At a session of the Higher Audit Chamber of the Republic of Kazakhstan, the outcomes of a state audit on the utilisation of national resources in the fields of geological exploration and subsoil use were presented.
📊 Currently, subsoil use contributes over 20% to the nation’s GDP. Kazakhstan possesses substantial reserves of mineral resources, including chrome, iron ore, lead, zinc, copper, uranium, gold, silver and others.
📌 However, the audit identified several systemic shortcomings in the governance of the mineral resource sector.
Among these is the high proportion of so-called “paper” resources—estimated but unconfirmed reserves not yet integrated into the economic cycle—particularly concerning as confirmed reserves become depleted. One key factor behind the slowdown in new reserve development is the lack of adequate funding for geological research. Despite the introduction of a licensing framework for exploration rights, investment activity among subsoil users remains low.
Auditors observed that the Ministry of Industry and Construction had failed to implement initiatives involving the digitalisation of geological data, the creation of a digital database, updating of archives and promotion of private sector engagement. A lack of modern storage facilities poses risks of damage or loss of valuable geological records.
Due to insufficient oversight by the Committee on Geology and poor compliance by contractors, the government paid 68.2 million tenge for incomplete works related to the digitalisation of geological materials.
The Ministry of Industry permits amendments to subsoil users’ operational programmes without requiring tax expert review, allowing companies to interpret tax rules in their own favour—potentially avoiding budgetary contributions.
Amid growing interest in Kazakhstan’s natural resources, demand is increasing for reliable laboratories that meet international standards. The lack of sufficient accredited laboratories weakens the quality control of precious metal and raw material exports.
Auditors documented 81 procedural violations and 16 systemic flaws.
As a result of the review, the Higher Audit Chamber issued a set of recommendations and directives aimed at developing the country’s geological exploration and subsoil use sector. Follow-up on these measures has been placed under active monitoring.
