Kazatomprom may enter spot market after Yellow Cake deal
Kazatomprom, the world鈥檚 largest uranium producer, may buy the nuclear fuel in the spot market after a London-listed investment company exercised an option to purchase the metal.
Yellow Cake Plc, which bets on uranium prices, said on Monday that it had exercised a $100 million purchase option with Kazatomprom. Yellow Cake also said it plans to make additional purchases if it sees value opportunities.
鈥淲e will evaluate our inventories and it鈥檚 possible we will buy material from market鈥 to cover part of our deal obligations, Askar Batyrbayev, chief commercial officer at Kazatomprom, said in interview. The miner鈥檚 uranium inventory fell by 21% to 6,761 tons last year as production declined, but remained within its target range, it said on Tuesday.
The state-controlled Kazakh miner charged 10% more for its uranium last year as the coronavirus pandemic pushed up prices. Kazatomprom and Canada鈥檚 Cameco Corp. have also cut output to reducing the global glut that built up following the 2011 Fukushima disaster in Japan.
The miner doesn鈥檛 expect 鈥渆xcess鈥 sales of uranium this year after the deal with Yellow Cake, Batyrbayev said.
(By Nariman Gizitdinov)
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