AKIPRESS.COM - Cameco Corp. has signed an agreement that could lead to increased production and a new refining facility being constructed at its low-cost Inkai uranium operation in Kazakhstan, according to The Saskatoon Star Phoenix.

“[This] advances our strategy of building on our low-cost production assets that helps to mitigate the risk of today’s uncertain uranium market and positions us to maximize returns when the market recovers,” Cameco president and CEO Tim Gitzel said.

Located in central Kazakhstan, Inkai uses a solution mining technique known as in situ recovery. It is owned and operated by Joint Venture Inkai, a company controlled by Cameco and Kazatomprom, Kazakhstan’s state-owned atomic firm.

The company’s agreement with Kazatomprom is subject to government approval, but could result in Inkai increasing its annual production to 10.4 million pounds from the current 5.2 million pounds through 2045.

If the deal is approved, Cameco’s share in Joint Venture Inkai will be reduced to 40 percent from 60 percent while its share of uranium from the facility will increase to 4.2 million pounds from 3.0 million pounds.

In 2015, Cameco said it produced 28.4 million pounds of uranium concentrate, of which 3.4 million pounds, or 12 percent, came from Inkai.