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JSC National Atomic Company Kazatomprom has signed an agreement to sell a 49% stake in its wholly owned Ortalyk uranium mining operation to China General Nuclear Power Corporation (CGNPC) subsidiary for $435m.

Kazatomprom’s sale and purchase agreement is subject to conditions and governmental approvals.

The companies previously agreed to construct a fuel assembly plant (Ulba-FA) at the Ulba metallurgical facility in Kazakhstan.

At that time, CGNPC agreed to purchase Ulba-FA’s production in exchange for Kazatomprom agreeing to sell to a 49% interest in Ortalyk to the company or its affiliates.

Subject to conditions, governmental and legislative approvals, the transaction is expected to close by 30 June 2021.

Once the transaction closes, Kazatomprom will retain a controlling 51% interest in Ortalyk and the remaining 49% would be held by CGNPC or its affiliates.

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By GlobalData

Each partner will purchase a proportionate share of uranium production from Ortalyk according to interest.

Ortalyk owns a 100% stake in the Central Mynkuduk Deposit and fulfilled exploration and trial production at the Zhalpak deposit. These deposits comprise JORC-compliant aggregate mineral resources of approximately 38,957t of uranium as of 31 December 2020.

Mynkuduk has a designed capacity and subsoil use agreement in place for the production of 2,000tpa of uranium.

At Zhalpak, the production capacity will be determined through subsoil use contract negotiations with the Government of the Republic of Kazakhstan.

Kazatomprom has attributable production that represents nearly 23% of global primary uranium production last year. All of the company’s mining operations are located in Kazakhstan and mined using ISR technology.