- Kazatomprom said it would continue to 'flex down' production by 20% through 2021 as the uranium market continued to recover from a period of oversupply, keeping uranium prices low.

The full implementation of cuts would remove up to 5,600 tU from anticipated global primary supply in 2021, the company said. Kazatomprom's 2021 production would remain below 23,000 tU, which was expected to be in line with production in 2019 and 2020.

'As the largest uranium producer in the world, Kazatomprom recognizes the need for global output to better align with current demand,' the company said.

The company said it was announcing the plan well before year-end to ensure its mining subsidiaries and joint ventures would be able to incorporate the required changes into their 2020 capital expenditure budgets, accounting for the revised production levels in 2021.

'No decision has been taken regarding production levels beyond 2021 and the company continues to monitor market conditions,' the company said. 'However, Kazatomprom does not expect to return to full production until a sustained market recovery is evident, and demand and supply conditions signal a need for more uranium.'

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