Kazakhstan to raise uranium extraction taxes by up to 18% beginning in 2026

Kazakhstan plans to gradually raise the mineral extraction tax on uranium mining from the current 6% to 9% in 2025, and up to 18%, under a differentiated approach, from 2026, according to a decree signed by Kazakh President Kassym-Jomart Tokayev and published in the state database of legal acts July 10.

In a statement on its website July 10, Kazakh uranium mining company Kazatomprom noted that, as a result of the planned uranium tax increase, different companies' joint ventures and subsidiaries are expected to have different applicable tax rates, starting in 2026.

Kazatomprom, without providing additional details, emphasized that the amendments come into force January 1. The state-owned uranium producer said that the amendments are not expected to impact 2024 guidance or the company's expectations related to taxation in 2024.

In 2023, the uranium tax in Kazakhstan was determined on the basis of the weighted average price of uranium, in the form of U3O8, from public price reporting sources, multiplied by the amount of uranium mined and a tax rate of 6%.

Previously, the uranium tax rate in Kazakhstan was estimated based on the production costs of uranium extraction and primary processing of natural uranium, with the tax rate set at 18.5%. Under the differentiated approach scheduled to come into force on Jan. 1, 2026, the tax rate will depend on U3O8 output.

For uranium mines producing up to 500 metric tons of uranium per year, it will be set at 4%, while for mines producing up to 1,000 mtU/yr, the rate will be 6%. For mines producing up to 2,000 mtU/yr, it will be 9%, for mines producing up to 3,000 mtU/yr, the rate will be 12%, for mines producing up to 4,000 mtU/yr, it will be 15%, and for mines producing over 4,000 mtU/yr, it will be 18%, the decree said.

Additionally, if the U3O8 price exceeds certain specificied levels, an additional increase in the tax rate will be applied.

According to the decree, for an uranium average price of more than $70/lb, the additional rate will be 0.5%, while for uranium costing over $80/lb, it will be 1%, for uranium over $90/lb, the additional tax will be set at 1.5%. In cases where the uranium cost rises to over $100/lb, the additional tax rate will be 2% and for uranium valued at over $110/lb, the additional rate will be set at 2.5%.