Kazatomprom inks massive supply deal with India

[Ben Graham]

Kazatomprom, the world’s top producer of uranium, plans to sell a significant portion of its output to India, a move that could further tighten the global market for nuclear fuel.

In an announcement on Friday, the Kazakh state miner said has it reached a massive supply agreement representing over 50% of the company’s booked asset value with India’s Department of Atomic Energy representing.

Under Kazakh law, a deal of this magnitude would require shareholder approvals. As such, the company has called for a extraordinary general meeting for shareholders to cast their votes. Notice of the meeting is expected at a later date.

The deal, if approved, could potentially remove a sizeable share of uranium supply off the market. Kazatomprom is currently the world’s single-largest resource holder and accounts for about 20% of the global production.

Last year, the Kazakh group produced about 67.2 million lb. uranium concentrates (on a 100% basis), which is inline with guidance and 10% higher than 2024. This year, it is expecting another 9% rise in production.

Despite this projected growth, analysts believe the global uranium market will remain in a structural deficit. Analysts at Teniz Capital, an Abu Dhabi-based investment bank, said the entire sector is undergoing a “second nuclear renaissance” that could see demand outpacing supply in the coming years.