KAP Announces Amendments to the Subsoil Use Code
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AIX: KAP, KAP.Y (GDR)
LSE: KAP (GDR)
29 December 2025, Astana, Kazakhstan
Kazatomprom Announces Amendments to the Subsoil Use Code
National Atomic Company "Kazatomprom" JSC ("Kazatomprom") announces that on 26 December 2025 the President of the Republic of Kazakhstan signed a law on the "Amendments and Additions to the Code of the Republic of Kazakhstan 'On Subsoil and Subsoil Use' regarding the improvement of subsoil use in the hydrocarbon and uranium sectors" (the "Law").
Kazatomprom highlights the following key uranium-related changes introduced in the Law that impact its operations as the national company in the uranium sector (the "National Company").
Uranium Exploration at Prospective Areas
In accordance with the Law, the National Company is granted priority rights to obtain exploration licenses for prospective areas, along with the ability to reserve blocks containing uranium mineralization and/or deposits.
If uranium mineralization and/or deposits are discovered on solid mineral blocks held by other subsoil users, license extensions for such areas are contingent upon the subsoil users relinquishing the relevant blocks to the State. Furthermore, should other subsoil users discover a uranium deposit within solid mineral formation, they do not acquire a priority right to uranium production.
Production Rights under New Subsoil Use Agreements
Should the National Company be awarded a new subsoil use agreement ("SUA") for uranium production, any subsequent transfer of the SUA is permitted only to a legal entity in which the National Company directly or indirectly holds an interest of more than 75%. The previous version of the Code allowed for such transfers to entities where the National Company held an interest of more than 50%. These new requirements apply exclusively to new SUAs and do not affect existing SUAs.
Extensions of SUA's Expiration Periods and Increases in Production/Reserve Volumes
The extension of the SUA's expiration periods, as well as increases in production volumes and/or uranium reserves beyond currently approved obligations (or levels) under the existing SUAs for uranium production, are permitted only if one of the following conditions is introduced to such SUA. The National Company's direct or indirect ownership interest in the joint venture holding such SUA ("JV") is at least 90%, or the foreign partner (shareholder) of the JV transfers uranium conversion and enrichment technologies to the National Company or to a jointly established legal entity under the terms specified in the Law. These terms include the construction of a plant and a guaranteed contract for at least 50% of the output of such plant for the entire duration of the SUA extension.
Additional Regulatory Provisions
The amendments introduced by the Law also clarify the grounds for the early termination of SUAs. Specifically, these grounds now include cases involving the full depletion and/or development of uranium reserves under existing SUAs as of 1 January 2024, as well as the failure to fulfill obligations regarding the increase of the National Company's ownership interest or the transfer of conversion and enrichment technologies specified above.
Furthermore, the right to conduct additional exploration at producing uranium deposits is reserved exclusively for the National Company or entities in which the National Company holds at least a 90% interest. If additional exploration was conducted by another subsoil user after 1 January 2024 and resulted in an increase in uranium reserves, the right to such incremental reserves is not transferred to that subsoil user. Under such circumstances, the National Company is required to reimburse the actual exploration costs incurred, provided they are substantiated and verified by an independent auditor.
Kazatomprom emphasizes that the regulatory changes do not entail revisions or changes of ownership interests in existing JVs within the parameters established under current SUAs.
Kazatomprom remains committed to the efficient utilization and replenishment of its resource base creating long-term value for all stakeholders, strengthening its position as a global leader in the nuclear industry, and contributing to the global transition to clean energy.
For more information, please contact:
Public Relations and Media Inquiries
Daniyar Oralov, Director, Public Relations
Tel: +7 7172 45 80 63
Email: pr@kazatomprom.kz
Investor Relations Inquiries
Botagoz Muldagaliyeva, Director, Investor Relations
Tel.: +7 7172 45 81 80/69
Email: ir@kazatomprom.kz
A copy of this announcement is available at www.kazatomprom.kz.
About Kazatomprom
Kazatomprom is the world's largest producer of uranium with the Company's attributable production representing approximately 21% of global primary uranium production in 2024. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 27 deposits grouped into 14 mining assets. All of the Company's mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards (ISO 45001 and ISO 14001 certified).
Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. Kazatomprom is the national atomic company in the Republic of Kazakhstan, and the Group's primary customers are operators of nuclear generation capacity, the main export markets for the Group's products are Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts as well as in the spot market, directly from its headquarters in Astana, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).
For more information, please see the Company website at www.kazatomprom.kz.
Forward-looking statements
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THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN.
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