Kazatomprom (LSE: KAP), the world’s top producer of uranium, plans to sell a significant portion of its output to India, a move that could further tighten the global market for nuclear fuel.
The Kazakh state miner said Friday it has reached a supply agreement representing over 50% of the company’s booked asset value with the Directorate of Purchase & Stores (DPS) of India’s Department of Atomic Energy. Details of the proposed transaction, including pricing, volumes and delivery schedules, are confidential and cannot be disclosed due to commercial sensitivity, Kazatomprom said.
DPS is a centralised entity that’s responsible for procurement, storage and inventory management for research centres and industrial enterprises in the Indian nuclear industry.
As Kazakh law requires the company to obtain shareholder approval for a deal of this magnitude, Kazatomprom has called for a extraordinary general meeting of shareholders. Notice of the meeting is expected at a later date.
The deal, if approved, could potentially remove a sizeable share of uranium supply from the global market. Kazatomprom accounts for about 20% of the global production.
The Kazakh company produced about 67.2 million lb. uranium concentrates (on a 100% basis) last year, a 10% increase over 2024. It’s expecting production to climb 9% this year.
Despite this projected growth, many analysts believe the global uranium market will remain in a structural deficit. Analysts at Teniz Capital, an Abu Dhabi-based investment bank, said the entire sector is undergoing a “second nuclear renaissance” that could see demand outpacing supply in the coming years.
Kazatomprom’s shares rose 0.9% to $82.80 apiece Friday in London. Kazakh wealth fund Samruk-Kazyna JSC owns 75% of the company’s share capital, while the remaining 25% stake is publicly traded.
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