Inkai

  • Inkai is owned 40% by Cameco and 60% by Kazatomprom, which is majority-owned by the Kazakh government.
  • Tapping into the vast uranium potential of Kazakhstan, Joint Venture Inkai LLP operates the in situ recovery mine.
  • The ISO 14001 and BSI OHSAS 18001 certified facility follows western standards for worker safety and environmental protection since it began operations in 2008. 
Production(As of December 31, 2023)

2023 Q4 Update

Production

Through our investment in Inkai, production continued to be impacted by the 20% supply reduction enacted by KAP across all uranium mines in Kazakhstan and the continued supply chain challenges it has faced. KAP has the ability to flex production 20% above or below planned production levels (8.3 million to 12.5 million pounds per year). Total 2023 production from Inkai was 8.3 million pounds (100% basis), the same as in 2022. In 2023, Inkai experienced a number of operational issues related to interruptions in reagent delivery and wellfield drilling

The first shipment, containing approximately two thirds of our share of Inkai’s 2023 production, arrived in the fourth quarter. The second shipment with the remainder of our share of 2023 production has arrived at a Canadian port. We continue to work closely with JV Inkai and our joint venture partner, KAP, to receive our share of production via the Trans-Caspian International Transport Route, which does not rely on Russian rail lines or ports.

Planning for the future

Production

Based on KAP’s announcement on February 1, 2024, production in Kazakhstan is expected to remain 20% below the level stipulated in subsoil use agreements, similar to in 2023, primarily due to the sulfuric acid shortage in the country. We are still in discussions with JV Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore our corresponding purchase obligation.

Our share of production is purchased at a discount to the spot price and included at this value in inventory. In addition, JV Inkai capital is not included in our outlook for capital expenditures.

Managing our risks

2024 Production forecast

Presently, JV Inkai is experiencing procurement and supply chain issues, most notably, related to the availability of sulfuric acid. It is also experiencing challenges related to construction delays and inflationary pressures on its production costs. Production plans for 2024 and subsequent years are uncertain and being reassessed. A significant disruption to JV Inkai’s previous production plans for 2024 and subsequent years could result in penalties and further escalation of production costs. In addition, JV Inkai’s costs could be impacted by potential changes to the tax code in Kazakhstan and by possible increased financial contributions to social and other state causes, although these risks cannot be quantified or estimated at this time.

Depending on production levels at Inkai and the outcome of our discussions related thereto with JV Inkai and KAP, our share of production and earnings from this equity-accounted investee and the amount and timing of our dividends from the joint venture may be impacted.

Transportation

The geopolitical situation continues to cause transportation risks in the region. We could continue to experience delays in our expected Inkai deliveries from 2023 and for 2024. To mitigate this risk, we have inventory, long-term purchase agreements and loan arrangements in place we can draw on. Depending on when we receive shipments of our share of Inkai’s production, our share of earnings from this equity-accounted investee and the timing of the receipt of our share of dividends from the joint venture may be impacted.

See full Quarterly Report

Environment & Safety

Worker safety, environmental monitoring and proper decommissioning after project completion are of the utmost importance to Cameco.

See more

Reserves & Resources

Our mineral reserves and resources are the foundation of our company and fundamental to our success.

See more

Caution about forward-looking information

This page may contain forward-looking information that is based upon the assumptions and subject to the material risks discussed on page 2 of Cameco's most recent Quarterly MD&A.