Foreign media on Kazakhstan: Uranium prices set to skyrocket after Kazakhstan’s surprising tax increase; Astana, the capital of Kazakhstan, is longing to attract visitors
From reports of soaring uranium prices due to an unforeseen tax increase to Astana emerging as a sought-after destination for visitors, Kazinform News Agency offers a weekly roundup of Kazakhstan’s presence in international media.
The deep dive: Uranium prices set to skyrocket after Kazakhstan’s surprising tax increase
The deep dive reports, Kazakhstan, the world’s largest uranium producer, has announced significant changes to its mineral extraction tax (MET) regime for uranium. Effective January 1, 2025, the MET rate will increase from 6% to 9%. Furthermore, from January 1, 2026, the tax will be calculated using a differentiated approach based on annual production volumes and uranium prices.
Kazatomprom, Kazakhstan’s national nuclear company, detailed these changes in a press release, noting that they stem from recent amendments to the nation’s tax code introduced on July 1, 2024. This revision will see the tax base for MET on uranium determined by the weighted average price of natural uranium concentrate (U3O8) from public sources, multiplied by the mined amount.
Starting in 2026, the MET rate will vary as follows based on annual production:
§ Up to 500 tonnes: 4%
§ Up to 1,000 tonnes: 6%
§ Up to 2,000 tonnes: 9%
§ Up to 3,000 tonnes: 12%
§ Up to 4,000 tonnes: 15%
§ Over 4,000 tonnes: 18%
Additionally, if the weighted average price of natural uranium concentrate exceeds certain thresholds, the MET rate will increase incrementally, with an additional 0.5% for prices over $70 per pound, rising to an extra 2.5% for prices over $110 per pound.
Kazatomprom emphasized that these changes, effective from January 1, 2025, will not impact the company’s tax obligations for 2024. In 2023, Kazatomprom mined 21,112 tonnes of uranium, a slight decrease of 1% from the previous year. The company operates under the management of the National Wealth Fund Samruk-Kazyna JSC, with its shares and GDRs traded on the London Stock Exchange and the Astana International Financial Center Exchange.
The announcement of the tax hike has already rippled through the global markets. North American uranium stocks surged following the news, as analysts predict that the higher taxes in Kazakhstan will constrain future supply growth. BMO Capital analysts noted that the increased tax rates are likely to limit Kazakhstan’s uranium production, which in turn could lead to higher global uranium prices.
Global comment: Astana, the capital of Kazakhstan, is longing to attract visitors
Global Comment has published an article highlighting Astana as a unique city worth exploring. While Almaty attracts most foreign visitors with its lakes and mountains, Astana also offers compelling reasons for a visit.
Kazakhstan moved its capital from Almaty to Akmola (renamed Astana) in 1998. Back then, the city had 270,000 residents; now, it has around 1.3 million. Astana, a futuristic city with broad avenues and high-rise buildings, was built under former President of Kazakhstan.
Despite being part of the Soviet Union for 55 years, Astana has few Soviet-era buildings. Most structures are new, including the 142-meter Triumph of Astana tower, inspired by Moscow’s Stalinist Seven Sisters.
“Astana is a mixture of Pyongyang and Seoul”, a South Korean journalist told the author as they walked the incredibly clean streets of the capital on the way to the traditional Kazakh restaurant where they were served dishes consisting of horse meat.
Public transport in Astana includes buses, but using them requires a local app. In Kazakhstan’s digital society, cash is rare, and smartphones are essential.
According to the Kazakh vice Minister for Tourism and Sports Yerzhan Yerkinbayev, Russia is Kazakhstan’s biggest feeder market, although the number of Chinese and Indian tourists visiting the former Soviet republic constantly grows.
Kazakhstan aims to attract more tourists by liberalizing air travel and abolishing visas for 83 countries. Plans include developing resorts on the Caspian Sea, expecting guests from Iran and Russia. However, current prices are higher than those in Turkey or Egypt, which may need to be addressed to boost competitiveness.
Astana mainly attracts business and political visitors, not tourists, despite its attractions like the Baiterek Tower, the Future Energy Museum, and the largest mosque in Central Asia.
“But what makes the Kazakh capital unique is that, despite having several impressive squares with large monuments, it does not seem to have a city center, or at least a particular central area that has a lot of culture, shops, and nightlife. All that can be found in most, if not all, parts of Astana. As a result, wherever in the Kazakh capital you are, you are unlikely to feel like you are in the city center,” the author shares.
The Ishim River Embankment, where dozens of participants of the carnival took part in the Astana Day celebration on July 6, while musicians wearing traditional Kazakh clothes played the Kazakh songs in every shopping mall in the city. But there was one thing missing – foreign tourists.
Although Astana is far from being the most exciting place in the world, it definitely deserves to have more visitors, the article concludes.
