Kazatomprom posts 3% decline in 2022 output Kazakhstan’s National Atomic Company Kazatomprom (KAP) produced 21,227 tonnes of uranium in 2022 or a decrease of 3% from the previous year, the company said in a press release on Friday.The decline in the production was due to an adverse impact of COVID-19 pandemic on wellfield development in 2021.“This had a lagged effect on the production, as it usually takes from eight to ten months between wellfield development and the resulting uranium extraction by in-situ recovery. Therefore, and given that COVID-19 has also affected delays and/or limited access to certain materials and equipment, resulted in lower production in 2022 compared to the same period in 2021. Additionally, attributable production was impacted by the sale of a 49% share of “Ortalyk” LLP to CGN Mining UK Limited in July 2021,” the press release says.Production on the attributable basis, which corresponds only to the size of the company’s interest in other companies, went down by 4% to 11,373 tonnes.In the twelve months of 2022, the sales by Kazatomprom and its subsidiaries edged down by 1% to 16,358 tonnes, while the average spot price for a pound of uranium concentrate grew by 31% to $43.46, according to the press release.Kazatomprom’s current overall contract portfolio pricing correlates to uranium spot prices, the company said.“However, for short-term deliveries to end-user utilities, the spot price can vary between the time contract pricing is established according to Kazakh transfer pricing regulations, and the spot price in the general market when the actual delivery takes place,” the press release says.The impact of market volatility during the time lag between price-setting and delivery becomes more pronounced as volatility increases, in both rising and falling price conditions, according to the press release.“Some long-term contracts incorporate a proportion of fixed pricing negotiated prior to the sharp increase in spot price in the second half of 2021. As a result, increases in both the Group and KAP’s average realized prices in 2022 compared to 2021 were lower than the increases in the spot market price for uranium over the same intervals,” the press release says.National Atomic Company Kazatomprom JSC is the national operator of the Republic of Kazakhstan for the export of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special equipment, technologies, and dual-use materials. Kazatomprom is controlled by National Wealth Fund Samruk-Kazyna’s management.-- (ICE ALMATY)

Fonte notizia: Interfax