MINEX Forum

Region: Kazakhstan

  • ERG and Thara partner on cobalt refinery in Saudi Arabia

    ERG and Thara partner on cobalt refinery in Saudi Arabia

    Eurasian Resources Group (ERG), has announced it is pursuing the development of a refinery to process cobalt hydroxide into cobalt sulphates, the primary form of supply for cobalt-bearing electric vehicle batteries.

    The move to vertically integrate the company’s cobalt business, aims to strengthen its position as a strategic supplier to the chemicals sector, particularly for batteries for electric vehicles.

    ERG has identified the Kingdom of Saudi Arabia as a potential host jurisdiction for refinery, and is partnering with Thara Future Investment Company (Thara), to jointly investigate and pursue the investment in the country.

    Thara, an investment platform recently established by prominent Saudi investors, is focused on unlocking Vision 2030 opportunities, particularly on sectors where the Kingdom holds a distinct advantage. They aim to capitalise on the Kingdom’s substantial mineral wealth, and leverage value chains in sectors including: chemicals, waste management, and future materials.

    ERG and Thara have entered into a Memorandum of Understanding outlining their cooperation.

    “ERG expects sustained market penetration of electric vehicles to drive a quadrupling of demand for NCM and NCA cobalt-bearing batteries through 2030,” said Benedikt Sobotka, CEO of Eurasian Resources Group. “ERG is leading industry efforts to ensure the sustainable, traceable cobalt sourcing into battery supply chains across the globe. Joining forces with Thara will accelerate our potential development of a cobalt sulphate refinery in the Kingdom.”

    “I am thrilled about our collaboration as we embark on the development of this critical value chain in the Kingdom,” added Hisham Attar, Managing Partner of Thara. “This endeavour embodies our commitment towards innovation and sustainable growth, unlocking new opportunities that align seamlessly with our vision and purpose.”

    The refinery will be supplied with cobalt hydroxide from ERG’s Metalkol facility in the Democratic Republic of the Congo, a historic tailings reclamation and environmental restoration operation producing high-quality copper cathode and cobalt in hydroxide.

    “ERG holds vast cobalt resources in the DRC and is one of the largest suppliers of cobalt hydroxide globally. Being underpinned by supply from our upstream operations, the planned cobalt refinery project is considerably de-risked,” said Benedikt Sobotka.

    Operations at Metalkol are in accordance with recognised responsible and sustainable practices as set out in the ERG Clean Cobalt & Copper Framework.

  • Kazakhstan plans to liquidate a mine with 12-year reserves

    Kazakhstan plans to liquidate a mine with 12-year reserves

    According to Senator Olga Bulavkina, the development of the Belousovsky mine in the East Kazakhstan region has been underway for almost 200 years, reports  inbusiness.kz .

    At the same time, 10 thousand people now live in an area with a high potential for air pollution. The average content of pollutants in the Glubochanka River with heavy metals is 137%, suspended solids -103%. Pollutants accumulate in the soil, which adversely affects human health and plant life.

    According to the deputy, the Kazakhmys company plans to flood the mines of the Belousovsky mine for liquidation. Despite the fact that the Ministry of Environment stated that they had identified reserves at the mine that would be sufficient for production for another 12 years.

    “During 2023, at public hearings, local residents expressed dissatisfaction with the fact that as a result of mine flooding, ground failures will certainly occur and there may be casualties. After all, in fact, this village is located above mine workings. In addition to collapses, mine flooding will lead to the displacement of contaminated waste to the surface mine air. For several decades, there will be an accumulation of methane and carbon dioxide in the basements of residential buildings, which will cause significant harm to public health. In turn, contaminated groundwater will cause irreparable damage to agriculture,” she said.

    In this regard, the deputy proposed that the government conduct an industrial safety examination and a state environmental examination of the project for the liquidation of the Belousovskoye field, and also raised the issue of improving the social infrastructure in the village, renovating schools, hospitals and building cultural facilities.

    “In the absence of investors and the impossibility of reconstructing the Belousovsky mine and its further operation in the future, I ask you to instruct the government to conduct research on the development of environmentally friendly and cost-effective methods for preserving the deposit. Develop a unified program for the development of depressed areas affected by the closure of mines, with consideration of the issue of allocation funds for the resettlement of residents of houses within the boundaries of liquidated deposits,” Bulavkina summed up.

  • Nine people arrested in case of Kostenko mine explosion in Kazakhstan

    Nine people arrested in case of Kostenko mine explosion in Kazakhstan

    The investigation into the explosion at the Kostenko mine in Karaganda is being completed, the General Prosecutor’s Office of Kazakhstan says.

    “The investigation into the explosions at the mine is being completed. Nine officials of the mine were recognized as suspects and arrested,” the Prosecutor General’s Office said in a statement.

    A series of explosions occurred in the underground mine of the Kostenko coal mine on October 28, resulting in the death of 46 and injury to 28 miners. Then the mine was owned by Arcelor Mittal Temirtau. After this, the government decided to transfer ownership of the company to Kazakhstan.

    The chairman of the board of directors of the Allur Group, Andrey Lavrentyev, became a new investor in the company. The company was renamed Qarmet.

    Minister of Emergency Situations Syrym Shariphanov said that 19 people could be involved in the violation of legislation that led to the explosion at the mine, among them former General Director of Arcelor Mittal Temirtau Vladimir Yablonsky, HR Director Elena Vinokurova, Technical Director of the Coal Department Andrey Bely and others.

  • Qarmet management outlined plans for 2024

    Qarmet management outlined plans for 2024

    Last year, the future of the Qarmet plant (formerly ArcelorMittal Temirtau) was actively discussed in the Republic of Kazakhstan. Then, during the negotiations, acute problems of the enterprise were identified. In the new year, the heads of all Qarmet departments met in Temirtau to approve ways to gradually solve problems and plans for the further development of the plant. This information was reported by the press service of the akimat of the Karaganda region.

    When Andrey Lavrentyev became an investor, the plant had only 11 teams carrying out tunneling work in the mines. It is known that the situation has now been improved: the number of teams has been increased to 23. In addition, work has already begun at the Abayskaya mine; It is planned to open two more mines by April of this year.

    In the next two years, restoration work will be carried out, which will make it possible to have two working longwalls at the Kazakhstanskaya mine by 2026. The Saranskaya mine will have so many longwalls this year, and the volume of production, according to experts, will be 1.3 million tons of coal. The stagnant period also ends for the mine. Lenin. According to forecasts, 1.2 million tons of coal will be mined here this year.

    Director of the coal division Jakan Mukhamedzhanov said that Qarmet is entering the stage of stabilizing production processes, but admitted that in the current situation there is no talk of grandiose projects yet. This year, coal production will decrease by 2%.

    This year, the management of the iron ore division plans to increase production volumes by an average of 10% (up to 2.5 million tons). The department is also ready to produce manganese concentrate and dephosphorize iron (up to 60%). This year, Qarmet metallurgy production will increase by 13% (to 3.3 million tons).

    The Qarmet steel department paid special attention to the work of the marketing department: the managers had a number of questions and proposals in this regard.

    Lavrentiev expressed his readiness to invest in new projects, in particular, he expressed interest in creating a foundry.

  • 10.6 trillion. tenge of taxes came to the budget in 2023 from subsoil users

    10.6 trillion. tenge of taxes came to the budget in 2023 from subsoil users

    At the end of 2023, tax payments for mineral extraction amounted to 10.6 trillion tenge. The treasury of the Republic of Kazakhstan received funds from 5,183 subsoil users, Bizmedia.kz reports.

    In 2023, taxes paid by mineral producers accounted for 35% of the country’s budget and fully provided the national fund. In the course of identifying violations of tax legislation, 561 billion tenge was recovered from unscrupulous subsoil users. The increase in cash receipts is also associated with an increase in tax rates on the extraction of minerals and metals from the subsoil. These measures made it possible to replenish the treasury by almost 160 billion tenge.

    Now Kazakhstan is looking for new opportunities to obtain natural resource rent. To do this, experts study world prices for solid natural resources that are mined on the territory of the Republic of Kazakhstan. The Kazakh authorities have tentatively amended the law on transfer pricing to strengthen control over prices and the withdrawal of finances from the country. It is assumed that the changes will help the state avoid losses in international transactions.

    The amendments under consideration take into account the experience of global and domestic practice. They were approved by specialists from the International Organization for Economic Cooperation and Development. The bill has not yet entered into force, as it is under consideration in parliament.

  • Meeting of the Chairman of the Committee with the delegation of the “Polymetal International plc” company of the Republic of Kazakhstan

    Meeting of the Chairman of the Committee with the delegation of the “Polymetal International plc” company of the Republic of Kazakhstan

    On January 15, 2024, a meeting between the Chairman of the State Committee on Investment and State Property Management and a member of the board of directors of «Polymetal International plc» Vitaly Nesis was held in the State Committee on Investment and State Property Management.
    At the meeting, the Chairman of the Committee provided detailed information about the country’s investment opportunities. The parties discussed the establishment of mutually beneficial relations in the mining and trade sectors. During the meeting, the delegation of «Polymetal International plc» expressed interest in investing in the country’s mineral extraction.
    In conclusion, company representatives were invited to contribute to the implementation of investment and commercial projects and expressed interest in creating joint ventures.
  • At the Kostenko mine it was prohibited to resume production for a while

    At the Kostenko mine it was prohibited to resume production for a while

    Qarmet management decided not to resume production at the Kostenko mine, where 46 people died as a result of the accident, until all possible factors for a repetition of the tragedy have been eliminated. This was reported on the company’s Telegram channel , Turantimes.kz reports.

    Management representatives carried out an inspection at the mine at a depth of more than 600 m, in close proximity to the accident site, and became familiar with the current situation. 

    Mine director Andrei Boyko reported on the results of inspections carried out at the site, planned work to eliminate the causes and consequences of the incident, and prospects for resuming coal mining.

    “The management of Qarmet, represented by Andrei Lavrentyev and Vadim Basin, expressed gratitude for the complex work being carried out, but prohibited the resumption of production in the mine until any possible factors of a repetition of the tragedy were eliminated. They noted that all the necessary means for execution are available to the engineers of the Coal Department,” the statement says. company message.

    Let us recall that on the night of October 27-28, an explosion occurred at the Kostenko mine, owned by ArcelorMittal Temirtau, in the Karaganda region. At the time of the accident in the mine named after. Kostenko there were 252 people. 46 people died. The Minister of Emergency Situations told the details of what happened. 

    After the tragedy, the President instructed the Government to stop investment cooperation with the ArcelorMittal Temirtau company. And about. Vadim Basin was appointed General Director of ArcelorMittal Temirtau , who said that the change of owner of ArcelorMittal Temirtau will not affect the employees.

    Kazakh entrepreneur Andrey Lavrentyev became the new investor of AMT . ArcelorMittal Temirtau was renamed Qarmet. 

    Minister of Emergency Situations Syrym Shariphanov named the names of the AMT leaders suspected of causing an accident at the mine. 

  • Kazatomprom expects adjustments to its 2024 Production Plans

    Kazatomprom expects adjustments to its 2024 Production Plans

    National Atomic Company “Kazatomprom” JSC (“Kazatomprom”, “KAP” or “the Company”) expects its 2024 production to be adjusted due to the challenges related to the availability of sulphuric acid, a critical operating material, as well as delays in completing construction works at the newly developed deposits, however remains committed to its 2024 delivery obligations.

    In August 2022, Kazatomprom’s Board of directors has approved the Company’s intention to increase production volumes in 2024 to a 90% level relative to Subsoil Use Agreements. The decision to shift production from 80% in 2023 to approximately 90% in 2024 (against Subsoil Use Agreements) was based primarily on Kazatomprom’s continued success in signing mid- and long-term contracts with new and existing customers.

    In August 2022, the Company has also highlighted, and reiterated in its communications throughout 2023, the risks associated with increasing the production due to the challenges related to global supply chains and limited availability of certain key operating materials and reagents.

    Kazatomprom has been putting its best efforts and is continuing to work on securing the supply of critical operating materials and reagents, however the challenging situation around sulphuric acid is evolving in Kazakhstan and in the region. Given the growing demand from agricultural and industrial enterprises and shortages on both domestic and foreign regional markets, preliminary agreements with suppliers resulted in securing lower than required volume of sulphuric acid for 2024.

    While actively pursuing alternative sulphuric acid supplies, current projections indicate that the Company’s intention to achieve 90% production volume as per Subsoil Use Agreements in 2024 may be challenging.

    The exact impact on the Company’s operational performance is now being assessed and will be detailed in the upcoming production guidance for 2024 as part of the Q4 2023 Trading Update, which is expected to be released no later than 1 February 2024.

    Kazatomprom remains committed to fulfilling contractual obligations towards all existing customers throughout 2024. If limited access to sulphuric acid continues throughout this year, and should the Company not succeed in catching up with the construction works schedule at the newly developed deposits in 2024, Kazatomprom’s 2025 production plan may also be affected, subject to considerable supply chain risks. Updated 2025 production plans are expected to be communicated around the H1 2024 results disclosure but successful return to a 100% of the Subsoil Use Agreements can be viewed as at risk.

    The Company continues its efforts to solve the aforementioned issues and will update its stakeholders accordingly as the situation with the sulphuric acid availability and its impact on production continues to develop.

    Uranium reserves remaining in the ground as a result of deviation from production schedules will be available for production as a source of revenue in the future, creating long-term value for our shareholders.

  • Kazakhstan and Saudi company look into collaborative gold-mining projects

    Kazakhstan and Saudi company look into collaborative gold-mining projects

    Kazakhstan and the leading company in the field of gold mining and processing, Saudi Gold Refinery, intend to explore the possibilities of joint projects in the future, Trend reports.

    This was stated during a meeting between the Minister of Industry and Construction of Kazakhstan Kanat Sharlapayev and the General Director of the Saudi Arabian company, Suliman Al-Othaim.

    It was noted that joint projects will be aimed at strengthening the partnership between Kazakhstan and Saudi Arabia.

    At the end of the meeting, both sides expressed their intention to continue the dialogue.

    Meanwhile, trade turnover between Kazakhstan and Saudi Arabia for 2022 amounted to $16.5 million, which is 90.5 percent higher than the previous year ($8.6 million).

    The volume of exports from Kazakhstan to Saudi Arabia at the end of last year decreased by 14.2 percent and amounted to $4.7 million.

    Imports to Kazakhstan from Saudi Arabia in 2022 increased 3.7 times and reached $11.8 million.

  • Will the mining sector of the Kostanay region go into processing?

    Will the mining sector of the Kostanay region go into processing?

    According to preliminary data, the IFI of the mining industry at the end of 2023 will be 98.4%.

    In monetary terms, this means that enterprises in the region’s mining sector produced less products by at least 9.6 billion tenge in 2023, reports inbusiness.kz.

    “The failure to achieve the IFO is due to the geopolitical situation, which affected the production volumes of the largest enterprise in this industry, SSGPO JSC. The company’s share in the industry is about 52%. At the end of 2023, 5.2 million tons of marketable concentrate were produced here, with a decrease of 0.9% by 2022, as well as 4.5 million tons of pellets, with a decrease in volumes of 13.6% compared to 2022,” noted the manager Regional Department of Entrepreneurship and Industrial-Innovative Development Nazarbek Konkabaev.

    According to the regional akimat, the enterprise was able to sell significantly more finished products. The company is increasing exports to China (Bagansky and Dzhugansky metallurgical plants) and is working to increase supplies to the domestic market (Karaganda metallurgical plant). In 2023, the Rudny enterprise sold one million tons more pellets than it produced. 3.2 out of 5.5 million tons of this type of product were shipped to China.

    Sales volumes of iron ore concentrate are slightly higher than production volumes – literally by a couple of hundred tons. Sales volumes are literally 100 thousand tons more than in 2022 – 5.4 million tons according to data announced in the relevant department. The situation is not getting worse, but sales volumes are still almost half lower than in 2021, when SSGPO sold almost 9 million tons of iron concentrate.

    This was achieved, according to the company, by improving production technology, which made it possible to increase the iron content in the concentrate from 66 to 68%. This cost the company 5.4 billion tenge. But the update has so far affected only three of the 14 production sections. Only 20% of concentrate production volumes are produced with a high iron content.

    The company is also trying to improve its situation by launching new processing units. In particular, we are talking about plans to build a plant for the production of hot briquetted iron. The declared capacity is 4 million tons of finished products per year with an iron content of more than 90%. The cost of the project will exceed 900 billion tenge. Plans to implement this project were first discussed back in 2016. By the beginning of 2024, the ERG group, which includes SSGPO JSC, according to the akimat of the Kostanay region, has already developed an action plan for the implementation of the project, is selecting a technology supplier, and has begun developing a feasibility study and design estimates.