Annual Report / 2018

of the Chair of the Board
of Directors

Kazatomprom’s IPO was the first major milestone of the State Privatisation Programme adopted by the Government at the end of 2015 as part of the plan formulated by the First President of the Republic of Kazakhstan Nursultan Nazarbayev to reduce the state’s share in the economy.
the Board of Directors of
NAC Kazatomprom JSC

Dear Shareholders,
2018 was an historic year for Kazatomprom and the Republic of Kazakhstan, due to our successful privatisation and dual listing on two international exchanges. Kazatomprom is the first national company to successfully place its shares simultaneously via initial public offering (IPO) on the Astana International Exchange (AIX) and the London Stock Exchange (LSE).

The company has entered a new phase of its corporate development. It now counts Kazakh investors and leading international investment funds amongst its shareholders. This means additional responsibility for Kazatomprom in terms of delivering transparency and corporate governance. Kazatomprom, as a public company, is committed to achieving the highest international standards of corporate governance.

Last year also saw approval of the new Kazatomprom development strategy for 2018–2028. The strategic objectives for this period were developed based upon our vision — to be the partner of choice for the global nuclear fuel industry. The company will focus on its core business — the mining and processing of uranium and associated mineral resources — while continuing to optimise production, processing and sales volumes based on market conditions. It will also strengthen the marketing function and expand sales channels, apply best practices in its business activities and develop a corporate culture corresponding to its status as an industry leader. To guide the achievement of these strategic goals and objectives, the new Board of Directors includes three independent directors who are established professionals with deep international management experience in natural resources, as well as the uranium and nuclear industries.

In 2018, the International Atomic Energy Agency (IAEA) announced the selection of Kazatomprom as a supplier of low enriched uranium (LEU) to the IAEA LEU Bank. The Board of Directors of Kazatomprom believes its selection reflects the high level of trust the global community has in the company as a reliable and recognised supplier of uranium products.

Within the framework of improving health and safety across our business in 2018, Kazatomprom was one of the first national companies of the Republic of Kazakhstan to become an official participant in a global programme to promote the concept of ‘zero injury’ (Vision Zero), which prioritises the health, safety and wellbeing of our employees and contractors. The programme was developed by the International Social Security Association (ISSA) to help prevent industrial accidents and reduce occupational health risks.

The Board of Directors is confident in the long-term prospects of the industry and believes that nuclear energy as a carbon-free, stable source of electricity will remain an important and growing part of the global energy supply mix. The results we achieved in 2018 confirm the effectiveness of the strategy we have implemented to date and will ensure the company’s sustainable development in the interests of all its shareholders.