JSC National Atomic Company “Kazatomprom” (“Kazatomprom” or “the Company”) provides the following update on the status of its business and operations following the recent period of unrest in Kazakhstan.
“Today, after these tragic events, our country is going through a difficult time,” said Mazhit Sharipov, chief executive officer of Kazatomprom. “I am sure that with the joint efforts of our state, businesses and citizens all infrastructure facilities affected by the violence will be restored soon. The Company plans to actively support the restoration efforts in the regions where Kazatomprom operates. We sincerely appreciate the support we have seen from our stakeholders during this very worrisome period. We are particularly grateful to our committed workforce, whose efforts to monitor and mitigate the related risks prevented any significant impact on the Company and its operations.
“President Kassym-Jomart Tokayev has assured citizens and businesses that the government will meet its obligations and take all necessary measures to restore the trust of domestic and foreign investors. This assurance is important for the global nuclear industry, as the majority of Kazatomprom’s uranium assets are operated in partnership with major international nuclear industry participants. Kazatomprom has always managed to meet customer expectations, and we have again proven ourselves to be a secure and reliable supplier despite operating in a jurisdiction of higher perceived geopolitical risk.”
The overall impact of the recent events on the Company’s business was minor. All assets operated without interruption thanks to the Company’s implementation of lessons-learned throughout the COVID-19 pandemic. Kazatomprom’s risk management and business continuity plans proved to be robust, with no delays or disruptions to the Company’s uranium production, deliveries or sales plans. As of 13 January 2022:
- Internet, telecommunications and the financial services sector have returned to normal. The President’s declaration of a countrywide state of emergency, which included curfews and a ban on gatherings, has now been lifted in the West, North and Pavlodar regions. The state of critical terrorist threat has been lifted countrywide, except for the city of Almaty, Zhambyl and Almaty regions, where it is expected to remain in effect until 19 January 2022.
- The large-scale anti-terrorism operations, which included both Kazakh police, security and military forces, as well as support from the regional Collective Security Treaty Organization (CSTO), has largely concluded. A withdrawal of CSTO forces has begun and is expected to be completed in the coming week. At no point were CSTO forces deployed to the vicinity of Kazatomprom’s infrastructure or operations.
- The Kazakh Government resigned on 05 January 2022 and a new government was appointed and functional as of 11 January 2022, with Alikhan Smailov becoming Kazakhstan’s new Prime Minister. Within the new composition of the Government, Bolat Akchulakov, a current Kazatomprom Board member representing the interests of majority shareholder Samruk-Kazyna, has been appointed Minister of Energy and will resign from the Company’s Board of Directors.
- Although the more serious near-term supply chain risks specifically related to recent events did not materialize, the pandemic-related supply chain challenges remain a concern, and may impact both production and cost expectations in 2022. Further updates will be provided when 2021 full-year financial results are released in March, 2022.
- Cases of the Omicron variant of COVID-19 continue to rise throughout the country. The Company has reinforced existing protocols to minimize the spread by introducing PCR testing for anyone accessing the mine sites. Site administrative personnel are also now working remotely.
Kazatomprom’s focus remains on business continuity, including the safety and security of its employees and operations. With an ongoing assessment of the situation and various investigations by government authorities now underway to determine the factors that drove the tragic civil unrest, the Company will not be speculating on the potential impact of the underlying social circumstances or related geopolitical implications at this time.
For further information, please contact:
Investor Relations inquiries
Cory Kos, Director of Investor Relations
Tel: +7 7172 45 81 80
Public Relations and Media Relations inquiries
Torgyn Mukayeva, Chief Expert of GR & PR Department
Tel: +7 7172 45 80 63
A copy of this announcement will be made available at www.kazatomprom.kz.
Kazatomprom is the world's largest producer of uranium, with the Company's attributable production representing approximately 23% of global primary uranium production in 2020. Kazatomprom 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 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 environmental standards (ISO 45001 and ISO 14001 certified).
Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. As the national atomic company in the Republic of Kazakhstan, its primary customers are operators of nuclear generation facilities and the principal export markets for the Company's products are China, South and Eastern Asia, Europe, and North America. Kazatomprom sells uranium and uranium products under short- and long-term contracts directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).
For more information, please visit our website at http://www.kazatomprom.kz
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