Foreign uranium sparks response from top US security probe into producer Kazatomprom

The response from Kazatomprom, Kazakhstan’s state-owned nuclear company, to the U.S. Department of Commerce’s Bureau of Industry and Security concerning an investigation into the national security risks associated with imports of processed critical minerals and their derivatives has raised important points. This investigation, initiated in April and seeking public input until May 16, 2025, has a broad scope.

The focal point of the inquiry is whether the U.S. faces vulnerabilities to “predatory economic, pricing, and market manipulation strategies” from countries that process and export critical minerals. China’s recent restrictions on rare earth elements may have been a catalyst for this investigation, as these elements are crucial to U.S. defense and civilian sectors. The probe encompasses rare earth elements, uranium, titanium, copper, and other strategic metals vital for renewable energy, advanced industries, and dual-use applications.

Kazakhstan holds the title of the world’s largest uranium producer, contributing over 40% of global output. However, in 2023, the U.S. primarily imported uranium from Canada (27%), followed by Kazakhstan and Australia at 22% each. Kazakhstan’s annual uranium exports to the U.S. averaged about 10 million pounds or 3,800 tons between 2022 and 2023. Russia accounted for 12% of U.S. uranium imports, while Uzbekistan held a 10% share.

Kazatomprom questioned the thoroughness of the U.S. Department of Commerce’s investigation due to its inclusion of uranium among over 50 other critical minerals and rare earths. The company argued that uranium differs significantly from other materials under review due to its role as nuclear fuel. Past investigations in 1989 and 2018 concerning uranium imports have not led to imposing import restrictions or tariffs under national security provisions.

Emphasizing that Kazakhstan’s uranium exports do not adversely affect U.S. producers, Kazatomprom highlighted the stability of American uranium output and the normal market-driven price fluctuations of Kazakh uranium. They stressed that the U.S. should focus on reducing its reliance on enriched uranium from geopolitical competitors rather than on uranium concentrate imports from Kazakhstan, which could hinder the competitiveness of the U.S. nuclear energy sector.

Regarding uranium reserves, the U.S. held 152 million pounds in commercial uranium reserves in 2023, surpassing Kazakhstan’s annual output by a significant margin. Kazatomprom denied accusations of market manipulation or predatory pricing strategies, citing an increase in uranium prices for U.S.-bound shipments from 2021 to 2023 that aligned with global trends.

Kazatomprom also debunked claims of receiving preferential treatment from Kazakhstan’s government, stating that the company faces an increased mineral extraction tax burden. They cast doubt on the U.S.’s ability to sustainably boost domestic uranium production in the near future, noting that many U.S. uranium reserves are economically viable only at prices much higher than current market rates.

While urging for the development of new domestic uranium mines in the U.S., Kazatomprom emphasized that significant time, capital investment, and construction of new facilities are necessary. Kazakhstan’s stance on the issue carries significance in assessing the impacts of the U.S. investigation on global uranium markets and nuclear energy competitiveness.