Cameco’s (TSX: CCO; NYSE: CCJ) Inkai joint venture project in Kazakhstan has resumed uranium production, Kazakhstan’s national uranium producer, Kazatomprom (LSE: KAP), announced on Monday.
Inkai LLP temporarily suspended production activities at Block No. 1 of the Inkai deposit on Jan. 1 due to the absence of required approvals from state authorities. The delay was caused by the late submission of the necessary documentation.
According to Kazatomprom, Inkai LLP has resolved the approval issue and resumed mining operations. The potential impact of the suspension on JV Inkai’s 2025 production plans is currently being assessed.
“Kazatomprom remains fully committed to fulfilling contractual obligations to all existing customers and maintains sufficient inventory levels to comfortably manage deliveries throughout 2025,” the company said.
Kazatomprom does not anticipate any significant impact on its production forecast of 65–68.9 million tonnes of uranium oxide (U3O8), according to a previous note from BMO at the time of the suspension.
The in-situ recovery joint venture, in which Cameco holds a 40% stake and state-owned Kazatomprom holds 60%, is the largest uranium operation in the Central Asian country.
Inkai’s output is forecasted to total 9.3 million lb. this year, representing 14% of Kazakhstan’s production and 16% of Cameco’s, according to BMO estimates.
Cameco’s shares were down 7.4% to $72.89 apiece on Monday morning in Toronto, for a market capitalization of $31.7 billion. Shares in Kazatomprom fell 1.7% to US$37.30 apiece in London, giving it a market cap of £7.8 billion ($14.1 billion).
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