MINEX Forum

Region: Kazakhstan

  • Orano wants to assist Kazakhstan in the development of uranium deposits

    Orano wants to assist Kazakhstan in the development of uranium deposits

    The joint venture between Orano Mining, a French company holding 51% of the shares, and Kazakhstani company Kazatomprom, holding 49% of the shares, known as KATCO, has announced its plans to commence operations at the South Tortkuduk uranium deposit in Kazakhstan by the end of 2023.

    According to Gwenaël Thomas, the spokesperson for the company, this information was shared on Wednesday and reported by Trend. He stated that the agreement for this development was reflected in an amendment to the existing subsoil use contract in August 2022. The commencement of operations at the South Tortkuduk deposit is expected to secure uranium extraction for KATCO for a period of approximately fifteen years.

    Thomas further highlighted additional agreements that have been reached between Kazakhstan and Orano. He mentioned that in November 2022, during the visit of Kazakhstan’s President Kassym-Jomart Tokayev to France, Orano and Kazatomprom signed a memorandum of cooperation. Through this memorandum, the two companies express their intention to support and strengthen their collaboration in the uranium mining industry, building upon their existing successful partnership.

    Thomas explained that the memorandum includes various collaborative initiatives, such as the implementation of a joint roadmap for technical research and development, exploring solutions to address carbon emissions resulting from the companies’ activities, and laying the foundation for discussions on the long-term development of their partnership.

    Established in 1996, KATCO was formed to develop and operate uranium deposits in Muynakum and Tortkuduk, located in the Turkestan region, approximately 300 kilometers north of Shymkent. Currently, the company employs around 1,200 individuals and operates an In-Situ Recovery (ISR) mine with an annual capacity of approximately 4,000 tons of uranium. Over the past 20 years, the operation of these two deposits has enabled KATCO to extract over 40,000 tons of uranium.

  • Without restrictions and penalties: Kazakh subsoil users will be endowed with new rights

    Without restrictions and penalties: Kazakh subsoil users will be endowed with new rights

    In a recent development reported by Orda.kz, it has been announced that a bill has been adopted in the Majilis on September 13th, granting subsoil users in Kazakhstan the right to refuse unproductive drilling of wells without facing any penalty sanctions. This provision is part of the draft law “On Amendments and Additions to the Code of the Republic of Kazakhstan on Subsoil and Subsoil Use,” which aims to enhance the field of subsoil use and increase the investment attractiveness of projects in geological exploration and hydrocarbon extraction.

    One of the key innovations of this bill is the empowerment of subsoil users to decline unproductive drilling based on the results of seismic surveys, without facing any penalties imposed by the state. Additionally, the bill introduces an expedited transition to geological exploration work, incorporating a notification procedure for project development and streamlining administrative procedures for subsoil operations, including state examinations of project documents in the hydrocarbon sector. Deputy Duysenbai Turganov elaborated on these changes, highlighting their significance in optimizing the subsoil use sector.

    The bill, as a whole, aims to achieve the following objectives:

    Reducing the duration of various examinations by 8-12 months.
    Decreasing administrative costs for procedures by more than two times, from 120 to 50 days.
    Enhancing investment attractiveness.
    President Kassym-Jomart Tokayev previously emphasized that the subsoil use sector in Kazakhstan has been plagued by systemic issues accumulated over the past decades. The insufficient volume of geological exploration work hinders the realization of the mining industry’s full potential, while the pace of replenishing the mineral and raw material base has been slowing down. These challenges have emerged alongside the depletion of exploited subsoil resources.

  • The volume of geological exploration work will increase in Kazakhstan

    The volume of geological exploration work will increase in Kazakhstan

    Over the past 6 years, geological exploration has been conducted on 9 sites in the Kostanay region, funded from the budget. The total area of the surveyed territory exceeds 38 thousand square kilometers. In the country, there are plans to increase the volume of work in this direction by at least 1.5 times, as reported by the correspondent of “Khabar 24,” Artem Grapov.

    Artem Grapov, correspondent: “Currently, in the Kostanay region, 35 types of valuable minerals are known and have been studied to varying degrees. About 400 deposits have been explored. The region is a unique iron ore and bauxite base of the republic. By the way, 4% of the world’s iron ore reserves are concentrated in the Kostanay region. Kostanay geologists conduct exploration work continuously. In addition to iron and bauxite, the region also has significant reserves of cobalt, nickel, titanium, and gold. This year, a geological hub was launched in the region. Its main area is a core storage facility – a complex where primary rock samples taken during drilling are analyzed.”

    Darkhan Makatov, Head of Field Research Department: “Materials are sent to the cutting workshop. After that, they undergo sampling. Then certified samples are sent to laboratories located both in Kazakhstan, in the city of Karaganda, and abroad, in Ireland. The analysis results are then entered into the database. The obtained data are then systematized and digitized in accordance with international geological survey standards.”

    Dastan Makat, Project Geologist, PhD: “We enter the field data we’ve obtained into the database. Then, using this data, we create a deposit model. After that, we develop ore body models. You could say this is the final task of our geological exploration. The materials are then handed over to miners, who, in turn, develop a mining plan for the deposit.”

    Continuous geological exploration allows for the identification of promising areas for further development. Maya Ospanova, Head of the Kostanay Regional Inspection of Geology and Subsoil Use: “As a result of the work carried out, estimated resources have been calculated for 12 types of valuable minerals. The main volume is accounted for by coal, which amounts to 14 billion tons. We have also discovered 31 kilograms of gold, as well as molybdenum, lead, zinc, nickel, tungsten, titanium, copper, and other valuable minerals. In 2023, geologists continue to develop 3 objects. The work is funded by the republican treasury. Two sites are for underground waters, and one is for the search for rare earth metals. Geologists will summarize the results of this work next year.”

  • Research and development projects of subsoil users will go through a single center

    Research and development projects of subsoil users will go through a single center

    The expertise for it will be stipulated in the new science law.

    Research and development projects (R&D) of subsoil users will undergo assessment at the National Center for State Scientific and Technical Expertise (NCSTEE) under the Ministry of Education and Science. This was announced by its head, Arman Kashkinbekov, during his speech at the Second Kazakhstan-China Conference on Renewable Energy and Science in the capital.

    “There are aggregators, 1% of subsoil users, like PIT Alatau with the Tech Garden brand, and with KIN G – the Kazakh Institute of Oil and Gas – we work with all of them… In the new science law, which will be enacted by the end of the year, NCSTEE is designated as the sole authorized organization in Kazakhstan for conducting these activities. Thus, after the law takes effect at the beginning of the new year, all projects of all subsoil users will be required to undergo state expertise in our center,” he said.

    As reported two years ago, according to the Subsoil Code, subsoil users in Kazakhstan were required to allocate 1% of their expenditures on mining for research and development projects (R&D). Companies could independently choose accredited scientific institutes or autonomous educational organizations for funding. Subsoil users also had the right to allocate R&D funds to the Tech Garden autonomous cluster fund and use these funds for digitalization.

    In 2021, the Ministry of Energy announced a phased transition: in 2022 – 50%, in 2023 – 75%, in 2024 – 100% towards centralizing subsoil users’ contributions to R&D through the republican budget by creating a separate budget program. Thus, the government intended to independently allocate the received funding for scientific activities in Kazakhstan.

    According to Kashkinbekov, the center is already working with the Samruk-Kazyna group of companies.

    “Our company has signed a cooperation agreement with Samruk-Kazyna, the Samgau center for scientific and technical initiatives. This is a new unified window for all R&D developments of all national companies in Kazakhstan. The essence of the agreement is that state expertise and state accounting of all projects of national companies are now being carried out by our center. Prior to this, there was no such state expertise, national companies could choose where they wanted to have their projects evaluated and invested, there was no government oversight, interaction, or synergy in state policy in the field of scientific activities. Now the agreement is in effect, the first projects have passed. The large package from Kazatomprom is next,” the head of NCSTEE noted.

    At the same time, he did not rule out that the center may establish cooperation with investors in renewable energy.

    “There is a dilemma because, according to the law, all subsoil users will come to us, but in Kazakhstan, there will still be “sacred cows” that are protected by production sharing agreements (PSAs) – these are oil companies, operators, how many of them are there – three or four licensees, and Tengiz. National legislation does not apply to them, so they are not required to come to us and undergo official state expertise. We will think about this. At the same time, investors in renewable energy – they are not subsoil users, they do not dig the land, but they invest in Kazakhstan in the energy sector. This work also awaits us – where to place them – they are not subsoil users, but they use solar and wind energy, they invest in Kazakhstan in the energy sector. We will work on this,” Kashkinbekov assured.

    In his speech, he reminded that his center is the only authorized organization conducting technical expertise of scientific programs and projects as well as applications for funding fundamental scientific research. Moreover, NCSTEE is responsible for organizing the work of national scientific councils. The center is also involved in state accounting and monitoring of projects and programs in science funded by the state budget in Kazakhstan, digitizing scientific works, and creating an index of citation of Kazakhstani scientists.

  • The gold deposit in the Akmola region will be put up for auction

    The gold deposit in the Akmola region will be put up for auction

    The Tellur-Stepok gold deposit, formerly owned by TS Minerals company, will be put up for auction. This information was provided in response to a request from inbusiness.kz through the electronic platform e-otinish by the Ministry of Industry.

    “TOO TS Minerals previously held the subsoil use right under contract No. 5519-TPi dated April 29, 2019, for the exploration of gold-bearing polymetallic ores in the Tellur-Stepok area in the Akmola region. Due to the expiration of the contract on April 29, 2023 (Clause 3 of Section 2, Clause 72 of Section 21 of the contract), the Ministry issued a corresponding notification (No. 03-2-18/5648-I dated June 29, 2023). TOO TS Minerals did not contest the above-mentioned notification in court. This deposit is planned to be auctioned,” as stated in the message from the industry department.

    Inbusiness.kz reported that the subsoil use contract with TS Minerals had been terminated. According to some information, there were small but high-grade gold reserves in the Tellur-Stepok area, which could generate increased demand at the auction. The Kazakhaltyn Group considered this asset attractive in 2018. Previously, 25% of TS Minerals’ shares belonged to “Kazgeology.”

    Furthermore, the relevant department clarified the situation regarding the copper deposit in Borly, Karaganda region, which was being developed jointly with Iranian partners through TOO Copper KZ-CA. It turned out that the subsoil user did not respond to these reserves.

    “TOO Copper KZ-CA previously held the subsoil use right under contract No. 3709-TPi dated September 6, 2010, for the exploration of copper ores in the Borly deposit in the Karaganda region. In accordance with Article 201 of the Subsoil and Subsoil Use Code, TOO Copper KZ-CA exclusively obtained a license for the extraction of solid minerals No. 51-ML dated September 29, 2022, at the Borly deposit in the Karaganda region. The subsoil use contract No. 3709-TPi dated September 6, 2010, for the exploration of copper ores in the Borly deposit in the Karaganda region ceased to be valid on November 23, 2022, upon its expiration (Clause 3.2 and 9.1 of the contract). The Ministry sent a corresponding notification (No. 04-2-18/156-I dated January 09, 2023) to TOO Copper KZ-CA,” the letter details.

    Media reported on the Borly deposit in the Aktogai district of the Karaganda region at the end of 2022 when a hydrometallurgical plant was launched there, with plans to produce up to 5,000 tons of cathode copper. The project’s reserves and resources were estimated at 216,000 tons. Iranian investors spent 11 billion tenge on the construction, and it was noted in the mining industry that the project was implemented with the support of Kazakh Invest. Two major Iranian companies, Golgohar Mining & Industrial Co. and Chadormalu Mining & Industrial Co., were involved in the construction. According to some information, the share of the Kazakhstani side (a private investor, whose name is not mentioned) in the project is about 20%, as reported by the industry publication dprom.kz.

    It’s worth noting that according to the database of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), Golgohar Mining & Industrial Co. and Chadormalu Mining & Industrial Co. are subject to secondary sanctions in the SDN (Specially Designated Nationals and Blocked Persons List).

    Based on the register of issued licenses posted on the relevant department’s website, the controlling parties of Copper KZ-CA are Kavand Nahand Zamin JSC (80%) – Tagizade Naser Zabihollah (50.9%), Atiki Iman Ahmadali (29%), Jalalmaab Mohammadreza Darvishali (10%), Ziyai Alireza Mokhsen (0.1%), TOO Technogran-Aktobe (20%) – Abdulin Tleukabyl Sartaevich (100%).

    Additionally, the Ministry of Industry commented on the challenging situation with the coal deposit Sarykum in the Karaganda region.

    “TOO Sarykum Group previously held the subsoil use right under contract No. 4232-TPi-ME dated December 23, 2015, for the exploration of coal at the Sarykum deposit in the Karaganda region. It is necessary to note that Sarykum Group assumed subsoil use obligations, which were not properly fulfilled. In this regard, the Ministry issued a notification (No. 04-3-18/7712-I dated October 19, 2021) on the violation of contractual obligations. However, Sarykum Group did not rectify the violations. Based on the decision of the subsoil use expert commission (minutes of the subsoil use expert commission No. 28 dated August 25, 2022), as well as subparagraph 12 of paragraph 14 of Article 277 of the Subsoil and Subsoil Use Code of the Republic of Kazakhstan, and paragraph 74-1 of Section 21 of the contract, the Ministry sent a corresponding notification (No. 04-2-18/60-I dated January 05, 2023) on the termination of the contract. Currently, TOO Sarykum Group is challenging the above-mentioned notification in court,” clarified the government agency.

  • Rumors on transfer of ArcelorMittal Temirtau to Russia’s Severstal denied

    Rumors on transfer of ArcelorMittal Temirtau to Russia’s Severstal denied

    First Deputy Prime Minister Roman Sklyar denied the rumors on transfer of ArcelorMittal Temirtau to Severstal, Russia’s largest mining company, Kazinform reports.

    Journalists asked Sklyar whether any negotiations were held with Severstal on transfer of ArcelorMittal Temirtau.

    «That’s not true. There are no negotiations on this issue. Do not believe these rumors,» he said.

    «The company [ArcelorMittal Temirtau – edit] has overdue liabilities in the repair of equipment and investments. Of course, we are concerned about the tragic events which happen at the enterprise and lead to death of people. We are working on attraction of other investors, who can work more effectively and invest in the development of this enterprise, as labour safety is a priority. We do not hold negotiations with the company you named,» Sklyar said.

    «What companies [investors – edit], I cannot say. It’s premature information,» he added.

    Earlier, mass media reported that the Government of Kazakhstan was considering the issue of transferring ArcelorMittal Temirtau to sanctioned Severstal, owned by Russian oligarch Alexey Mordashov.

  • Kazakhstan Coal Production Declines: Impact on Exports and Industry

    Kazakhstan Coal Production Declines: Impact on Exports and Industry

    From January to July this year, the Republic of Kazakhstan extracted a total of 65 million tons of hard coal, encompassing both brown coal and coal concentrate, as reported by energyprom.kz. This figure reflects a decrease of 2.1% compared to the previous year. The primary coal mining regions in the country, Pavlodar and Karaganda, contributed significantly, accounting for 92% of the nation’s overall coal, lignite, and coal concentrate production. In Pavlodar, coal production reached 39.2 million tons, marking a modest increase of 0.5% from the previous year, while the Karaganda region produced 20.6 million tons, representing a decrease of 3.3%. The Abay region secured a place in the top three leading regions with a production of 4.2 million tons, albeit experiencing a 10.3% decline year-over-year.

    For the entire year of 2022, Kazakhstan produced 117.8 million tons of coal, indicating a 1.4% increase from the previous year. Directly, 60.4 million tons of hard coal were extracted, a decrease of 1.7% compared to the preceding year. This production also included 4.2 million tons of coking coal, marking a 6% decrease, and 8.9 million tons of energy coal, a 4% decrease. Brown coal (lignite) production decreased by 0.9%, reaching 2.6 million tons, while coal concentrate production experienced a substantial 12.4% decline, totaling 2 million tons.

    During the January-June period of this year, Kazakhstan exported 13 million tons of coal, valued at $370.8 million. In terms of quantity, this represented a 20.4% reduction in exports, and in terms of value, an 18.9% decrease. Within these exports, 8.3 million tons of coal were directed to CIS countries, marking a 24.2% decrease compared to the previous year. Notably, Russia emerged as the primary importer of coal from Kazakhstan, accounting for 7.4 million tons and a 27.2% decrease year-over-year. The top three importing countries also featured Kyrgyzstan and Uzbekistan. The rest of the world received 4.7 million tons of Kazakh coal, experiencing a 12.7% decrease from the previous year. In monetary terms, these exports declined by 12.3%, amounting to $264 million. Among these exports, prominent importers of Kazakh coal included Poland, Latvia, and Turkey.

  • The Environmental Impact and Remediation Efforts of Kazzinc in Eastern Kazakhstan

    The Environmental Impact and Remediation Efforts of Kazzinc in Eastern Kazakhstan

    This hefty penalty was imposed due to a significant leak of waste materials into the Philippovka, Tikhaya, and Ulba rivers within the Eastern Kazakhstan region. This unfortunate event has drawn the attention of environmental regulators and raised serious concerns about the ecological repercussions.

    The Cause of the Leak

    The incident was triggered by a rupture in a pulp pipeline at the tailings facility of the Riddar Ore Enrichment Plant, which is operated by Kazzinc. The rupture led to the release of 1350 cubic meters of slurry, a byproduct of ore processing, onto the surrounding terrain. The natural topography allowed these liquid waste materials to flow into the Philippovka River, eventually merging with the Tikhaya River and, subsequently, the Ulba River. This chain reaction significantly deteriorated the quality of surface water and inflicted harm upon the local natural habitat.

    Environmental Violations Detected

    Environmental specialists who conducted investigations in the aftermath of the waste leakage discovered alarming increases in the concentrations of various substances:

    • Nitrate levels surged by a staggering 140 times.
    • Suspended solids showed a fiftyfold increase.
    • Manganese levels skyrocketed by a factor of five.

    These findings underscore the gravity of the environmental impact caused by Kazzinc’s negligence in preventing and addressing the waste leakage.

    Remediation Efforts

    Efforts to rectify the environmental damage were swift and comprehensive. The spilt slurry was promptly collected from the affected riverbanks and terrain. Following this, a thorough cleansing of the affected areas was carried out, including the restoration of the fertile soil layer. As a further step towards environmental restitution, perennial grasses were sown to promote ecological recovery.

    The collected liquid pulp was temporarily stored in an emergency pond at Pumping Station No. 5. It will later be transported to the Talovskoye tailings storage facility for safe and regulated disposal. Importantly, bio testing of the water did not reveal any toxic impact on local biota, providing some assurance regarding the immediate environmental consequences.

    Compensation and Restoration

    Kazzinc has committed to compensating for the environmental damage it caused. By the end of October, the company aims to restore the Shulbinskoye Reservoir by introducing 1400 juvenile fish of the carp family. Additionally, the company is obligated to pay administrative fines totalling 49.6 million Kazakhstani Tenge.

    In response to the incident, the Riddar Police Department has submitted a formal complaint. If authorities decline to initiate criminal proceedings against Kazzinc, the company could face an additional fine of 6.9 million Kazakhstani Tenge for soil contamination.

    Previous Violations

    It’s worth noting that this is not the first time Kazzinc has been embroiled in environmental controversy. In July of this year, the Philippovka River in Eastern Kazakhstan turned a milky white, a phenomenon attributed to a rupture in a pipeline used for transporting ore or waste from the mining industry (known as a pulp pipeline) at the Riddar Ore Enrichment Complex operated by Kazzinc. This spill of pulp materials also entered the river, causing further environmental distress.

    In a separate incident in 2021, “Kursiv” reported that Kazzinc had discharged polluted water into the Bukhtarma River, resulting in environmental damages exceeding 8 million Kazakhstani Tenge.

    About Kazzinc

    Kazzinc stands as one of Kazakhstan’s major non-ferrous metallurgical enterprises, encompassing the entire production cycle of zinc, lead, copper, gold, and silver ingots. This extensive process begins with ore extraction and culminates in the production of refined metals.

    The company comprises five industrial plants, with its headquarters situated in Ust-Kamenogorsk. The primary shareholder of Kazzinc is the Anglo-Swiss trader Glencore, while the remaining shares are held by the national company “Tau-Ken Samruk.”

    In conclusion, the recent environmental incident involving Kazzinc underscores the importance of robust environmental regulations and oversight in Kazakhstan’s industrial sector. It serves as a reminder of the significant ecological consequences that can result from inadequate waste management practices, emphasizing the need for continuous monitoring and remediation efforts to protect the country’s natural resources and biodiversity.

  • Enhancing Environmental Conservation: President Tokayev’s Directive

    Enhancing Environmental Conservation: President Tokayev’s Directive

    The President issued a series of concrete directives aimed at implementing new environmental legislation and preserving the country’s precious natural resources.

    Special Emphasis on Emission Reduction

    One of the primary directives from President Tokayev was to place particular emphasis on the implementation of a comprehensive plan to reduce emissions from major industrial facilities. This directive comes as a part of Kazakhstan’s commitment to mitigating its environmental footprint and fostering sustainable industrial practices. President Tokayev has assigned a dedicated oversight team to monitor the progress of this initiative closely. The plan involves rigorous monitoring and the deployment of automated systems to track emissions at these facilities, ensuring compliance with environmental regulations.

    Strengthening Infrastructure and Early Fire Detection

    Recognizing the need for systemic improvements, President Tokayev emphasized the necessity of enhancing the material and technical base of organizations under the Ministry’s purview. The goal is to facilitate the swift implementation of early wildfire detection systems within the country’s national parks. Additionally, there is a focus on upskilling the workforce engaged in forestry management. These measures are pivotal in preventing and managing forest fires, a critical concern for preserving Kazakhstan’s diverse ecosystems.

    Reforestation Initiatives and Tackling Illegal Dumping

    In a bid to combat deforestation and promote ecological balance, President Tokayev highlighted the importance of launching a comprehensive reforestation program. This program aims to significantly increase tree-planting efforts across the country. Furthermore, the President stressed the need for holistic approaches to address the issue of illegal dumping and unregulated waste disposal sites, commonly referred to as ‘stihii’ dumps.

  • Investigating the Ongoing Efforts to Contain the Fire at the “Kazakhstanskaya” mine

    Investigating the Ongoing Efforts to Contain the Fire at the “Kazakhstanskaya” mine

    The government commission’s ongoing investigation into a group accident stemming from a fire at the Kazakhstanskaya mine was reported by the Ministry of Emergency Situations of the Republic of Kazakhstan. According to the agency, current efforts have led to the completion of thirteen insulating jumpers in the affected section of the mine, with work continuing on the installation of eleven more. On-site, there are 27 mine rescuers and 45 mine workers, with the rescuers also actively involved in firefighting. The gas levels are being closely monitored, and there have been no adverse changes in temperature readings at the work areas.

    Recalling the incident that occurred on August 17, where a conveyor belt in the mine caught fire at 10:05, an emergency response plan was swiftly enacted. At the time, 227 individuals were underground, of whom 222 were successfully evacuated, but tragically, five lost their lives. A special commission, comprising representatives from relevant state bodies, was established to investigate the incident. Furthermore, a criminal case has been initiated under Article 277, Part 3, of the Criminal Code of the Republic of Kazakhstan, pertaining to violations of safety regulations during mining or construction work.

    A number of examinations were appointed as part of the investigation of the accident at the Kazakhstanskaya mine of the coal department of ArcelorMittal Temirtau JSC. They will be conducted by Kazakh and international organizations.