Top uranium producer Kazakhstan hikes tax 

Kazakhstan, the world’s largest producer of uranium, is increasing its mining tax on the nuclear fuel by at least 50% next year.  

The central-Asian country is to raise the rate to 9% from 6% starting Jan. 1, according to state mining company Kazatomprom (LSE: KAP; US-OTC: NATKY). Then in 2026, a graduated structure based on output would see the tax rate increase to 18% for more than 4,000 tonnes of uranium concentrate U₃O₈ produced and as little as 4% for less than 500 tonnes, the miner said July 10.  

An additional rate of 0.5% is to be charged if market prices are more than US$70 per lb., to as much as 2.5% more at greater than US$110 per lb., Kazatomprom said. The government introduced the measures July 1, the miner said.  

The price of uranium was at US$86.15 per lb. on Monday, according to Trading Economics. The heavy metal’s price roughly doubled to US$106 per lb. in January from last July.  

Low level 

The country’s tax rates are among the lowest in the world and can be raised by 10-20%, economy minister Alibek Kuantyrov said at the time, according to Brussels-based Nucnet news agency. 

Shares in Kazatomprom fell 5.6% to close at £37.80 apiece on July 10 before recovering to end Monday at £39.70 for a market capitalization of £7.9 billion.  

Stock prices in uranium producers besides Kazatomprom generally rose after the tax announcement on concerns of supply disruptions in the leading producer after it already reported a shortage of sulphuric acid to process ore. 

Cameco (TSX: CCO; NYSE: CCJ) also has exposure to Kazakstan via its Inkai joint venture with Kazatomprom. The Canadian miner holds a 40% stake in the in-situ recovery mine. Shares in Cameco closed on Monday in Toronto at $71.40 apiece, up 6.8% from $66.83 on July 9 before the tax announcement. Its market value is $31 billion.  

The US$5.7 billion Sprott Physical Uranium Trust (TSX: U.U for $US; U.UN for $CAD) gained 2.8%% to Friday’s close at US$27.93 from US$27.17 on July 9. It slid to close at US$27.20 on Monday.  

Kazakhstan’s 21,227 tonnes of uranium in 2022 led global output, according to the World Nuclear Association, an industry booster. Kazatomprom produced 11,373 tonnes or 23% of world production that year.