Cameco Faces Uranium Production Halt at JV Inkai Following Regulatory Delay

Cameco (TSX:CCO,NYSE:CCJ) said on Thursday (January 2) that it has learned of a production halt at JV Inkai.

Kazatomprom (LSE:KAP,OTC Pink:NATKY), the company's partner at the site, said JV Inkai was unable to obtain an extension for submitting updated Uranium Deposit Development documentation.

The extension wasn't received due to a delay in submitting required documents to Kazakhstan’s Ministry of Energy.

The suspension at JV Inkai took effect on Wednesday (January 1).

Kazatomprom, which holds a 60 percent stake in the joint venture, instructed JV Inkai to prepare for the suspension to ensure compliance with local legislation. Cameco holds the remaining 40 percent interest.

According to Cameco, the delay in regulatory approval was unexpected.

The company reported that as late as December 26, communications from Kazatomprom and JV Inkai suggested the process to update documentation was proceeding without issues, with no indication that production might be at risk.

The formal notification of the suspension arrived on Tuesday (December 31), just one day before operations ceased.

Cameco expressed concern over the lack of prior warning, emphasizing that the suspension could affect uranium production volumes and financial returns in 2025 and 2026. The firm is currently seeking clarification from Kazatomprom regarding the circumstances that led to the regulatory delay and potential pathways to resume operations.

Cameco is also evaluating operational and financial impacts. The company noted that dividends from JV Inkai, which contribute to Cameco’s overall profitability, may be affected depending on the duration of the production halt.

The uranium miner acknowledged the possibility of prolonged regulatory delays, citing complex legal frameworks and potential amendments to resource use contracts in Kazakhstan. Cameco’s ongoing risk assessment will focus on mitigating impacts to shareholders, while maintaining compliance with Kazakh regulations.

Kazakhstan is currently the world’s largest uranium producer, and JV Inkai is a key supplier within the sector.

JV Inkai operates one of Kazakhstan’s most significant uranium deposits, contributing to Cameco’s global portfolio.

The suspension marks the first major disruption at JV Inkai since the joint venture’s establishment.

Cameco reassured stakeholders that it remains focused on supporting JV Inkai and Kazatomprom in navigating the regulatory process to ensure a timely return to production.

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