Production activity at block No. 1 of the Inkai uranium deposit in Kazakhstan has been temporarily suspended, a move that has caught joint venture (JV) partner Cameco off guard.

In response to Kazatomprom’s announcement last week that production at Inkai was suspended on January 1, Cameco said that it was disappointed.

Kazatomprom, which holds a 60% interest in the Inkai JV, announced last week that production was halted on January 1. TSX-listed Cameco, which owns the remaining 40%, has expressed surprise over the development.

Under Kazakhstan’s subsoil and subsoil use code, production operations can only proceed with an approved field development project. However, on December 30, 2024, JV Inkai had not secured necessary approvals from the relevant State authorities due to delays in submitting the required documentation.

To comply with the legislation, JV Inkai opted to temporarily suspend its production activity.

Cameco says that based on the information it had been receiving from JV Inkai and Kazatomprom, a process to address the update of the project documentation was under way and a positive outcome was expected.  

“Reports received by Cameco as recently as December 26, 2024, made no mention of a production suspension being a risk in relation to this process,” Cameco points out.  

The Canadian company says it will be seeking further clarification on how the situation arose, as well as the potential 2025 and 2026 production and financial impacts (including on future dividends).

Additionally, Cameco says it will explore ways to help Kazatomprom and JV Inkai restart mining operations.

Kazatomprom has said that under the current circumstances, it does not anticipate any significant impact on its 2025 production plans, that it has sufficient level of inventories to comfortably manage its deliveries throughout the year.

JV Inkai expects to submit the required documentation to the Ministry within the next couple of weeks and the situation to be resolved shortly afterwards, Kazatomprom says in a statement on January 2.