Kazakhstan will increase the uranium mining tax to 18% from 2026
In a statement on its website dated July 10, Kazakh uranium mining company Kazatomprom noted that as a result of a planned uranium tax increase, joint ventures and subsidiaries of different companies are expected to have different tax rates applicable from 2026 .
Kazatomprom, without going into additional details, emphasized that the amendments come into force on January 1. The state-owned uranium producer said the amendments are not expected to impact 2024 guidance or the company's tax expectations in 2024.
In 2023, Kazakhstan's uranium tax was determined based on the weighted average price of uranium in the form of U3O8, obtained from public sources of price reporting, multiplied by the volume of mined uranium and the tax rate of 6%.
Previously, the uranium tax rate in Kazakhstan was calculated based on the cost of uranium mining and primary processing of natural uranium, with In this case, the tax rate was set at 18.5%. Under the graduated approach, which will come into effect on January 1, 2026, the tax rate will depend on the volume of U3O8 produced.
For uranium mines producing up to 500 metric tons of uranium per year, the tax rate will be set at 4%, for mines producing up to 1000 MtU/year, the rate will be 6%. For mines producing up to 2,000 MtU/year, it will be 9%, for mines producing up to 3,000 MtU/year, the rate will be 12%, for mines producing up to 4,000 MtU/year, it will be 15%, and for mines producing above 4,000 MtU/year, it will be 18%, the decree states.
In addition, if the price of U3O8 exceeds certain established levels, an additional increase in the tax rate will be applied.
According to the decree, with an average uranium price of more than $70/lb, the additional rate will be 0.5%, and with a uranium cost of more than $80/lb - 1%, with a uranium cost of more than $90/lb, the additional rate will be set at 1.5 %. In cases where the cost of uranium exceeds $100/lb, the additional tax rate will be 2%, and when the cost of uranium is more than $110/lb, the additional tax rate will be set at 2.5%.