvements.

The Group’s entities use modern dust and gas traps. For example, the refining shops at Kazatomprom-SaUran LLP successfully operate an installation with a pulse ceramic filter (FKI-45) for dedusting and purifying process gases emanating from calcining furnaces of RHTF55. This installation eliminates emissions of radiation dust into the air and reduces total emissions into the environment by 20%.

In the Company, the key regulatory documents in this area are the Order of the Minister of Environmental Protection of the Republic of Kazakhstan dated April 16, 2012, № 110-ө, as well as the Methodology of standards of emissions into the environment.

55 RHTF stands for Rotary Horizontal Thermal Furnace.

%
DROP IN SPECIFIC EMISSIONS PER TONNE PRODUCED, FROM 18 KG/T IN 2019 TO 17.5 KG/T IN 2020

In 2020, as part of initiatives to shift from fossil fuels (coal and fuel oil) to cleaner energy sources (gas), we worked to provide gas supply to Auto Service and TTC-Shieli, a branch of the Trade and Transportation Company LLP. Investments in modernisation reached KZT 37.9 million. In addition, due to the transfer of ownership and the shareholding in MAEK-Kazatomprom LLP to the Ministry of Energy of the Republic of Kazakhstan, natural gas consumption reduced by 2 billion m3 year on year. This led to a drop of the Group’s total NOx emissions by almost 19%, from 118 tonnes in 2019 to 96 tonnes in 2020.

In general, in 2020, the Group’s emissions decreased by 1.5%, from 1,248 tonnes in 2019 to 1,229 tonnes in 2020. The decrease is associated with a decrease in production (NOx, SOx, volatile organic compounds and hazard class 1 substances) because of the COVID-19 pandemic and respective suspension of construction at some uranium mining entities (construction of sludge collectors and other facilities), the transition of most employees to remote work, as well as a decrease in fuel consumption for boiler plants and stationary diesel power plants in warm weather conditions, there was no need to heat the pregnant solution processing shop, sports complex, and dormitories.

Water Resources

GRI 303-1, 303-2

Water is a material component in the production process, both in main production activities and in the operation of osmosis plants that make demineralised water into a raw material for generating electricity for the external grid to meet the needs of local communities. In some regions of operations, Kazatomprom also provides water to local communities and industry.

The Company supports the UN Sustainable Development Agenda 2030, including SDG 6 – «Ensure access to water and sanitation for all», and operates in accordance with the Water Code of the Republic of Kazakhstan (Article 66). In addition, effective water resource management is an integral part of the implementation of the Company’s Health, Safety, Environment, and Nuclear and Radiation Safety Policy, which also helps improve interaction with local communities, the government, and investors.

All operations of Kazatomprom related to water use are carried out in accordance with permits issued by authorised water protection agencies. Water is supplied to enterprises separately: technical water and drinking water. Because of the lack of drinking-quality groundwater, the enterprises use imported water for drinking and cooking. Water consumption is monitored by flow meters at water wells and water meters installed at water inlets.

The Company’s water withdrawal has no significant impact on water sources. Kazatomprom does not withdraw water from sources recognized as vulnerable, state-protected, highly valuable for local communities or biodiversity.

.%
DECREASE IN, TOTAL WATER WITHDRAWAL FROM 10,694,300 M3 IN 2019 TO 10,452,300 M3 IN 2020

Groundwater accounts for 82% of the total water withdrawal; and surface water, for 7%. At the same time, there is a consistent reduction in water intake from surface sources. Over three years, the intake of surface water dropped by 17.8%, from 951,100 m3 in 2018 to 781,400 m3 in 2020. At the same time, the reporting period saw a 35% YOY increase in water taken from municipal and other water supply systems, from 836,600 m3 to 1,131,100 m3. This is due to the increase in water consumption for sanitation fuelled by the COVID-19 pandemic.

Water Withdrawal Structure
GRI 303-4

Kazatomprom endeavours to reduce the volume of water it uses in production. To this end, a number of enterprises use closed water cycles. In 2020, the volume of recycled and reused water amounted to 63,029,000 m3 (including 12,865,000 m3 at Caustic JSC and 44,461,200 m3 at SKZ-U LLP), up by 334% against 2019.

The Group’s entities produce industrial, storm and domestic waste water as a result of water use. Mine wastewater discharges are treated and discharged to a storage pond. In 2020, the volume of waste water discharged by Group entities reached 5,239,400 m3, down by 7.6% compared to 2019.

All discharges were treated and met regulatory requirements of the quality of discharged water. In 2020, no cases were registered at subsidiaries, associates and joint ventures of the Group where limits on discharges of hazardous substances were exceeded.

Among the measures taken by the Group, JV Inkai LLP carried out standardised procedures to clean sewage septic tanks. During the cleaning, 150 tonnes of sludge were removed. The works helped prevent exceeding the maximum permissible concentrations in waste water and excluded the excess of the content of pollutants in the outlets.

Total wastewater discharges, ‘000 m3

Indicator 2018 2019 2020 Change 2020-2019
Total wastewater discharges 5,249.9 5,674.5 5,239.4 -7.67%
Groundwater Contamination

Uranium mining using the ISR method poses a risk of groundwater contamination. To minimise this environmental risk at all operating mines, Kazatomprom encloses the mining area with a buffer zone of 500 metres in radius. The entities constantly monitor the condition of groundwater in accordance with all requirements established by law.

In 2020, we started developing a corporate standard, Methodological Guidelines for the Monitoring of the Impact on Ground and Underground Water in ISR Mining of Uranium. The approval and implementation of the standard is scheduled for 2021.

Waste Management

GRI 306-1, 306-2, 306-3

Waste management is one of the most important environmental aspects for Kazatomprom. For qualitative control of this process, the Company develops a waste management system, constantly improves the accounting of waste generation and movement, and builds capacity to increase waste reuse.

The Group’s waste management is guided by the requirements of national legislation, which requires the separate collection of all waste generated, depending on its type and composition, for subsequent recycling, treatment and disposal. In subsidiaries, associates and joint ventures there are temporarily equipped sites for containers and metal receptacles, which are marked with clearly visible signs indicating the type of waste, as well as their degree of hazard.

Corporate standards in the field of waste management:

  • Rules of production and consumption waste management at Kazatomprom enterprises
  • Methodological Guidelines for the Management of Radioactive Waste Prior to Landfill
  • Methodology on calculating waste generation standards per unit of production at Kazatomprom’s enterprises

In accordance with the Order of the Minister of Environmental Protection of the Republic of Kazakhstan dated February 14, 2013 № 16-Ө «On approval of the requirements for reporting on the results of occupational environmental control» (changed on February 14, 2013), as well as the Methodology of standards of emissions into the environment, subsidiaries, associates and joint ventures keep records of waste generated, used, neutralized and transferred to contractors. Information is collected on a quarterly basis, based on reports provided.

The production operations of Kazatomprom entities generate industrial and household waste, including:

  • solid and liquid radioactive waste
  • overburden rocks generated during the mining of fluorite copper-molybdenum ores
  • drilling mud from drilling at the ISR mining sites
  • fluoric gypsum from the production of hydrofluoric acid
  • ash and slag waste from the production of thermal energy
  • household waste
  • waste oil products
  • car tyres

According to the approved Waste Management Programmes and Waste Management Action Plans, the Company took the following actions:

  • ongoing monitoring of the placement (storage) of waste drilling mud in landfills for non-radioactive drilling mud
  • regular and timely removal of production and consumption waste for disposal
  • separate collection points and special places for temporary storage of production and consumption waste are arranged in the territory of the mines

In 2020, the total amount of waste generated by Kazatomprom rose by 6% to 1,129,370 tonnes.

The increase in waste generation was fuelled by the following operations carried out in the reporting period:

  • scrap metal waste disposal
  • 150 tonnes of sludge disposed at JV Inkai LLP as part of standardised procedures for cleaning sewage septic tanks
  • increase in the number of construction and repair work carried out by contractors
  • 272.5 tonnes of solid low-radioactive waste disposed at RU-6 LLP
  • rise in production of beryllium and tantalum resulting in additional 18,760.14 tonnes of waste (sludge, overburden)
  • Karadzhal Mine of Ulba Metallurgical Plant generated 71,747.66 tonnes of overburden

In 2020, we completed Stage 2 of the construction of evaporator pond No. 5 at Ulba Metallurgical Plant JSC. The facility is necessary for the collection of liquid industrial waste from the beryllium production (sludge), as well as collection and disposal of the cleaned part of the pulp from Map No. 2 by evaporation. The commissioning of evaporation pond No. 5 allows:

  • achieving a balance between the amount of liquid industrial waste disposed at the tailing facility of Ulba Metallurgical Plant and the amount of evaporated liquid from the surface of the maps
  • transferring Map No. 2 to natural drainage for subsequent reconstruction

In addition, Ulba Metallurgical Plant JSC covered the 1C map of the tailings dump in 2020. The map is covered with a combined soil-polymer screen, which excludes groundwater pollution by the infiltration of sediments through solid waste.

Solid Radioactive Waste

Solid radioactive waste generated at uranium mining entities 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.

Contribution of various types of SLRW to total radioactive waste (RW) at the Group’s uranium mining entities, 2020

SLRW types Contribution to total RW, %
Sand and sludge from the sand trap 50
Contaminated soil from spills, drilling slurry 18
Ion-exchange resin 19
Contaminated equipment, metal waste 7
Overalls, PPE, rags, filters 4
Plastic waste (pipes, etc.) 2

Online seminar «Production and Consumption Waste Management at Kazatomprom»

In July, the Company held an online seminar for environmental specialists dedicated to production and consumption waste management at Kazatomprom’s enterprises of the Company’s ESAP Roadmap 2020.

This event was held by the Kazakhstan Nuclear University in cooperation with the Occupational H&S Department of Kazatomprom. During the seminar, participants acquired knowledge and skills in the management of production and consumption waste at the Group’s entities in accordance with the laws of the Republic of Kazakhstan and the environmental standards of the International Finance Corporation, as well as the Good International Industry Practice (GIIP). The seminar brought together 33 participants from 13 subsidiaries, associates and joint ventures of the Holding.

Energy Efficiency

GRI 302-1, 302-3, 302-4

ISR mining of uranium is a very energy-intensive process; therefore, Kazatomprom strives to improve energy efficiency and reduce the energy intensity of production by introducing more energy-efficient equipment, rational use of natural resources, and the modernization of production processes.

Energy efficiency management is based on energy management systems implemented at all of the Group’s entities that meet the requirements of the ISO 50001:18001 international standard.

Kazatomprom introduced an energy consumption and energy efficiency KPI for the Company’s management, disallowing the exceedance of the annual planned specific energy consumption rates for uranium production.

To assess the possibility and potential for energy saving, the Group’s entities conduct energy audits every five years. The audit findings are used in the development of the Energy Saving and Energy Efficiency Action Plan for Kazatomprom’s mining companies. This plan is made annually by the Company as part of the plan for the implementation of Kazatomprom Development Strategy 2018-2028.

With the measures taken in 2020 to improve energy efficiency, the actual economic effect made KZT 847 million (against target of KZT 910 million). Non-performance of the plan by a number of entities was due to the emergency caused by the difficult epidemiological situation. The COVID-19 pandemic and quarantine measures led to a reduction in works and the untimely supply of equipment and materials needed to take energy-saving measures.

GJ
OF ELECTRICITY WAS SAVED THANKS TO MEASURES REDUCING ENERGY CONSUMPTION AND IMPROVING ENERGY EFFICIENCY IN 2020

In 2020, Kazatomprom’s energy consumption decreased by 78%. This was mainly because of the transfer of MAEK-Kazatomprom LLP to the ownership of the Ministry of Energy of the Republic of Kazakhstan (Decree No. 851 of the Government of the Republic of Kazakhstan dd. 14 November 2019), which reduced natural gas consumption by more than 2 billion m3.

Energy consumption56, ‘000 GJ

Indicator 2018 2019 2020 Change 2020-2019
Heating 11,551 11,628 887 -92%
Electricity 5,766 5,257 2,849 -46%
Total energy consumption 17,317 16,885 3,737 -78%

56 Consumption of fuel and energy resources is calculated without MAEK-Kazatomprom LLP.

Use of primary energy sources, ‘000 GJ57

Source type 2018 2019 2020 Change 2020-2019
Non-renewable:
Coal 2.5 1.8 2.6 44%
Fuel (gasoline, fuel oil, diesel) 170 155 130 -16%
Renewable:
Hydrogen 5.8 3.7 5.0 36%

57 Such coefficients were used to convert to GJ: 1 ton of coal = 4.22 GJ; 1 ton of fuel = 4.19 GJ; 1 gigacalorie of thermal energy = 4.186 GJ; 1 kilowatt / hour of electricity = 0.0036 GJ; 1 m3 of hydrogen = 0.010865 GJ.

Hydrogen is used by Ulba Metallurgical Plant JSC to create a reducing atmosphere in powder reduction and pellet sintering furnaces. In 2020, 5,000 GJ were used, up by 1,300 GJ compared to 2019 (3,700 GJ). The increase in hydrogen consumption was due to quantitative and qualitative differences in product specifications for 2019 and 2020.

Energy intensity58

Indicator 2018 2019 2020 Change 2020-2019
Energy consumption for the production, mining and processing of raw materials, ‘000 GJ 1,854 1,943 1,773 -8.4%
Production, mining and processing of raw materials, tonnes 21,699 22,761 19,587 -13.9%
Specific energy intensity, ‘000 GJ/tonnes 0.1 0.1 0.1 5.9%

58 Data on subsidiaries, associates and joint ventures – LLP Kazatomprom-SaUran, RU-6 LLP, ORTALYK LLP, JV ZARECHNOYE JSC, APPAK LLP, Kyzylkum LLP, Baiken-U LLP, JV Akbastau JSC, Karatau LLP, JV South Mining Chemical Company LLP, JV Katco LLP, Semizbai-U LLP, JV Inkai LLP.

Alternative Energy

Kazatomprom uses the following alternative energy sources, which save fuel and energy resources and contribute to the reduction of greenhouse gas emissions:

  • PV plants
  • solar heaters
  • heat pump systems

The effect of the Company’s use of alternative energy sources in 2020, ‘000 KZT

The Company is constantly looking for opportunities to apply new renewables at its entities. For example, in 2020, we met with Renovatio Central Asia LLP to discuss the supply of batteries for energy storage. This company plans to implement a 120 MW solar power plant project in Kyzylorda Region. Another important meeting was with OnEnergy to discuss the Energy Accumulation System project. The meeting participants agreed to develop a pre-feasibility study of the energy accumulation system.


Implementing energy efficient solutions at
Uranenergo LLP

Uranenergo LLP is widely introducing energy-efficient solutions. Since 2020, as part of the Real-Time Monitoring of Transformers project, we have been working with Poland-based RedNT to automate the reporting processes and the state of transformers at high-voltage substations of Uranenergo LLP. The project will allow us to remotely monitor such important transformer parameters as oil and winding temperature, air humidity, internal pressure, gas level, and humidity. This project has already been implemented at RU-6 LLP. In addition, representatives of Uranenergo LLP held a meeting with General Electric on the Power Monitoring Expert project, which will help streamline the work of dispatcher services and reduce the time to take readings from meters.

Among the issues affecting the power supply reliability is the disconnection of (overhead lines caused by climatic effects: lightning overvoltage, wind, and ice loads. At the same time, the combination of ice and wind loads causes the most severe consequences to overhead lines (breakage, overlapping, overheating of wires), which affect the technical and economic indicators of power quality.

In 2019, we searched for the most effective solutions in this area and held negotiations with representatives of the Russia-based Meteor Plant JSC about the installation of the automated information system of ice load control on 110 kV overhead lines and networks of Uranenergo LLP, including an ice control post and sensors of wind, ice load, and temperature of wires. Representatives of the plant inspected and measured the loads on the most problematic sections of overhead lines. In 2020, Uranenergo LLP signed a contract with the Meteor Plant that resulted in the installation and connection of the system to the 110kV overhead lines. This makes possible to significantly reduce the risks of breakage of overhead lines as a result of weather influences.

Representatives of KEGOC have shown interest in this system. Negotiations with representatives of Meteor Plant and KEGOC are scheduled for 2021 to introduce these technologies at these entities as well.

Photography by Rinat Khaibulin, JV Katco LLP

Biodiversity

GRI 304-1

One of Kazatomprom’s main environmental objectives is to protect biodiversity and ensure the rational use of natural resources in the areas of its operations. After completion of mining at the deposits, the Company is fully responsible for the implementation of a set of measures to eliminate the consequences of uranium mining.

The total area of land owned, leased and managed by the Group is 114,942.95 hectares. There are no nature reserves or other specially protected natural sites on the territory of Kazatomprom’s uranium deposits. At the same time, the Company makes efforts to study the state of flora and fauna in the territory of uranium deposits to preserve the existing biodiversity.

Since 2019, as part of the ESAP Roadmap implementation, Kazatomprom has been actively working to determine the level of impact of mining operations on habitats, vegetation, and protected animal species. Information on some of the work performed in 2019 can be found in the Biodiversity section of the 2019 Integrated Annual Report.

In 2020, we continued research on the environmental assessment and evaluation of biodiversity at Kazatomprom’s uranium deposits:

  • the Company conducted zoologist and botanist expedition to the territory of JV Inkai LLP to study vegetation, wild animals, cattle grazing places
  • we made maps of soil cover, vegetation, and a map of possible animal habitation on the territory of the mining allotment
  • the Company prepared an interim report on plants and animals found at the time of the expedition
  • the entire territory of the mining allotment was divided into transects for the convenience of studying the populations of animal and plant species
  • all control points of the transects were entered into the GIS database and their locations indicated on the maps

Work on the biodiversity study continues according to seasonal surveys in connection with the migration of birds and mammals to delineate habitats and identify sensitive ecosystems more accurately. The study is scheduled to end in 2021.

For more information, see the 2019 Integrated Annual Report.

In 2020, comprehensive environmental studies were conducted in the territories adjacent to the uranium mines in South Kazakhstan. Covering land allotments of the mines and areas within a radius of 10 km, the studies were meant to identify possible technogenic and cumulative footprint on the environment and the local population.

The following actions were taken during the studies:

  1. Analysis of the production operations from the perspective of the environmental impact
  2. Analysis of available background data on the ecological condition of air, surface and underground waters; studies of soil types, structure of underground aquifers, species composition of flora and fauna
  3. Collection of new data on the ecological condition of the soil, surface and ground waters, and precipitation; first studies of microbiocenosis and phytotoxicity of soils in group supply points (GSP)
  4. Identification of potential channels of the environmental impact and compilation of the primary list of environmental risks

As a result, the Company established no environmental footprint of production operations beyond the boundaries of the buffer zones. These were the first comprehensive studies that show the state of the environment in the period under review.

In 2020, Kazatomprom started developing a corporate standard, Methodological Guidelines for Biodiversity Assessment at Uranium Deposits, Production Sites and Adjacent Areas.


Workshop
«Biodiversity Assessment at Uranium Deposits»

On 22-23 September 2020, Kazakh Nuclear University and Kazatomprom’s Occupational H&S Department held a workshop, «Biodiversity Assessment at Uranium», as part of the updated action plan to implement Kazatomprom’s ESAP Roadmap 2020.

The event brought together 31 representatives of 14 Kazatomprom’s subsidiaries, associates and joint ventures. The lecturers included Samat Kayrambaev, chief expert of the Environmental Protection, Radiation and Nuclear Safety Division of Kazatomprom’s Occupational H&S Department, and Konstantin Plakhov, biologist, zoologist, UNDP expert on biodiversity of Kazakhstan, IUCN exper t on specially protected natural areas of Central Asia.

The goal was to share knowledge in the field of biodiversity and teach practical skills in the biodiversity conservation, methods of biodiversity analysis and evaluation and their application for environmental monitoring, conservation of biological diversity with due regard to the main strategies of biodiversity restoration, safe and sustainable human interaction with the natural environment.

Photography by Rinat Khaibulin, JV Katco LLP

According to legal requirements, three years prior to termination of operations in the deposits, Kazatomprom should prepare draft liquidation plans, which include information on the fauna and flora of the site, the consequences of subsoil use, which are subject to liquidation, measures to rehabilitate flora and fauna, and plans for the reclamation of disturbed land. Liquidation plans also include a set of works carried out after land reclamation (monitoring the condition of hydrobionts, vegetation, microflora, and animals). In 2020, we updated the liquidation plan of the subsoil use consequences for APPAK LLP, specifying the liquidation cost estimates.

Kazatomprom continues improving its environmental expertise as part of its objectives to improve forecasting and the monitoring of environmental impact and mine closure planning. In 2020, the Environmental Design and Monitoring Centre completed the development of a corporate standard, Methodological Guidelines for Calculating the Cost of Reclamation and Environmental Monitoring during the Liquidation of Uranium Mining Entities.

The Company developed a draft standard, Guidelines on Liquidation Cost Estimate Calculation and Procedures for Regular Analysis of Current Liquidation Costs (measurement of asset retirement obligations), which is now undergoing approval procedures. The standard establishes requirements for the development of the subsoil use liquidation plan for the ISR mining of uranium and calculation of estimated costs of liquidation and reclamation works, including procedures for regular updating of costs (ARO measurement).

In addition to the standard, we developed a document shaping approaches to making a list of criteria for the closure of production sites of mining subsidiaries, associates and joint ventures.

The Group’s entities work tenaciously to restore green areas and strengthen the soil. In 2020, employees of JV Inkai LLP planted more than 258 trees. To prevent intensive desertification and strengthen the soil, saxaul seeds were sown on two hectares. Sowing two hectares of seeds a year, the Company will save 24 hectares from desertification by 2021.


Nature of Mines through the Eyes of Employees

In Q4 2020, Katco’s mines conducted a biodiversity assessment campaign. As part of the campaign, they organised a bright contest, The Nature of Mines Through the Eyes of Employees.

For several months, employees sent picturesque photos of flora and fauna taken at the deposit to the company’s communications department. At the close of the contest, the best works were published on social networks, and their authors received valuable gifts.

Photography by Rinat Khaibulin, JV Katco LLP

Photography by Rinat Khaibulin, JV Katco LLP