MINEX Forum

Region: Kazakhstan

  • East Star Resources Secures 500 000 USD from BHP Xplor for Copper Exploration in Kazakhstan

    East Star Resources Secures 500 000 USD from BHP Xplor for Copper Exploration in Kazakhstan

    Introduction

    BHP has announced its second cohort of six companies, chosen from a pool of over 500 applicants, to join the BHP Xplor* accelerator program.

    BHP Xplor is a global accelerator program targeting innovative, early-stage mineral exploration companies to find the critical resources necessary to drive the energy transition.

    Out of six companies, BHP Xplor invited two companies to explore copper and other base and precious metals in Kazakhstan.: Pallas Resources and East Star Resources. Both companies will receive up to US$500,000 in non-dilutive funding. Proceeds will go toward accelerating exploration over a defined area of interest hunting significant copper systems.

    A Momentous Achievement for East Star Resources

    East Star Resources’ CEO, Alex Walker, expressed his gratitude for the grant and highlighted the extensive application process. BHP, known for their stringent due diligence, selected East Star Resources as a partner, signalling the potential of their copper exploration project in Kazakhstan.

    The Application Process

    The application process involved pitching an exploration concept, a task that required careful planning and consideration. Copper porphyries, known for their complexity and substantial financial requirements, presented a challenging proposition for East Star Resources. However, with the guidance of their new director, Chris Van Weck, they formulated a compelling exploration concept.

    BHP’s Role

    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.

    The Significance of Prospectivity

    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. BHP recognises this prospectivity and views East Star Resources as a valuable partner in unlocking this potential.

    Dual Exploration Strategies

    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.

    Financial Prudence

    It’s essential to use the grant wisely. East Star Resources aims to de-risk the project with the initial funding, making it an attractive proposition for future investors. While there is no specific obligation tied to the funding, having BHP as a potential partner is a significant advantage.

    Plans for Q1 and Beyond

    East Star Resources is actively building the copper porphyry exploration team and refining its strategy. With Chris Van Weck’s geological expertise, they are poised for a successful exploration campaign. The company also plans to continue advancing its VMS projects, aiming to reach drilling-ready status and apply for mining licenses.

    2024 promises to be a pivotal year for East Star Resources. With increasing demand for copper and forecasts of significant deficits in the coming years, the company’s exploration activities are well-timed. As they embark on both VMS and copper porphyry exploration, shareholders can anticipate an eventful and potentially rewarding year.

    In conclusion, East Star Resources’ partnership with BHP and their dual exploration strategies position them as a key player in the evolving copper market. As they continue their exploration journey, the mining industry and investors alike will closely watch their progress.

    Watch the 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.

  • Qarmet plans to once again become one of the leading metallurgical enterprises in the region

    Qarmet plans to once again become one of the leading metallurgical enterprises in the region

    The owner of Qarmet Andrey Lavrentyev told the President of Kazakhstan Kassym-Zhomart Tokayev about the current state of the plant and the prospects for its further development. The investor reported that the company intends to once again become one of the leaders in the country’s metallurgical market. Information about the meeting between Mr. Lavrentyev and the head of state appeared on the official website of the President of the Republic of Kazakhstan. 

    Qarmet management reported on the results of negotiations with the trade union of metallurgists and coal miners. The key topic of discussion was working conditions. The heads of departments agreed with the employees to develop a collective agreement, which in the future will be able to satisfy the requests of employees to discuss with them decisions that are significant for the team.

    Qarmet aims to increase production volumes and regain the once lost status of one of the largest metallurgical plants in Central Asia and the CIS. According to Andrey Lavrentyev, with a successful restart, the plant could receive this title by 2028. As for how to achieve this goal, the company plans to increase steel production to 5 million tons per year (+64%) and increase the production of iron ore concentrate to the same level (+88%). Annual coal production should be 9 million tons (+47%). 

    The President of the Republic of Kazakhstan also discussed with the owner of Qarmet the updating of working equipment in order to prevent repeated accidents at work. The key issue on the environmental agenda of the meeting was gasification of the enterprise. 

  • The activities of 31 enterprises have been suspended in Kazakhstan for violations of environmental legislation

    The activities of 31 enterprises have been suspended in Kazakhstan for violations of environmental legislation

    The construction of a new waste dump of Kazphosphate LLP and an enrichment plant of Kazakhmys LLP has been suspended by court order; among the large enterprises are also Ferum Fluor LLP, Shymkent Temir, etc., DKNews.kz reports .

    Minister of Ecology and Natural Resources Erlan Nysanbaev announced this at a government meeting. 

     At the end of 2023, Kazakhstan managed to achieve a reduction in emissions standards by 3.3% and discharge standards by 8%. The largest reduction in emission limits is observed for such enterprises as:

    • NCOC by 12.4 thousand tons/year or 34%; 
    • ArcelorMittal Temirtau by 40 thousand tons/year or 16%; 
    • JSC “Astana Energy” by 14.6 thousand tons/year or 22%;
    • Kazakhmys Smelting LLP Balkhash copper smelter by 14.1 thousand tons/year or 18%. 

    “Inspection services carried out 652 inspections of compliance with environmental legislation in 2023. 1,679 violations were identified, for which 628 orders to eliminate them were issued. 2,138 administrative fines were imposed for a total amount of 322.9 billion tenge. Of these, 1,834 were recovered in the amount of 11.3 billion tenge. Fines in the amount of 311.6 billion tenge are pending”Erlan Nysanbaev

    The largest fines for discharging pollutants without an environmental permit were collected from Karabatan Utility Solutions LLP – 7.2 billion tenge and TengizChevroil – 2.8 billion tenge. At the same time, among the regions the largest fines were noted:

    • in East Kazakhstan region – 2.6 billion tenge; 
    • Kyzylorda region – 681.8 million tenge; 
    • Abay region – 677.5 million tenge;
    • Aktobe region – 133.8 million tenge.

    “In general, many fines were imposed for excess and unauthorized emissions”Erlan Nysanbaev

    To improve the environmental situation, large enterprises annually develop environmental action plans, which include a number of measures. This is the reconstruction of all four sulfuric acid shops of Kazzinc LLP until 2025, which will reduce sulfur dioxide emissions by 20%, or 3.7 thousand tons/year. 

    In Zhezkazgan and Balkhash, the metallurgical plants of Kazakhmys Smelting LLP are expected to reduce emissions by 50% by the end of 2025. This will happen due to the launch of a sulfuric acid workshop. Also, over the next 10 years, the ERG group of companies plans investments in the amount of 228 billion tenge, aimed at reducing emissions of particulate matter by 56%, discharges by 30%, water consumption by 33%, processing and sale of secondary materials to 2 million tons. 

    The Ministry, together with the public, environmental activists, local executive bodies and natural resource users, reviewed the environmental problems of the regions. To solve them, 18 roadmaps were developed, within which 336 events were envisaged for 2020-2023. Of these, 205 or 61% were completed:

    • in 2020-2021 – 111 out of 178 (62%);
    • 2022 – 44 out of 81 (54%);
    • 2023 – 50 out of 77 (65%). 

    As part of the implementation of road maps by the end of 2023, among the lagging regions are Mangistau, Pavlodar, Akmola regions and the Ulytau region, where the percentage of implementation of activities is below 50%. Among the most important but unfulfilled activities in the Akmola region are the reclamation of tailings dumps of the Stepnogorsk Mining and Chemical Plant LLP and the modernization of wastewater treatment facilities at WWTPs in Kokshetau and Stepnogorsk. In the Pavlodar region, Euro-Asian Energy Corporation JSC has not carried out repair work on dust and gas treatment plants. In Mangistau, the elimination of radioactive sources on the territory of the chemical-hydrometallurgical plant has not been completed. Also among the unfulfilled tasks is the beginning of the second stage of reconstruction of sewerage treatment facilities No. 2 with biological wastewater treatment in the city of Aktau, the construction and installation of a boiler unit for KazakhmysEnergy LLP in the Ulytau region. 

    “In order to control industrial emissions from the largest category 1 enterprises, work is underway to establish an automated monitoring system. The implementation of the AFM system will allow online monitoring of the impact of natural resource users on the environment, promptly responding and taking government control measures. All received data will be accumulated in the information system “National Data Bank on the State of the Environment and Natural Resources”Erlan Nysanbaev

    91 enterprises will install this system by the end of 2024. To date, 39 enterprises have implemented AFM, of which 9 enterprises already have systems transmitting data.

    “Since this year, the Ministry, when conducting state environmental control, has focused on the installation and transmission of data from automated monitoring systems. In case of failure to comply with legal requirements, administrative measures will be applied.”Erlan Nysanbaev

    Kazakhstani enterprises will begin to switch to comprehensive environmental permits from 2025. Unlike conventional ones, they are issued not only to determine emission standards, but also provide for the introduction of the best available technologies. As part of the reform, a comprehensive technological audit was completed at 96 enterprises in key industries and 16 BAT reference books were approved.

    It is expected that the transition of 50 large enterprises to comprehensive environmental permitting will reduce annual emissions by more than 900 thousand tons per year. Companies that have implemented BAT will be exempt from emission fees for 10 years. In general, rates for harmful emissions will be gradually increased every three years, starting from 2025. According to the minister, this measure will become one of the incentive mechanisms for the transition to comprehensive environmental permitting and the introduction of BAT.

    “The funds spent on modernization and implementation of BAT will help improve the state of the environment and public health. The analysis shows the presence of violations of environmental legislation by enterprises, as well as weak rates of fulfillment of their obligations to improve the environmental component in production. State control over compliance with environmental requirements is one of the key issues today”Erlan Nysanbaev

  • Kazakhstan can become the main exporter of critical raw materials for Europe

    Kazakhstan can become the main exporter of critical raw materials for Europe

    Kazakhstan has entered into an expanded partnership and cooperation agreement with the European Union. These agreements will become the basis for interaction in key areas. Thus, the EU can become a strategic partner of the Republic of Kazakhstan in the raw materials sector and in the field of green hydrogen, reports the Kapital.kz portal .

    At the moment, Kazakhstan is a major supplier of some rare metals to the world market. There is potential for further development of the industry. Political scientist Andrei Zubov, citing World Bank data, said that there are at least 5 thousand untapped deposits in the republic, the development of which could bring more than $46 trillion. They have reserves of non-metallic minerals and various metals, including rare ones, necessary for the production of complex equipment.

    The list of raw materials critical for the EU now consists of 34 items. In the future, the Republic of Kazakhstan will be able to supply partners with 18 types of resources indicated in the list.

    Thus, European industry is in dire need of magnesium, niobium and scandium, which are used in the production of wind turbines and traction motors. Platinum metals and rare vanadium are also strategically important for Europeans. They are used to create batteries necessary for various energy storage devices.

    Large titanium deposits have also been discovered in Kazakhstan. In 2020, the republic took 8th place in the ranking of exporters of this metal.

    If the Republic of Kazakhstan continues to actively develop cobalt and lithium deposits, the country will have the opportunity to become a link in the production of batteries. Increasing demand for these devices could stimulate investment in the resource sector.

  • Industrialists of Kazakhstan and Italy are implementing joint projects

    Industrialists of Kazakhstan and Italy are implementing joint projects

    Kazakh and Italian manufacturers intend to strengthen cooperation. This will be facilitated by joint investment projects in various industries: 18 documents were signed during the Kazakhstan-Italy round table. The press service of the national company Kazakh Invest reports this.

    Several new agreements were signed by mining enterprises of the Republic of Kazakhstan. In particular, NC KazMunayGas agreed with the oil and gas company Eni on the construction of a hybrid power plant with a capacity of 247 MW. In addition, the Italian manufacturer signed a memorandum of cooperation with one of the largest gas supply companies in the republic – KazTransGas Aimak JSC.

    Let us remind you: Eni is already implementing a joint project with QazaqGaz to build a gas processing plant in Kashagan. A division of the national company, QazaqGaz Scientific and Technical Center, plans to expand cooperation with another Italian manufacturer. STC entered into a memorandum of understanding with the plant – manufacturer of compressors and gas turbines Nuovo Pignone International.

    An important joint project is going to be implemented with the help of the Italian company Ballestra. In accordance with the agreement signed by its management with the leaders of the Samruk-Kazyna fund, with the participation of an investor, a sulfuric acid plant will be launched in the Turkestan region. The annual production volume of the chemical reagent, which the uranium mining industry of Kazakhstan so desperately needs, will be 800 thousand tons. They intend to put the facility into operation in 2026.

  • The authorities propose to expand uranium production in the Kyzylorda region

    The authorities propose to expand uranium production in the Kyzylorda region

    Akim of the Kyzylorda region Nurlybek Nalibaev and Chairman of the Board of the national nuclear company Kazatomprom Meirzhan Yusupov discussed projects that the subsoil user is implementing in the region.

    The press service of the akimat notes that the Kyzylorda region accounts for about 20% of all uranium mined in the country. Currently, four subsidiaries of Kazatomprom operate in the region: Baiken-U, RU-6, Khorasan-U and Semizbay-U.

    Mr. Nalibaev proposed to transfer the production of the Baiken-U company (a joint venture of Kazatomprom and Energy Asia Limited) to full design capacity. Currently the plant is only 65% ​​loaded.

    Another possible project, the implementation of which was discussed by the parties, is the expansion of the SKZ-U plant, where sulfuric acid is produced. At the moment, the enterprise produces 500 thousand tons of reagent per year for uranium mining by borehole in-situ leaching.

    Recently, Kazatomprom has been faced with a significant shortage of acid for its assets; in connection with this, the subsoil user even decided to revise the production plan for 2024. To solve the problem, in the Kyzylorda region they can either increase the capacity of the existing plant or open a new one.

    In addition, at a meeting between the company’s management and the akim, the social responsibility of the subsoil user to the region of presence was discussed. Mr. Nalibaev noted that 88 million tenge per year is allocated to charity, about 0.2% of the amount of dividends. This amount is significantly less than the investments of other companies, in particular oil producers. In this regard, the akim recommended that the management of Kazatomprom invest more actively in socially significant projects.

  • Another chromium deposit will be developed in the West of Kazakhstan

    Another chromium deposit will be developed in the West of Kazakhstan

    Sunrise Mining is planning to develop the Udar chrome ore deposit. The region of presence is the Kargaly district of the Aktobe region. The subsoil user published project documentation on the Unified Environmental Portal of Kazakhstan.

    The site belongs to the chromite-bearing Kempirsay massif. They will master “Udar” in an open way. Preparatory work at the quarry will begin in 2024. It is estimated that the subsoil contains over 491 thousand tons of chrome ores and about 172 tons of chromium with an average metal content in the ores of 34.9%.  

    It is planned to complete “Udar” in four years. If the project receives approval from environmentalists and the public, the subsoil user will begin work in 2025. The annual capacity of the enterprise will be about 100 thousand tons of ore.    

    Sunrise Mining’s mine plan states that the deposit is located in an area with developed infrastructure. The closest to the mining site are the operating mining enterprise Voskhod-Oriel (developing the Vostok chrome ore deposit) and the Voskhod Chrome concentration plant. Most likely, the ore from Udar will be sent there for processing.

    Previously, we wrote about the plans of the subsoil user Sunrise Mining to begin development of the Karaobinskoye nickel-cobalt deposit (the same region of presence).  

  • Current operational issues of the Qarmet company were considered by the government

    Current operational issues of the Qarmet company were considered by the government

      Prime Minister of the Republic of Kazakhstan Alikhan Smailov held a regular meeting of the working group on the activities of the Qarmet company.

          With the participation of the new investor, measures to ensure stable operation and further development of the enterprise, issues of taxation, use of the main railway network, as well as compliance with environmental legislation were discussed.

           In addition, plans to update industrial safety requirements for mines in the Karaganda coal basin were discussed at the meeting.

            Following the discussion, the head of the Government gave government agencies a number of necessary instructions.

  • Kazakhstan’s New Sulfuric Acid Plant Boosts Uranium Production and Economic Growth

    Kazakhstan’s New Sulfuric Acid Plant Boosts Uranium Production and Economic Growth

    Kazakhstan’s Samruk Kazyna Sovereign Wealth Fund and Balestra signed on 19 January 2024 an agreement to construct a sulfuric acid plant in the Suzak district of the Turkistan Region.

    This plant, designed to produce 800,000 tons of sulfuric acid annually, will supply Kazatomprom, the national uranium company. Samruk-Kazyna, a sovereign wealth fund, was established to enhance the competitiveness and sustainability of the national economy. It manages shares of national development companies and other legal entities to maximize their long-term value and competitiveness. Kazatomprom, on the other hand, is the national operator for the import and export of uranium, rare metals, and nuclear fuel for nuclear power plants.

    The construction of the sulfuric acid plant is set to commence in 2024, with full operational capacity expected by 2026. This project will significantly contribute to the economic and social development of the Turkistan region, attracting additional investments and generating local tax revenues. It is estimated to create about 800 jobs during construction and will require about 500 workers for its operation. The plant is of strategic importance to Kazatomprom, the world’s largest uranium producer, as sulfuric acid is the main reagent used in its in-situ leach uranium operations. This is particularly crucial as Kazatomprom has recently warned of potential production shortfalls due to sulfuric acid shortages.

  • Kazakhstan’s Mining Sector at a Crossroads over Proposed Export Restriction

    Kazakhstan’s Mining Sector at a Crossroads over Proposed Export Restriction

    In December 2023, the Mazhilis approved amendments proposing a ban on the export of “raw materials” without a clear definition of this term. This could impose restrictions on mining companies and create unfavourable conditions for investors.

    The Chamber argues that while supporting local industries is important, the mechanisms outlined in the proposed amendments lack clarity, and the introduction of a complete export ban is deemed excessive. The adoption of these amendments without consulting the industry raises serious concerns.

    The Chamber suggests exploring alternative methods, such as granting local producers preferential rights to purchase at market prices. They caution against potential unintended consequences that may arise from the export ban on critical mineral resources, including the risk of corruption, loss of revenue and tax revenue reduction, impact on the mining industry, undermining investor trust, affecting international trade relations, stimulating illegal trade, and hindering economic diversification.

    This development comes in the wake of a global trend of natural resource export bans, which are seen as potentially harmful to domestic economies and international trade relations.

    The Chamber’s letter to Minister Sharlapayev underscores the need for a balanced approach to legislation that supports local industries without adversely affecting investors and the broader industry.