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JSC National Atomic Kazatomprom : Competent Person's Report on the mineral assets of Kazatomprom

07/28/2022 | 12:00am

COMPETENT PERSONS' REPORT ON THE MINERAL ASSETS OF JOINT STOCK COMPANY NATIONAL ATOMIC COMPANY KAZATOMPROM, REPUBLIC OF KAZAKHSTAN

Prepared For

Joint Stock Company National Atomic Company "Kazatomprom"

Report Prepared by

SRK Consulting (UK) Limited

UK31126

SRK Consulting

Kazatomprom CPR, 2022 - Copyright

COPYRIGHT AND DISCLAIMER

Copyright (and any other applicable intellectual property rights) in this document and any accompanying data or models which are created by SRK Consulting (UK) Limited ("SRK") is reserved by SRK and is protected by international copyright and other laws. Copyright in any component parts of this document such as images is owned and reserved by the copyright owner so noted within the document.

Except where SRK has agreed otherwise (including pursuant to an agreement between SRK and JSC NAC Kazatomprom ("KAP") dated 02 November 2021 or any subsequent agreement):

  • The use of this document is strictly subject to terms licensed by SRK to the named recipient or recipients of this document or persons to whom SRK has agreed that it may be transferred to (all such persons, including without limitation KAP, each of its direct and indirect subsidiaries, KAP's shareholder JSC Sovereign Wealth Fund Samruk-Kazyna and competent state authorities in Kazakhstan and other relevant jurisdictions, as may be applicable, being the "Recipients"). Unless otherwise agreed by SRK, this does not grant rights to any party which is not a Recipient (a "Third Party"). This document may not be utilised or relied upon for any purpose other than that for which it is stated within and SRK shall not be liable for any loss or damage caused by such use or reliance. In the event that the Recipient of this document wishes to use the content in support of any purpose beyond or outside that which it is expressly stated or for the raising of any finance from a Third Party where the document is not being utilised in its full form for this purpose, the Recipient shall, prior to such use, present a draft of any report or document produced by it that may incorporate any of the content of this document to SRK for review so that SRK may ensure that this is presented in a manner which accurately and reasonably reflects any results or conclusions produced by SRK.
  • This document shall only be distributed to any Third Party in full as provided by SRK and may not be reproduced or circulated in the public domain (in whole or in part) or in any edited, abridged or otherwise amended form unless expressly agreed by SRK. Any other copyright owner's work may not be separated from this document, used or reproduced for any other purpose other than within this document in full as licensed by SRK. In the event that this document is disclosed or distributed to any Third Party, no such Third Party shall be entitled to place reliance upon any information, warranties or representations which may be contained within this document and the Recipients of this document shall indemnify SRK against all and

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© SRK Consulting (UK) Limited 2022

SRK Legal Entity:

SRK Consulting (UK) Limited

SRK Address:

5th Floor Churchill House

17 Churchill Way

City and County of Cardiff, CF10 2HH

Wales, United Kingdom of Great Britain and Northern Ireland.

Date:

April, 2022

Project Number:

UK31126

SRK Project Director:

Dr Mike Armitage

Corporate Consultant (Geology)

SRK Project Manager:

Dr Iestyn Humphreys

Corporate Consultant (Due Diligence)

Commercial Client

Legal Entity:

Joint Stock Company National Atomic Company Kazatomprom

Registered Office:

17/12, E-10 Street,

Yessil District, Astana, 010000,

Republic of Kazakhstan

UK31126_Kazatomprom_CPR_Final.docx

April, 2022

SRK ConsultingKazatomprom CPR, 2022 - Table of Contents Executive Summary

Table of Contents: Executive Summary

1 INTRODUCTION ..................................................................................................

i

1.1

Background..........................................................................................................................

i

1.2

Requirement, Reporting Standard, Reliance and Responsibility Statements....................

iv

1.3

Effective date, Base Technical Information Date and Publication Date .............................

v

1.4

Verification and Validation ..................................................................................................

v

1.5 Limitations, Reliance on Information, Declaration, Consent and Cautionary Statements..vi

1.5.1

Limitations..............................................................................................................

vi

1.5.2

Responsibility Statement ......................................................................................

vii

1.5.3

Reliance on Information........................................................................................

vii

1.5.4

Declarations.........................................................................................................

viii

1.5.5

Copyright..............................................................................................................

viii

1.6

Indemnities Provided by the Company...............................................................................

ix

1.7

Qualifications of Consultants and Competent Persons......................................................

ix

2

THE MINERAL ASSETS .....................................................................................

x

2.1

Introduction .........................................................................................................................

x

2.2

Location, Tenure and Environmental Setting .....................................................................

x

2.3

Historical Statistics ...........................................................................................................

xiii

3

TECHNICAL OPINION .....................................................................................

xiii

3.1

Introduction .......................................................................................................................

xiii

3.2

Commodity Prices and Macro-Economics .......................................................................

xiii

3.3

Mineral Resources and Ore Reserves .............................................................................

xv

3.3.1

Mineral Resources...............................................................................................

xvi

3.3.2

Ore Reserves.......................................................................................................

xx

3.4

Environmental and Social Liabilities................................................................................

xxii

3.5

Life-of-Mine plan.............................................................................................................

xxiii

3.5.1

LoM Planning Process.......................................................................................

xxiv

3.5.2

Sales Revenue ...................................................................................................

xxv

3.5.3

Cash Cost Reporting ..........................................................................................

xxv

3.5.4

Technical Economic Parameters.......................................................................

xxvi

3.6

Exploration Programme..................................................................................................

xxvi

3.7

Risks and Opportunities ................................................................................................

xxvii

4

CONCLUSIONS .............................................................................................

xxix

4.1

Introduction .....................................................................................................................

xxix

4.2

Work Completed..............................................................................................................

xxx

4.3

Key Outcomes .................................................................................................................

xxx

4.4

Closing Statement ..........................................................................................................

xxxi

UK31126_Kazatomprom_CPR_Final.docx

April, 2022

Page i of ii

SRK ConsultingKazatomprom CPR, 2022 - Table of Contents Main Report]

Table of Contents: Main Section

1 INTRODUCTION .................................................................................................

1

1.1

Background.........................................................................................................................

1

1.2

Requirement, Report Standard and Reliance ....................................................................

4

1.2.1

Requirement ..........................................................................................................

4

1.2.2

Reporting Standards..............................................................................................

5

1.2.3

Reliance .................................................................................................................

9

1.3

Effective Date, Base Technical Information Date and Publication Date ..........................

10

1.4

Verification, Validation and Reliance................................................................................

10

1.5 Limitations, Responsibility Statement, Reliance on Information, Declarations and

Copyright ..........................................................................................................................

12

1.5.1

Limitations............................................................................................................

12

1.5.2

Responsibility Statement .....................................................................................

13

1.5.3

Reliance on Information.......................................................................................

14

1.5.4

Declarations.........................................................................................................

14

1.5.5

Consent................................................................................................................

15

1.5.6

Copyright..............................................................................................................

15

1.6

Indemnities Provided by the Company.............................................................................

15

1.7

Statement of Qualification ................................................................................................

16

1.8

Report Format...................................................................................................................

17

2 COMPANY OVERVIEW AND MINERAL ASSETS ...........................................

18

2.1

Introduction .......................................................................................................................

18

2.2

Group Overview................................................................................................................

18

2.2.1

Corporate Structure .............................................................................................

19

2.2.2

Historical Development........................................................................................

22

2.2.3 Corporate Strategy, vision and mission...............................................................

25

2.2.4

Financial Performance.........................................................................................

27

2.2.5

Human Resources ...............................................................................................

38

2.2.6 Environmental and Social Governance ...............................................................

41

2.2.7 Occupational Health and Safety ..........................................................................

46

2.3

Mineral Assets ..................................................................................................................

49

2.3.1 Location, Access and Infrastructure ....................................................................

50

2.3.2

Historical Operating Statistics..............................................................................

55

2.3.3 Mineral Resources and Ore Reserves ................................................................

59

2.3.4

Exploration Programme .......................................................................................

61

2.3.5 Environmental and Social Liabilities ....................................................................

61

3 COMMODITY PRICES AND MACRO ECONOMICS ........................................

63

3.1

Introduction .......................................................................................................................

63

3.2

Commodity Prices and Macro-Economic Summary.........................................................

63

UK31126_Kazatomprom_CPR_Final.docx

April, 2022

Page i of xiii

SRK Consulting

Kazatomprom CPR, 2022 - Table of Contents Main Report]

3.3

Uranium Market ................................................................................................................

64

3.3.1

Demand ...............................................................................................................

64

3.3.2

Supply ..................................................................................................................

66

3.3.3

Uranium Price Analysis........................................................................................

70

3.4

Macro-Economics.............................................................................................................

73

4 LEGISLATIVE ENVIRONMENT AND MINING TITLE STATUS .......................

76

4.1

Introduction .......................................................................................................................

76

4.2

Legislation.........................................................................................................................

76

4.2.1

Exploration...........................................................................................................

78

4.2.2

Mining ..................................................................................................................

78

4.2.3

Environmental Regulations..................................................................................

79

4.2.4

Mine closure ........................................................................................................

81

4.2.5 Land Code and Land Use Regulations................................................................

82

4.2.6

Water Use Code ..................................................................................................

82

4.2.7 Atomic Industry and Radiation Safety Requirements..........................................

82

4.2.8 Labour Protection and Occupational Health and Safety .....................................

83

4.2.9

Energy Saving Law..............................................................................................

84

4.3

Status of the Company's Agreements..............................................................................

84

5 URANIUM DEPOSITS: GEOLOGICAL OCCURRENCE, MINING AND

PROCESSING ...................................................................................................

86

5.1

Introduction .......................................................................................................................

86

5.2

Uranium Deposits: geology, resources, mining and processing ......................................

86

5.3

Kazakhstan Uranium Production ......................................................................................

91

5.4

Mining and Processing Operations at the Company's Deposits ......................................

94

5.4.1

Hydrogeology and Geochemistry ........................................................................

95

5.4.2 Wellfield design and construction ......................................................................

102

5.4.3 Uranium Process Recovery and Refining..........................................................

104

5.4.4

Supporting Infrastructure ...................................................................................

107

6 GEOLOGY

.......................................................................................................

112

6.1

Introduction .....................................................................................................................

112

6.2

Shu-Sarysu Basin...........................................................................................................

112

6.2.1

Regional Geology ..............................................................................................

112

6.2.2

Deposit Geology ................................................................................................

117

6.2.3

Deposit Mineralisation .......................................................................................

117

6.2.4

Deposit Summaries ...........................................................................................

117

6.3

Syrdarya Basin ...............................................................................................................

127

6.3.1

Regional Geology ..............................................................................................

127

6.3.2

Deposit Geology ................................................................................................

128

6.3.3

Mineralisation.....................................................................................................

128

6.3.4

Individual Deposit Summaries ...........................................................................

129

UK31126_Kazatomprom_CPR_Final.docx

April, 2022

Page ii of xiii

Disclaimer

NAK Kazatomprom AO published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 07:33:04 UTC.

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