Kazakhstan’s Supreme Audit Chamber has released the findings of a national audit into how the country’s mineral resources are being used — and the results point to serious challenges for the industry that currently contributes a fifth of the national GDP.
Despite this significant economic role, confirmed reserves are steadily being depleted, and the country is struggling to replenish them. According to the audit, one of the core issues is the failure to convert preliminary resource estimates into confirmed reserves due to insufficient geological exploration, a problem exacerbated by a lack of private investment in exploration activities.
The Ministry of Industry and Construction has fallen short on key goals, including digitising geological data, building a comprehensive digital geological database, updating exploration archives, and boosting private sector engagement.
Auditors also uncovered poor oversight from the Committee of Geology, resulting in contractors being paid for digitisation work worth 68.2 million tenge that was never completed.
Tax loopholes were identified as another major issue. When companies amend their operational programmes, no tax review is conducted — allowing some to avoid paying taxes and budgetary obligations.
A further concern is the absence of modern, internationally certified laboratories. This undermines quality control, particularly for exports of precious metals and raw materials, weakening Kazakhstan’s ability to monitor its resource outflows effectively.
