Hongda Group is set to embark on a significant investment project in Kazakhstan, which could potentially surpass Kazcink and emerge as the largest producer of lead and zinc in Central Asia. Following a working visit by the First Deputy Prime Minister of Kazakhstan, Nurlan Naliyev, to the Kyzylorda region, attention has been drawn to this ambitious yet relatively low-profile project in the country’s mining and metallurgy sector. The project, valued at $1.3 billion, aims to establish two underground mines and two processing plants with a combined capacity of 8 million tonnes of ore per year, alongside a full-cycle metallurgical plant, creating over 3,000 jobs in the process.
The project will focus on the Talap and Burabay-Zhalgyzagash deposits, located just 20 kilometres apart. The Burabay-Zhalgyzagash site will be developed through underground mining to a depth of 500 metres. Both deposits are part of the Akuyuk-Maidantal lead-zinc ore district in the Karatau region, which also houses the largest deposit in the area, Shalkiya. Initial exploration activities took place between 1980 and 1985, with detailed surveys conducted from 2010 to 2012. The reserves are classified under category C2, with forecasted resources rated as P1, showing an average content of 2.01% zinc and 1.62% lead, with geologists noting the potential for resource growth at greater depths.
Investors have indicated that the metallurgical plant will have the capacity to produce 420,000 tonnes of zinc and 220,000 tonnes of lead annually, totalling 640,000 tonnes of metals. In comparison, Kazcink is projected to produce 251,800 tonnes of zinc and 76,700 tonnes of lead by 2025. Upon reaching its designed capacity, the new complex could produce 66.8% more zinc and 2.87 times more lead than Kazcink. If the project proceeds as planned, it stands to become the largest lead and zinc producer in Central Asia. Notably, the Chinese investors have already invested approximately 9 billion tenge in geological exploration, operating 15 drilling rigs simultaneously. While official reserves have yet to be disclosed, the scale of drilling and the proposed processing capacity suggest a substantial resource base. An official groundbreaking ceremony is expected later this year, reflecting a commendable approach where significant funds are first allocated for geological exploration to confirm resource viability before committing to the construction of a large-scale mining and metallurgical complex.
