MINEX Forum

Month: February 2024

  • Kazakhstan produces 19 types of critical raw materials approved by the European Union

    Kazakhstan produces 19 types of critical raw materials approved by the European Union

    Kazakhstan, possessing rich resources, positions itself as one of the key players in this field.

    19 types of strategic raw materials:

    • The country produces and processes 19 types of essential raw materials, as approved by the European Union.
    • Exports reach the USA, China, South Korea, Great Britain, Russia, and EU countries.
    • Presently, Kazakhstani manufacturers supply the European market with metal and chemical products such as beryllium, tantalum, titanium, ammonium metavanadate and phosphorus.

    Leadership in copper production and potential in electric vehicles:

    • Kazakhstan ranks amongst the top ten countries in the world for copper production.
    • There’s a promising opportunity to establish a cluster focused on battery material production, such as nickel, cobalt, manganese, and lithium.
    • These precursors will become a primary source of raw materials for the expanding production of electric vehicles.

    Overcoming challenges:

    • A core issue within the rare metals mining industry is a reliance on imported raw materials.
    • Additionally, worn-out technologies and equipment in businesses hinder further development of the production of essential raw materials.

    Comprehensive development plan:

    • To tackle these challenges, a comprehensive plan for developing the rare earth metals sector (2024-2028) has been devised.
    • The plan was approved by a Government Resolution on the 28th of December 2023.
    • The Ministry of Industry is actively working to implement it.

    The implementation of this plan will enable Kazakhstan to become one of the leaders in the production of raw materials for electric vehicles, ensuring sustainable economic development and strengthening its position in the global market.

    Additional information:

    • Press Service of the Ministry of Industry and Construction of the Republic of Kazakhstan
    • Government Resolution of the Republic of Kazakhstan dated 28 December 2023 No. 1023
  • Kumtor Gold Company provides 2.6 million soms for drip irrigation project in Jety-Oguz district

    Kumtor Gold Company provides 2.6 million soms for drip irrigation project in Jety-Oguz district

    Kumtor Gold Company has provided financial assistance to Kyzyl-Suu rural municipality, Jety-Oguz district of Issyk-Kul region.

    Some 2.6 million som was allocated for installation of drip irrigation system on 30 ha land of the Kyzyl-Suu Agroindustrial Complex.

    The project will create additional work places and will facilitate development of local production of goods.

  • Fremont Gold Announces Soil Geochemistry Results from Urasar Mineral District, Armenia

    Fremont Gold Announces Soil Geochemistry Results from Urasar Mineral District, Armenia

    Urasar geochemical soil sample results

    The Company collected a total of 744 C-horizon soil samples across the Urasar Mineral District in November and December 2023.

    Urasar was last worked by Soviet government teams in the 1950s and 1960s, resulting in the identification of three mineralized zones and four geochemically anomalous zones along a 14 km strike length.

    Gold fire assay and multi-element geochemical results from Fremont’s recent soil sampling survey display continuous gold-copper/base metal anomalies hosted in an east-west structure 1.2km wide over a 15 km strike length, as shown in the figures presented below. Gold values ranged up to 449 ppb with a mean of 142 ppb.

    Gold in C-horizon soil samples at Urasar

    Copper soil geochemistry at Urasar

    The copper anomalies generally mimic the gold anomalies but display a tighter distribution comprising three distinct populations, consistent with the earlier Soviet work. A continuous, robust copper anomaly greater than 5 km in length is evident in the western portion of the project area, congruent with the largest and strongest gold anomaly. At the far eastern end of the license, the gold geochemistry is comparatively weak while the copper anomaly is quite coherent and robust. Copper values ranged up to 497ppm with a mean of 233 ppm.

    Arsenic Soil Geochemistry at Urasar

    Anomalous arsenic soil geochemistry generally reflects the same distribution as the gold geochemistry but is well developed on the eastern end of the 5-km long Cu-Au anomaly in the western part of the project.

    Initial spatial analysis of the anomalies suggests a continuous mineralized structure over 1 km wide, offset by post-mineral north or northeast-trending faults in step-wise fashion. The disposition of the anomalies suggests a southward displacement of about 1 km between the first and second anomalies, and approximately 2 kms displacement between the second and third anomalies. This distribution is most easily observed in the copper geochemistry image above.

    Fremont’s President and CEO, Dennis Moore states, “These soil geochemical results support management’s belief that Urasar is a well-endowed mineral district with at least three en echelon mineralized zones. These east-west striking zones are six, four and three kilometers in length with minimum widths of approximately 1.2 kilometers. Detailed geological mapping and trenching are planned for the spring, with diamond drilling following in the summer. We are very excited about these results and believe we are on the cusp of a significant new discovery.”

    About Fremont Gold

    Fremont’s mine-finding management team has assembled a portfolio of potential world-class copper-gold mineral opportunities within the central Tethyan belt of Armenia, and controls two advanced gold exploration projects in Nevada.

  • Erdene Secures $80M to Build Mongolia’s Largest Gold Mine – AZoMining

    Erdene Secures $80M to Build Mongolia’s Largest Gold Mine – AZoMining

    Image Credit: Jason Kolenda/Shutterstock.com

     

    Erdene Resource Development Corp. and Mongolian Mining Corporation had executed debt finance agreements worth up to US$80 million to finance the development of the high-grade, open-pit Bayan Khundii Gold Project in southwest Mongolia.

    We are very pleased to close the financing for the Bayan Khundii Gold Project with our strategic partner MMC, Mongolia’s leading publicly traded mining company. With the first gold scheduled in 2025, Bayan Khundii will be one of the highest grade, open pit gold mines globally and Mongolia’s largest primary gold producer when it reaches full production.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Akerley continued, “The strengthening of our relationship with MMC through this financing supports our goal of creating a major new mining district in southwestern Mongolia. With MMC’s experience in large-scale mining, expertise in construction, power supply, transportation and logistics, and national and international relationships.”

     The Bayan Khundii Gold Project will form a strong foundation for future growth in the Khundii Minerals District. Together we will grow the Mongolian mining sector, increase the industry’s contribution to the national economy, and create value for our shareholders.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Bayan Khundii Financing

    Erdene and MMC signed a financial agreement to build the Bayan Khundii Gold Project. The funding is set up as a shareholder loan from MMC to Erdene Mongol LLC which is a joint venture between Erdene and MMC and has the mining licenses for Bayan Khundii, Altan Nar, and the extremely promising Ulaan exploration license.

    The US$50 million shareholder loan will finance the building of the Bayan Khundii gold mine and processing complex.  Up to five tranches totaling at least US$5 million may be drawn from the loan. The loan will mature five years after the initial draw date, and interest will be charged at a rate of 13.8 %, which will be paid in arrears every three months.

    The first four interest payments are capitalizationable at EM’s discretion. When the loan matures, it will be fully repaid. Under the same conditions, MMC may choose to make available an additional US$30 million. Additionally, EM and commercial banks in Mongolia are negotiating a loan package for up to $30 million.

    A 50 % guarantee from Erdene and Erdene’s interests in the Project, including its shares of EM and NSR interest and preferential rights over the Khundii, Altan Nar, and Ulaan licenses, will finance the shareholder financing. Under the terms of the companies’ Strategic Alliance agreement, MMC will have first dibs on Erdene’s Zuun Mod project and priority voting rights for as long as the loan is outstanding.

    Erdene also has the option to become a lending shareholder on the same terms as MMC and buy 50 % of the loan.

    This funding comes after MMC invested US$40 million as part of the Strategic Alliance Agreement to acquire a 50 % equity stake in EM. MMC will contribute a maximum of US$120 million toward the Bayan Khundii Gold Project’s development. The Strategic Alliance’s highlights are as follows:

    • The main board of the Hong Kong Stock Exchange lists MMC, as the largest mining firm in Mongolia that is traded worldwide.
    • MMC has made a $40 million investment in EM, Erdene’s Mongolian affiliate that had the Ulaan exploration license in addition to the Khundii and Altan Nar mining licenses.
    • In addition to the first 400,000 ounces of gold recovered, Erdene is still the owner of a 50 % equity position in EM and a 5.0 % Net Smelter Return royalty on production from the Khundii, Altan Nar, and Ulaan licenses. Erdene also retains ownership of any properties purchased within a 700 km2 area of interest.
    • The massive Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project, which are around 30 km east of Bayan Khundii and next to a proposed railroad development, are both owned 100% by Erdene.
  • Central Asia Metals Reaffirms Strong Production, Seeks Growth Opportunitie

    Central Asia Metals Reaffirms Strong Production, Seeks Growth Opportunitie

    Nigel Robinson discusses the positive production results for 2023, with copper, zinc, and lead all meeting or exceeding guidance. He emphasizes the company’s focus on business development and growth opportunities. Kazakhstan is highlighted as a potential area for future projects, with the company teaming up with experienced geologists to explore for new opportunities. R

    Central Asia Metals (CAML), a diversified base metals producer, has demonstrated resilience and strategic growth amidst challenging economic conditions in the first half of 2024. Despite facing a 17% decline in metal prices, cost inflation of 10-15%, and tax increases in Kazakhstan for the first time in a decade, CAML has maintained a strong performance. The company reported the production of 6,700 tons of copper, 9,700 tons of zinc, and 13,700 tons of lead in the first six months, aligning with its annual production guidance. This achievement was underscored by a commendable safety record, with a Lost Time Injury Frequency Rate (LTIFR) of 0.8, surpassing the target of 1.3.

    Financially, CAML showcased robust results with revenue just under $100 million and an EBITDA of approximately $49 million, translating to a 49% EBITDA margin. The company also generated $24.1 million in free cash flow, enabling a dividend payout of nine pence per share. This financial health is further bolstered by a debt-free balance sheet and cash reserves of $50.6 million.

    Strategic projects such as the Sasa transition to paste fill mining and the construction of a solar farm are on track, promising operational and environmental benefits. The transition to paste fill mining at the Sasa mine is expected to enhance metal recovery, reduce dilution, and enable access to complex ore bodies, while also addressing waste management challenges.

    On the business development front, CAML has been active, evaluating 22 opportunities, signing five NDAs, and conducting three site visits. Although two focused opportunities did not materialize, the company remains committed to growth, leveraging its strong balance sheet to explore early-stage opportunities and transformative transactions.

    CAML’s partnership with Terra Exploration in Kazakhstan exemplifies its strategy to identify and develop early-stage mining opportunities. This collaboration aims to leverage Terra Exploration’s expertise and CAML’s resources to secure new licenses and potentially discover viable mining projects.

    The company’s commitment to Environmental, Social, and Governance (ESG) principles is evident in its reporting and operational practices. CAML has published its fourth sustainability report, supports the Task Force on Climate-related Financial Disclosures (TCFD), and plans to report its Scope 3 emissions. Internally, CAML has set ambitious targets across key sustainability pillars, including a 50% reduction in greenhouse gas emissions by 2030 and increased local community investment.

  • Akobo secures NKr6m bridge loan from shareholders

    Akobo secures NKr6m bridge loan from shareholders

    Scandinavian gold exploration and mining company Akobo Minerals has secured a NKr6-million bridge loan. As part of the ongoing efforts to secure new funding, the company said on February 9 that it had successfully addressed a short-term liquidity requirement and that the bridge financing of NKr6-million has been secured from existing shareholders.

    The proposed loan matures in August 2025 and has an interest rate of 20% a year. The loan may be converted into shares at the next share issue or at the maturity date, subject to certain conditions being met.

    If converted, the conversion of the loan will take place by each lender subscribing for shares through offsetting the loan amount, including accrued interest. The loan, including accrued interest, may be converted into shares at the earliest of the resolution of a private placement of shares, or at the maturity date.

    Akobo said this financial measure provides the company with flexibility to navigate the current landscape and conclude a financial solution that involves all stakeholders in the company.

    Akobo said it remained actively engaged in discussions with relevant stakeholders to explore various long-term financing options to address its overall liquidity requirements.

  • Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Krasnolimanske LLC has become the winner of the auction to sell a special license to use subsoil – the mine site No. 1 in Mirnograd, Donetsk region.  The auction was held on February 8 on Prozorro.  Three companies participated in the trade of the lot with the starting price of 2.22 million UAH. The bid of Krasnolimanske in the amount of 4 million UAH won.  The license is valid for 20 years.

  • Минпромстрой рассылает “письма счастья” недропользователям

    Минпромстрой рассылает “письма счастья” недропользователям

    Министерство промышленности и строительства уведомило компанию о неполном исполнении своих контрактных обязательств в части инвестиций в разведку и буровые работы в рамках разведочного контракта в 2021 году, передает корреспондент inbusiness.kz.

    Министерство промышленности и строительства (МПС) в начале декабря уведомило золотодобывающую AltynEx Company, разрабатывающую золоторудное месторождение Юбилейное в Актюбинской области, о нарушениях по контракту 2560 от 28 января 2008 года на разведку золота и полиметаллов. Такая информация следует из письма, размещенного на сайте отраслевого ведомства.

    “За 2021 год: исполнение инвестиций составляет 82,69%, или 218 041,53 тыс. тенге, при плановом показателе 263 700,625 тыс. тенге; исполнение затрат на разведку составляет 75,53%, или 181 438,06 тыс. тенге, при плановом показателе 240 219,66 тыс. тенге; исполнение буровых работ составляет 26,32%, или 5 скважин, при плановом показателе 19 скважин; исполнение буровых работ составляет 0%, или 0 погонных метров, при плановом показателе 5582,5 погонного метра. В этой связи в течение одного месяца со дня получения настоящего уведомления вам необходимо: устранить нарушения обязательств контракта, а также представить все необходимые документы, подтверждающие их устранение (копии платежных поручений, договоры, акты выполненных работ)”, – говорится в корреспонденции профильного министерства.

    В случае невыполнения требований уведомления в установленный срок компетентный орган вправе принять меры в соответствии с условиями контракта и действующим законодательством, в том числе прекратить действие контракта в одностороннем порядке согласно Кодексу о недрах, предупреждают в минпроме.

    Напомним, в октябре inbusiness.kz писал, что Altynex не выполнил свое контрактное обязательство по строительству золотоизвлекательной фабрики на месторождении Юбилейном. По данным сайта Казахстанской фондовой биржи, 100%-ным акционером AltynEx Company является Сарсенов А. Р.

  • The Ministry of Industry and Construction sends out “letters of happiness” to subsoil users

    The Ministry of Industry and Construction sends out “letters of happiness” to subsoil users

    The Ministry of Industry and Construction notified the company of incomplete fulfillment of its contractual obligations regarding investments in exploration and drilling work under the exploration contract in 2021, the inbusiness.kz correspondent reports.

    In early December, the Ministry of Industry and Construction (MIC) notified the gold mining AltynEx Company, which is developing the Yubileinoye gold deposit in the Aktobe region, of violations under contract 2560 dated January 28, 2008 for the exploration of gold and base metals. This information follows from a letter posted on the website of the industry department.

    “For 2021: execution of investments is 82.69%, or 218,041.53 thousand tenge, with a planned indicator of 263,700.625 thousand tenge; execution of exploration costs is 75.53%, or 181,438.06 thousand tenge, with a planned indicator of 240,219.66 thousand tenge; execution of drilling work is 26.32%, or 5 wells, with a planned indicator of 19 wells; execution of drilling work is 0%, or 0 linear meters, with a planned indicator of 5582.5 linear meters In this regard, within one month from the date of receipt of this notice, you need to: eliminate violations of contract obligations, as well as submit all the necessary documents confirming their elimination (copies of payment orders, contracts, certificates of completion of work),” says the correspondence of the relevant ministry .

    In case of failure to comply with the notification requirements within the prescribed period, the competent authority has the right to take measures in accordance with the terms of the contract and current legislation, including terminating the contract unilaterally in accordance with the Subsoil Code, the Ministry of Industry warns.

    Let us recall that in October inbusiness.kz wrote that Altynex did not fulfill its contractual obligation to build a gold recovery plant at the Yubileinom deposit. According to the website of the Kazakhstan Stock Exchange, A. R. Sarsenov is a 100% shareholder of AltynEx Company.

  • Декабрьские аукционы на разведку твердых ископаемых в Казахстане: новички теснят акул

    Декабрьские аукционы на разведку твердых ископаемых в Казахстане: новички теснят акул

    Министерство промышленности и строительства (МПС) опубликовало на своем сайте детальные итоги декабрьского аукциона на разведочные блоки в рамках выдаваемых ведомством лицензий на разведку твердых полезных ископаемых. Корреспондент inbusiness.kz изучил результаты большинства торгов.

    Судя по выставленным данным, наибольший интерес с точки зрения размера окончательного подписного бонуса вызвал лот на два блока, где в торгах победу одержала компания Novus Trade. Она предложила за него довольно-таки крупную сумму в 619 млн тенге, что было гораздо больше аукционной заявки компании “КазГеоЭксплорейшен” в 562,8 млн тенге.

    К слову, кроме этого, Novus Trade выиграла в торгах разведочную лицензию на один блок за 67 млн тенге и еще два блока за почти 9 млн тенге. Более того, она стала победителем в конкурентном тендере с участием четырех компаний за 1 блок, установив финальную цену в 11,2 млн тенге. В этих торгах Novus Trade удалось обойти “Казахмыс”, “Феникс Майнинг” и AvantEx, которые предложили более низкие аукционные шаги в почти 9 млн тенге, 4,6 млн тенге и стартовую цену в 966 000 тенге соответственно. То есть фактически Novus Trade потратилась на все полученные в ходе аукционных торгов блоки на сумму более 700 млн тенге.

    Второй по денежной значимости подписной бонус за разведочную лицензию по другому лоту дала компания ES Mining Group – ее котировка на торгах была заявлена в размере 422,8 млн тенге также за два блока, что и стало окончательным размером подписного бонуса.

    Третьим по деньгам выигранным лотом является заявка Rio Tinto Exploration Kazakhstan на 173,7 млн тенге за 130 блоков. Видимо, там полны решимости продолжать геологоразведку в Казахстане, несмотря на долгие годы присутствия в стране без громких обнаружений. Поэтому казахстанская “дочка” одной из крупнейших горно-металлургических корпораций мира прикупила на аукционе, организованном минпромышленности, еще 68 блоков за почти 22 млн тенге в борьбе с Kratos Resources, предложившей за эти права недропользования 17,6 млн тенге.

    Кроме Rio Tinto, из австралийцев продолжает оставаться активной в геологоразведке Казахстана и компания Fortesque, до этого возвращавшая лицензии минпрому. Ее казахстанская “дочка” “Казахстан Фортескью” в ходе аукциона выиграла два лота: один на 17 блоков за 100,5 млн тенге, а другой на 28 блоков за стартовый подписной бонус в 966 тыс. тенге.

    Исходя из итогов аукциона, можно также отметить активность “Казахмыса”, который выиграл в торгах 11 из более 40 выставленных лотов на общую сумму более 55 млн тенге за 37 разведочных блоков, что, вероятно, говорит о высокой готовности к большим открытиям со стороны геологов команды Kazakhmys Barlau, которая была создана в 2018 году.

    Еще в списке победителей тендера недропользовательских прав притягивают внимание компании с малоизвестными именами, получившие лицензии за немалые деньги. Так, к примеру, Golden Mouse Mining приобрела на аукционе права на 5 разведочных блоков за 173,7 млн тенге. Другой недропользователь под названием Lakeside Minerals Limited заплатил за 13 блоков 100,5 млн тенге – судя по контактным данным, он связан с компанией Aurora Minerals, а широко не известная “Али-Нұр және компания” поставила за 2 блока 144,8 млн тенге. Радует, что инвесторы ценят казахстанские недра, принадлежащие народу, и дают за них хорошую цену в казну.

    Напомним, в конце прошлого года минпромышленности сообщало, что 20 декабря был проведен электронный аукцион на право разведки твердых полезных ископаемых на 45 участках недр. По итогам торгов было собрано подписных бонусов на 2,5 млрд тенге. Среди участников аукциона были такие крупные компании, как Rio Tinto, Fortescue, Kratos Resources, Cove Capital, Eczacibasi Holding, “Казахмыс”, ERG Exploration и “Казгеология”, уточняли в отраслевом ведомстве.