Shubarkol Premium may lose its subsoil license

13/02/2024

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The coal mining company Shubarkol Premium received a notice from the Ministry of Industry about the possible termination of the contract. The reason why the key shareholder of the company, Timur Kulibayev, may lose his license is systematic violations of the rules for the use of subsoil.

If after a month Mr. Kulibayev does not eliminate the violations and does not pay the penalty, the contract will be terminated unilaterally. The total amount of fines amounted to about 55.6 million tenge, Kursiv reports .

The Shubarkol Premium company did not fulfill the financing plan that was agreed upon when concluding the contract. Thus, in 2020, the company invested 7.8 billion tenge in the project instead of 23.2 billion tenge. The liquidation fund received less than 103 million tenge: about 45% of the total amount was transferred.

In addition, at that time Shubarkol Premium JSC did not allocate adequate funds for training, retraining of Kazakh employees (the plan was fulfilled only by 37.6%) and research work (65.6%). At the end of 2020, almost 1.3 million tons of coal were produced, which is 43.03% of the plan.

In 2021, the situation repeated itself: the Shubarkol Premium enterprise did not fulfill the plan for financing production, training workers and retraining personnel. Capital expenditures turned out to be insufficient, and indirect costs were completely zero.

Coal production in 2021 amounted to 1.655 million tons (47.3% of the plan). In 2022, not even 1 ton was produced. In January-August last year, coal production decreased by 52%.

In connection with the violation of the contract, the Shubarkol Premium company must compensate 50.8 million tenge for violations in 2020 and 4.8 million tenge for 2021.

Source and Credit: dprom.kz

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