National Atomic Company Kazatomprom, the largest producer and seller of natural uranium globally based in Kazakhstan, is planning to increase its quota limit on the trans-Caspian route. The company has used the Trans-Caspian International Transport Route since 2018 as an alternative to the route that passes through St. Petersburg. The primary reason for this was to help alleviate the risk of the other route becoming inaccessible.
In its latest results, Kazatomprom stated that its uranium shipments had continued to be shipped through St. Petersburg until now and that no restrictions on activities associated with the supply of its materials had been imposed. However, given the growing sanctions on Russia and the possible impact those sanctions may have on shipping through the territory, the company decided to increase the 3,500 tU quota limit for the trans-Caspian route.
The company further notes that the use of this alternative route could cause delays in shipment as the products passed through different jurisdictions. The company also announced that it was helping its joint venture partners that would rather obtain their shipments through the route passing through St. Petersburg.
The Trans-Caspian International Transport Route requires that chartered vessels be used on the Black Sea instead of commercial shipping firms. Materials shipped using this route must also be consolidated at the Poti Port in Georgia to maximize cost efficiencies.
Current and past shipments of material owned by Kazatomprom are allowed, based on the direct commitments between the company and the end user, which will take title of the material once it arrives at its destination. However, authorities in transit nations can request documentation from the joint venture as well as its partners for uranium shipments from Kazakhstan from joint venture operations to partners using the trans-Caspian route.
Kazatomprom added that products remained of Kazakh origin until they arrived at a western conversion facility, regardless of whether the products were shipped by the company or its partners sharing the assets. The company’s partner in Inkai, Cameco, stated in the company’s Q3 results that it didn’t take title to products shipped from the joint venture until those products arrived at the company’s Canada refinery.
Cameco’s senior VP and chief legal officer of Cameco, Sean Quinn, also confirmed that a shipment from Inkai, which was currently on the way to the Blind River refinery, was waiting on permits to resume its journey after experiencing delays in Azerbaijan because of regulatory requirements.
The logistical challenges faced in moving uranium over such a long distance across so many jurisdictions is making suppliers such as Energy Fuels Inc. (NYSE: American: UUUU) (TSX: EFR) increasingly attractive to North American clients as the energy crisis drags on with no end in sight.
NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU
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