MINEX Forum

Region: Kazakhstan

  • Lavrentiev will invest $1.3 billion in the first stage of modernization of the former ArcelorMittal Temirtau

    Lavrentiev will invest $1.3 billion in the first stage of modernization of the former ArcelorMittal Temirtau

    The company will update equipment, introduce modern technologies and raise safety standards.

    The government of Kazakhstan held a meeting on the development of Qarmet, the former ArcelorMittal Temirtau, with the participation of ministers and the company’s new investor Andrey Lavrentiev, reported in the Prime Minister’s Office

    “We discussed measures to stabilize the operational processes of the enterprise, provide it with the necessary raw materials, and carry out a number of legal procedures. We separately considered the implementation of the investment program, which provides for the modernization of the plant’s equipment, the introduction of modern production technologies and raising industrial safety standards. At the first stage, about $1.3 billion will be allocated for these purposes,” the statement says.

    Prime Minister Alikhan Smailov emphasized that the enterprise must fulfill all obligations to employees in a timely manner.
    “The head of government pointed out the importance of further dynamic development of production, growth in product output and the gradual elimination of identified environmental violations. He instructed central government agencies to provide the necessary support to the enterprise in resolving current issues and, together with the investor, to develop specific action plans for each area of ​​Qarmet’s development,” the prime minister’s office said.

  • Gold Corp will search for metals in the Karaganda region

    Gold Corp will search for metals in the Karaganda region

    Gold Corp  will begin geological exploration work in the Karkaraly district of the Karaganda region. The company intends to explore the Kyzylshoky site, for which it received a license for a period of six years in 2023. We learned about the company’s intentions from the work plan published on the Unified Environmental Portal of Kazakhstan.

    Geological exploration is planned to be completed in the second quarter of 2028. The area of ​​the geological allotment is 23.3 km 2 . There are two ore occurrences in the licensed area: Western and Eastern Kyzylshoki. According to previous studies, the average content of bismuth in ore bodies ranges from 0.04–0.524%, copper – 0.747–2.35%, silver – 8–63 g/t, tin – 0.004%, germanium – 0.0025%.

    Specialists will clarify the results and take samples for the above and other metals. The research will be carried out by the laboratory of VNIITsvetmet.

    The preliminary volume of drilling work was set at 20 thousand linear. m for the entire exploration period. The locations and depths of wells will be determined after receiving the results of the previous stages of exploration work.

  • The Republic of Kazakhstan is developing the practice of electronic auctions for subsoil users

    The Republic of Kazakhstan is developing the practice of electronic auctions for subsoil users

    In 2023, auctions for the right to explore and develop fields in Kazakhstan moved online. Until the end of December, bidding for solid mineral deposits and hydrocarbons will be held twice more on the E-Qazyna.kz platform.

    The Ministry of Industry and Construction of the Republic of Kazakhstan announced an auction for the right to geological exploration of solid mineral deposits. It will take place on December 20, 2023. Licenses for the use of 53 subsoil plots will be awarded to 52 companies.

    Trading on hydrocarbon deposits will take place today – December 14. The Energy Department says eight items were added to the auction instead of the planned 18 because they did not meet the minimum number of bidders.

    The total starting amount of the signing bonus for eight subsoil plots was estimated at 352.8 million tenge. It is known that for half of them the minimum requirements for the volume of geological exploration work were calculated – $11 million.

    Previously, the Ministry of Industry of the Republic emphasized that electronic trading for subsoil users will help attract investors to new projects in the mining industry, since it is more convenient for businessmen from other countries to participate in them online.

  • What will the 16 billion tenge donated by ArcelorMittal be used for?

    What will the 16 billion tenge donated by ArcelorMittal be used for?

    The public fund “Kazakhstan Khalkyna” received a charitable contribution in the amount of 16 billion tenge from the ArcelorMittal company, reports “ Voice of the People ”.

    According to the press service of the foundation, the funds received will be used by the foundation to implement charitable projects and programs in the field of education and healthcare that will benefit the population of the Karaganda region.

    At least 50 percent of the contribution amount will be allocated to projects implemented in Temirtau or significantly related to this city.  

    Charitable programs and projects will be aimed at:

    • improving secondary education institutions and supporting students in higher education through scholarships;
    • improving STEM education in the region;
    • provision of medicines to patients with orphan (rare) diseases;
    • providing healthcare institutions with advanced medical equipment and access to the services of medical experts.  

    In total, since its creation, the fund has received 158.8 billion tenge (as of December 1, 2023) from the largest companies, private charitable foundations and organizations, philanthropists and individuals.

  • Supplies to Europe and the deal with ArcelorMittal. Minister Sharlapaev gave an interview to an American channel

    Supplies to Europe and the deal with ArcelorMittal. Minister Sharlapaev gave an interview to an American channel

    Kazakh Minister of Industry and Construction Kanat Sharlapaev, in an interview with the American television channel CNBC, shared his views on the growing role of Kazakhstan in the European supply chain of critical raw materials and discussed the successful completion of the deal with ArcelorMittal, Tengrinews.kz reports .

    Sharlapaev emphasized the importance of Kazakhstan in the European market.

    “In terms of critical materials and some rare earth elements, Kazakhstan occupies a significant place on the world stage as a leading producer. Our country plays a key role in the production of copper, recognized as an important element in the global economic space. In addition, Kazakhstan is actively involved in the mining of elements such as beryllium , thallium and neodymium, as well as titanium, which are already supplied to the markets of the European Union,” said Kanat Sharlapaev.

    According to him, of the 34 critical materials listed by the European Commission, Kazakhstan is already successfully producing 18.

    The minister was also asked about the recent successful deal with ArcelorMittal.

    “It was successfully completed on the basis of mutual agreement of the parties. ArcelorMittal decided to sell its Kazakh division in favor of the state, however, it is worth emphasizing that the company will continue to operate. This is a unique steel manufacturer for Central Asia with the potential to produce up to 4 million tons of metal products per year,” he noted.

    Sharlapaev stressed that the government has a significant interest in maintaining the enterprise, seeking to improve its performance in the areas of safety and environmental sustainability.

    In addition, the minister stated that Kazakhstan intends to strengthen its position in the European market and create favorable conditions for socially and environmentally responsible investors.

  • Coal exchange trading rules changed in Kazakhstan

    Coal exchange trading rules changed in Kazakhstan

    The Ministry of Trade and Integration approved amendments to the Exchange Trading Rules in the coal section. The corresponding Order was approved on December 6, 2023 No. 420-НК.

    The document expands the range of exchange trading entities classified as coal sellers to include coal producers carrying out mining in accordance with a subsoil use contract (coal open-pit mine, coal mine) and (or) processing (enrichment) of coal.

    Coal buyers will participate in exchange trading on a regional basis, depending on regional needs.

    Only regional operators of a particular region accredited by local executive bodies will take part in the auction.

    The list of buyers of municipal coal is subject to posting on the website of the authorized body exercising management in the coal industry.

    New requirements for the seller have been expanded, according to which he must provide to the authorized body in charge of the coal industry a monthly breakdown of the supply of municipal coal planned for delivery to the domestic market for the next production year from the total annual volume established by the List of Exchange Commodities.

    The authorized body in charge of the coal industry, based on the seller’s data provided for the monthly breakdown of supplies of municipal coal, generates information taking into account data from local executive bodies on the volume of consumption of municipal coal by the population in the context of each region.

    This information is posted on the Internet resources of this body, and is also sent to local executive bodies for their subsequent posting on Internet resources.

    To ensure transparency of pricing in the coal market in order to prevent sharp price increases, sellers ensure the sale of municipal coal through the commodity exchange in the following order:

    50% of the volume is sold at spot trading;

    50% of the volume is sold subject to monthly payment and delivery for a period of 6 to 12 months.

    For participants in exchange trading, the amount of exchange security is set at no more than three percent of the proposed exchange transaction

    The commodity exchange must ensure that the return of exchange collateral is carried out by the clearing organization no later than 5 working days from the date of submission of an application for the return of funds by the trading participant.

    These amendments come into effect upon the expiration of ten calendar days after the day of its first official publication.

    The Ministry of Trade and Integration notes that according to paragraph 3 of Article 15 of the Law of the Republic of Kazakhstan “On Commodity Exchanges”, transactions with exchange-traded goods included in the List of exchange-traded goods, made in violation of the requirements, outside of commodity exchanges, are declared invalid upon the claim of interested parties, the antimonopoly authority or prosecutor.

    According to paragraph 3 of Article 268 of the Code of Administrative Offenses of the Republic of Kazakhstan, the sale of goods included in the list of exchange goods outside commodity exchanges entails a fine for individuals in the amount of seventy, for small businesses or non-profit organizations – in the amount of one hundred, for medium-sized businesses – in the amount of one hundred forty, for large businesses – in the amount of four hundred monthly calculation indices.

  • In search of lithium: subsoil will be studied in three regions of Kazakhstan

    In search of lithium: subsoil will be studied in three regions of Kazakhstan

    Three regions of Kazakhstan plan to begin studying the potential of lithium in 2025. LS was told about this by the Ministry of Industry and Construction.

    In response to a request from the editors, the department reported that they want to conduct geological surveys on a scale of 1:50,000 in the East Kazakhstan (Kalba-Narym ore zone), Almaty (Bayankol area) and Kyzylorda regions (Aral sedimentary basin).

    As for the amount of funding, the ministry explained that the amount required for research will be known after the development of design estimates in 2024. Source: state budget.

    “The study of the subsoil of the three objects is planned to begin in 2025 after drawing up design estimates and with the allocation of government funding,” the ministry summarized.

    Previously, the department informed LS that there are seven lithium deposits in the East Kazakhstan region. Thus, according to the ministry, the deposits are located in the Ulansky region. These include the Maralushenskoye tailings dump, the Bakennoye deposit, the Yubileinoye deposit, and the Medvedka deposit (reserve).

    Let us recall that in the East Kazakhstan region they want to build a mining and processing plant for the extraction and processing of lithium. The planned investment volume will be $100 million. Presumably, 170 people can get jobs at the enterprise. It is noted that the capacity of the project will be known after geological exploration and approval of reserves.

    According to President Kassym-Jomart Tokayev, up to 100 thousand tons of lithium are stored in the depths of Kazakhstan, which require serious investments.

    Meanwhile, the relevant ministry responded to LS’s request that the country’s state balance sheet lists lithium reserves in seven explored deposits.

  • ArcelorMittal Temirtau in Kazakhstan has been renamed to Qarmet

    ArcelorMittal Temirtau in Kazakhstan has been renamed to Qarmet

    The team was introduced to a new investor who took on production and social obligations

    ArcelorMittal Temirtau, which was sold to state private equity fund Qazaqstan Investment Corporation (QIC) last week, has been renamed Qarmet. This was reported by the press service of the administration of the Karaganda region of the country.

    The head of the region, Ermaganbet Bulekpayev, introduced a new investor to the team: the Qazaqstan Steel Group (QSG) company and its founder Andrey Lavrentiev.

    “The new owner faces important tasks, primarily to ensure and create working conditions, improve the well-being of workers, and will also have to actively participate and help develop the local community through social projects,” he noted.

    Vadim Basin became the CEO of Qarmet . Basin served as executive director of ArcelorMittal Temirtau in 2017-2021, and at the end of October this year, after the death of miners at the mine named after. Kostenko, the President of Kazakhstan instructed him to head the enterprise.

    “QSG, represented by Kazakh businessman Andrey Lavrentyev, has reached an agreement with the Ministry of Industry and Construction of the Republic of Kazakhstan on the acquisition of the assets of ArcelorMittal Temirtau. Under the terms of the agreement, QSG will purchase AMT’s assets for $286 million and will also make guaranteed deferred payments of $450 million, payable in four equal annual installments. In addition, an additional $250 million will be paid at the time of closing as payment of AMT’s outstanding intercompany indebtedness,” the company said in a statement.

    In addition to the acquisition of assets, the Kazakh investor undertakes to invest another $3 billion in modernizing production and protecting the region’s environment, of which $1.3 billion will be invested next year.

    The new investor calls his short-term goals, in particular, a radical improvement in production safety indicators and the environmental situation, modernization and reorganization of production, increasing the size, range and types of products.

    On December 12 , President of Kazakhstan Kasim-Jomart Tokayev commented on the arrival of a new investor – a Kazakh company – at ArcelorMittal Temirtau (Qarmet), writes Zakon.kz.

    “Now the government’s job is to help it, especially in the initial phase of operation, and then the demand from the new owner will be very tough,” he said.

    Let us recall that last week the steel corporation ArcelorMittal sold its assets in Kazakhstan – QIC acquired all shares of the metallurgical enterprises ArcelorMittal Temirtau and ArcelorMittal Tubular Products Aktau. During the negotiations, ArcelorMittal requested $3.5 billion, which did not correspond to the calculations of international consultants. The State reduced the value of assets from this amount to $286 million.

  • No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government

    No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government

    No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government, the Ministry of Industry and Construction reports.

    “When conducting reconnaissance operations, give preference to Kazakh personnel. At the same time, the attraction of Kazakhstani personnel as a percentage of the total number of personnel involved in work, including personnel engaged in contract and subcontract work, should be 90% for management personnel, 90% for specialists with higher and secondary vocational education and 100% for qualified workers” during all six years of exploration,” says the contract concluded for the exploration of non-ferrous and precious metals in the Bezshokinskaya area in the Karaganda region between the authorities and the national geological exploration company “Kazgeology” in 2015, presented by the Ministry of Railways.

    According to the information, the amount of local content under the contract during exploration provides for 16% in relation to goods, 85% for works and 85% for services, also for all six years of exploration.

    “In the absence of information on the prices of minerals used by the subsoil user when making transactions, prices are applied that do not exceed the transaction prices prevailing on world markets for the acquisition of minerals by states,” the contract says.

    The Ministry of Industry and Construction published 13 contracts, including with such enterprises as Kazakhmys and Kazminerals.

  • Issues of implementation of CRIRSCO standards in Kazakhstan were discussed in the Government

    Issues of implementation of CRIRSCO standards in Kazakhstan were discussed in the Government

    Prime Minister of the Republic of Kazakhstan Alikhan Smailov held a meeting on the implementation of international CRIRSCO standards in the field of subsoil use. 

    CRIRSCO is an international committee that unites public reporting codes for solid mineral reserves in countries such as Australia, the USA, Canada, Russia, India, Turkey, New Zealand, as well as some countries in Africa, Europe (23 countries), South America and South America. -East Asia. 

    The Kazakhstan KAZRC code was adopted into the CRIRSCO family in 2016, and international standards in the Republic of Kazakhstan should come into force in 2024. It is expected that this will attract foreign investment in geological exploration and give a significant impetus to the industry as a whole.

    As a result of the discussion, the Prime Minister instructed to ensure the transition to CRIRSCO (KazRC) standards for new deposits within the established period and, in parallel, to maintain the activities of the State Commission for Mineral Reserves of the Republic of Kazakhstan for already developed deposits.

    At the same time, it was also instructed to provide for liability, even criminal, for competent persons drawing up reports according to KazRC standards, and minimum requirements for such reports. This approach will allow taking into account the interests of the state and private business when developing deposits of solid minerals.