The project for the development of the Nura-Taldy field, the license for which is held by Ressource PV LLP, was criticized by residents of the Nurataldinsky rural district. The local population is sounding the alarm that beryllium mining will negatively affect the environment and health of villagers, reports the 24KZ channel .
The deposit is located in close proximity to a rural district, and some of the houses are included in the sanitary protection zone. Public hearings on the project took place in the summer of 2023, but local residents note that they were not aware of the meeting. Most of the district’s population is engaged in livestock farming. Citizens believe that they may lose pastures if the field is launched.
Ressource PV plans to open-pit mine beryllium ores for 10 years. According to estimates, the on-balance reserves of Nura-Talda amount to over 4.39 million tons of ore, off-balance reserves – 432.9 thousand tons. The average metal content in ore is 0.19%.
The authorities say that the development of the deposit is of key importance both for the production of rare metals in the Republic of Kazakhstan and for the development of the region. The project should reduce the dependence of the Ulba Metallurgical Plant on imported beryllium, which will be engaged in the enrichment of raw materials mined at Nura-Taldy.
The subsoil user is ready to resettle some of the villagers and promises to comply with all environmental requirements, in particular regarding the number of emissions standards. They want to start the project in two years, but now the company will need to reach an agreement with the local population.
The study by the U.S.-based International Tax and Investment Center warns that a failure to act could leave China with a “decisive advantage” in the sector, which is crucial to green energy, many new weapons systems and other advanced technologies.
“As the uses for these minerals has expanded, so too has global competition for them in a time of sharply increasing geostrategic and geo-economic tension,” the report says.
“Advanced economies with secure, reliable access to REEs enjoy economic advantages in manufacturing, and corresponding economic disadvantages accrue for those without this access.”
China, which accounts for most of the world’s rare earth mining within its own borders, has not yet had to seek additional supplies from Central Asia, which enjoys plentiful reserves of minerals ranging from iron and nonferrous metals to uranium.
But, the report says, “the massive size of the Chinese economy and the Chinese Communist Party’s conscious efforts to dominate the REE sector globally means such increases are a matter of time.”
Oil-rich Kazakhstan, the region’s economic giant, holds the world’s largest chromium reserves and the second-largest stocks of uranium, while also possessing other critical elements.
Report co-author Ariel Cohen says it is up to the governments of Central Asia to create the investment climate for the development of these resources.
“They may be the next big thing in Central Asia as the engine of economic growth,” Cohen said this week during a panel discussion at the Atlantic Council, a Washington think tank.
Across Central Asia, experts note, REEs are found in substantial volumes in the Kazakh steppe and uplands as well as in the Tien Shan mountains across Kazakhstan, Kyrgyzstan and Uzbekistan, and in the Pamir Mountains in Tajikistan.
Monazite, zircon, apatite, xenotime, pyrochlore, allanite and columbite are among Central Asia’s most abundant rare metals and minerals.
In 2016, the U.S. Geological Survey listed 384 REE occurrences in the region: 160 in Kazakhstan, 87 in Uzbekistan, 75 in Kyrgyzstan, 60 in Tajikistan, and two in Turkmenistan.
US Ambassador to Kazakhstan Outlines US Engagement in Central Asia
Wesley Hill, another expert on Central Asia’s mineral reserves, says production of rare earths at present “is almost wholly monopolized by China.”
“Depending on how you count, between 80 to 90% of REE refining is controlled by China and done directly inside of China,” Hill said.
But, he argued, despite China’s heavy involvement in Central Asia, it has yet to fully take over the region’s rare earth sector. “So, this means that Central Asia is very much at a crossroads,” he said. “Central Asia has the opportunity to expand its REE production without being wholly dependent on China.”
Central Asia is currently in a position where it can develop its REE refining capacities both for its national development strategies and to break the Chinese monopoly, Hill said.
“But this is only going to happen with good policy, both from the American side and the Central Asian side.”
Ambassador John Herbst, Washington’s former top diplomat in Uzbekistan and Ukraine, says the region’s REE assets are “simply another reason for enhanced engagement by the West.”
He said he is not sure that Central Asian governments appreciate how important rare earths can be to their development. “But I do know that the countries of Central Asia want a closer relationship with the United States, and that is one important part of their maintaining their hard-won independence.”
Herbst added that the United States and Central Asia have a common interest in working together to develop the region’s rare earths “for the economy of the future.”
“We have an ability to innovate that far exceeds [China’s]. Their innovation is based largely on taking our technology.”
Central Asian Trade Corridor Gains Interest Amid Regional Tensions
Suriya Evans-Pritchard Jayanti, who serves as energy transition counsel at the U.S. Department of Commerce, says the region is eager for investment.
“It is a development opportunity. Particularly with the geostrategic energy realignment after the Russian invasion of Ukraine, but also, because of the energy transition. Lithium and other REE are necessary for different parts of that transition. So that’s primarily an economic incentive,” she said.
She pointed to the Mineral Strategic Partnership Initiative run by the U.S. State Department’s Bureau on Energy Resources, which is able to promote foreign direct investment in the region while providing technical assistance in the mining sector.
Cohen said the Central Asian countries cannot wait long to develop their rare earths. “There is a competition, and the African countries, Latin American countries and others will compete increasingly.”
FILE – Chinese President Xi Jinping (center) poses for photos along with the presidents of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan during the China-Central Asia Summit in Xian, China May 19, 2023.
Wilder Alejandro Sanchez, who heads a consultancy called Second Floor Strategies, says Central Asia needs a rare earth research center that can provide timely information to prospective customers and investors.
Transportation is key, Sanchez said. “It’s not just about finding and mining them. You have to get them to the international market.”
Access from the landlocked region at present is limited to China’s Belt and Road infrastructure or routes through Russia. Sanchez and others recommend using the Middle Corridor, also called the Trans-Caspian International Transport Route, which can carry goods to Europe across the Caspian and Black seas.
These experts also say progress will depend on regional governments overcoming their traditional secretiveness regarding natural resources. They emphasize the importance of transparency, the rule of law, adherence to best practices and compliance with international norms if they hope to attract Western investment.
JSC Bast plans to build a processing plant with an annual capacity of 2.5 million tons of ore at the Maksut copper-nickel ore deposit, located in the Abay region. The subsoil user published the work plan on the Unified Environmental Portal of Kazakhstan for consideration by environmentalists and the public.
After the commissioning of the new enrichment plant, the activities of the existing processing plant with a significantly smaller capacity of 400 thousand tons will be stopped, but the building will not be dismantled. Construction and installation work is expected to begin in 2024. The facility will be put into operation in 2026. The deposit’s reserves should be enough for 15 years of production.
According to the project documentation, crushed ore will be crushed in two parallel sections with a capacity of 174.4 t/hour. Flotation enrichment is planned to be carried out in vat-type pneumomechanical machines. If previously Bast produced only copper concentrates, now it will also produce nickel concentrates.
Let us remind you: last year the company applied to the Development Bank of Kazakhstan. In the last couple of years, Bast has been in the red in terms of financial indicators. To take the development of Maksut to a new level, the subsoil user planned to introduce a new metal extraction technology.
Concerns are rising in the West over energy security as it appears to be that Russia and China – but especially Russia – have been both cornering the U308 market. Russia also handles much of the world processing of uranium, an awkward reality amid US plans to sanction Russian uranium imports over the war in Ukraine. These concerns were the focus of a recent Financial Times article.
In the midst of this stands Kazakhstan – around 59mn pounds of U308, constituting 44% of the current global uranium production is sourced from this Central Asian nation, the article noted. This alarm also concerns other countries of course, but Kazakhstan remains a key weak spot in securing the energy security for Western countries. And although the EU has tinkered with the idea of relying on Kazakhstan to bypass Russia, the approach would be as effective as relying on Russia to bypass Russia.
Here is why:
The autonomy of Kazakhstan’s decisions on uranium production and the potential influence exerted by Moscow on it is under question, since Russia’s support of the current Kazakh president, Kassym-Jomart Tokayev stands as the main guarantee of his continued rule. This happens to be the case with multiple leaders in Central Asia, including the previous Kazakh president, Nursultan Nazarbayev. Russia’s unquestionable authority over this was demonstrated during the January 2022 political unrest in Kazakhstan, where the Russia-led OECD’s support played a key role in signalling the Kazakh military to obey Tokayev.
Although the news of Tokayev’s refusal to recognise Russia-occupied territories in Ukraine has made the West hopeful that Kazakhstan is moving away from Russia’s backyard, the reality is that Kazakhstan is simply trying to evade secondary sanctions, while staying as close to Russia as possible.
Beyond the realm of politics, Kazakh-origin uranium, whether directly or indirectly, plays a crucial role in meeting the West’s energy needs, covering 40% of the United States’ utility requirements and a substantial 44% of the European Union’s.
More critically, the state-run uranium operator Kazatomprom, which went public on the London Stock Exchange in 2019 and is 75%-state-owned, operates uranium mines in Kazakhstan independently and through joint ventures, has been indirectly under Russia’s and China’s influence since at least the late noughties. Leaked interrogation videos of Kazatomprom ex-head Mukhtar Dzhakishev – who was arrested and imprisoned in 2009 and released in 2020 – show that Dzhakishev believed (at the time of the interrogation) that his arrest had something to do with Dzhakishev’s decision-making repeatedly stepping on Russia’s foot.
Dzhakishev, who is known for having led Kazatomprom through a period of rapid growth in the early 2000s, noted in the videos that prior to his arrest he was urging Japan and China to grab joint controlling stakes in Uranium One, a Canadian firm that, back then, had indirect control over several key uranium assets in Kazakhstan. After his arrest, the infamous Uranium One deal took place, which led to Russia taking hold of a controlling stake instead. This was just one case of Russia and China’s competition over Kazakh uranium.
Since then, Russia has been maintaining control of over 26% of Kazakh uranium deposits and holds rights to an additional 22% of annual production. Meanwhile, China National Uranium Corporation (CNUC) and its counterparts possess rights to almost 60% of future Kazakh production, with plans for a uranium trading hub in Xinjiang, just across the Kazakh border.
Moreover, even though Kazakhstan is the world’s biggest player in uranium supply, much of its milled uranium travels through Russian conversion plants before it is exported to global markets. The are currently only four main operational uranium converter facilities globally, responsible for producing uranium hexafluoride gas. These facilities, located in Russia, China, France, and Canada, play a crucial role in the conversion process, which is a prerequisite for subsequent enrichment and nuclear fuel production. Russia dominates this sector, accounting for approximately 40% of the world’s uranium conversion infrastructure and supplying roughly one-third of the utilised uranium hexafluoride gas in the global market.
The significance of the conversion process cannot be overstated, as it is an essential step preceding enrichment and the manufacturing of nuclear fuel. In 2020, European Union utilities relied on Russia for about 20% of their uranium and 26% of their uranium enrichment services. Similarly, based on 2021 data, the United States sourced approximately 14% of its uranium and 28% of its uranium enrichment services from Russia.
Kazakhstan’s uranium supply has also recently been harmed by challenges in securing sulfuric acid essential for uranium production last year and this year. Kazatomprom announced this month the possibility of reducing its 2024 production plan due to these challenges. Previously, the company projected uranium production in the range of 25,000-25,500 tonnes for 2024 and 30,500-31,500 tonnes for 2025, compared to 20,500-21,500 tonnes in 2023.
This overall paints a grim picture for the US and the EU, as energy independence from Russia – and, partly from China – may not become a reality any time soon.
This has not deterred some European nations from attempting to ignore Russia’s grip on Kazakh uranium though. Notably, French nuclear company Orano, formerly known as Areva, is, looking to step up its uranium activities in Kazakhstan, where it already mines uranium deposits in a joint venture with Kazatomprom.
KATCO, a joint venture between Orano and Kazatomprom, is reportedly gearing up to commence uranium mining operations at the South Tortkuduk site by the end of 2023, Trend.az reported, citing a source at Orano. The venture, with 51% ownership by Orano Mining and 49% by Kazatomprom, is focused on developing and utilising uranium resources in the Turkistan Region, specifically in the Muyunkum and Tortkuduk areas situated around 300 kilometres (186 miles) north of Shymkent.
Analysts have attributed French President Emmanuel Macron’s visit to Kazakhstan late last year to be primarily driven by the need to secure closer ties over uranium production and import.
As such, perhaps some paths for direct access to Kazakh uranium have not yet been entirely blocked off by Russia, though who is to say this not a matter of time?
Kazakhstan has reduced sales of all types of non-ferrous metals abroad, LS reports .
Over the 11 months of 2023, 364.4 thousand tons of copper were exported from the country . This is 12.6% less than for the same period in 2022. Kazakhstan earned $2.9 billion from the export of this metal.
The main buyer, China, reduced purchase volumes by 16.3%, to 216.4 thousand tons ($1.7 billion).
Exports to Georgia also decreased by 2.4 times (16.8 thousand tons), the UK – by 1.8 times (6.6 thousand tons) and the UAE – by five times (4.8 thousand tons).
At the same time, more copper was sold to Turkey by 1.6 times (106.8 thousand tons), to Latvia – by 155.7 times (10 thousand tons).
Aluminum supplies abroad decreased by 13.4%, to 206.7 thousand tons, or $527 million.
It was purchased by: Turkey – 62.6 thousand tons (+1.9 times), Azerbaijan – 55.8 thousand tons (+903 times), Uzbekistan – 25.6 thousand tons (-33%), Georgia – 17 .9 thousand tons (-2.7 times), Russia – 11.7 thousand tons (-19.6%) and Japan – 5.5 thousand tons (+1.7 times).
Kazakhstan also reduced zinc exports by 8.5%, to 213.7 thousand tons ($551.6 million).
A reduction is observed in supplies to Russia – by 1.8 times (29.3 thousand tons), Turkey – by two times (43.9 thousand tons), the Netherlands – by 39.7 times (782.5 tons) and Uzbekistan – 4.4 times (45.6 tons).
But Vietnam (41.4 thousand tons) and China (98.2 thousand tons) increased the purchase of zinc by 3.2 times and 6.1 times, respectively.
Sales of lead fell by 9.4% (72.7 thousand tons). he was taken to Turkey, Vietnam, Poland, China, Singapore and Russia.
Titanium exports decreased by 17%, to 11.9 thousand tons. Buying countries are France, Belgium, South Korea, USA, Italy and Great Britain.
More detailed information on sales of non-ferrous metals is presented in the infographic.
It will have to develop state subsoil research programs for the future.
According to Majilisman Arman Kalykov, the state is obliged to work hard to ensure that the development of our deposits brings significant benefits to the people of Kazakhstan, develops the infrastructure of settlements, social facilities, and creates jobs, Inbusiness.kz reports.
“That is, the tasks of government agencies should include not only granting the right to subsoil use, but also ensuring proper state control over deposits and their rational use in the interests of the people. The current Code “On Subsoil and Subsoil Use” confirms that poorly explored and poorly studied territories without geological data on the prospects of the site are not interesting for investors and licenses for the right to subsoil use are issued mainly for deposits and ore occurrences identified before the period of independence of Kazakhstan,” he said.
If previously the state regulated the issuance of subsoil use rights by holding auctions taking into account strategic development plans, then the opening of a program for managing the state subsoil fund last year facilitates the transfer for subsoil use of all previously identified deposits and ore occurrences on the “first come, first take” principle, the deputy continued.
“The depletion of objects of interest to investors (deposits and ore occurrences) is expected within 3-5 years. The creation of new objects of interest is complicated by the fact that fields that are profitable for development have already been discovered to a large extent, and the search for new fields is a difficult task. At the same time, it is necessary to take into account that about 10-15 years may pass from the discovery of a deposit to the start of commercial operation. This occurs against the backdrop of the exclusion of the principles of cost-effective development of all types of subsoil resources based on the use of advanced technologies and modern environmental practice of field development,” he believes.
The government agencies interested in solid minerals have completely withdrawn from regulating the industry, leaving the subsoil to the market, Kalykov emphasized.
“In the current climate, it is beneficial for the subsoil user to prepare their own reports without ensuring completeness and comprehensive study of the subsoil, providing for the selective development of rich areas in the fields. If previously the process of developing a deposit was regulated by the state, by involving in the development of areas with both high and low contents, now the concept of integrated and rational use of subsoil has been lost. At the moment, reserves are being mined in a barbaric, predatory way. This effect is also facilitated by the exclusion of control functions. State control in the current conditions is carried out only according to reporting data provided by the subsoil user himself,” he explained.
Attention should be paid to the fact that uncontrolled mining is actively developing in the country, which could lead to negative consequences in the future, the Majilisman warned.
“One of the factors behind the existing problems in geology is frequent structural changes (13 reorganizations) and the transfer of the Geology Committee from one ministry to another. As a result of these transformations, the system of state management of the subsoil of Kazakhstan is fragmented between a number of government bodies. In this regard, for the systematic development of the geological industry, it seems advisable to create a separate government body – the Ministry of Geology and Subsoil Protection. This ministry will have to develop state subsoil research programs for the future and current 3-5 year periods, ensuring the replenishment of the mineral resource base, which in turn will lead to the maximum economic effect from public-private partnerships in the development of raw materials,” he concluded.
The Kazakhstan Chamber of Mines members are happy to be actively operating in Kazakhstan. The Chamber’s members have largely invested in Kazakhstan following the introduction of the new Subsoil code in 2018. This code represents a significant advancement in transparency and process efficiency compared to previous experiences with subsoil use. It marks a crucial step toward realizing Kazakhstan’s potential as a minerals powerhouse.
We are excited to invite you to our upcoming Сonference, scheduled for February 22, 2024, in Astana. The conference will explore crucial subjects concerning legislation, processes, and geological prospects within the mining industry. Together, we will actively participate in molding the future of this strategically important sector.
Save the date for this essential dialogue!
Venue: Sheraton Astana Hotel, Astana, Kazakhstan
Date and Time: 02:00 PM – 08.00 PM, 22nd of February 2024
For inquiries regarding media partnership and sponsorship, please contact Taskyn Koshman at: taskyn@chamberofmines.kz
The world of natural resource exploration is witnessing a surge in innovation and strategic investment, particularly evident in BHP Xplor’s 2024 Global Exploration Program. BHP, a leading global resources company, has recently unveiled its latest cohort of six projects, carefully selected from a staggering 500 applicants. Notably, two of these promising projects are based in Kazakhstan, a country rich in mineral resources and increasingly significant in the global energy transition narrative.
BHP’s involvement goes beyond financial support. They bring a wealth of expertise in exploration, ecology, environmental impact, and governance. Access to a network of service providers and international experts enhances East Star Resources’ capabilities.
Pallas Resources Revolutionising Mineral Exploration with Innovative Strategies
Pallas Resources benefits from a substantial financial boost, receiving up to US$500,000 in non-dilutive funding from the BHP Xplor program. This funding is pivotal for accelerating exploration activities over a defined area of interest, particularly in the pursuit of significant copper systems. Importantly, this agreement does not entail equity acquisition by BHP in either Pallas or any of its projects.
Pallas Resources, a Central Asian explorer, is redefining mineral exploration with its disciplined and strategic approach. Focusing on the under-explored yet highly prospective regions of Kazakhstan, Pallas is at the forefront of uncovering large-scale systems of copper, gold, nickel, and lithium. These efforts are not merely exploratory but a leap towards realizing the untapped potential of regions that were once renowned for their Tier 1 Soviet-era discoveries.
East Star Resources pursuing two parallel exploration strategies
Kazakhstan holds enormous potential for copper exploration, akin to Western Australia in the 1970s. With two world-class copper projects already identified in a vast area, the odds are that more remain undiscovered. East Star Resources is pursuing two parallel exploration strategies. While the VMS (Volcanogenic Massive Sulfide) projects remain a focus due to their excellent return on invested capital, the grant from BHP will fund the copper porphyry exploration. This dual approach maximizes their chances of success in a burgeoning copper market.
BHP recognises this prospectivity and views East Star Resources as a valuable partner in unlocking this potential awarding the company with $500,000 in grant funding.
References:
Interview with Alex Walker the CEO of East Star Resources following news that the company have received $500,000 in grant funding from BHP Xplor. https://www.youtube.com/watch?v=moa-GEWA6w8
Revolutionising Mineral Exploration with Innovative Strategies
Pallas Resources, a Central Asian explorer, is redefining mineral exploration with its disciplined and strategic approach. Focusing on the under-explored yet highly prospective regions of Kazakhstan, Pallas is at the forefront of uncovering large-scale systems of copper, gold, nickel, and lithium. These efforts are not merely exploratory but a leap towards realizing the untapped potential of regions that were once renowned for their Tier 1 Soviet-era discoveries.
BHP Xplor Program: A Gateway to Unprecedented Opportunities
The inclusion of Pallas Resources in the prestigious 2024 BHP Xplor program marks a significant milestone for the company. This global accelerator program, initiated by BHP, the world’s largest mining entity, targets innovative, early-stage mineral exploration companies. The objective is clear: to discover the critical resources essential for advancing the energy transition.
Strategic Collaboration and Advanced Exploration Techniques
The BHP Xplor program provides an exclusive opportunity for Pallas Resources to collaborate with leading experts in the field. This six-month engagement involves interdisciplinary workshops, where knowledge and expertise are shared across BHP’s extensive network and the exploration cohort. Such collaboration is not only about sharing ideas but also about de-risking geological concepts and testing new theories in mineral exploration.
Financial Backing and Non-Dilutive Funding
Pallas Resources benefits from a substantial financial boost, receiving up to US$500,000 in non-dilutive funding from the BHP Xplor program. This funding is pivotal for accelerating exploration activities over a defined area of interest, particularly in the pursuit of significant copper systems. Importantly, this agreement does not entail equity acquisition by BHP in either Pallas or any of its projects.
Data-Driven Exploration and Big-Picture Approach
The success of Pallas Resources in securing a place in the BHP Xplor program is largely attributed to its extensive digitized datasets and holistic approach to mineral systems targeting. This data-driven method ensures a more accurate and efficient exploration process, setting a new standard in the industry.
Future Outlook: Testing New Concepts and Making Major Discoveries
Simon Cooper, CEO & Director of Pallas Resources, expresses his enthusiasm for the company’s participation in the BHP Xplor program. This involvement is a testament to Pallas’s commitment to unlocking Kazakhstan’s significant, yet unrealized, mineral potential. The use of the program’s proceeds will be instrumental in accelerating exploration efforts and testing innovative concepts, particularly in the quest for major copper discoveries.
BHP: A Leader in Mining and a Catalyst for Change
BHP, the initiator of the Xplor program, stands as the world’s largest mining company and a top producer of iron ore, copper, nickel, and metallurgical coal. With its diverse portfolio of tier 1 assets globally, BHP is not only a leader in the mining industry but also a catalyst for change and innovation. The Xplor program, launched in 2023, is a clear indication of BHP’s commitment to fostering collaboration and advancement in the mineral exploration sector.
There are more than 1322 gold mines in operation globally, of which 127 are in Kazakhstan, according to GlobalData’s mines and projects database. The following are the five largest gold mines by production in Kazakhstan in 2022, according to GlobalData’s mining database, which tracks more than 33,000 mines and projects from early exploration to closure across more than 150 countries and over 100 commodities.
1. Altyntau Kokshetau Mine
The Altyntau Kokshetau Mine is a surface mine located in Akmola. It is owned by Glencore Plc and produced an estimated 395.47 thousand ounces of gold in 2022. The mine will operate until 2031.
2. Kyzyl Project
Located in East Kazakhstan, the Kyzyl Project is owned by Polymetal International Plc. The surface mine produced an estimated 330 thousand ounces of gold in 2022. The mine will operate until 2050.
3. Varvara Mine
The Varvara Mine is located in Kostanay. It is owned by Polymetal International Plc and produced an estimated 211 thousand ounces of gold in 2022. The mine will operate until 2039.
4. Abyz Mine
The Abyz Mine, owned by Kazakhmys Holding Group, is a surface mine located in Karagandy. The mine produced an estimated 135.26 thousand ounces of gold in 2022. The mine will operate until 2024.
5. Bozshakol Mine
Owned by KAZ Minerals, the Bozshakol Mine is a surface mine located in Pavlodar. It produced an estimated 121.97 thousand ounces of gold in 2022. The mine will operate until 2060.
