Negative results
The situation in the mining sector is ambiguous. SSGPO JSC, which is part of the Eurasian Group, was forced to reduce the production of iron ore concentrate by 41.4%. In physical terms, this is 5.3 million tons of iron ore concentrate in 2022 against almost 9 million tons in 2021. We are talking about a decrease in pellet production by 7%. All due to the suspension of shipments by the Magnitogorsk Iron and Steel Works, inbusiness.kz reports .
For the region, this is a serious risk, since SSGPO occupies 70% in the structure of the mining industry of the Kostanay region, and a third in the structure of the industry as a whole. Akim of the region Kumar Aksakalov at a meeting on Monday, January 9, noted that the company needs help. He called on the leadership to develop a roadmap for the restoration of activities and to familiarize the authorities of the region with it. One of the issues that need to be addressed is the search for new markets.
Orken LLP operating in Lisakovsk found itself in a no less difficult situation. It supplies its iron ore concentrate to ArcelorMittal Temirtau JSC. But due to a decrease in demand on the part of the main customer, it was forced to completely suspend work from May to June 2022. In terms of production, they sank by 48%.
The regional department of entrepreneurship and industrial and innovative development noted that the problem of this enterprise is, among other things, the low quality of products, which have a rather high content of phosphorus. They tried to solve the issue more than once, but, judging by the current situation, to no avail. This is one of the main problems in finding new clients. The share of Orken LLP in the regional volume of industrial production is low, but the company is important for Lisakovsk. The local budget received less weight.
Positive results
A number of other large mining enterprises in the region have worked quite stably. These are gold-mining JSC Varvarinskoye and LLP Komarovskoye Mining Enterprise (part of the structure of the international company Polymetal). We should not forget about Aluminum of Kazakhstan JSC, KBRU, where bauxite is mined, as well as the chrysotile giant of Kazakhstan, JSC Kostanay Minerals. All these companies ended the year not without difficulties, but without upheavals. An important role here was played by the timely search for alternative markets and close work with line ministries.
Nevertheless, the mining sector produced products worth 800 billion tenge, or 28%, less than a year earlier. The physical volume index was about 78%. Against this background, the success of manufacturing enterprises is especially visible. Here, in 2022, according to preliminary calculations, products were produced for 1.4 trillion tenge, or 40%, more than a year earlier. IFO – 107%.
The growth drivers were enterprises of mechanical engineering, metallurgical industry and food production. In general, according to the head of the Department of Entrepreneurship and Industrial and Innovative Development Nazarbek Konkabaev, the manufacturing industry in the industrial structure of Kostanay region already occupies 62.9%, mining – only 34%. At the same time, Kostanay and Rudny provide the bulk of industrial production. In the future, the regional center will increase its influence by opening new industries on the territory of the industrial zone.