Kazatomprom, the state-owned Kazakh uranium giant, is seeking shareholder approval for a proposed deal with China. The agreement, which has been under negotiation for several months, would see Kazatomprom supply up to 25% of its uranium production to China.
The deal is part of a larger effort by Kazakhstan to strengthen its ties with China, which is seeking to reduce its dependence on imports and increase its own uranium production. Kazakhstan is the world's largest uranium producer, accounting for over 40% of global production.
According to Kazatomprom's chairman, Askar Zhambakenov, the deal would provide a stable and long-term revenue stream for the company. 'This agreement will ensure a stable and reliable supply of uranium to China, while also providing a new revenue stream for Kazatomprom,' he said.
The proposed deal has been met with caution by some analysts, who have raised concerns about the potential impact on the global uranium market. 'This deal could have significant implications for the global uranium market, particularly if it leads to a reduction in exports from other countries,' said an analyst at a leading energy research firm.
Kazatomprom's shares have been trading steadily in recent months, with the company's share price increasing by 10% in the past year. However, some analysts have expressed concerns about the potential risks associated with the deal, including the possibility of price volatility and changes in global demand.