Page 11 - bne magazine February 2024_20240206

bne February 2024 Companies & Markets I 11
uranium converter facilities globally, responsible for producing uranium hexafluoride gas. These facilities, located in Russia, China, France, and Canada, play a crucial role in the conversion process, which is a prerequisite for subsequent enrichment and nuclear fuel production. Russia dominates this sector, accounting for approximately 40% of the world's uranium conversion infrastructure and supplying roughly one-third of the utilised uranium hexafluoride gas in the global market.
The significance of conversion process cannot be overstated, as it is an essential step preceding enrichment and the manufacturing of nuclear fuel. In 2020, European Union utilities relied on Russia for about 20% of their uranium and 26% of their uranium enrichment services. Similarly, based on 2021 data, the United States sourced approximately 14% of its uranium and 28% of its uranium enrichment services from Russia.
Kazakhstan’s uranium supply has also recently been harmed by challenges in securing sulfuric acid essential for uranium production last year and this year. Kazatomprom announced this month the possibility of reducing its 2024 production plan due to these challenges. Previously, the company projected uranium production in the range of 25,000-25,500 tonnes for 2024 and 30,500-31,500 tonnes for 2025, compared to 20,500-21,500 tonnes in 2023.
This overall paints a grim picture for the US and the EU, as energy independence from Russia - and, partly from China - may not become a reality any time soon.
This has not detered some European nations from attempting to ignore Russia's grip on Kazakh uranium though. Notably, French nuclear company Orano, formerly known as Areva, is, looking to step up its uranium activities in Kazakhstan, where it already mines uranium deposits in a joint venture with Kazatomprom.
KATCO, a joint venture between Orano and Kazatomprom, is reportedly gearing up to commence uranium mining operations at the South Tortkuduk site by the end of 2023, Trend.az reported, citing a source at Orano. The venture, with 51% ownership
by Orano Mining and 49% by Kazatomprom, is focused on developing and utilising uranium resources in the Turkistan Region, specifically in the Muyunkum and Tortkuduk areas situated around 300 kilometres (186 miles) north of Shymkent.
Analysts have attributed French President Emmanuel Macron's visit to Kazakhstan late last year to be primarily driven by the need to secure closer ties over uranium production and import.
As such, perhaps some paths for direct access to Kazakh uranium have not yet been entirely blocked off by Russia, though who is to say this not a matter of time?
China building up electric auto infrastructure in Central Asia
Eurasianet
China is moving forward with a variety of investment and infrastructure projects in Central Asia designed to boost exports to the region and beyond.
In Uzbekistan, Chinese executives are seeking to tighten their grip on the electric vehicle (EV) market. The Chinese firm Henan Suda signed a deal earlier in December with Uzbekistan’s Energy Ministry to build upwards of 50,000
EV charging stations around the country by 2033. Already
in 2024, 2,500 charging stations are to be constructed. The project is projected to serve about 700,000 EVs when fully built-out. During the first 10 months of 2023, China exported over 20,000 electric vehicles to Uzbekistan.
Elsewhere, the Kyrgyz government has signed off on a $700- mn project to build a trade hub in Kyrgyzstan’s Chui region. The project, to be overseen by an entity called Kyrgyz-Chinese Investment Holding Co., is envisioned as including a trade complex, exhibition centre, warehouses and bonded trade zones, as well as housing and hotels.
In a separate development, Bakyt Torobaev, the deputy chair of Kyrgyzstan’s cabinet, announced that a new border checkpoint along the Chinese frontier, called Bedel, is to be built in 2024, as well as a four-lane bridge at the existing Irkeshtam border checkpoint, the Sputnik outlet reports.
Meanwhile, in Kazakhstan, a Chinese company, Gezhouba Group Cement Co, has signed an agreement worth $220mn to build a cement plant in the Almaty region. In addition, China is mulling a 110mn-euro investment in a major hospital project.
The European Bank for Reconstruction and Development (EBRD) is considering a similar investment in the project,
the Kursiv media outlet reports. The planned hospital would have 630 beds and be situated in Kokshetau, a regional centre in northern Kazakhstan. The total cost of construction is estimated to be €467mn.
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