On June 5, World Environment Day is celebrated to draw attention to the environmental problems and challenges we face as a global community. The International Energy Agency predicts global electricity demand could rise by as much as 50% by 2040. It is essential that this demand is met while carbon emissions and environmental damage are mitigated.
Uranium mined by Kazatomprom’s enterprises is a reliable source of low-carbon baseload electricity, which has a crucial role to play in the decarbonisation of global energy infrastructure. The need for uranium to fuel nuclear power generation is expected to grow in the coming decades. The 2021 Nuclear Fuel Report from the World Nuclear Association predicts that uranium demand will rise 27% by 2030 and a further 38% by 2040.
Sitting at the centre of the global uranium supply chain, Kazatomprom is optimally placed to provide client countries with low-carbon fuel for nuclear power generation. Currently, a quarter of the world's uranium comes from 14 enterprises of Kazatomprom.
Minimising the environmental impact of Kazatomprom’s operations is just as important as reducing carbon emissions from global energy generation. Last year alone, the Company spent KZT 964.6 million on environmental protection measures, which were aimed at improving the environment in the regions where we operate.
Kazatomprom’s uranium is mined by in-situ recovery (ISR) and unlike underground or open-pit mining methods, the development of uranium deposits by ISR has the lowest impact on the surface: there is no soil subsidence and disturbance, and no surface storage of low-grade ores or waste rocks. In addition, ISR does not require liquid waste or tailings management facilities. The major processing steps to extract the uranium take place deep underground (hence the term “in-situ”), resulting in lower production costs and an inherently higher level of health and safety performance.
To further reduce its environmental impact, Kazatomprom has deployed low-carbon and renewable energy solutions across many of its operations. This includes the use of photovoltaic cells to provide solar power at several sites and the exclusive use of electrically powered drills for exploration and development. In 2021, 3.34 MWh of energy was produced by photovoltaic cells at the Company’s operations.
Kazatomprom supports UN Sustainable Development Goal 13 and the Paris Agreement, which call for taking urgent actions to tackle climate change and its impacts. The Company regularly monitors GHG emissions from its facilities (Scope 1), and, beginning in 2021, also indirect GHG emissions (Scope 2).
In order to reduce greenhouse gas emissions and achieve carbon neutrality, Kazatomprom is developing a corporate strategy for decarbonisation and low-carbon development.
Mazhit Sharipov, Chief Executive Officer of Kazatomprom, said:
“World Environment Day is a reminder of the role we all have to play in the global decarbonization of energy supplies. Kazatomprom’s high-quality uranium is already helping consumer countries around the world to reduce their environmental impact and we stand ready to sustainably meet increasing global demand for our fuel in the coming decades. We recognize the need take strong positive action to protect the environment while undertaking this energy transition and we continue to implement modern techniques to minimise waste and maximise energy efficiency before, during and after uranium mining across our operations.”
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Cory Kos, International Adviser, Investor Relations
Botagoz Muldagaliyeva, Director of Investor Relations
Tel: +7 (8) 7172 45 81 80
Kazatomprom Public Relations and Media Inquiries
Gazhaiyp Kumisbek, Chief Expert of GR & PR Department
Tel: +7 (8) 7172 45 80 63
A copy of this announcement will be made available at www.kazatomprom.kz.
ESG at Kazatomprom
In 2021, Samruk-Kazyna JSC, Kazatomprom’s majority shareholder, engaged an independent consultant to conduct corporate governance diagnostics in order to assign a corporate governance rating to the Company. According to the results of the diagnostics, the Company demonstrated a high level of corporate governance and was assigned the Corporate Governance Rating “A” (in 2020 “BBB”).
Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 24% of global primary uranium production in 2021. The Group 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 of 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 environment standards.
Kazatomprom securities are listed on the London Stock Exchange, Astana International Exchange, and Kazakhstan Stock Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts, as well as in the spot market, directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).
For more information, please see the Company website at http://www.kazatomprom.kz