Kazatomprom Cuts 2026 Uranium Output as Market Tightens, Demand Seen Rising

Aug. 25, 2025 09:00AM PST

Kazatomprom plans to cut its 2026 uranium production by 10 percent compared to previous targets due to weak H1 profits and market conditions.

Graph with rising red line next to stylized cooling towers emitting digital particles.
LuckyStep / Shutterstock

Kazatomprom, Kazakhstan’s state-owned uranium giant, said it will scale back production in 2026, noting that current supply and demand dynamics do not justify a return to full capacity even as long-term prices hold firm.

The company, which accounts for more than one-fifth of the world’s primary uranium output, said in an August 22 release that it expects to lower production by roughly 10 percent next year compared to earlier targets.

It will reduce its nominal output level from 32,777 metric tons of U3O8 to 29,697 metric tons.

That equates to a drop of around 8 million pounds of uranium, or about 5 percent of global supply. Most of the reduction will come from adjustments at Kazatomprom's Budenovskoye joint venture.

“As the world’s largest producer and seller of natural uranium, Kazatomprom fully recognises the critical role the Company has in supporting the global energy transition,” Chief Executive Meirzhan Yussupov commented.

Kazatomprom said the present environment does not warrant lifting production to the 100 percent level. The long-term uranium price is currently stable at around US$80 per pound, despite volatility in the spot market.

Instead, the company said it plans to “exercise its downflex opportunity within the acceptable 20 percent deviation under the updated 2026 Subsoil Use production levels.” Actual guidance for the 2026 output will be released later.

The company further added that supplies of sulfuric acid, a critical reagent for the in-situ recovery mining method used across its operations, are expected to be stable in 2026.

Kazatomprom also pointed to Kazakhstan’s own nuclear energy ambitions. The government has floated plans for three nuclear power plants, each of which would require about 400 metric tons (1.04 million pounds) of uranium annually.

The company's updates came as part of its half-year results. Kazatomprom reported a 54 percent fall in net profit to 263.2 billion Kazakhstani tenge (around US$489.5 million) in the first six months of 2025, compared with the same period a year earlier. Revenue slipped 6 percent to 660.2 billion tenge due to lower sales volumes.

In August 2024, the company cut its 2025 uranium output forecast by 12 to 17 percent amid a sulfuric acid shortage.

Its new acid plant won’t be ready until at least 2026, while higher mineral extraction taxes, which commenced earlier this year, are set to raise costs and erode its traditional competitive edge. But even as it trims output targets, Kazatomprom stressed that it is pushing ahead with large-scale exploration programs across Kazakhstan. The initiatives are aimed at replenishing reserves and safeguarding the company’s status as the leading global supplier of nuclear fuel.

“Kazatomprom is currently undertaking a large-scale exploration in Kazakhstan, which is a top priority for replenishing its resource base and maintaining its leading position as a global nuclear fuel supplier,” Yussupov said.

Potential uranium market deficit ahead

Although Kazatomprom has seen a decline in profits, uranium sector major Cameco (TSX:CCO,NYSE:CCJ) registered growth in Q2 of this year, and is anticipating a broad uptick in global demand.

“We believe that supportive government policies, the tangible actions of energy-intensive industries, and positive public conversations are all pointing to a global convergence: nuclear energy is a critical solution for providing clean, constant, secure and reliable power to electrify global economies," wrote President and CEO Tim Gitzel in July.

Given uranium's key role in clean energy, FocusEconomics analysts are forecasting that prices will stay well above 2010 levels through the decade, with price sprojected in the US$65 to US$80 range.

The World Nuclear Association (WNA) projects that uranium demand will rise 28 percent by 2030, outpacing an 18 percent supply increase, driven by emerging market growth, artificial intelligence-related power needs, modular reactor adoption and energy security concerns. Primary uranium production from mines, conversion plants and enrichment plants meets most global reactor demand, with secondary supply helping bridge short-term gaps.

"However, secondary supply is projected to have a gradually diminishing role in the world market, decreasing from the current level in supplying 11-14 percent of reactor uranium requirements to 4-11 percent in 2050," the WNA states.

Despite the looming shortfall in the uranium sector, FocusEconomics analysts don’t anticipate a return to 2024’s highs, when prices overshot fundamentals amid investor exuberance.

“Supply/demand dynamics are supportive of higher uranium prices: We forecast a structural supply deficit of ~20 million pounds in 2025 to grow to ~130 million pounds by 2040, or representing 40 percent-45 percent undersupply," the firm states. "This view is supported by increasing demand for uranium as the global nuclear fleet expands to support growing power needs amid a lack of meaningful potential supply to come online.”

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

From Your Site Articles
https://x.com/giannliguid
https://www.linkedin.com/in/giannliguid/
The Conversation (0)
Giann Liguid

Giann Liguid

Writer

Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.

When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
Georgia Williams

Georgia Williams

Managing Editor

Originally from Calgary, Georgia has been right at home in Toronto for more than two decades. Graduating from the University of Toronto with an honors BA in journalism, she is passionate about writing on diverse topics, including resources, arts, politics and social issues.

At INN Georgia covers a wide range of topics, including energy, battery and critical metals and diamonds. In her spare time, Georgia enjoys watching documentaries and experiencing Toronto's vibrant food, arts and cultural scene.

Latest News

More News

Outlook Reports world

Resource
Tech
Life Science

Browse Companies

Resource
Tech
Life Science
MARKETS
COMMODITIES
CURRENCIES
Giann Liguid
Giann Liguid

Writer

Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.

When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.

Full Bio

Follow

Learn about our editorial policies.

Georgia Williams
Georgia Williams

Managing Editor

Originally from Calgary, Georgia has been right at home in Toronto for more than two decades. Graduating from the University of Toronto with an honors BA in journalism, she is passionate about writing on diverse topics, including resources, arts, politics and social issues.

At INN Georgia covers a wide range of topics, including energy, battery and critical metals and diamonds. In her spare time, Georgia enjoys watching documentaries and experiencing Toronto's vibrant food, arts and cultural scene.

Full Bio

Follow

Learn about our editorial policies.