Canadian Mining Company Withdraws from Kazakhstan Uranium Project; Resource Nationalization Policy Sparks Concerns Among Foreign Investors

Kazakhstan's newly revised Mineral Resources Law increases the mandatory shareholding of the state-owned atomic energy company, prompting Canadian company Laramide Resources to announce the termination of its uranium mining project in Kazakhstan.

On January 20, 2026, Canadian uranium development company Laramide Resources Ltd. announced its decision to terminate its uranium project in the Chu-Saryshu Basin of Kazakhstan. This decision stems directly from Kazakhstan's December 2025 amendments to the Mineral Resources Law.

The new regulations strengthen the control of Kazakhstan's state-owned atomic energy company, Kazatomprom, over new uranium mining projects. Laramide CEO Mark Henderson stated that these amendments effectively constitute "de facto nationalization" of all promising uranium discoveries.

01 Project Background and Scale

Laramide Resources signed an option agreement with Kazakhstan's Aral Resources in September 2024. The agreement covers 22 mineral resource use licenses covering a total area of ​​over 5,500 square kilometers in the Chu-Sarysu Basin in southern Kazakhstan.

This area is described as one of the world's most important greenfield uranium exploration projects. The basin holds promise for large, low-cost roll-type uranium deposits and is widely considered to have the potential to discover sedimentary copper deposits and other key minerals.

During 2025, Laramide funded and conducted historical data reviews, surface surveys, and geophysical studies to identify potential uranium mineralization drilling targets. The company submitted the required exploration work plan to the Ministry of Industry and Construction of Kazakhstan and sought the remaining permits necessary for drilling activities.

02 Legal Changes and Decision Factors

On December 26, 2025, the President of Kazakhstan signed an amendment to the Subsoil Use Code. This amendment, previously approved by the Senate in November 2025, significantly increased the minimum ownership percentage of the state-owned company Kazatomprom in any newly discovered uranium resources.

According to the revisions, Kazatomprom has priority access to licenses in new exploration areas and the right to retain blocks containing uranium mineralization resources. The new regulations also stipulate that if other companies discover uranium in already licensed solid mineral areas, their licenses can only be extended after the block is returned to the state.

Laraamide stated that these comprehensive revisions to the expected subsoil use agreement, coupled with the roughly doubling of annual property tax cash holding costs in early 2025, have rendered the economic rationale for foreign direct investment in uranium exploration in Kazakhstan obsolete.

03 Kazakhstan's Uranium Status and Policy Intentions

Kazakhstan possesses approximately 900,000 tons of uranium resources, accounting for 15% of global reserves, second only to Australia, and its natural uranium production has consistently ranked first in the world. In 2024, Kazakhstan's uranium production reached 23,270 tons, maintaining its position as the world's largest producer since 2009, currently supplying over 40% of the world's uranium.

As the world's largest uranium producer, Kazatomprom accounted for approximately 21% of global primary uranium production in 2024. This legislative amendment is seen as part of Kazakhstan's overall strategy to strengthen state control over its uranium resources.

The country is actively expanding its presence in the global nuclear fuel market and advancing its nuclear power plant construction plans. The new regulations, while strengthening state control over strategic resources, also establish clear pathways for technology transfer and long-term cooperation.

04 Foreign Company Reactions and Market Impact

Laramide is not the only foreign company expressing concerns about Kazakhstan's mining investment environment. Ruslan Baimishev, president of the Kazakhstan Chamber of Mining, noted in 2024 that underground resource development companies engaged in mining expressed concern about Kazakhstan's proposed ban on mineral exports.

US Ambassador to Kazakhstan, Daniel Rosenbloom, also commented on how Kazakhstan can maximize its attraction for mining investment. He stated, "US investors value predictability and want to see transparency in government decisions at all levels, including rule-making, enforcement, and taxation."

In his commentary, Mark Henderson bluntly stated, "This new strategy might make sense if Kazatomprom had a unique and outstanding track record of exploration success, but their own history suggests otherwise."

05 Impact on the Global Uranium Market

Laramide's withdrawal reflects broader industry challenges. Henderson noted, "Greenfield exploration is severely underinvested in the uranium sector and overly geographically concentrated. Therefore, uranium prices may need to rise—and in our view, potentially significantly—to incentivize and catalyze reserve substitution activities."

Kazakhstan's uranium resource advantage makes its policy changes have a significant impact on the global market. Currently, of the 13 uranium mining projects in Kazakhstan, 3 are wholly owned by Kazatomprom, and the remaining 10 are joint ventures with foreign capital.

According to the Kazakhstan Code, uranium mining development rights belong exclusively to the state atomic energy company Kazatomprom or its joint ventures with a majority stake of over 50%. This means that foreign investors wishing to participate in uranium mining must establish a partnership with Kazatomprom, and the latter must hold a majority stake.

The long-term impact of Kazakhstan's new uranium investment regulations remains to be seen as Laramide Resources shifts its resources to projects in the US and Australia. The global uranium market is closely watching whether other foreign companies will follow suit.

Kazakhstan needs to find a balance between strengthening state control and maintaining investment attractiveness. As industry experts have pointed out, uranium development takes 15-17 years from exploration to mining, making the predictability of regulations crucial.