Meirzhan Yussupov, CEO of Kazatomprom, speaks during an interview with The Korea Herald at the company's headquarters in Astana, Kazakhstan, on July 3. (Kazatomprom)
ASTANA, Kazakhstan -- Kazatomprom, the world's largest uranium miner, aims to establish a "permanent partnership" with South Korea to ensure a stable uranium supply amid growing demand, CEO Meirzhan Yussupov said in an exclusive interview with The Korea Herald.
The company sees "significant potential" in expanding its cooperation into emerging fields, including the development of critical mineral resources, he added.
"Successful and mutually beneficial cooperation between Kazatomprom and South Korean energy company continues for more than two decades," Yussupov told The Korea Herald on July 3 in Astana, referring to Kazatomprom's first sales to South Korea in the early 2000s.
The CEO explained that representatives of Kazatomprom and South Korea "constantly meet as part of regular bilateral meetings, including during uranium industry conferences, to discuss the prospects of further cooperation and exchange of views on the current situation in the uranium market."
"We will certainly strive for permanent partnership in the field of supply of Kazakh uranium products to South Korean energy needs," Yussupov said.
The company was referenced twice in a joint statement issued following the meeting of South Korean President Yoon Suk Yeol and Kazakh President Kassym-Jomart Tokayev on June 12.
The statement, emphasizing the mutual commitment to ensuring a sustainable supply of Kazakh uranium to South Korea and exploring the potential for increasing the supply of uranium, highlighted Kazatomprom's intention to continuously monitor public tenders by a South Korean public energy institution and participate in bidding processes.
President Yoon Suk Yeol (left) and Kazakh President Kassym-Jomart Tokayev attend a joint press briefing after their summit at the presidential palace in Astana, Kazakhstan, on June 12, 2024. (Joint Press Corps via Newsis)
"The partnership between Kazatomprom and South Korean energy company is especially important amid current supply chain challenges caused by geopolitical uncertainty," Yussupov said.
"For Kazatomprom, this cooperation opens access to high-tech South Korean markets and strengthens the company's position in the global uranium market. Long-term contracts can ensure stable revenue, which is important for long-term strategic planning and investment," he added.
A stable and secure supply of uranium is essential to meet the increasing demand for uranium as a critical resource for energy security amid the global transition to net-zero emissions.
At the 2023 UN Climate Change Conference, 22 countries committed to tripling their nuclear energy capacity by 2050, compared to 2020 levels. The database provided by the UN's International Atomic Energy Agency also shows 59 nuclear reactors are currently under construction in 15 countries, including South Korea.
Yussupov said Kazatomprom aims for "participation in open tenders of South Korean energy companies for the supply of natural uranium, which will potentially ensure stability and reliability of supply for Korean companies."
Kazakhstan ranks second worldwide in proven reserves of natural uranium and is a global leader in the uranium mining industry, supplying about 40 percent of the world's annual nuclear energy needs. It can be said that at least every third nuclear reactor in the world runs on Kazakh uranium.
Kazatomprom has been number one in uranium production since 2010, and since 2018 in sales, supplying mainly to nuclear power plant operators in Asia, North America and Europe, according to the company. It is listed on the London Stock Exchange, Astana International Exchange and Kazakhstan Stock Exchange.
Inkai JV LLP produces uranium using the ISL method at the Inkai field of the Turkestan region in Kazakhstan. (Kazatomprom)
Having Kazakhstan as a reliable uranium supplier, South Korea could ensure the reliability and safety of its nuclear fuel cycle, which is critical to the country's energy security. Globally, South Korea ranks sixth in nuclear generation capacity, with 26 operational nuclear reactors producing a combined capacity of approximately 26 GWe, according to the IAEA.
"For South Korea, benefits include diversification of uranium supply sources, which reduces dependence on one region and mitigates risks associated with possible supply disruption."
South Korea is bolstering its commitment to nuclear energy as a cornerstone of its energy mix, with plans for additional nuclear power plant construction. According to the Ministry of Trade, Industry, and Energy, the nuclear sector is projected to contribute 35.6 percent of the nation's total power generation by 2038, up from the 31.8 percent forecast for 2030.
"We will continue to hold regular bilateral meetings and negotiations with South Korean partners to discuss current and future needs. Regular meetings, both online and offline, allow us to be in touch at any time and quickly resolve issues that arise," Yussupov said.
Yussupov also noted that representatives of Kazatomprom and South Korea regularly attend international forums and conferences such as the World Nuclear Symposium and the UN Climate Change Conference to enhance their cooperation at the global level.
Kazatomprom CEO also said the company could potentially consider venturing into its cooperation with South Korea, including scientific institutes, in the field of critical mineral resources.
"Development of projects in the field of critical mineral resources, such as rare and rare earth metals will expand our cooperation in another strategically important area," he said.
Kazatomprom is enhancing its development of specialist metals, aiming for a stable supply, at its Ulba Metallurgical Plant subsidiary. UMP is currently the world's second-largest producer of beryllium products and the fourth-largest producer of tantalum products, both of which are critical materials for high-tech industrial use, including electronics, semiconductors and aerospace, due to their unique properties.
Rafael Mariano Grossi, IAEA Director-General official visit to the IAEA LEU Bank located at the Ulba Metallurgical Plant in Oskemen, Kazakhstan. 18 April 2023. (LEU Bank, Kazakhstan)
When asked whether Kazatomprom had been approached by North Korea, or if the company would be willing to sell uranium to North Korea if requested, the CEO responded firmly, "No, no, no. We will never sell Uranium to North Korea and other countries violating IAEA safeguards."
"We don't specifically deal with all sanctioned (countries) and we are quite serious about this," Yussupov stated.
North Korea, despite being under UN Security Council sanctions, has developed the capability to convert natural uranium into enriched uranium, a process that can be utilized for producing nuclear weapons.
"As one of the first countries to voluntarily give up nuclear weapons, we strictly adhere to the obligations of the Non-Proliferation Treaty," Yussupov stated.
The CEO explained that the company adheres to Know Your Customer requirements and is fully aware of the consequences of violating sanctions and regulations imposed by the UN and Western countries.
"We wouldn’t do anything that could jeopardize the international order. Everything we do is in compliance with the UN Security Council resolutions," Yussupov said. "Our government also is quite serious about this. So we make sure that everything is in compliance with international regulations and IAEA standards and practices."
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Kazatomprom CEO Profile
Yussupov has been leading Kazatoprom since October 2023. Before becoming CEO post at the company, he served as CEO of Kazakh Invest JSC and was Kazakhstan's Vice Minister of National Economy from 2020-2021.
He graduated from Middle East Technical University in 2001, the London School of Economics in 2007 and Harvard University in 2015 with a master's degree in public administration.
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