The Ministry of Foreign Affairs of the Republic of Kazakhstan expects to sign investment contracts with several large mining companies. The contracts will guarantee tax stability for a period of ten years in exchange for investments of over $500 million. The Vice Foreign Minister, Almas Aidarov, stated that companies such as Kazakhmys, ERG (Eurasian Resources Group), and KazMinerals are among the first expected to sign these contracts. The initiative for such contracts came from mining companies themselves, who expressed concerns about frequent changes in the regulatory environment.
Under the investment contracts, tax rates for the subsoil users will be fixed for ten years, providing stability in both directions. If there is an increase in tax rates, the subsoil users will remain at the same level, and if there is a decrease, the agreed rates will still apply. The fixed rates will include mineral extraction tax, excises, and environmental fees.
Presenting at MINEX Kazakhstan Forum on 19 April Mr. Almas Aidarov, Vice Foreign Minister, noted that about 20% of foreign investment in Kazakhstan is in the mining sector, and the ministry wants to maintain conditions that attract new investors. The ministry aims to provide more predictability in tax legislation by announcing changes three to five years in advance. This will allow businesses to plan their income and expenses accordingly.
Additionally, the Ministry of Foreign Affairs proposes developing separate agreements for companies planning to extract minerals from unprofitable deposits with poor ores or large volumes of stripping. Currently, the state provides benefits primarily to companies in the manufacturing industry and other sectors, while mining projects face restrictions. The ministry suggests offering tax breaks and additional infrastructure support to such mining companies.
It is worth mentioning that three companies within the Eurasian Resources Group, including Aluminium of Kazakhstan, Kazchrome, and Shubarkol Komir, have expressed their interest in signing investment contracts. Each company is expected to invest around 260 billion tenge in their production development over ten years, and the state will ensure tax stability during this period.
The Eurasian Resources Group is chaired by Alexander Mashkevich, who is also a major shareholder. Other key figures within the group include Patokh Chodiev and the Ibragimov family. They were among the first billionaires in Kazakhstan due to the rising prices o