NAC KazAtomProm, the national uranium production company in the country that is called "the Saudi Arabia of uranium," said this week it would lower production targets by 20 percent over the next three years and still fulfill all of its contracted obligations for delivery.
The reduction will drop total production by 11,000 tons over the three-year stretch, which is to begin in January 2018, the World Nuclear Association said.
In 2018, the reduction will come to about 4,000 tons or approximately 7.5 percent of the world's forecaster production for the year, as estimated by UxC, according to the mining company.
KazAtomProm chairman Galymzhan Pirmatov said the reduction was in play “to better align our production levels with market demand.”
“We believe that these measures strongly underline out commitment to ensuring the long-term sustainability of uranium mining, a critical component in the generation of clean, carbon free electricity around the globe,” he said.
KazAtomProm has done an about face based on previous announced production targets. Previously, the company that produced 39 percent of the world's uranium in 2015, at 24,560 tons, planned to increase production this year. In January, it reversed that strategy and opted, instead, for a 10 percent reduction. It is on line to produce 22,150 tons this year, said the country's energy minister.
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