Aurora Limited, a member of the Kazakhstan Chamber of Mines, actively participated in the conference “Increasing investment attractiveness in Kazakhstan’s mining industry” organized by the Kazakhstan Chamber of Mines. The event brought together leading industry representatives, government officials and diplomatic missions to discuss key aspects of legislation and proposed future policies related to exploration, mining and mineral processing technologies.
The conference focused on sharing the experiences of key mining companies in dealing with the new Code, as well as discussing recently proposed changes. The conference included a plenary session and two panel sessions with presentations by senior representatives of the industry, government agencies and diplomatic missions.
The Minister of Industry and Construction of the Republic of Kazakhstan, K.B. Sharlapayev, opened the conference and emphasized the importance of simplifying legislation and procedures to further increase the investment attractiveness of the industry. He also announced a package of upcoming amendments to the Code, which are aimed at improving conditions for investors. The Minister commented, “The package of forthcoming amendments to the Code, including suggestions from stakeholders and the mining industry, includes over 100 changes aimed at improving the conditions for investors. We are committed to further developing and strengthening the mineral resource complex, considering it a cornerstone of Kazakhstan’s economic prosperity.”
The conference was also attended by the ambassadors of the US, UK and Canada, who support the development, study, cooperation and reform of the new Code. They offered comments and suggestions on maximizing Kazakhstan’s potential to attract investment and reiterated that a stable and transparent judicial and tax regime is necessary to provide certainty to incoming investors and companies. In addition, it was noted that foreign investment should be seen as an engine of economic growth, helping to increase the tax base.
Mr. Tim Barry, member of the Supervisory Board of Directors of “Kazakhstan Chamber of Mines”, noted the importance of copper exploration in the world and the challenges faced by companies in their development. He emphasized that Kazakhstan has the potential to become an important player in the global copper market, not only by discovering new commercial deposits, but also by creating an enabling environment through government support and policies that encourage discovery. “There are 40 large but undeveloped deposits around the world, with total reserves estimated at about 470 million tons. They could meet global demand were it not for the problems associated with their development. We need to increase copper supply, and Kazakhstan is a very important player in the market in this regard. As an example, the large Aktogay deposit in the East Kazakhstan region, produces more than 200,000 tons of copper per year. But to meet the world’s demand for copper over the next decade and beyond, we need to have several of these large mines being developed every year.”
The panel sessions focused on the legislative framework affecting investments in subsoil use in Kazakhstan, as well as geological and environmental aspects that influence investment decisions.
Mr. R.N. Baimishev, President of the “Kazakhstan Chamber of Mines”, speaking at the conference, emphasized that new global investors have arrived: “Today we have several leading global mining companies with market capital measured in billions of dollars investing in mineral exploration in Kazakhstan, such as Rio Tinto, Fortescue, Teck and BHP.” He also noted, “The Chamber’s member companies are conducting exploration works on an area exceeding 25 thousand square kilometers, the volume of investments has exceeded the annual government spending on GIIN and these amounts continue to grow along with the related tax and social payments. In addition, subscription bonuses at the end of 2 auctions exceeded 7.8 million US dollars. Today the specialized ministry is able to solve practically all the issues of investors on the principle of “one window”, because after a long break associated with sectoral divisions and other MPS, it united geologists, subsoil users and industry. That is, by supporting the manufacturing industry at the legislative level it is impossible to destroy the investment climate in geological exploration, it is necessary to minimize the negative consequences, which are even indicated in the draft National Development Plan until 2029. The basis for the changes was the Constitutional Reform held in 2022, which confirmed the right of the people of Kazakhstan to own the subsoil and natural resources of the country. The state realizes this right on behalf of the people. Accordingly, the legal environment will be formed on the basis of this principle”.
Ms. Bizhanova G.K. Member of the Board, Deputy Chairman of the Board of NPP “Atameken” spoke about the need to develop a Development Strategy of MMC. “Today, the lack of the Industry Strategy creates conditions for frequent changes in legislation, adoption of new regulatory documents, which are not taken into account in the business strategies of subsoil users. The draft National Development Plan of Kazakhstan until 2029 should become the basis of the Strategy. The Agency for Strategic Planning has submitted it for discussion. Our Chamber takes an active part in its finalization”.
Among the key speakers was Mr. Almas Kushumov, Director of the Department of the Ministry of Industry and Construction of the Republic of Kazakhstan, who drew the attention of participants to the changes to the Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use” announced by the Ministry to improve the investment climate. In his speech Mr. Kushumov also dwelled on the issues of electronic auctions: “In August and December last year, electronic auctions were held for 84 lots for the exploration of solid minerals. Such leading companies as Rio Tinto, Fortescue, Kratos Resources, Cove Capital, Esan Eczacibasi, Kazakhmys Corporation, ERG Exploration, NGK Kazgeologia and others took part in the auction. The subscription bonus of the auction amounted to 3.5 billion tenge”.
At the end of the meeting, Mr. Alex Walker, CEO of East Star Resources, thanked all participants and noted that while there is still a gap between the intentions of the President and Ministers, as well as the draft changes in the legal framework that need to be constantly considered, Kazakhstan is still an excellent place to conduct research and both companies and the government should continue to work together to find practical solutions in a changing system. The Kazakhstan Chamber of Mines would like to be a source of information and support for all parties in this process.
The conference attracted more than 160 participants and formed a platform for sharing experiences and discussing strategies for the development of the mining industry. The conference participants confirmed the interest of international investors in Kazakhstan and expressed confidence in its potential to attract investment and further develop the mining industry.
