MINEX Forum

Month: March 2026

  • Kazakhstan’s Sovereign Fund Model Prioritises Stability Over Direct Resource Payments

    Kazakhstan’s Sovereign Fund Model Prioritises Stability Over Direct Resource Payments

    Recent discussions about Mongolia’s decision to allocate 60 percent of mining revenues to its National Wealth Fund, with part of the funds distributed directly to citizens through personal accounts, have sparked debate in Kazakhstan about alternative resource revenue models.

    According to Saidа Tleulenova, a financial expert from Qazaq Expert Club, Mongolia’s system represents a relatively rare model where citizens receive a direct share of national resource income. Such approaches are more common in countries with smaller populations and highly concentrated mining sectors.

    A frequently cited example is the US state of Alaska, where residents receive annual payments from the Permanent Fund Dividend financed by oil revenues. In contrast, Norway’s sovereign wealth fund focuses on long-term capital accumulation and investment returns rather than direct cash transfers to citizens.

    Kazakhstan has adopted a different approach. The National Fund of the Republic of Kazakhstan accumulates revenues from oil and other natural resources, but payments to citizens are distributed only through investment income rather than direct resource revenues.

    This principle underpins the “National Fund for Children” programme launched on January 1, 2024. Under the scheme, 50 percent of the National Fund’s annual investment income is allocated to accounts for children. Once citizens reach the age of 18, they can use the accumulated funds for housing purchases or educational expenses.

    Tleulenova noted that the model reflects a deliberate policy choice. Direct distribution of the fund’s principal revenues could place pressure on public finances, increase inflation and weaken the national currency. The National Fund also serves broader economic functions, including financing strategic projects, supporting the state budget and maintaining long-term financial stability.

    While it would be technically possible to increase direct payments to citizens, the expert warned that allocating a share of extraction revenues directly to households could reduce the government’s ability to manage economic policy, affect the foreign exchange market and limit funding for infrastructure and industrial development.

    In her view, Kazakhstan, Mongolia and Alaska have simply adopted different resource management strategies. Direct payments can increase public trust and citizens’ sense of participation in national wealth, but they may also reduce fiscal stability. Conversely, accumulation-based models provide macroeconomic resilience but deliver benefits to citizens more indirectly through public spending and social programmes.

    Tleulenova suggested that any expansion of direct payments should be approached cautiously, potentially through pilot initiatives or limited revenue allocations, while carefully modelling impacts on inflation, the state budget and the tenge exchange rate.

    The debate comes as Kazakhstan’s National Fund approaches a total value of nearly KZT 40 trillion.

  • Mundoro Capital Highlights Copper Generator Model and Exploration Partnerships at PDAC 2026

    Mundoro Capital Highlights Copper Generator Model and Exploration Partnerships at PDAC 2026

    Mundoro Capital Inc. used the PDAC 2026 conference in Toronto to outline its exploration strategy focused on copper projects in Eastern Europe and the United States, emphasising the company’s use of a “generator” model designed to advance exploration while limiting shareholder dilution.

    Speaking during the event, Chief Executive Officer Teo Dechev explained that the generator model allows the company to assemble prospective land packages and develop exploration targets before bringing in larger mining companies to fund drilling and project development. This approach reduces the need for continuous equity financing while enabling exploration to move forward through partnerships.

    Mundoro Capital focuses primarily on copper opportunities in regions with strong geological potential. The company currently concentrates its exploration activities in Serbia and Arizona, where it identifies and secures land positions, compiles geological data and generates exploration targets before partnering with major mining companies.

    According to Dechev, option agreements with industry partners provide funding that can be reinvested into developing additional exploration opportunities. The strategy allows the company to build a pipeline of projects while sharing financial risk with larger operators.

    One of the most significant examples of this approach is Mundoro’s Serbian portfolio in the Timok region, a well-known copper district in eastern Serbia. The company has assembled approximately 940 square kilometres of prospective ground in the area and entered into multiple agreements with global mining company BHP.

    Under the partnership, BHP is expected to carry out systematic drilling campaigns across several exploration targets during the year, a development Dechev described as a major step forward for advancing the district’s copper potential.

  • Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    The European Union’s proposed Industrial Accelerator Act (IAA) represents a significant step toward building a more proactive and coordinated industrial policy aimed at strengthening competitiveness, resilience and strategic autonomy across key manufacturing sectors. However, industry representatives warn that the legislation must more clearly integrate the upstream raw materials sector to ensure the effectiveness of Europe’s strategic supply chains.

    The IAA seeks to stimulate investment and accelerate the development of strategic industries by promoting the production of key technologies and introducing measures such as simplified permitting, “Made-in-EU” criteria and requirements related to low-carbon content. These provisions are intended to create stronger regulatory certainty and targeted incentives capable of mobilising private capital and supporting the EU’s green and digital transitions.

    According to industry association Euromines, these policy tools reflect a growing recognition within the EU that achieving climate and technological goals requires a comprehensive industrial strategy capable of aligning supply and demand across critical value chains.

    However, the organisation argues that the current framework does not sufficiently address the role of domestic raw materials production. Without stronger links between manufacturing policies and upstream resource extraction, increased demand for strategic goods could fail to translate into greater supply security within the European Union.

    Euromines also notes that the proposed reliance on non-preferential rules of origin primarily reinforces final manufacturing stages rather than recognising the strategic importance of raw materials produced within the EU. While cooperation with trusted international partners remains important, extending recognition of EU origin to certain Free Trade Agreement partners may do little to strengthen Europe’s internal resource base.

    The organisation has called for greater integration of raw materials policy into the Industrial Accelerator Act, arguing that minerals and metals form the foundation of all strategic industrial value chains.

    Euromines said it is prepared to work with EU lawmakers to address these gaps, emphasising that fully incorporating domestic raw materials production into the IAA will be essential for building resilient supply chains and achieving the bloc’s long-term industrial, strategic and climate objectives.

  • Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    A major lithium mining project in the Czech Republic’s north-west is drawing increasing local opposition even as it gains strategic support from the European Union as part of its efforts to secure critical mineral supplies for the green transition.

    The Cinovec deposit, located near the German border in the Ore Mountains, is considered one of the largest lithium resources in Europe. Developed by Geomet, a company jointly owned by Czech state-controlled energy group CEZ (51%) and European Metals Holdings (49%), the project could become a cornerstone of the EU’s emerging domestic lithium supply chain.

    The deposit is estimated to contain up to three percent of global lithium reserves. Current development plans envisage mining roughly 3.2 million tonnes of ore annually, producing about 37,000 tonnes of battery-grade lithium carbonate each year, enough to supply materials for around 1.3 million electric vehicles.

    The project has been designated a strategic initiative under the EU’s Critical Raw Materials Act, enabling accelerated permitting procedures and financial support. The development has also received a €36 million grant from the EU’s Just Transition Fund and a €360 million subsidy from the Czech government. Total project investment is estimated at around CZK 42 billion (€1.75 billion), with mining potentially beginning by 2030.

    However, residents and local officials in the Usti nad Labem region have raised concerns that the project could reverse years of environmental recovery following the decline of heavy industry and coal mining. The area, which transitioned from large-scale industrial extraction to tourism and spa services, now faces the prospect of renewed mining activity.

    Local leaders warn that lithium extraction could bring environmental and social impacts, including noise and air pollution, groundwater contamination and disruption to landscapes and biodiversity. Critics also point out that parts of the proposed mining area lie within protected Natura 2000 zones and the Ore Mountains UNESCO World Heritage site.

    Activists and environmental researchers argue that large-scale lithium extraction cannot be considered environmentally neutral, even if linked to renewable technologies and electric vehicle production. Concerns have also been raised about transparency, community consultation and the long-term economic benefits for local residents.

    Economic uncertainties further complicate the project’s outlook. Lithium prices have fallen sharply since their peak in 2022, raising questions about the financial viability of large-scale hard-rock lithium mining at Cinovec. Analysts note that the project’s costs may be relatively high due to the ore’s lower lithium concentration, while reliance on public subsidies and volatile global markets adds additional risk.

    Despite these challenges, Czech authorities continue to view the project as strategically important for maintaining the country’s role in the European automotive supply chain and supporting the EU’s broader goal of reducing dependence on imported battery materials.

  • Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Canada have signed a non-binding memorandum of understanding to establish a long-term strategic partnership aimed at developing advanced lithium conversion capacity in Canada, centred on the planned Red Rock converter project in Ontario.

    The agreement, announced during the Canadian Critical Minerals Forum hosted by Natural Resources Canada at PDAC 2026 in Toronto, focuses on applying Siemens’ digitalisation technologies, including Digital Twin systems, throughout the design, construction and operation of the lithium processing facility.

    The Red Rock converter will be developed using the engineering blueprint of Rock Tech’s fully permitted Guben lithium converter project in Germany. By replicating the design, the company aims to accelerate development timelines, reduce technical risks and improve capital efficiency while moving toward a final investment decision in Canada.

    The planned facility is expected to produce up to 32,000 tonnes of lithium carbonate equivalent annually, enough to supply battery materials for roughly 900,000 electric vehicles each year. Once operational, the plant would become Ontario’s first lithium conversion facility and a key component of Canada’s emerging battery materials supply chain.

    Rock Tech said the project will form part of a vertically integrated supply chain alongside its Georgia Lake lithium mining project, creating a regional “rock-to-battery” corridor within Ontario.

    Under the partnership, Siemens will deploy its Digital Twin technology to model process design, energy use and material flows across the entire project lifecycle. The digital system is intended to optimise plant efficiency, emissions performance and operational reliability before major capital investments are committed.

    The collaboration also reflects growing strategic cooperation between Canada and Germany on critical minerals supply chains. Officials said the Red Rock project aligns with priorities under the G7 Critical Minerals Production Alliance and could serve as a reference model for future lithium conversion facilities in allied markets.

    The partnership will be implemented in multiple phases, beginning with the integration of digital technologies into feasibility and engineering studies. The companies will also explore additional Siemens services and potential joint funding opportunities with Natural Resources Canada, the Government of Ontario and bilateral Canadian-German programmes.

    Canadian Energy and Natural Resources Minister Tim Hodgson said initiatives such as the Red Rock project demonstrate how G7 partners are moving from policy commitments to concrete investments aimed at building secure and sustainable critical mineral supply chains.

  • Kazakhstan to Begin Partial Development of Sarykum Anthracite Coal Deposit Near Balkhash

    Kazakhstan to Begin Partial Development of Sarykum Anthracite Coal Deposit Near Balkhash

    Kazakhstan is preparing to partially develop the Sarykum anthracite coal deposit located near the city of Balkhash in the Karaganda region, according to a mine closure and rehabilitation plan related to operations at the site.

    The project documentation indicates that high-quality anthracite from the deposit is expected to be supplied primarily to ferrous and non-ferrous metallurgy industries. Additional industrial applications may include the production of absorbents, electrodes, electrocorundum and carbon powders. Lower-grade coal that does not meet anthracite specifications is planned to be used for municipal heating and domestic consumption in Balkhash and nearby settlements in the Aktogay district.

    Anthracite is relatively rare in Kazakhstan and is valued for its high calorific value and heat output. Although it has a high energy content, the fuel is more difficult to ignite compared with other coal types. Historically, limited anthracite production in Kazakhstan occurred at the Zhamantuz deposit in Pavlodar region, where reserves were small.

    Globally, the largest anthracite reserves are concentrated in Russia and China. Russia accounted for nearly all of China’s anthracite imports in 2025, reflecting strong demand and high margins for this coal type.

    Unlike many anthracite deposits that are mined underground due to their depth, extraction at Sarykum is planned through open-pit mining, likely due to the geological structure of the deposit.

    According to project documentation prepared for Alfa Plast LLP, average ash content in Sarykum coal exceeds 42 percent, though the material may be beneficiated and processed into concentrate.

    The mine development plan covering the period until 2050 предусматривает extraction of approximately 20.01 million tonnes of coal from total reserves estimated at 170.63 million tonnes as of January 1, 2025. Following this period of production, the project foresees conservation of the open pit.

    Production capacity at the mine is expected to gradually increase from about 10,000 tonnes per year in the early stage to 1 million tonnes annually by 2035. Output at this level is planned to continue until 2048, after which production will decline to around 500,000 tonnes by 2050.

    The Sarykum deposit was previously the subject of a legal dispute between Kazakhstan’s Ministry of Industry and Sarykum Group LLP over alleged violations of subsoil use obligations, with authorities at one point considering placing the asset up for auction.

  • SSR Mining to Sell 80% Stake in Turkey’s Copler Gold Mine to Cengiz Holding for $1.5bn

    SSR Mining to Sell 80% Stake in Turkey’s Copler Gold Mine to Cengiz Holding for $1.5bn

    SSR Mining has agreed to sell its 80 percent interest in the Copler gold mine and related assets in Turkey to Cengiz Holding for $1.5 billion in cash, marking a major strategic shift toward focusing its operations in the Americas.

    The transaction covers all mining licences, infrastructure, rights and liabilities associated with SSR Mining’s operations at Copler in eastern Anatolia. The company announced that its shares rose approximately 15 percent in pre-market trading in New York following the announcement.

    SSR Mining suspended operations at the Copler mine in 2024 after a landslide at the heap leach facility left at least nine miners missing. An independent investigation later determined that a design flaw in third-party engineering work was the most likely cause of the failure, prompting a broader review of the asset and its operational risks.

    Executive chairman Rod Antal said the divestment forms part of a broader strategy to reposition the company’s portfolio geographically. The move follows SSR Mining’s acquisition of the Cripple Creek & Victor gold mine in the United States and reflects a renewed focus on assets in the Americas.

    The company added that it is also reviewing its remaining presence in Turkey, including its 20 percent stake in the Hod Maden development project.

    Completion of the Copler transaction with Cengiz Holding is expected in the third quarter of 2026, subject to customary approvals and closing conditions.

  • Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Authorities in Kazakhstan’s Pavlodar region have signed a social memorandum with Ertis Hydrometallurgical Plant LLP, a flagship project of Solidcore Resources, outlining new investments in social and environmental initiatives.

    Under the agreement, the company will allocate approximately KZT 900 million toward socially significant projects in the city of Pavlodar. The funding will support capital repairs at three schools and two kindergartens, as well as broader improvements to the city’s social infrastructure.

    The memorandum also includes environmental commitments. As part of conservation measures, the project will finance the purchase of 65 units of specialised equipment for regional forestry and wildlife protection institutions.

    Vladimir Dudin, General Director of Ertis Hydrometallurgical Plant LLP, said the company aims to ensure that industrial development directly contributes to improving living standards in the region.

    “For us it is important to build a model of cooperation where industrial growth directly contributes to improving the quality of life for people. Social investment is not a one-time initiative but part of the company’s long-term strategy,” he said.

    Pavlodar regional governor Asain Baikhanov highlighted the importance of cooperation between government and business in achieving sustainable regional development.

    The Ertis Hydrometallurgical Plant is planned to become Kazakhstan’s first full-cycle facility for processing gold-bearing concentrates. The plant is scheduled to begin operations in 2028 and is expected to strengthen the country’s downstream processing capacity in the mining sector.

  • Kazakhstan Highlights Exploration Drive and $500m Investment Plan at PDAC 2026

    Kazakhstan Highlights Exploration Drive and $500m Investment Plan at PDAC 2026

    A Kazakh delegation led by Vice Minister of Industry and Construction Iran Sharkhan took part in PDAC 2026, the world’s leading mining and exploration conference hosted by the Prospectors & Developers Association of Canada in Toronto.

    During the event, the Ministry of Industry and Construction, in partnership with the Kazakhstan Chamber of Mines and Aurora Minerals Group Limited, and with support from the Embassy of Kazakhstan in Canada, organised the international forum “Kazakhstan Day.” The session focused on the country’s geological potential and exploration opportunities.

    The forum drew representatives from major international and Canadian mining companies, including Zijin Mining Group, B2Gold, First Quantum Minerals, Hatch, Arras Minerals and Xcalibur Smart Mapping.

    In his address, Iran Sharkhan stressed that the government places strategic importance on improving the geological knowledge base of Kazakhstan’s territory. Over the next three years, approximately $500 million is expected to be allocated to geological exploration, exceeding the total state investment in exploration over the previous three decades.

    According to the Vice Minister, systematic expansion of exploration activities and the opening of new territories for prospecting will create improved conditions for foreign investment and deeper international cooperation in the mining and metallurgical sector.

    Participants were also presented with an overview of key geological discoveries made in 2024–2025, along with successful examples of joint projects implemented with foreign partners.

    On the sidelines of PDAC, the head of the delegation held a series of bilateral meetings with Canadian and international mining executives interested in launching new projects in Kazakhstan. Discussions focused on cooperation in critical minerals, the application of advanced exploration and mining technologies, and potential joint ventures in downstream processing of Kazakh raw materials.

    Officials said Kazakhstan’s participation at PDAC 2026 underscored sustained international interest in the country’s resource base and demonstrated its readiness to expand partnerships with Canadian and global investors across the mining value chain.

  • Kazakhstan Targets Coal Output Growth as New Generation Plan Forecasts Rising Demand

    Kazakhstan Targets Coal Output Growth as New Generation Plan Forecasts Rising Demand

    Kazakhstan’s Ministry of Energy has held talks with the country’s largest coal producers to discuss implementation of presidential directives issued at the Fifth National Kurultai, alongside a newly adopted national plan for coal-fired power generation.

    The plan reaffirms coal’s role as a strategic asset for Kazakhstan, which holds reserves exceeding 33 billion tonnes. According to ministry forecasts, new industrial projects are expected to require an additional 19 million tonnes of thermal coal annually by 2032, placing pressure on producers to expand output capacity in the coming years.

    Major domestic mining companies have indicated readiness to meet the anticipated increase in demand. Bogatyr Komir, one of Kazakhstan’s largest coal producers, said it plans to raise production from 42.7 million tonnes to 45.2 million tonnes this year, with a longer-term target of 56.5 million tonnes annually by 2032.

    To achieve this expansion, the company intends to invest approximately KZT 360 billion in the launch of new cyclic-flow technology (CFT) complexes and the modernisation of its mining equipment fleet. The investment programme also includes the implementation of digital systems such as MES solutions for CFT operations and advanced haulage optimisation tools.

    Shubarkol Komir likewise confirmed plans to increase output to 16.1 million tonnes this year. Over the next six years, the company will invest KZT 95.5 billion in the second phase of its CFT infrastructure development, alongside nearly KZT 50 billion earmarked for new machinery and equipment purchases, including robotic systems.

    The ministry emphasised that coordinated industry efforts will be essential to maintain energy security and support industrial growth as Kazakhstan balances its resource base with evolving economic priorities.