The gold deposit in the Akmola region will be put up for auction

11/09/2023

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The Tellur-Stepok gold deposit, formerly owned by TS Minerals company, will be put up for auction. This information was provided in response to a request from inbusiness.kz through the electronic platform e-otinish by the Ministry of Industry.

“TOO TS Minerals previously held the subsoil use right under contract No. 5519-TPi dated April 29, 2019, for the exploration of gold-bearing polymetallic ores in the Tellur-Stepok area in the Akmola region. Due to the expiration of the contract on April 29, 2023 (Clause 3 of Section 2, Clause 72 of Section 21 of the contract), the Ministry issued a corresponding notification (No. 03-2-18/5648-I dated June 29, 2023). TOO TS Minerals did not contest the above-mentioned notification in court. This deposit is planned to be auctioned,” as stated in the message from the industry department.

Inbusiness.kz reported that the subsoil use contract with TS Minerals had been terminated. According to some information, there were small but high-grade gold reserves in the Tellur-Stepok area, which could generate increased demand at the auction. The Kazakhaltyn Group considered this asset attractive in 2018. Previously, 25% of TS Minerals’ shares belonged to “Kazgeology.”

Furthermore, the relevant department clarified the situation regarding the copper deposit in Borly, Karaganda region, which was being developed jointly with Iranian partners through TOO Copper KZ-CA. It turned out that the subsoil user did not respond to these reserves.

“TOO Copper KZ-CA previously held the subsoil use right under contract No. 3709-TPi dated September 6, 2010, for the exploration of copper ores in the Borly deposit in the Karaganda region. In accordance with Article 201 of the Subsoil and Subsoil Use Code, TOO Copper KZ-CA exclusively obtained a license for the extraction of solid minerals No. 51-ML dated September 29, 2022, at the Borly deposit in the Karaganda region. The subsoil use contract No. 3709-TPi dated September 6, 2010, for the exploration of copper ores in the Borly deposit in the Karaganda region ceased to be valid on November 23, 2022, upon its expiration (Clause 3.2 and 9.1 of the contract). The Ministry sent a corresponding notification (No. 04-2-18/156-I dated January 09, 2023) to TOO Copper KZ-CA,” the letter details.

Media reported on the Borly deposit in the Aktogai district of the Karaganda region at the end of 2022 when a hydrometallurgical plant was launched there, with plans to produce up to 5,000 tons of cathode copper. The project’s reserves and resources were estimated at 216,000 tons. Iranian investors spent 11 billion tenge on the construction, and it was noted in the mining industry that the project was implemented with the support of Kazakh Invest. Two major Iranian companies, Golgohar Mining & Industrial Co. and Chadormalu Mining & Industrial Co., were involved in the construction. According to some information, the share of the Kazakhstani side (a private investor, whose name is not mentioned) in the project is about 20%, as reported by the industry publication dprom.kz.

It’s worth noting that according to the database of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), Golgohar Mining & Industrial Co. and Chadormalu Mining & Industrial Co. are subject to secondary sanctions in the SDN (Specially Designated Nationals and Blocked Persons List).

Based on the register of issued licenses posted on the relevant department’s website, the controlling parties of Copper KZ-CA are Kavand Nahand Zamin JSC (80%) – Tagizade Naser Zabihollah (50.9%), Atiki Iman Ahmadali (29%), Jalalmaab Mohammadreza Darvishali (10%), Ziyai Alireza Mokhsen (0.1%), TOO Technogran-Aktobe (20%) – Abdulin Tleukabyl Sartaevich (100%).

Additionally, the Ministry of Industry commented on the challenging situation with the coal deposit Sarykum in the Karaganda region.

“TOO Sarykum Group previously held the subsoil use right under contract No. 4232-TPi-ME dated December 23, 2015, for the exploration of coal at the Sarykum deposit in the Karaganda region. It is necessary to note that Sarykum Group assumed subsoil use obligations, which were not properly fulfilled. In this regard, the Ministry issued a notification (No. 04-3-18/7712-I dated October 19, 2021) on the violation of contractual obligations. However, Sarykum Group did not rectify the violations. Based on the decision of the subsoil use expert commission (minutes of the subsoil use expert commission No. 28 dated August 25, 2022), as well as subparagraph 12 of paragraph 14 of Article 277 of the Subsoil and Subsoil Use Code of the Republic of Kazakhstan, and paragraph 74-1 of Section 21 of the contract, the Ministry sent a corresponding notification (No. 04-2-18/60-I dated January 05, 2023) on the termination of the contract. Currently, TOO Sarykum Group is challenging the above-mentioned notification in court,” clarified the government agency.

Source and Credit: inbusiness.kz

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