JSC National Atomic Company “Kazatomprom” (“Kazatomprom”, “KAP” or “the Company”) is providing the following response to a draft resolution from the Government of the Republic of Kazakhstan (“RK”) posted for public discussion on the e-government portal (eGov), as well as several recent media reports regarding meetings between Kazakh and Russian officials.
On 20 May 2022, a draft of an updated list of companies to be privatized under the government Privatization Plan was released, which now includes Kazatomprom’s drilling subsidiary Volkovgeologiya JSC, the Company’s provider of security services Qorgan Security LLP, and KAP’s uranium mining asset, JV Budenovskoye LLP (“JV Budenovskoye”). The information is incorrect and not aligned with the Company’s established disclosure protocols and governance process. The Company’s management team and Board of Directors have initiated discussions with the appropriate state authorities to retract the incorrect privatization list and address the Company’s serious concerns regarding the unacceptable overstep into Kazatomprom’s business as a publicly listed company. It should be noted that in accordance with current legislation, Kazatomprom’s share in the uranium mining company JV Budenovskoye cannot be less than 50% (currently at 51%).
Additionally, media reports regarding a meeting between representatives from Kazakhstan and the Russian State Atomic Energy Corporation Rosatom (“Rosatom”) indicated that the two sides exchanged views on energy security and cooperation, with Rosatom expressing an interest in further investment in Kazakhstan’s uranium mining industry. However, any changes affecting the current structure of the Company's asset portfolio must adhere to current legislation of the Republic of Kazakhstan, existing practices of corporate governance, Kazatomprom’s strategic objectives, and current restrictions related to international sanctions. In the face of the current geopolitical risks and uncertainty, the Company’s Board of Directors will ensure appropriate governance is in place to protect minority shareholders, effectively manage risks and create long-term value for all of its stakeholders.
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Cory Kos, International Adviser, Investor Relations
Botagoz Muldagaliyeva, Director of Investor Relations
Tel: +7 (8) 7172 45 81 80
Kazatomprom Public Relations and Media Inquiries
Gazhaiyp Kumisbek, Chief Expert of GR & PR Department
Tel: +7 (8) 7172 45 80 63
Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 24% of global primary uranium production in 2021. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 14 mining assets. All of the Company’s mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards.
Kazatomprom securities are listed on the London Stock Exchange, Astana International Exchange, and Kazakhstan Stock Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts, as well as in the spot market, directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).
For more information, please see the Company website at www.kazatomprom.kz
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