What Will The Sale of Uranium Deposit to Rosatom Give Kazakhstan?

People in Kazakhstan have been discussing the sale of a 49% stake in the Budenovskoye uranium deposit for more than a week. The transaction amount is estimated at $1.5 billion. The Russian corporation Rosatom became the new owner of the asset. Orda looked into the matter.

In September 2022, the British news site Middle East Eye reported on Rosatom's purchase of a 49% stake in the Budenovskoye joint venture via a credit line from Gazprombank for $1.6 billion. The Russian nuclear giant did not confirm this information for quite some time.

In May 2023, the purchase and sale transactions were finally confirmed. As it turned out, private foreign companies that owned two sites at the Budenovskoye uranium deposit in the Turkestan region sold their shares to Rosatom.

Information on the sale appeared in the consolidated statements of JSC "NAC "Kazatomprom" for 2022. The deal was made on the down low back in December 2022. Kazakhsani society was displeased by the fact a Russian company had been on the other end of the deal. Yet there is more than meets the eye in this deal.

A Uranium Puzzle

The Budenovskoye deposit is considered one of the richest uranium ore deposits. It is divided into seven sites that belong to different companies.

• Karatau LLP operates on site No. 2
• JSC "JV "Akbastau" operates at sites No. 1, No. 3 and No. 4
• LLP "JV "Budenovskoe" operates on sites No. 6 and No. 7

Until recently, only four sites were jointly developed by Kazatomprom and Rosatom – Karatau LLP and Akbastau Joint Venture JSC. The companies owned 50% of the share in the LLP and 50% of the shares in the JSC.

Karatau LLP was established in 1979, but the commercial operation of site No. 2 began in 2008. As of January 1, 2023, the total volume of ore reserves at the site is 35.9 thousand tons of uranium. The total volume of mineral resources is 35.9 thousand tons of uranium.

JSC "JV "Akbastau" was established in 1976. Commercial operation of sites No. 1, No. 3 and No. 4 began in 2012. As of January 1, 2023, the total volume of ore reserves is 36.2 thousand tons. The total volume of mineral resources is 36.2 thousand tons.

LLP "JV Budenovskoye" was established in 1976. Commercial operation of sections No. 6 and No. 7
is planned for 2023. As of January of this year, the total volume of ore reserves of the deposits is 114.2 thousand tons of uranium. The total volume of mineral resources is 120.1 thousand tons of uranium. Rosatom subsidaries received these plots.

How Millionaires, Anisimov and Klebanov Sold Assets Through British Companies

51% of the stake in the Budenovskoye Joint Venture LLP belongs to the national company Kazatomprom, and the remaining stake belongs to Stepnogorsk Mining and Chemical Combine LLP. Rosatom purchased the latter company.

Until December 14, 2022, Stepnogorsk Mining and Chemical Plant were owned by two British companies - GANBERG UK LTD (60% stake) and GEXIOR UK LTD (40% stake). They are located at the same address (Piccadilly, Aldow Enterprise Park, Manchester, England, M12 6AE – Ed.). The same people managed them. GEVOL UK LTD managed both companies. Russian billionaire and native of Kazakhstan, Vasily Anisimov, and the son of Kazakhstani oligarch, Alexander Klebanov – Yakov, controlled GEVOL UK LTD. They had also previously owned the Stepnogorsk Mining and Chemical Plant. Now the LLP's stakeholders are Rosatom's subsidiaries (JSC "Uranium One Group" and JSC "Logistics Center NFC").

Vasily Anisimov was born in Almaty in 1951. At the age of 31, he became the supply director of the Kalinin NPP. He then worked as the director of the Moscow "Roskhoztorg". In 1989, he would later set up the enterprise "Trast", which received the status of a "special exporter of aluminium". According to Forbes Russia, Anisimov's fortune is estimated at $1.6 billion in 2022. He is ranked 54th on the list of the 200 richest businessmen in Russia. He has been doing business in Kazakhstan for a while. For example, Vasily Anisimov's company Effective Energy B.V. owned half of Karatau LLP and 25% of Akbastau joint venture until 2009. Rosatom would later get these shares.

Yakov Klebanov is the son of Kazakhstani oligarch Alexander Klebanov. He is included in the lists of the 50 most influential businessmen of Kazakhstan and the 50 richest people in the country.

Perhaps the sale of a 49% stake in Stepnogorsk Mining and Chemical Combine LLP in the amount of about $1.5 billion is associated with the expansion of other assets. Especially considering that Anisimov had previously parted with his uranium assets.

Controlling Stake

The exploration contract for the Budenovskoye joint venture was signed in 2015. The Stepnogorsk Combine assumed all financial risks for carrying out geological exploration at sites No. 6 and No. 7. The company signed a production contract in 2021. A year later the 49% was sold.

Uranium reserves amount to 114.2 thousand tons. This is about $12 billion, excluding capital and operating costs. But why did Kazakhstani society react in the way that it did? Indeed, the controlling stake of 51% of the participation is still in the hands of the national company "Kazatomprom".

Benefit?

The matter of control over the extraction of Kazakhstan's uranium isn't up for discussion, as the controlling stake remains Kazatomprom's.

This is no factory or car that can be taken out of the country. According to the Constitution, mineral resources belong to the people. Indeed, the extraction of all minerals is carried out exclusively in accordance with Kazakhstan's legislation, regardless of the country affiliation of the owners or shareholders. It thereby provides guarantees and control over the operation of the field.

The deal would not have taken place without Kazatomprom's approval. It was public, perhaps because the national company itself did not sell or buy anything. Kazatomprom has retained its controlling interest in all uranium enterprises. The company's shares are listed on the London Stock Exchange, where any suspicious activity is recorded.

Rosatom has not fallen under international sanctions yet, which concern only certain subsidiaries that are not tied to uranium production and trade.

Rosatom's nuclear technologies will also help attract investments in uranium mining. This will in turn allow our country to increase its raw material base and their exports.

It is unlikely that the previous owners were willing to invest large sums in this asset, especially considering the issues the Ekibastuz thermal power plant faced this past winter. Alexander Klebanov owns this plant.

Orda will continue to monitor developments.

Orignal Author: Maria Gorbokonenko

DISCLAIMER: This is a translated piece. The text has been modified, the content is the same. Please refer to the orginal article in Russian for accuray.