AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the US District Court for the District of Wyoming.
Kazakhstan, the world’s largest producer of uranium, is increasing its mining tax on the nuclear fuel by at least 50% next year.
The central-Asian country is to raise the rate to 9% from 6% starting Jan. 1, according to state mining company Kazatomprom (LSE: KAP). Then in 2026, a graduated structure based on output would see the tax rate increase to 18% for more than 4,000 tonnes of uranium concentrate U3O8 produced and as little as 4% for less than 500 tonnes, the miner said July 10.
An additional rate of 0.5% is to be charged if market prices are more than $70 per lb., to as much as 2.5% more at greater than $110 per lb., Kazatomprom said. The government introduced the measures July 1, the miner said.
The price of uranium was at $86.15 per lb. on Monday, according to Trading Economics. The heavy metal’s price roughly doubled to $106 per lb. in January from last July.
The country’s tax rates are among the lowest in the world and can be raised by 10-20%, economy minister Alibek Kuantyrov said at the time, according to Brussels-based Nucnet news agency.
Shares in Kazatomprom fell 5.6% to close at £37.80 apiece on July 10 before recovering to end Monday at £39.70 for a market capitalization of £7.9 billion.
Stock prices in uranium producers besides Kazatomprom generally rose after the tax announcement on concerns of supply disruptions in the leading producer after it already reported a shortage of sulphuric acid to process ore.
Cameco (TSX: CCO; NYSE: CCJ) also has exposure to Kazakhstan via its Inkai joint venture with Kazatomprom. The Canadian miner holds a 40% stake in the in-situ recovery mine. Shares in Cameco closed on Monday in Toronto at C$71.40 apiece, up 6.8% from C$66.83 on July 9 before the tax announcement. Its market value is C$31 billion.
The $5.7 billion Sprott Physical Uranium Trust (TSX: U.U for USD; U.UN for CAD) gained 2.8% to Friday’s close at $27.93 from $27.17 on July 9. It slid to close at $27.20 on Monday.
Kazakhstan’s 21,227 tonnes of uranium in 2022 led global output, according to the World Nuclear Association, an industry booster. Kazatomprom produced 11,373 tonnes or 23% of world production that year.
Comments