Kazakhstan’s National Atomic Company Kazatomprom has agreed to sell 49% stake in Ortalyk uranium mining operation to a subsidiary of China General Nuclear Power Corporation (CGNPC) for $435m.

Ortalyk, a wholly-owned subsidiary of Kazatomprom, owns 100% stake in the Central Mynkuduk Deposit and fulfilled exploration and trial production at the Zhalpak Deposit.

The exploration sites contain JORC-compliant aggregate mineral resources of around 38,957 tonnes of uranium.

In December 2020, Kazatomprom and CGNPC signed a co-operation agreement to build a fuel assembly plant (Ulba-FA) at the Ulba Metallurgical Plant.

Under the terms of the agreement, CGNPC has guaranteed that it will buy the Ulba-FA’s production, in exchange for Kazatomprom’s sale 49% interest in Ortalyk to CGNPC or its affiliates.

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

Upon closing, Kazatomprom will retain a controlling 51% interest in Ortalyk. Each partner will buy a proportionate share of uranium production from the operation according to respective stake.

Ortalyk’s Mynkuduk Deposit features a designed capacity and subsoil use agreement in place to produce 2,000 tonnes of uranium per annum.

The Zhalpak deposit production capacity is expected to be determined through subsoil use contract discussions with the Government of the Republic of Kazakhstan.

Kazatomprom is one of world’s largest producers of uranium, owning 26 deposits that are grouped into 14 mining assets.

In May last year, Kazatomprom has entered into a definitive commercial agreement for the supply of natural uranium with Dioxitek of Argentina.

Dioxitek is engaged in the procurement and manufacturing of nuclear fuel for reactors in the country.