MINEX Forum

Month: March 2024

  • Investments totaling $169 million USD flowed into Kyrgyzstan’s mining sector during the year 2023

    Investments totaling $169 million USD flowed into Kyrgyzstan’s mining sector during the year 2023

    In 2023, the inflow of foreign direct investment in Kyrgyzstan decreased to 798 million, which is 393 million or 33% less than the previous year.

    The top 5 countries by the volume of investments in Kyrgyzstan are:

    1. China with 221 million
    2. Russia with approximately 148 million
    3. Kazakhstan with 67 million
    4. The Netherlands with 63 million
    5. Turkey with 43 million.

    During this period, foreign investments were most actively made in processing enterprises at 227 million, mining enterprises at 169 million, the financial sector at 157 million, and car trading at $120 million.

    Source: National Statistical Committee of Kyrgyzstan.

  • The Republic of Kazakhstan intends to exclude machinery and metallurgy industry goods from the national procurement

    The Republic of Kazakhstan intends to exclude machinery and metallurgy industry goods from the national procurement

    The Republic of Kazakhstan intends to exclude machinery industry goods from the national procurement regime. Prime Minister Olzhas Bektenov signed a Government resolution to this effect on March 16. According to the document, foreign companies will be barred from participating in Kazakhstan’s procurement of machinery, metallurgical products, and several other sectors for a period of two years. The Ministry of Industry and Construction of the Republic of Kazakhstan, in coordination with the National Chamber of Entrepreneurs of the Republic of Kazakhstan “Atameken,” is expected to approve a list of goods, works, and services outlined in paragraph 1 of this resolution within 10 working days. This list will include codes corresponding to the unified classification of goods, works, and services, and will be submitted to the authorized body for state procurement.

    The impact of implementing these measures in Kazakhstan includes:

    1. Promotion of Domestic Industry: By restricting foreign participation in state procurement of machinery goods, Kazakhstan aims to bolster its domestic manufacturing sector.
    2. Support for Local Businesses: These measures provide opportunities for local businesses to thrive by ensuring their involvement in government procurement processes.
    3. Increased Self-Reliance: Kazakhstan’s move toward self-sufficiency in key industries like machinery and metallurgy may enhance its economic independence and reduce reliance on imports.

    The exclusion of machinery industry goods from Kazakhstan’s national procurement regime could have several implications for the investment climate in the country.

    Let’s explore these impacts:

    The new measure taken by the Kazakhstan government to exclude machinery industry goods from the national procurement regime can have mixed impacts on the investment climate in the country.

    On one hand, this move might encourage domestic production and boost the growth of local industries, which could potentially attract more local and foreign investments in the manufacturing sector. However, on the other hand, this decision might discourage foreign companies from entering or expanding their presence in the Kazakhstani market due to restrictions on participating in public procurement processes for machinery and related sectors.

    This exclusionary policy could lead to reduced competition and innovation, as well as potential supply chain disruptions for existing investors who rely on imported machinery components or technology.

    Additionally, the ongoing geopolitical tensions between Russia and Western countries might indirectly influence the investment climate in Kazakhstan due to its proximity and economic ties with Russia. Depending on the severity of sanctions and countermeasures, some investors might perceive increased risks associated with doing business in Kazakhstan, leading them to either delay or avoid making new investments altogether.

    Nevertheless, there are opportunities for Kazakhstan to position itself as an attractive alternative for investors looking to circumvent the negative effects of the Ukrainian conflict on the Russian market. Despite the recent political instability and social unrest witnessed in early 2022, the Kazakhstani government has been working to address the underlying issues and promote a stable investment climate. Efforts to streamline trade procedures, improve transparency, and enhance the overall ease of doing business in the country can contribute positively to the investment climate.

    Furthermore, the government’s commitment to comply with international sanctions against Russia, coupled with promised economic and political reforms, could help restore investor confidence over time.

    However, several persistent challenges remain, such as corruption, excessive bureaucracy, arbitrary law enforcement, and limited access to a skilled workforce in certain regions. Additionally, the government’s increasing regulatory role, preference for import substitution policies, limitations on foreign labour usage, and intervention in company operations continue to raise concerns among foreign investors.

    Improving the rule of law, enhancing human capital development, upgrading transportation and logistics infrastructure, adopting a more open and flexible trade policy, easing work permit regulations, and refining tax administration practices are key areas where improvements would significantly benefit the investment climate in Kazakhstan.

  • Kazakhstan discloses volume of manufacturing production

    Kazakhstan discloses volume of manufacturing production

    In 2023, Kazakhstan’s manufacturing production surged to 21.6 trillion tenge (approximately $48 billion). These figures were unveiled during a session of the Ministry of Industry and Construction’s board in Kazakhstan. This marked a notable uptick of 4.1 percent compared to the preceding year, which saw manufacturing output at 20.7 trillion tenge, or around $46 billion. The boost was primarily fueled by significant growth in sectors such as mechanical engineering (up by 25.4 percent), woodworking (up by 38 percent), light industry (up by 12.2 percent), and construction (up by 6.1 percent).

    Concurrently, investments surged by 11.2 percent, reaching 1.7 trillion tenge (approximately $3.77 billion). This growth stemmed from robust investments across various sectors, including a sevenfold increase in other vehicle production, a 5.6-fold increase in clothing manufacturing, a quadruple increase in furniture production, and a 3.5-fold surge in the automotive industry. Furthermore, by the close of 2023, the launch of 170 investment projects, valued at 928 billion tenge (about $2 billion), led to the creation of over 12,000 jobs.

    Exports of manufactured goods totaled $25.3 billion, underlining the sector’s significant contribution to the economy. Looking ahead, approximately 180 projects, valued at around 1.3 trillion tenge (roughly $2.9 billion), are slated for implementation in the manufacturing industry this year, with an anticipated creation of about 17,800 new job opportunities.

  • Для поиска металлов в ВКО и на Балхаше будут проводить аэрогеофизическое картирование

    Для поиска металлов в ВКО и на Балхаше будут проводить аэрогеофизическое картирование

    В Казахстане будут находить месторождения металлов при помощи технологии аэрогеофизического картирования. Запланировано изучение территорий в ВКО, Абайской области и на Северном Балхаше.

    Известно, что суммарная площадь потенциально ценных участков, выбранных для исследования, составляет 250 тыс. км². Такую информацию передаёт портал inbusiness.kz, ссылаясь на слова Андрес Бланко, гендиректора компании Xcalibur Multiphysics, которая специализируется на проведении аэрогеофизических съёмок.

    Предполагается, что инвесторы будут охотнее вкладывать средства в геологоразведку РК, имея на руках полученные благодаря аэрогеофизике геологические сведения.

    По словам г-на Бланко, первый этап картирования будет выполнен преимущественно в текущем году, а некоторые задачи намечены на 2025-й. На этой стадии для поиска металлов будут применять технологию магнитной гравитации.

    После интерпретации геологических данных, вероятнее всего, приступят ко второму этапу работ, предполагающему использование электромагнитного и гравитационного методов разведки.

  • Balhash and Eastern Regions to Undergo Aerogeophysical Mapping for Metal Exploration

    Balhash and Eastern Regions to Undergo Aerogeophysical Mapping for Metal Exploration

    In Kazakhstan, the exploration of metal deposits will utilize aerogeophysical mapping technology provided by Xcalibur Multiphysics. The areas to be studied include EKO, Abai Region, and North Balkhash.

    The company’s CEO Andres Blanco outlined a phased plan in collaboration with the geological service and the Ministry of Industry and Construction. This plan aims to execute regional mapping of Northern Balhash and parts of the Abai and East Kazakhstan regions, covering a total area of approximately 250,000 square kilometres. The objective is to elevate the regional mapping to a level of detail comparable to that found in Australia or possibly Canada. The plan targets completion by 2024-2025, with the data expected to be of world-class quality, integrating various technologies.

    The initial stage of regional mapping will primarily focus on magnetic gravimetry, one of the aerogeophysical survey systems. Subsequently, after interpreting geological structures with high potential, the second stage will involve a more detailed analysis utilizing electromagnetic and gravitational geology, along with data completion.

    Investors are expected to be more inclined to invest in Kazakhstan’s geological exploration, armed with geological data obtained through aero-geophysics. Overall, Xcalibur Multiphysics has invested around $2.5 million in establishing its Central Asian representation in Kazakhstan and plans to invest an additional $5-6 million over the next two years. Currently, the Kazakhstan office employs seven staff members, with an additional 30-35 expected to be hired. The company is also importing foreign aircraft adapted to local conditions for registration in the country, to be piloted by domestic pilots.

  • European Lithium’s Nasdaq Surge and Future Outlook

    European Lithium’s Nasdaq Surge and Future Outlook

    The ascent of Critical Metals Corp. (CRML) on the Nasdaq exchange has been truly remarkable. With a remarkable surge of more than 26% in a single trading day, CRML concluded at an impressive US$13.03, causing ripples throughout the market. This surge, coupled with a substantial turnover exceeding A$1 million, highlights the strong interest and confidence surrounding CRML’s initiatives. Leading this narrative is European Lithium Ltd (EUR), which recently joined forces with Sizzle Acquisition Corp, positioning itself at the forefront of this growing story. This strategic merger not only enhances EUR’s market presence but also lays the groundwork for potential value appreciation for its investors. Despite CRML’s remarkable success, Barry Dawes of Martin Place Securities points out a disparity between CRML’s performance and EUR’s current share price, hovering around A$0.078. Dawes suggests that EUR’s market capitalization of US$1.064 billion significantly undervalues its inherent potential, given CRML’s trajectory. He argues that EUR shares should reasonably be at least five times higher to mirror CRML’s performance, indicating a considerable value disparity that needs addressing. At the core of European Lithium’s strategic vision lies the development of the Wolfsberg Lithium Project in Austria. This ambitious initiative, now elevated to a pre-development stage, underscores EUR’s unwavering commitment to becoming a pivotal player in the European lithium-ion battery supply chain. With Critical Metals Corp. spearheading this transformative project, Wolfsberg emerges as a crucial asset poised to reshape the regional battery landscape. EUR’s chairman, Tony Sage, expresses confidence in the company’s path, citing access to US capital markets and the synergistic advantages of being listed on Nasdaq. He envisions Critical Metals as a cornerstone supplier in Europe’s burgeoning battery sector, with Wolfsberg playing a catalytic role in driving sustainable innovation. In a positive development, European Lithium Ltd recently settled APL and Okewood Pty Ltd, boosting investor confidence and removing potential obstacles to growth. This resolution, praised by EUR’s executive chairman Tony Sage as “very positive,” underscores the company’s dedication to creating a favourable environment for value enhancement. Sage’s optimism resonates with shareholders, as the elimination of uncertainties clears the path for unimpeded progress and strategic alignment. As European Lithium navigates the complexities of the global market, such resolutions serve as a testament to its resilience and steadfast commitment to delivering value to shareholders.

  • Centerra Gold Ensures Measures to Protect Shareholder Rights Amid Kumtor Mine Seizure

    Centerra Gold Ensures Measures to Protect Shareholder Rights Amid Kumtor Mine Seizure

    Centerra Gold, based in Canada, is actively implementing measures to safeguard shareholder rights following the seizure of its Kumtor gold mine by Kyrgyzstan’s parliament. The company’s Chief Executive, Scott Perry, emphasized strong support from the Canadian and UK governments in this matter, reassuring stakeholders during a conference call with analysts.

    The move by Kyrgyzstan’s parliament to seize control of the Kumtor gold mine, the country’s largest, came after Centerra announced its intention to challenge the government in an international court. This decision has sparked significant concern over foreign investment in the Central Asian country, prompting expressions of disappointment from the Canadian government.

    Furthermore, Centerra Gold imposed restrictions on the sale of shares held by Kyrgyzaltyn JSC, a state-owned entity with a sizable stake in the company. The resignation of Kyrgyzaltyn nominee Tengiz Bolturuk from Centerra’s board was also accepted by the company.

    Despite these developments, Centerra Gold disclosed holding $823 million in cash reserves, with the majority held outside of Kyrgyzstan. Perry emphasized that Centerra no longer retains control over the Kumtor mine.

    This escalation is part of a longstanding dispute between Kyrgyzstan and Centerra Gold over profit-sharing arrangements. The tension intensified following political upheaval in Kyrgyzstan last October, with the country’s new leadership taking a firm stance against the mining company.

  • East Star Resources PLC Secures Second Copper Porphyry Exploration License in Kazakhstan

    East Star Resources PLC Secures Second Copper Porphyry Exploration License in Kazakhstan

    East Star Resources PLC, a company focused on copper exploration and resource development in Kazakhstan, has unveiled the acquisition of its second copper porphyry exploration license as part of its new copper porphyry exploration strategy. This initiative, initially funded through a US$500,000 grant from the BHP Xplor program, marks a significant advancement in the company’s expansion efforts.

    The newly acquired 121 square kilometer tenement displays historical soil anomalies, indicating promising potential for hosting a copper porphyry deposit. Situated approximately 150 kilometers north of the sizable Kounrad open pit copper mine and smelter, with reserves estimated at around 800 million tons at 0.62% Cu and up to 0.76 g/t Au, the area encompasses a 6-kilometer-long and 3-kilometer-wide silica lithocap.

    Under the partnership with BHP Xplor, East Star is engaged in regional target generation for copper porphyry deposits, primarily focusing on the Balkash-Ili magmatic arc, which hosts significant deposits like Kounrad and Aktogai-Aidarly. By leveraging modern mineral systems concepts and advanced analytical techniques, East Star aims to secure additional exploration licenses within the targeted area for future fieldwork.

    The BHP Xplor grant covers all license fees and initial work programs, including field activities, desktop evaluations, and administrative costs. The program will be overseen by East Star with input from BHP and a team of experts.

    Chris van Wijk, Technical Director at East Star, expressed enthusiasm about the progress, stating, “We are thrilled to have secured our second copper porphyry license under the BHP Xplor program. This underscores our ability to swiftly formulate compliant applications and highlights the efficiency of the Kazakh ministerial process in granting new licenses.”

  • AM Resources Corp Expands Mining Operations in Austrian Pegmatite Belt

    AM Resources Corp Expands Mining Operations in Austrian Pegmatite Belt

    AM Resources Corp has significantly broadened its mining operations with the acquisition of a sizable 1,500 square kilometer land package in the Austrian Pegmatite Belt, establishing itself as a distinctive lithium exploration player in the area. This strategic expansion affords the company access to more than a hundred pegmatites within the Frederick Property, strategically positioning it in close proximity to 14 battery plants. The decision to invest in Austria is in line with the company’s objective to capitalize on established geology, market accessibility, historical expertise, and a favorable mining regulatory framework.

  • Казахстан обсуждает проблемы финансирования геологоразведочных работ

    Казахстан обсуждает проблемы финансирования геологоразведочных работ

    На недавнем заочном заседании в Казахстане депутаты, геологи и представители уполномоченных органов собрались для обсуждения проблем, связанных с геологоразведкой, и возможных путей их решения. Стоит отметить, что прошлой осенью президент Казахстана Касым-Жомарт Токаев поручил увеличить число перспективных территорий для геологоразведки до 2,2 миллиона квадратных километров к 2026 году.

    В ходе обсуждения представители индустрии выразили обеспокоенность недостаточным финансированием поисковой деятельности, как сообщает пресс-служба АГМП. Последние данные свидетельствуют о снижении инвестиций в геологоразведочные работы в Казахстане. Например, стоимость минеральных ресурсов, вывезенных из страны в 2023 году, превысила годовые инвестиции в разведку в шесть раз.

    Известно, что вложения Казахстана в геологические исследования составляют всего лишь 8 долларов за квадратный километр, в то время как Россия тратит на подобные исследовательские работы 28 долларов, а Узбекистан и Великобритания выделяют 97 и 267 долларов соответственно.

    В свете этого глава Комитета по геологии РК, Ерлан Акбаров, признал, что в случае отсутствия средств на усиление работ по поиску ценных недр, возможно, придется перераспределять финансирование, предназначенное на другие цели. По мнению г-на Акбарова, часть бюджета, выделенного на научные исследования и опытно-конструкторские работы, можно направить на геологоразведку.

    На сегодняшний день недропользователи тратят около 73 миллиардов тенге на научно-исследовательские работы.