In December 2023, the Mazhilis approved amendments proposing a ban on the export of “raw materials” without a clear definition of this term. This could impose restrictions on mining companies and create unfavourable conditions for investors.
The Chamber argues that while supporting local industries is important, the mechanisms outlined in the proposed amendments lack clarity, and the introduction of a complete export ban is deemed excessive. The adoption of these amendments without consulting the industry raises serious concerns.
The Chamber suggests exploring alternative methods, such as granting local producers preferential rights to purchase at market prices. They caution against potential unintended consequences that may arise from the export ban on critical mineral resources, including the risk of corruption, loss of revenue and tax revenue reduction, impact on the mining industry, undermining investor trust, affecting international trade relations, stimulating illegal trade, and hindering economic diversification.
This development comes in the wake of a global trend of natural resource export bans, which are seen as potentially harmful to domestic economies and international trade relations.
The Chamber’s letter to Minister Sharlapayev underscores the need for a balanced approach to legislation that supports local industries without adversely affecting investors and the broader industry.