Region: Kazakhstan

  • “PARYZ” Prize: Bakyrchik Mining Enterprise Won The Grand Prix

    “PARYZ” Prize: Bakyrchik Mining Enterprise Won The Grand Prix

    The Bakyrchik mining enterprise was awarded the Grand Prix of the prestigious Paryz award. 161 large businesses competed for the title of best socially responsible company. The award was presented to the laureate by the Head of State, 24KZ reports.

    The Bakyrchik deposit ranks second in the country in terms of gold production. About 10 tons of gold concentrate are mined here annually. The company is located in the Abay region and is part of the Polymetal company, whose production facilities are also located in the Kostanay region. Over the past 3 years, the group has allocated more than 6 billion tenge for social projects in these regions.

    Kanat Dosmukametov, General Director of Polymetal Eurasia: –

    In addition to production, we invest a lot in people. This is the construction of schools, kindergartens, roads.

    Next year we are going to implement, together with the Kazakhstan Halkyn Foundation, a project to build a modular universal sports complex.

    Gold mining company Polymetal, previously registered on the island of Jersey, changed its place of registration this year. The company moved to Kazakhstan to the Astana International Financial Center.

    Kanat Dosmukametov, General Director of Polymetal Eurasia:

    – Now a new era begins in the development of the company, which will now focus on the active development of its projects in Kazakhstan. In the city of Pavlodar we want to build a plant for processing gold concentrates. The total investment value is about 750 million US dollars. This is more than 500 jobs.

    By the way, about the competition. This year, 492 organizations applied to participate in the Paryz Award. The commission determined 2 grand prizes. The 2nd award went to the Kyzylorda region.

  • Teck, Arras partner to explore Kazakh critical minerals

    Teck, Arras partner to explore Kazakh critical minerals

    Teck Resources, a Canadian mining company, has signed an option deal with Arras Minerals for its critical minerals licence package in Kazakhstan.

    The option agreement is limited to the package in Bozshakol-Chingiz Magmatic Arc in Pavlodar.

    It excludes the Beskauga copper-gold project, and regional exploration licences Stepnoe, Ekidos, Aimandai and Elemes.

    As part of the arrangement, Teck will solely fund exploration work through 2025. The initial expenditure will be $5m (C$6.79m) before 31 December 2025 across two packages totalling around 1,736km².

    After the initial exploration phase is completed, Teck will have the option to select up to four designated properties covering 120km² of area each.

    At these properties, it will conduct exploration at a cost of up to $47.5m per project, helping it earn up to 75% interest in each of the four projects.

    The company also agreed to reimburse some project-related expenses to Arras through $1m in cash on signing, and potentially other payments in the future, if Teck selects to go ahead with the future phases.

    Arras will act as the manager for the first year of the two-year programme and Teck will hold the option to assume the role thereafter.

    Arras Minerals CEO Tim Barry said: “As an early-mover into Kazakhstan two and a half years ago, following the substantial reforms to the business environment and mining law, Arras has assembled the third-largest land package in the country next to Rio Tinto and Fortescue and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc.

    “We recently completed our second summer field season across the regional licence package and are now analysing more than 50,000 soil samples we have collected across the approximately 3,300km² licence package. This programme was based on the successful 2022 field programme where more than 16,000 soil samples identified new targets to follow up.”

  • ArcelorMittal closes Kazakh unit sale to state-owned QIC

    ArcelorMittal closes Kazakh unit sale to state-owned QIC

    Steel giant ArcelorMittal has concluded the divestment of its Kazakh steel and mining business to state-run direct investment fund Qazaqstan Investment Corporation (QIC).

    The transaction saw the company selling a 100% interest in ArcelorMittal Temirtau and ArcelorMittal Tubular Products Aktau (together called ArcelorMittal Temirtau).

    The steelmaker secured $286m for the sale and another $250m as repayment of outstanding intra-group dues.

    It will also secure a further $450m in sovereign-fund guaranteed payment as intra-group loan repayment. This will be made in four equal annual tranches.

    ArcelorMittal said that the deal had a negative effect on its equity of nearly $800m.

    As of 30 September 2023, the company had valued the ArcelorMittal Temirtau assets at $1.8bn.

    This sale was executed on an ‘as is’ basis, with QIC taking full control and accountability for ArcelorMittal Temirtau. The acquired operations will be rebranded.

    The company has owned as well as operated the Kazakh steel plant and integrated iron-ore coal mines since 1995.

    It had been in negotiations with the Government of Kazakhstan for some months now.

    This follows a fire incident this October at the company’s Kostenko coal mine in the Karaganda region.

    Triggered by a methane gas explosion, the incident claimed the lives of 45 people.

    Kazakhstan president Kassym-Jomart Tokayev ordered a halt on investment cooperation with the steelmaker after the incident and confirmed a preliminary agreement with the company regarding the nationalisation of the Kazakh business.

    The plans for ownership transfer to the government came after a spate of incidents at ArcelorMittal’s mines, including one in 2006 that led to the deaths of 41 miners.

    The Kazakh Government is now looking to foster a conducive environment for the business’ long-term financial and operational stability and define its sustainable future.

    Besides, the company donated $35m to the Qazaqstan Halqyna charitable foundation to fund healthcare and education projects in the Karagandy region.

    ArcelorMittal executive chairman Lakshmi Mittal and CEO Aditya Mittal said: “We would like to take this opportunity to thank the employees of ArcelorMittal Temirtau for everything they have contributed over the past 28 years.

    “While the business faced some serious challenges, there were also many notable achievements, which should be a source of pride. ArcelorMittal Temirtau was a very valued part of ArcelorMittal, and we leave with respectful memories of Kazakhstan and all those who partnered with us.”

  • “$1.3 billion will be invested in 2024” – the new owner of ArcelorMittal Temirtau

    “$1.3 billion will be invested in 2024” – the new owner of ArcelorMittal Temirtau

    The new investor ArcelorMittal Temirtau announced short-term plans.

    Let us recall that the Kazakh company Qazaqstan Steel Group (QSG) became an investor in the enterprises of the former ArcelorMittal Temirtau.

     

    Under the terms of the deal, QSG will purchase AMT’s assets for $286 million and will also make guaranteed deferred payments of $450 million. In addition, $250 million will be paid at closing as payment of AMT’s outstanding intercompany debt.

    “Subsequently, the investor undertakes to invest more than $3 billion, of which $1.3 billion will be invested next year,” the company said in a statement.

    In the short term, the national investor sets himself the following tasks:

    • maintaining the existing collective agreement and remuneration system for employees of the enterprise;
    • radical improvement of production safety indicators and environmental situation;
    • modernization and reorganization of production;
    • increase in volumes, range and types of products.

    The company said that officials will provide detailed comments after conducting an analysis of the enterprise’s activities.

    Let us recall that on October 28, another tragedy occurred at the Kostenko mine in Karaganda, which claimed the lives of 46 miners . President Kassym-Jomart Tokayev went to the scene of the emergency, expressed condolences over the death of the miners and instructed to stop cooperation with ArcelorMittal Temirtau .

    The government has determined the requirements for a new investor. It also became known that after the change of ownership, Kazakhstan will no longer use the name ArcelorMittal .

  • Kazatomprom will develop digital projects

    Kazatomprom will develop digital projects

    The national nuclear company Kazatomprom and its subsidiary KAP Technology signed a cooperation agreement with Siemens. They intend to implement projects related to the digitalization and automation of Kazatomprom divisions, reports the press service of the Kazakh enterprise.

    Siemens and KAP Technology have been working together for four years. The foreign enterprise supplies the partner with technological equipment, and also provides consulting, engineering and service services in the field of industrial automation.

    Now the nuclear holding has decided to expand cooperation with Siemens. The new strategic agreement included items such as joint pilot projects on the development and use of the latest digital technologies at uranium mining enterprises in Kazakhstan.

    In addition, the parties intend to work on developing training programs to train highly qualified specialists in the field of automation of production processes. Company managers believe that this will increase the number of successfully implemented investment projects.

  • Kazakhmys resumed work at all underground mines after the loss of life

    Kazakhmys resumed work at all underground mines after the loss of life

    On November 30, Kazakhmys Corporation LLP resumed work at underground mines. 

    Earlier, after the death of two miners at the Zhaisan mine, all underground mining and capital construction work was suspended .

    “Work at the underground mines has resumed. At the same time, work continues to eliminate inconsistencies in some areas,” Kazakhmys reports.

    A commission headed by chief engineers has been created to monitor the inspections and resumption of mining operations.

    “Work is also actively underway to ensure the safety, repair and stabilization of mine workings,” the company informed.

    Let us remind you that on November 27, two workers  died at the  Zhaisan mine in the Zhambyl region. During mining operations, the miners received injuries incompatible with life.

    On November 22, a 43-year-old conveyor operator died at the Zhezkazgan processing plant No. 2 of the Kazakhmys corporation   . Woman crushed to death by mechanism 

    On November 5, an accident occurred at the Eastern mine of the Zhezkazgan branch of Kazakhmys, which resulted in  the death of  a mining foreman.

  • Mine tragedy: ArcelorMittal Temirtau promised that it would comply with all rights and obligations

    Mine tragedy: ArcelorMittal Temirtau promised that it would comply with all rights and obligations

    The company assured that every effort will be made to ensure that AMT’s activities are organized with effective planning.

    It became known that AMT will make every effort to ensure that the company’s activities are organized with effective planning and to avoid any inconvenience for its stakeholders, reports inbusiness.kz with reference to the press service of the Ministry of Industry and Construction of the Republic of Kazakhstan.

    “Dear business partner, it is with deep sorrow that we inform you that in the early hours of Saturday, October 28, 2023, a disaster occurred at the Kostenko coal mine of ArcelorMittal Temirtau (AMT), resulting in the death of 46 courageous miners. Every effort is being made to support the families killed miners, and an investigation into the cause of the incident is underway.

    In addition, you are likely aware of the announcements made by the Government of the Republic of Kazakhstan and ArcelorMittal regarding the transfer of ownership of ArcelorMittal Temirtau to the Government of the Republic of Kazakhstan. These negotiations have been ongoing for several months, and recently the Government of the Republic of Kazakhstan and ArcelorMittal reached a preliminary agreement regarding the future direction of the steel and mining operations of AMT, as well as its subsidiaries,” the statement said.

    ArcelorMittal Temirtau is one of the most important steel suppliers in the domestic and regional markets. Over the years, the company has established itself as a strategic partner for steel consumers in all selected markets. Therefore, every effort will be made to ensure that AMT’s activities are organized with effective planning and to avoid any inconvenience to its stakeholders.

    AMT assured all interested parties that:

    1. All rights and obligations associated with ArcelorMittal Temirtau (AMT) (including the Temirtau steel plant, coal division, Orken, subsidiaries, including the Aktau pipe plant and representative offices in the CIS countries) will be respected.
    2. The Government of the Republic of Kazakhstan and AMT will ensure full continuation of business with respect to compliance with all rights and obligations of AMT, including supply agreements with customers, acceptance of goods and services, including contractor services from suppliers, obligations to employees, etc.
    3. AMT’s business processes, including order booking, contracting, dispatch, invoicing and supplier contracts, operate as usual.
    4. AMT will continue to be a trusted partner for its clients and will strive to do so in the future.
  • AFM employees seized gold worth 35 million tenge from black miners

    AFM employees seized gold worth 35 million tenge from black miners

    A group of people in the Akmola region, Astana and Shymkent were involved in illegal trafficking of precious metals on an especially large scale.

    Their activities were exposed by employees of the AFM department for the Akmola region under the coordination of the regional prosecutor’s office. The entire scheme for the illegal mining, purchase and sale of gold, the manufacture of unaccounted jewelry from it and their sale has been established, inbusiness.kz reports with reference to the press service of the department .

    “From 2019 to the present, five suspects were engaged in buying gold, illegally mined and processed by black miners in the village of Bestobe. Subsequently, gold bars were supplied through well-established channels, where unregistered jewelry of well-known brands was produced in clandestine workshops with stamps applied and sold in trading houses in Astana and Shymkent. 

    During the searches, more than 1 kilogram of gold bars with a gold content of 99.5% worth more than 35 million tenge were seized. Also, 335 unaccounted jewelry items prepared for sale were seized,” the statement said.

    From January 2021 to October 2023, the turnover of funds between the suspects amounted to over 300 million tenge.

    “Five people were recognized as suspects in the case, three of whom were subject to a preventive measure in the form of detention,” said Alibek Abdilov, official representative of the AFM RK.

    In accordance with Article 201 of the Code of Criminal Procedure of the Republic of Kazakhstan, other information is not subject to dissemination.

    In accordance with subparagraph 1 of paragraph 3 of Article 77 of the Constitution of the Republic of Kazakhstan and part 1 of Article 19 of the Criminal Procedure Code of the Republic of Kazakhstan, a person is considered innocent until his guilt in committing a criminal offense is established by a court verdict that has entered into legal force.

  • A metallurgical plant will be built in the Zhetysu region

    A metallurgical plant will be built in the Zhetysu region

    In the Zhetysu region, implementation of a large project has begun for the construction of a metallurgical plant with a capacity of 860 thousand tons of copper concentrate per year. Akim of the region Beibit Isabaev announced this at a briefing at the SCS site, reports the correspondent of the business information center Kapital.kz with reference to the press service of the akimat.  

    The cost of the project is 1.3 trillion tenge, the company plans to create more than 2,000 jobs.

    Currently, the construction of warehouses and other technical premises for storing equipment and goods has been completed. Construction of the plant will begin in 2025 and will be completed in 2027.                                            

    The project is being implemented by Consolidated Construction Mining Company LLP.                                             

    In general, as Beibit Isabaev reported, the region’s investment portfolio until 2030 contains 184 projects worth 2.2 trillion tenge with the creation of more than 9 thousand jobs.                                           

    Earlier, Prime Minister Alikhan Smailov spoke about the work to attract foreign direct investment to Kazakhstan and implement new investment projects. “Last year, our volume of foreign direct investment amounted to a record level over the past 10 years of $28 billion. First of all, these investments went to the mining and metallurgical complex, manufacturing industry, trade, transport and financial sector,” said Alikhan Smailov.

  • Tokayev: Kazakhstan is ready to become the main supplier of rare earth minerals

    Tokayev: Kazakhstan is ready to become the main supplier of rare earth minerals

    At the World Climate Summit, the President of the Republic of Kazakhstan called not to require developing countries to sacrifice national development in the name of climate protection

    Today, almost half of the world’s population lives in regions that are highly dependent on climate change, Kassym-Jomart Tokayev noted in his speech at the Summit of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP 28) in Dubai on December 1.

    “Small island developing states, landlocked developing countries and least developed countries are at greatest risk,” the President of the Republic of Kazakhstan emphasized.

    Kazakhstan became the first country in the region to ratify the Paris Agreement and adopt the Carbon Neutrality Strategy until 2060, the speaker recalled. “Our country has enormous potential for the development of wind and solar energy, as well as for the production of green hydrogen. We will continue to work closely with our partners to unlock this potential. As a leading exporter of uranium, accounting for 43% of the world’s supply, we play a critical role in generating carbon-free electricity on a global scale,” Tokayev said.

    As the world decarbonizes in the coming decades, critical minerals, including rare earths, will become irreplaceable, the president emphasized. “Kazakhstan is ready to become the main supplier of these transition minerals. We also actively support private green initiatives. For example, the Association of Packers of Kazakhstan is working on projects to get rid of plastic waste, contributing to environmental protection. I think it is principled and fair not to demand that countries with developing economies sacrifice national development and modernization in the name of climate protection. On the contrary, these goals should go hand in hand and reinforce each other. “Bold steps are needed,” Kassym-Jomart Tokayev expressed his opinion.

    Reducing methane emissions is the fastest way to slow down the rate of global warming, the speaker recalled and said that Kazakhstan has decided to join the Global Commitment to Reduce Methane Emissions. “At the same time, we strive to solve the large-scale coal problem in the countries of our region by implementing the region’s first Just Energy Transition Partnership (JETP) in Kazakhstan. For both these initiatives to succeed, we call on our friends and partners to provide concrete support,” he said. “More broadly, we hope that the international community will increase its commitment to increasing climate finance. But financing is only the first obstacle. Even if we manage to limit global temperature rise to 1.5 degrees by 2050, Central Asian countries will still face a temperature rise of up to 2.5 degrees. This will lead to water shortages, extreme heat, desertification and extreme hydrological events. Therefore, adaptation is inevitable and necessary.”

    As a concrete measure, Tokayev called for more funds to be allocated to support the International Fund for Saving the Aral Sea, adding that Kazakhstan will take over the chairmanship of the fund next year and hopes to involve all partners in solving this problem.

    “Based on the successful results of COP 28 held this week, I invite participating states to the Astana International Forum in June 2024. The forum can serve as a dialogue platform for continued focused cooperation on pressing climate-related issues until COP 29,” Tokayev addressed the audience and summed up the speech: “To give impetus to climate action in Central Asia, we also decided to convene a Regional Climate Summit in Kazakhstan in 2026 under the auspices of the UN. The climate emergency is a global crisis that requires a global response. We have a shared responsibility to preserve our planet and ensure a sustainable future for everyone. Kazakhstan firmly believes that only collective action and cooperation will help us solve the climate crisis.”