American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Uranium Stocks Surge as Kazakhstan Raises Mineral Extraction Tax

by admin July 12, 2024
July 12, 2024
Uranium Stocks Surge as Kazakhstan Raises Mineral Extraction Tax

Kazakhstan’s announcement of a significant increase in the Mineral Extraction Tax (MET) for uranium sent uranium stocks trending higher on July 10 as concerns of a potential supply disruption grew due to Kazakhstan’s position as the world’s largest uranium-producing country.

The new tax rate changes will come in two waves. The first, effective January 1, 2025, will impose an initial hike from the current 6 percent to 9 percent.

Starting in 2026, they will take on a more complex and differentiated rate structure, structured to vary based on production volumes and the price of natural uranium concentrate (U3O8).

For production volumes up to 500 metric tons, the rate will be 4 percent, increasing incrementally to a maximum of 18 percent for volumes exceeding 4,000 metric tons.

Additionally, if the price of U3O8 exceeds certain thresholds, an additional rate increase will apply, starting at 0.5 percent for prices above US$70 per pound and rising to a maximum of 2.5 percent for prices above US$110 per pound.

The country’s national uranium company Kazatomprom (LSE:KAP,OTC Pink:NATKY) is directly impacted by this tax change. Kazatomprom is a key player in the global uranium market, accounting for approximately 20 percent of global primary uranium production in 2023. The company has already faced challenges this year, including securing sulfuric acid necessary for production.

The company’s recent financial results highlight its strong market performance. In 2023, the company reported consolidated revenue of 1,434,635 million Kazakhstani tenge, or US$3.19 billion, a 43 percent increase from 2022. Despite a 2 percent decline in U3O8 production, sales volume rose by 10 percent, driven by increased buyer demand.

The company acknowledged the impending tax changes in a press release.

Meanwhile, Kazakhstan’s government stated the tax increase as part of broader economic reforms aimed at balancing the budget and redistributing wealth more equitably.

‘Our minerals extraction tax rates are among the lowest in the world,’ Economy Minister Alibek Kuantyrov told Reuters. ‘I think we can carefully raise it by 10-20 percent.’

These changes come amid increased government spending in response to global economic pressures and the ongoing conflict in Ukraine.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
New High-Grade 35% Copper and 10g/t Gold Rock Chips at Ti-Tree
next post
President’s daughter hopes to help Cameroon’s gays by coming out

Related Posts

Westgold Strategic Alliance and Placement

May 31, 2024

Top 4 altcoins to buy as the crypto...

July 12, 2025

Ramp Metals: Battery Metals Exploration Company Focused on...

April 13, 2024

Tata Motors stock enters a correction after a...

September 11, 2024

Nikkei 225 index forecast amid Nissan and Honda...

December 24, 2024

Crude oil price rebound could be short-lived: technical...

September 24, 2024

Crypto price predictions: Bonk, Alpaca Finance, Kyber Network

July 13, 2025

XRP price prediction: Triangle pattern points to a...

June 12, 2025

BPH Energy

April 6, 2024

Top 3 overvalued ghost chain crypto coins to...

February 23, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved