Kazatomprom inks massive supply deal with India

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.

Under Kazakh law, a deal of this magnitude would require shareholder approvals. As such, the company has called for an 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 global production.

Last year, the Kazakh group produced about 67.2 million lb. uranium concentrates (on a 100% basis), which is in line 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.