Kazakhstan’s government has introduced new pricing rules that cap discounts on the purchase of key nuclear materials at 15%, reports Kursiv.kz.
The regulation applies to uranium hexafluoride — produced by converting uranium oxide, a finished product of Kazakhstan’s uranium industry — and enriched uranium products.
Under the new rules, the government will allow discounts of up to 15% when purchasing these materials. However, purchases related to international projects involving the Ulba Metallurgical Plant and transactions with the International Atomic Energy Agency (IAEA) are automatically considered market-based, regardless of how they align with the discount formula.
«The government of Kazakhstan hereby resolves to approve the rules (methodology) for pricing uranium hexafluoride and enriched uranium product,» states the draft resolution signed by Prime Minister Olzhas Bektenov.
The rules will take effect 10 calendar days after their first official publication, except for Chapter 6, which retroactively applies to transactions dating back to Jan. 1, 2019.
The pricing formula aims to curb tax base underreporting through transfer pricing, i.e. when affiliated companies conduct transactions at non-market rates. According to the new regulation, the discount (D) may range from 0% to 15% and applies to the cost of conversion (PUF6, PCONV) and enrichment (PSWU), all expressed as a percentage.
End users are defined as nuclear fuel manufacturers or nuclear power plant (NPP) operators purchasing uranium hexafluoride or enriched uranium for operational needs, including affiliated entities or authorized representatives.
The regulation specifies that enriched uranium may contain up to 5% of the U-235 isotope. Transaction prices must be calculated in U.S. dollars per kilogram (kg) of the product. Since uranium oxide is typically sold in pounds, it must be converted to kilograms. Kazatomprom, Kazakhstan’s national nuclear company, uses a standard conversion rate of 1 kg of uranium concentrate equaling 2.5998 pounds.
Kazakhstan-based end users can enter contracts factoring in the costs of conversion and enrichment services. Suppliers will be selected through competitive bidding and fuel prices under those contracts must be reviewed every five years from the date of first delivery.
The discount formula also accounts for uranium tails, a byproduct of processing uranium concentrate, which contain between 0.1% and 0.3% uranium. If a contract includes a discount, the transaction price is calculated without factoring in any margin added by a trader, broker or agent.
Kazakhstan’s new pricing regulations for nuclear fuel include key exceptions that recognize certain transactions as market-based, regardless of whether they follow the government’s discount formula.
CentralasianLIGHT.org
May 5, 2025