The Liaoning Hongda Group, a Chinese mining company, has commenced the construction of the Burabay-Zhalgyzagas mining and processing plant in the Janakorgan district of Kazakhstan’s Kyzylorda region. The facility is set to produce 20 tonnes of silver and 210,000 tonnes of lead-zinc concentrate annually upon its completion in 2028. The project represents a significant investment in the region, with a total cost of 138 billion tenge, and is expected to create over 550 new jobs.
During the groundbreaking ceremony, regional akim Murat Yergeshbayev highlighted the project’s potential to stimulate economic growth and diversify the local economy. He expressed gratitude to Liaoning Hongda Group for their commitment to such a large-scale and modern initiative. The project aligns with President Kassym-Jomart Tokayev’s directive to transition Kazakhstan to a new investment cycle, focusing on modern production and optimising regional economic potential.
Currently, drilling works are underway to expand the mineral resource base of the site, alongside the construction of access roads and the establishment of construction sites. The project also includes plans for connecting the plant to electrical grids to ensure a reliable power supply.
Liaoning Hongda Group has previously announced plans to invest $1.3 billion in the development of two lead and zinc deposits in the Janakorgan district, which will include two underground mines and two processing plants with a combined capacity of 8 million tonnes of ore per year, as well as a full-cycle metallurgical plant.
Exploration activities at the deposits date back to the 1980s, with detailed surveys conducted between 2010 and 2012. The reserves are classified as C2 category, with forecast resources rated as P1. The average content of the deposits is reported at 2.01% zinc and 1.62% lead, with geologists noting the potential for resource growth at greater depths.
Once operational, the new complex is projected to produce 420,000 tonnes of zinc and 220,000 tonnes of lead annually, which would significantly surpass the output of Kaz Zinc, making it potentially the largest producer of lead and zinc in Central Asia. The Chinese company has already invested approximately 9 billion tenge in geological exploration, utilising 15 drilling rigs during the process.
