Region: Kazakhstan

  • They were returned in ruins and without reserves – a deputy about the former ArcelorMittal Temirtau

    They were returned in ruins and without reserves – a deputy about the former ArcelorMittal Temirtau

    Mazhilis deputy Nikita Shatalov told about the condition in which the Temirtau Qarmet plant was transferred to the new investor, Tengrinews.kz reports .

    According to Shatalov, last week deputies visited the Temirtau plant.

    “After going down into the mine, inspecting the metallurgical complex and talking with enterprise employees, I got a holistic impression of the state in which the asset was transferred to the Kazakh investor. I think if there had been no deal, then next year we would have seen a real tragedy – either there would have been a serious accident at the plant, or the thermal power plant would have stopped, leaving part of Temirtau without energy. Now this is obvious,” the deputy said in his Telegram channel .

     

    According to him, the condition is close to catastrophic. Of the eight mines remaining at the moment (at the time of 1995 there were 15 of them), only two were more or less working, but Saransk and Abayskaya gradually returned to life, new longwalls are being launched there. There was not enough coal for the plant; due to lack of investment and severe accidents, the plans were not implemented, Shatalov noted.

    “At the plant, the heat and power supply infrastructure and coke oven batteries are in a difficult state; investments in safety are required. Before leaving, Mittal’s group left neither reserves of ferroalloys, nor coke necessary for steel smelting, nor money in the accounts. The asset was returned in ruins and without reserves needed for production.

    The company finally began to receive raw materials (ore, pellets, coke). Deliveries are now made directly – without intermediaries. For example, previously intermediaries were involved in gas supplies from Atyrau. There is an important nuance: there is not enough scrap metal for the plant, since only monopolists have it, and they are starting to raise the price for Qarmet as for a large buyer who is in great need of this particular product. The situation is being resolved through negotiations, but a systematic approach is needed for the stable operation of enterprises,” added Nikita Shatalov.

    The workers, he said, have finally calmed down: they have been paid wages, and all debts to the state for social payments have been repaid.

    “There were doubts about the collective agreement, which remains one of the best in the country in terms of social guarantees, but it continues to be in force, and this year it will go through an update with the participation of workers and trade unions. We, as deputies, I think, will participate as observers, in order to so that the process takes place openly.

    The miners expressed their dissatisfaction because in recent years the former investor seemed to have written them off and left them on the margins. Only those assets that brought large profits were taken into account. The company assured me that all employees would be in equal conditions – not only miners, but also employees of Energougol, a mine in Kostanay, and a pipe-rolling plant in Aktau. The workers are still waiting for a new uniform; the name Arcelor is something they don’t want to see or pronounce in the Karaganda region,” the deputy noted.

  • Rare and critical metals – global prospects and local opportunities: National mining company Tau-Ken Samruk participates in a large-scale forum in Riyadh

    Rare and critical metals – global prospects and local opportunities: National mining company Tau-Ken Samruk participates in a large-scale forum in Riyadh

    More than 13 thousand delegates from 145 countries around the world gathered in the capital of Saudi Arabia for the FMF Forum to discuss issues related to the prospects of the rare and rare earth elements sector. In particular, this is the definition of a global strategy for critical minerals, the exchange of advanced technologies and experience, the creation of new sustainable production and supply chains, as well as the formation of a hub for “green” metals in Africa, West and Central Asia. The authoritative forum with the support of the government of Saudi Arabia is being held for the third time.

     Our country is represented at the Future Minerals Forum by the Minister of Industry and Construction Kanat Sharlapaev, representatives of the Ministry of Foreign Affairs of the Republic of Kazakhstan, the AIFC, NK Kazatomprom JSC, the management of Greywolf Management, the Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Saudi Arabia, as well as the Chief Director for Business Development of JSC NGK “Tau-Ken Samruk” Nariman Absametov.

         Today Nariman Absametov is expected to participate in meetings with representatives of the State Investment Fund (PIF). By the way, this is one of the world’s largest sovereign wealth funds with assets of 776 billion US dollars. Since 1971, PIF has financed various projects both in Saudi Arabia and abroad on behalf of the country’s government.

         Meetings are also planned with colleagues from the largest mining company in the Middle East, Maaden Group and Manara Minerals. Until 2008, Maaden Group was wholly owned by the government of Saudi Arabia, currently 65% ​​of the shares are owned by PIF. Manara Minerals is a subsidiary of the Maaden Group, specializing in investing in mining assets.  

         Another meeting in the work schedule – with partners from Cove Capital – in 2023, Samruk-Kazyna JSC and the investment company Cove Capital LLC entered into a Memorandum of Understanding. The document specifically provides for the possibility of cooperation in the field of rare and rare earth elements.

         In addition, Nariman Absametov will take part in panel sessions on investment opportunities in Kazakhstan and the development of supply chains, and will hold a number of bilateral meetings with representatives of the business community of Riyadh.

         The strategic importance of rare and rare-earth metals is explained by the fact that they are the most sought-after raw materials for high-tech industries of the world economy. RM and REM are widely used in the energy sector, including nuclear and renewable energy sources, aerospace, mechanical engineering, robotics, medicine, chemical industry, metallurgy, etc. Without them, it is impossible to produce a single smartphone, computer, TV or car. It is important that experts predict stable growth of the PM and REM market – by 2032, global consumption may increase to 230,000 tons.

          President Kassym-Jomart Tokayev in his Message called rare and rare earth metals “new oil” and noted the importance of developing RM and REM reserves: “Countries that can realize their potential in this area will determine the vector of technological progress of the whole world.”

         Kazakhstan is one of the most promising states in the region from the point of view of RM and REM. More than 600 ore occurrences of tantalum, niobium, rare earths of the yttrium and cerium groups have been identified on the territory of the country. There are also significant reserves of tungsten and molybdenum; for example, Tau-Ken Samruk has the right to subsoil use in the Upper Kairakty and Northern Katpar deposits. The total reserves of these two deposits are almost 1.5 billion tons of tungsten trioxide (these are the largest proven reserves outside of China, which today remains the leader in the global tungsten industry).

         Subject to successful interaction with investors, Kazakhstan has every chance of becoming a member of the prestigious “club” of countries exporting rare earth metals.

  • Kazakhstan will begin to develop a new field

    Kazakhstan will begin to develop a new field

    In the North Kazakhstan region, a project is being implemented for 47 billion tenge. LS was told about this in the regional akimat.

    According to the information, a hydrogeological study is currently being completed at the Bayan tungsten deposit.

    “The resource base allows us to produce tungsten concentrate, ammonium paratungstate with a capacity of 4.8 thousand tons per year, tungsten carbide and many other products that are currently not mined or produced in the country,” the government agency reported.

    According to information, 47 billion tenge of private investment will be invested in the implementation of the project. It is noted that 600 million tenge have already been spent. 600 jobs will be created. It is expected that a mining and metallurgical plant will be built here, which will start operating in 2026.

    Meanwhile, at the moment it is planned to obtain licenses for the extraction of solid minerals in the part of the deposit located in the protected zone. In addition, design documents, a mining plan and a liquidation plan have been developed, which are being approved by government agencies.

    Earlier, LS wrote that a tin project was being implemented in the North Kazakhstan region for 150 billion tenge. The subsoil user approved the documentation for the construction of the necessary infrastructure. Development of design and estimate documentation for the construction of a mining and metallurgical plant is also underway. The enterprise is expected to be launched before the end of 2025. The plant’s capacity should be 11 thousand tons of tin concentrate.

  • The Tur mine of the Kazmarganets mine stops production

    The Tur mine of the Kazmarganets mine stops production

    Due to the depletion of manganese ore reserves in the Kazmarganets mine management of TNK Kazchrome JSC as part of ERG, mining work has been stopped. Following the policy of caring for natural resources, the enterprise will continue to work in the field of processing previously mined ores, using new modern enrichment technologies. Most of the employees released by the cessation of production will be employed in other ERG divisions.

    The history of the Kazmarganets mine management begins in 1997, when the Aksu Ferroalloy Plant, another branch of TNK Kazchrome JSC, began developing a manganese ore deposit in the Nura district of the Karaganda region. In the first years, the infrastructure at the Tur mine was intensively developed, a rotation camp for workers was built, mining and transportation equipment was purchased, and the technology for obtaining manganese concentrate for ferroalloy production was being developed. In 2004, the division was reorganized into an independent asset of TNK Kazchrome JSC. The quarry was mined using open pit mining. Over 26 years, employees of the mine management worked almost 76 million m³ of rock mass and extracted 13.7 million tons of manganese ore.

    At the time of the cessation of ore mining, the mine department employed 413 employees, a little more than a hundred of them were laid off. Work is now underway to employ them at other ERG enterprises.

    “The question of stopping the mining process at the mine has been raised for years, so we were systematically preparing for this stage,” notes Kazchrome General Director Sergei Prokopyev. – First of all, we resolved the issue with people with whom we had worked together for many years. At first, this was work to optimize the number of employees through vacancies, now we are working on employing the released personnel at enterprises within the Group. Since we are talking mainly about employees working on a rotational basis, similar assets are considered – JSC Shubarkol Komir, JSC Manganese Zhairema, Donskoy Mining and Processing Plant.

    At the same time, the mine management will continue its work, focusing on the processing of previously mined reserves, as well as the enrichment of small ore screenings.

    “Following its mission to carefully use the earth’s potential, ERG pays special attention to waste recycling,” adds Sergey Prokopyev. – We cannot afford a barbaric attitude towards natural resources. There are enough innovative technologies and new engineering solutions that ensure reasonable handling of raw materials. And we will use them, thus ensuring the rational use of natural resources. We will use the same careful approach to restore the damaged landscapes of the area as much as possible.

    To eliminate the consequences of mining activities at the Tur mine, in accordance with legal requirements, a project has been developed for the reclamation of land plots affected by the mining process. This is about 516 hectares. Their reclamation will begin in 2024, then the soil will be covered with a fertile layer and sown with grass.

  • About 70 deposits of precious metals will be put up for auction in Kazakhstan

    About 70 deposits of precious metals will be put up for auction in Kazakhstan

    In the near future, about 70 deposits of precious metals will be put up for electronic trading. This was reported by the Ministry of Industry and Construction of the Republic of Kazakhstan, a Kazinform correspondent reports.

    – In the near future, it is planned to transfer to investors through an electronic auction more than 20 vacant underground deposits in territories where contracts for solid minerals were terminated ahead of schedule. It is also planned to put up for electronic auction reserves of industrial categories of solid minerals with about 70 empty deposits, the department noted, responding to a request from a Kazinform agency correspondent.

  • East Mineral Resources plans to extract zinc and copper from waste from the Irtysh copper smelter

    East Mineral Resources plans to extract zinc and copper from waste from the Irtysh copper smelter

    The East Mineral Resources company will develop dumps (technogenic mineral formations, TMF) of the Irtysh copper smelter, where it plans to mine zinc and copper from 2024 to 2043.

    As noted in the company’s statement, work will be carried out on the right bank of the Irtysh on a site with an area of ​​26 hectares in the Glubokovsky district of the East Kazakhstan region, 28 km northwest of Ust-Kamenogorsk and north of the village of Glubokoye. The dumps will be mined 365 days a year in two shifts using an open pit method up to 300 thousand tons annually from 2024 to 2043.

    The metal content of the ore will be: 600 tons of copper in 2024, 710 tons of copper in 2025, 1,440 tons of copper in 2026, 1,440 tons in 2027–2042 and 1,230 tons in 2043. It is expected to receive more zinc: 6.74 thousand tons in 2024, 6.81 thousand tons in 2025, 13.86 thousand tons in 2026, 13.86 thousand tons in 2027–2042 and 11.83 thousand tons in 2043.

    At the same time, the company plans to clarify the metal content in metallurgical slag to calculate ore reserves according to KAZRC standards. Advance exploration (exploration drilling) is planned to be carried out before the start of production in order to increase the reliability of the calculated reserves and to keep records of the extracted slags.

    The owners of East Minerals Resources are Liberty Qazaq Ltd., registered in the Astana International Financial Center. and Karadeniz Fatih, who is also the sole shareholder of Liberty Qazaq Ltd.

  • ALTYNALMAS entered the TOP 3 of the PWC rating for ESG disclosure among mining and metallurgical companies

    ALTYNALMAS entered the TOP 3 of the PWC rating for ESG disclosure among mining and metallurgical companies

    The study was conducted by the auditing company PwC Kazakhstan among 96 organizations. Experts assessed the quality and availability of ESG information in annual reports and sustainability reports. Experts analyzed almost all non-financial reports published in Kazakhstan based on the results of 2022. The report on sustainable development of the gold mining company Altynalmas took 8th place among the best practices for disclosing information in the field of sustainable development, and among mining and metallurgical companies it took 2nd place.

    The assessment methodology included 129 criteria, each position was scored from 1 to 10 points. The criteria included such disclosure blocks as sustainable development strategy, corporate governance, society, ecology, and reporting practices. Additional points were also awarded for clarity, timeliness and quality of presentation of information.

    Emphasizing the status and importance of the principles of sustainable development, Altynalmas has identified 11 priority Sustainable Development Goals, where it can make the greatest contribution. In 2022, AK Altynalmas JSC joined the UN Global Compact and released the first report on Sustainable Development. The company also became a co-founder of the national ESG club, where proposals are being formulated to stimulate ESG activities within the Republic of Kazakhstan.
    “The basis for the Company’s long-term sustainable development is the growth of operational and financial performance in tandem with progress in the social and environmental spheres. Our priorities remain safety with the introduction of the best global practices, innovation and automation of production, support for local communities in the regions where we operate, equal career opportunities, as well as high standards of corporate governance,” noted Balamir, CEO of the Altynalmas Group of Companies, in his address in the SD report MAKHANOV.

    Let us recall that last year the Altynalmas company also took 8th place in the PWC rating for ESG information disclosure among Kazakh companies.

    The top ten ranking includes companies that have demonstrated a high level of disclosure of ESG information at the level of international standards, as noted in the PwC Kazakhstan report.

  • QARMET employees were paid salaries that ArcelorMittal Temirtau did not pay

    QARMET employees were paid salaries that ArcelorMittal Temirtau did not pay

    Investor Andrey Lavrentiev , who bought the metallurgical company ArcelorMittal Temirtau (now QARMET), has repaid debts to employees and suppliers, Minister of Labor and Social Protection of the Population  Svetlana Zhakupova said at a CCS briefing .

    How much debt did AMT have? Zhakupova reported that about 286 million tenge were allocated for repayment.

    “The new investor assumed obligations for the debts that Arcelor, the former investor, had. And repayment of debts to employees, even to the extent of repayment of debts to suppliers. About 286 million will be used directly to pay off debts,” Zhakupova said.

    The minister added that the employees have already received the money – there are no arrears either in salary or in payments to the Unified Pension Fund.

    Context. In early December, it became known that ArcelorMittal Temirtau faced financial problems due to the blocking of its accounts by court decision. The reason for this was a lawsuit with the contractor Backup Service Resorts LLP (BSR), which provided food and recreation services for AMT workers. 

    The company then stated that, due to the blocking of accounts, they could not transfer pension contributions and contributions to the Compulsory Medical Insurance Fund (CMHI) to all employees for October. Including those injured during the accident at the Kostenko mine. The miners in need of treatment  feared that they might be left without medical care

  • Kazakhstan plans to increase uranium production

    Kazakhstan plans to increase uranium production

    Uranium mining in Kazakhstan is carried out by NAC Kazatomprom, reports the Sputnik Kazakhstan website .

    Over the previous 7 years, the level of uranium production in the country has decreased annually by 20% due to market conditions, however, with an increase in buyers, the need for uranium mining also increases, so the level of production capacity will be increased.

    In particular, an agreement on the supply of finished products was signed with the UAE.

    The company also plans to reduce import dependence by starting the construction of a plant for the production of sulfuric acid, since sulfuric acid is an important component in uranium mining, and the quantity produced in Kazakhstan is not enough.

    In addition, it is planned to build an onshore processing complex in the Turkestan region and refining production of uranium oxide at the Ulba Metallurgical Plant.

    The cost of these projects is 130 billion tenge.

  • Is KarMet coming back?

    Is KarMet coming back?

    The deal for ArcelorMittal Temirtau has been completed. Now the company has come under the jurisdiction of Kazakhstan. This was announced by the Minister of Industry and Construction of the Republic of Kazakhstan Kanat Sharlapaev.

    As Kanat Sharlapaev stated, the decision-making center for the new Kazakh investor should be Kazakhstan.

    These should not be people who do not want to work in Kazakhstan or for whom Kazakhstan is part of their business. This is our position. If the decision-making center for an investor or group of investors is Kazakhstan, this is probably a better choice.Kanat Sharlapaev

    The minister also added that there is potential synergy between the current business of the Allur group and steel production.

    Everyone understands that cars are made of metal. And here, in this regard, to also achieve the production of automotive steel at KarMet (AMT) and integrate this with current businesses – there is normal business logic in this, because this allows us to reduce quite large logistics costs. Deepen the localization of this production. And at the same time, it is clear that this is not some kind of individual decision. A lot of people were involved in it. An entire government commission was involved in selecting investors. And we looked at who could handle it and for whom it really is the main business and somehow allows us to create a synergy effect with their current business.Kanat Sharlapaev

    The new investor of ArcelorMittal Temirtau is Kazakh businessman Andrey Lavrentyev, who is the chairman of the board of directors and shareholder of the Allur Group of Companies. The businessman acts as an independent Kazakh investor. Under the terms of the deal, he must invest three billion dollars in the modernization of the plant and mines, as well as fulfill all obligations regarding employee salaries and social packages.

    Of course, the new owner faces important challenges. First of all, it must create conditions for labor safety and improve the level of well-being of workers. He will also have to actively participate and help develop the local community through social projects.Akim of the Karaganda region Ermaganbet Bulekpayev said while in Temirtau during the presentation of the new investor to the heads of structural divisions of the steel and coal departments

    Meanwhile, the company called ArcelorMittal Temirtau will no longer exist. The company is awaiting rebranding. The new investor said that the company will return its old name – “KarMet”, and Vadim Basin will take the place of the general director. 

    Also, the Kazakh businessman, in addition to acquiring assets, undertakes to invest $3 billion in modernizing production and protecting the environment of the region, of which $1.3 billion will be invested next year.

    Meanwhile, the Prosecutor General’s Office announced a pre-trial investigation into the explosion at the Kostenko mine, which killed 46 people. The pre-trial investigation into this fact is carried out by special prosecutors of the General Prosecutor’s Office with the participation of employees of the Ministry of Internal Affairs, the AIC, the AFM and the Ministry of Emergency Situations.

    “It was established that the explosion initially occurred at the coal mining site of longwall No. 48K3-west from the ignition of a methane-air mixture emanating from the underlying coal seam K2, the source of which was mechanical sparking from the operation of the face scraper conveyor-2.”General Prosecutor’s Office

    The explosion led to a subsequent series of explosions in the mine workings of coal dust, the concentration of which significantly exceeded permissible standards.

    “The investigation established that during the operation of the mine, numerous violations of industrial and fire safety rules, as well as labor protection rules, were committed, directly related to the tragic event. At present, the management and engineering staff of the mine, numbering 7 people, are suspected of failing to ensure safety measures during coal mining.”General Prosecutor’s Office

    The suspects, in accordance with Article 128 of the Code of Criminal Procedure, were placed in the temporary detention center of the DP in the Karaganda region. It is noted that as part of the investigation, a legal assessment will also be given to officials of ArcelorMittal Temirtau JSC and the Department of Industrial Safety of the Ministry of Emergency Situations for the Karaganda region, who did not ensure proper control over the safe operation of the mine.

    The investigation is ongoing and is under special control.