East Star Resources (EST), a British company operating in Kazakhstan, has announced a significant partnership with local firm Nova Ltd to establish a joint venture aimed at developing the Rulikha copper project in the East Kazakhstan region. The project will be operated by Orion Development Ltd, which has been tasked with the technical execution of the project, including resource confirmation, feasibility studies, permitting, construction, and the eventual commencement of production. This strategic collaboration is noteworthy as it allows East Star to advance the project without requiring additional funding from its side.
Nova Ltd, specifically registered in the Astana International Financial Centre (AIFC) to finance the joint venture, boasts shareholders that include prominent figures in Kazakhstan’s natural resources sector. While the identities of these shareholders have not been officially disclosed, speculation suggests they may include notable entrepreneur Aigazy Kusaikov and businessman Askhat Omarov, the latter being associated with billionaire Aydin Rakhimbaev.
Orion Development, also registered in the AIFC, brings a wealth of experience in the construction and operation of copper mines and processing facilities in Kazakhstan. This team is expected to leverage its expertise to ensure the successful development of the Rulikha project.
The Nova and Orion teams have previously developed two copper assets in Kazakhstan: the Karshyga and Kamkor projects. The Karshyga site was acquired in February 2017 from British firm Orsu Metals, which had reported reserves of approximately 4.6 million tonnes of ore with an average copper content of 3.02%. Following the acquisition, the team designed, financed, and constructed a copper processing plant, which began operations in 2018, leading to a significant increase in annual revenue.
The Kamkor project, acquired in 2021, contained around 15.7 million tonnes of copper ore with an average metal content of 0.65%. Construction of its processing facility commenced in January 2022, and it was operational by April 2023, with capital expenditures amounting to $14 million. The facility’s capacity was later increased by approximately 50%, resulting in a substantial rise in project revenues.
With the Rulikha project, the initial phase requires the partner to drill at least 3,000 meters or fund $1.5 million worth of work. East Star has already secured drilling permits for the main site and plans to initiate operations in the third to fourth quarters of 2026. As the project progresses, Nova’s stake in the joint venture will increase, potentially resulting in a final structure where Nova holds either 75% or 65% of the venture, depending on the financial arrangements.
Located about 33 km from the Upper Uba project, another copper initiative by East Star, the Rulikha project’s geological exploration target is estimated at a maximum of 23 million tonnes of ore with an average copper equivalent grade of 2.4%. This development marks East Star’s second copper project in Kazakhstan, following the entry of Chinese investors into the Upper Uba project, where East Star aims to retain a 30% stake post-production commencement, while for Rulikha, it aims for a stake between 25% and 35%.
