Kritical Minerals: Kazakhstan to Cut Uranium Production in 2026
The world's largest uranium producer, Kazatomprom, a state-owned nuclear energy company of Kazakhstan, announced that it will cut production by about 10% in 2026, leading to a reduction of about 5% in global supply. The company stated that there is no need to resume full capacity production due to the imbalance between supply and potential demand.
This adjustment will reduce the nominal production from 32,777 tons of uranium (tU) to 29,697 tons, mainly affected by changes in the Budennovskoye joint venture. However, the production guidance for 2025 remains unchanged.
This production cut highlights the geopolitical sensitivity of the uranium market - with factors such as US-Canada tariffs, energy security concerns, and nuclear policy support driving up demand expectations, Kazakhstan controls about 40% of the global uranium supply.
As uranium production decreases, market supply tightens, and prices face upward pressure. Although new mining projects may gain more investment momentum, utility companies and government agencies planning new nuclear power plants will face more pressure to sign long-term contracts.
For utility companies and advanced reactor developers, the production cut measures have strengthened the need for diversification of fuel supply chains and accelerated the advancement of Western uranium enrichment and HALEU initiatives.
Sources: The National Interest
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Original: www.toutiao.com/article/1841890452468745/
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