MINEX Forum

Region: Kazakhstan

  • Coal mining companies face difficulties when exporting products

    Coal mining companies face difficulties when exporting products

    At the AGMP site, a meeting was held on problematic issues of the coal industry, chaired by the advisor to the executive director of the association, Tulegen Mukhanov.

    At the meeting with the participation of representatives of coal mining companies, issues of supplying municipal coal to the domestic market, selling coal for export, and implementing proposals within the framework of the resolution of the IV Coal Industry Forum were discussed.

    According to operational information from coal mining companies, the domestic market is currently supplied with municipal coal. The current situation regarding the supply of solid fuel to the population is under constant control of the Ministry of Industry and Construction, NPP Atameken, and AGMP.

    Issues of loading coal for export are also discussed weekly at meetings of the operational headquarters established at the Atameken National Chamber of Entrepreneurs with the participation of the Ministries of Transport, Trade and Integration. AGMP takes an active part in the meetings.

    At the meeting, specialists from coal mining companies drew attention to such difficulties in supplying products to non-CIS countries, such as a shortage of cars, non-coordination of transportation plans by KTZ, Russian Railways, and the introduction of conventional bans. Meanwhile, untimely delivery of coal to foreign buyers entails the accrual of significant fines, as a result of which the financial burden on coal mining enterprises will increase. Moreover, export contracts are concluded on strict conditions of continuity of supply. The lack of supply guarantees will certainly affect the choice of coal buyers, which may lead to loss of sales markets and will affect a decrease in coal production volumes.

    According to Ilyas Mazhitov, director of the department of coal industry and energy of ASMP, earlier ASMP sent a letter about problems with coal exports to the Ministries of Transport, Trade and Integration, KTZ. It is planned to contact government agencies with a similar letter in the near future.

    Following the results of the IV Coal Industry Forum, its participants adopted a resolution. The first paragraph of the resolution stipulates that AGMP and NCE RK “Atameken”, together with the Ministry of Industry and Construction, will develop a long-term Program for the Development of the Coal Industry of Kazakhstan in order to formulate a predictable state policy regarding the industry, including encouraging the development of new deposits. AGMP together with the Ministry of Railways have begun to implement this issue. Thus, a Working Group is being created under the Industry Committee of the Ministry of Railways.

    “The program for the development of the coal industry will be a historical document, which will be developed for the first time in our country, so we encourage coal mining enterprises to actively participate in its preparation,” T.M. Mukhanov emphasized.

    Coal mining companies also addressed specific issues to the AGMP to facilitate their resolution.

  • Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    National Atomic Company Kazatomprom and the UAE energy company Emirates Nuclear Energy Corporation (ENEC) signed the first ever contract for the supply of Kazakh natural uranium concentrate for the energy needs of the UAE Barakah nuclear power plant.

    The signing took place as part of the official visit of the President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the United Arab Emirates, during which the Kazatomprom delegation took part in the United Nations Climate Change Conference COP28.

    “We are proud that the first ever commercial contract between Kazatomprom and ENEC will mark the beginning of an important and promising cooperation between our companies. We are very pleased that our sales geography has expanded to the UAE and highly appreciate the recognition of Kazatomprom’s role in ensuring the UAE’s energy security and achieving zero emissions, which indicates our company’s strong reputation as a reliable supplier in the global nuclear fuel market. We hope that in the future our partnership will only strengthen thanks to the signing of new contracts aimed at ensuring uninterrupted supplies of natural uranium for the Baraka nuclear power plant,” said Meirzhan Yusupov, Chairman of the Board of NAC Kazatomprom JSC.

    “Signing a contract with Kazatomprom, the world’s largest uranium producer, is strategically important for ENEC in terms of further diversification and ensuring the security of nuclear fuel supplies. With many countries making a significant positive shift towards incorporating civil nuclear power into their energy mix, the security of fuel supply is of paramount importance. Kazatomprom is expanding our list of partners to ensure a sustainable supply of fuels to produce clean electricity to decarbonize energy-intensive and heavy industries in the UAE,” said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of ENEC.

    The conclusion of this contract with a large UAE energy company will serve as a new impetus for cooperation between nuclear companies of both countries, and will also open a new country in the sales geography of Kazatomprom.

    The scope and commercial terms of the contract are confidential and commercially sensitive and are not subject to public disclosure.

  • The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    – We inform you that the deal between the Government of the Republic of Kazakhstan and ArcelorMittal is approaching its final stage. In light of the significance of this event, we will organize a briefing immediately after the completion of the transaction. At this meeting we will present all the necessary information and answer all questions,” announced the press service of the Ministry of Industry and Construction.

    Let us remind you that as part of the deal, ArcelorMittal will transfer its Kazakh assets to an investor chosen by the government, who will be ready to invest at least three billion dollars in the next three years. This deal was adopted due to frequent fatal accidents at ArcelorMittal Temirtau mines.

    The government officially announced that a preliminary agreement had been reached on the transfer of the ArcelorMittal Temirtau enterprise on October 28 against the backdrop of the accident at the mine named after. Kostenko, in which 44 miners died. On November 6, ArcelorMittal Temirtau and the Ministry of Industry made a joint statement regarding negotiations on the transfer of property

     

     

  • A metallurgical plant will be built in the Zhetysu region

    A metallurgical plant will be built in the Zhetysu region

    Project cost – 1.3 trillion tenge/

    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.

  • Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    NAC Kazatomprom JSC and its subsidiary KAP Technology LLP entered into a strategic cooperation agreement with Siemens LLP in the field of digitalization and automation of subsidiaries of the nuclear-holding company.

    Since 2019, Siemens has been an official partner of KAP Technology LLP in the provision of process equipment, as well as consulting, engineering and services in the field of industrial automation, which served as the foundation for further expansion of cooperation with the nuclear holding.

    “Kazatomprom is actively working to develop and implement innovative projects in the field of digitalization and automation of production. The use of advanced technologies, equipment, and partner software has already shown results in optimizing production processes and improving the quality of products. I am confident that further cooperation with Siemens will have a positive impact on the development of the entire digital ecosystem of the nuclear holding,” said Mukhit Magazhanov, Chief Director for Procurement and General Issues of Kazatomprom.

    The strategic agreement provides for joint participation in pilot projects to introduce advanced technologies at uranium mining enterprises, as well as the active development of training programs aimed at training highly qualified personnel for the successful implementation of innovative projects.

    The parties plan to significantly increase the level of automation and digitalization of enterprises, which will strengthen Kazatomprom’s status as a leader in the uranium mining industry and ensure competitiveness in the global market.

    This strategic partnership underscores the companies’ shared ethos of innovation and reaffirms their commitment to advancing the industry through cutting-edge technology and educational initiatives.

  • KAZ Minerals increased copper production by 7%

    KAZ Minerals increased copper production by 7%

    The copper mining group KAZ Minerals produced 301.2 thousand tons of copper in January–September, which is 7% more than in the same period in 2022.

    “In the first nine months of 2023, the KAZ Minerals group produced more than 300 thousand tons of copper, which is 7% more than in the same period last year. This was achieved thanks to the expansion of capacity at the second world-class enrichment plant at Aktogay,” the statement said.

    Production of zinc in concentrate increased by 24% to 36.4 thousand tons, thanks to mining in areas with a higher metal content and, as a result, an increased recovery factor. Silver production increased by 11% to 3 million ounces as the group also processed higher-grade ore, while gold production decreased by 7% to 120.3 thousand ounces due to an expected decline in metal grades. ore at Bozshakol and Bozymchak.

    “In the nine months of 2023, KAZ Minerals produced 301 thousand tonnes of copper, up 7% year-on-year, thanks to the global expansion of capacity at its second concentrator at Aktogay. In 2023, the group has already sold its finished product inventories accumulated in the previous year, and copper sales were 43 thousand tons ahead of production in 2023,” said KAZ Minerals Chairman Andrew Southam .

    The Group sold accumulated inventories of finished products created in 2022, while the volume of copper sales for the period up to September 30, 2023 amounted to 344 thousand tons, which is 43 thousand tons more than production volume.

    The volume of copper production at Aktogay in January–September amounted to 192 thousand tons, which is 14% more than a year earlier. Copper production at Bozshakol is 77.5 thousand tons versus 77.9 thousand tons previously. Copper production in the Eastern region and Bozymchak decreased by 12%, to 31.7 thousand tons.

    At the end of the first half of the year, the copper mining group KAZ Minerals produced 200 thousand tons of copper, which is 11% more than in the same period in 2022, and sold 223 thousand tons of metal.

    KAZ Minerals operates the Aktogay copper mine and the Orlovsky mine in the Abay region and the Bozshakol mine in the Pavlodar region, two underground mines and processing plants in the East Kazakhstan region and the Bozymchak copper-gold mine in Kyrgyzstan. Vladimir Kim , who owns 63.5% of KAZ Minerals, ranks first among the richest Kazakhstanis according to Forbes with a fortune of $4.6 billion.  Oleg Novachuk , who owns 36.5% of KAZ Minerals shares, has a fortune of $615 million, ranking 13- e place. 

  • Ministry of Industry: The deal between the government and ArcelorMittal is approaching its final stage

    Ministry of Industry: The deal between the government and ArcelorMittal is approaching its final stage

    The Ministry of Industry said that the deal between the government of Kazakhstan and ArcelorMittal is approaching its final stage, Zakon.kz reports.

    On November 4, 2023, First Deputy Prime Minister of the Republic of Kazakhstan Roman Sklyar said at a government briefing that ArcelorMittal Temirtau would be bought by a Kazakh investor. It also became known what requirements are imposed on a new investor. 

    On October 31, 2023, Head of Government Alikhan Smailov announced the completion of the transaction to transfer AMT in favor of Kazakhstan.

    Earlier it became known that the new investor will have to invest $3 billion in the modernization of ArcelorMittal Temirtau JSC.

    Tragedy at the mine named after. Kostenko of ArcelorMittal Temirtau JSC in the Karaganda region occurred on the night of October 28, 2023 at 02:33. At the time of the accident, there were 252 people in the mine, and 206 miners climbed to the surface . Initially, four victims were reported, but all those who remained underground died – 46 miners.

    After an emergency in the mine named after. Kostenko, head of state Kassym-Jomart Tokayev instructed the government to stop investment cooperation with ArcelorMittal Temirtau. Then the government stated that they had already reached a preliminary agreement with AMT shareholders, and also noted that “the formalization of the transaction to transfer ownership of the enterprise in favor of Kazakhstan is being completed.” Later, ArcelorMittal confirmed the transfer of the company to the ownership of Kazakhstan.

  • Aurora Geophysics completed a vector induced polarization survey in Aktobe region.

    Aurora Geophysics completed a vector induced polarization survey in Aktobe region.

    The survey took place in the Aktobe Region, where Aurora Geophysics measured the horizontal components of the electric field (Ex and Ey) induced by a dipole source.

    These measurements were utilized to calculate the chargeability vector and the apparent electrical resistivity vector, affirming the method’s effectiveness in detecting mineralization zones even in challenging geological conditions.

    The field survey system included measurement lines arranged orthogonally in a checkerboard pattern, with current lines positioned at an angle to the measurement lines.

    The fieldwork technology developed by Aurora Geophysics ensured high productivity. On average, 16 square kilometers of observation were conducted per working shift. The research results encompass detailed maps of geoelectrical parameters, including apparent chargeability, apparent electrical resistivity, and metal factor.

    Using this data, a generalized model of the distribution of geoelectrical parameters in the investigated area was created. This model reflects the geometry and relative position of the main structural and geological elements, indicating prospective zones of mineralization and ore-controlling structures.

    The induced polarization survey technique with vector measurements has confirmed its effectiveness both in theory and practice. This method allows for the precise identification of locations of presumed mineralization zones in complex geological conditions through the measurement of two horizontal components of the electric field and the optimization of the observation system.

    Aurora Geophysics Limited adheres to safe work practices in exploration. As part of the ongoing improvement of process management policies, HSE advisors work in constant supervision with the team. All personnel receive regular training in the following disciplines:

    1. Fire Safety Basics;
    2. Electric safety;
    3. Occupational safety and health;
    4. First aid.

    Aurora Geophysics demonstrates the ability to provide reliable data and results in geophysical research, along with the readiness to employ the full spectrum of modern geophysical methods, including the vector modification of the induced polarization method, for objects of any degree of geological complexity.

  • In Kazakhstan, a number of companies have been given the exclusive right to export certain types of coal

    In Kazakhstan, a number of companies have been given the exclusive right to export certain types of coal

    The Government of Kazakhstan adopted a resolution dated November 17, 2023 “On some issues of granting the exclusive right to export certain types of coal,” Zakon.kz reports.

    The list of individual types of coal that can be exported includes:

    • hard coal; briquettes, pellets and similar types of solid fuels obtained from coal;
    • lignite or brown coal, whether or not agglomerated, other than jet.

    The list of participants in foreign trade activities that have been granted the exclusive right to export certain types of coal includes 33 companies, including:

    • JSC “Mining Company “SatKomir” (SatKomir).
    • JSC ArcelorMittal Temirtau.
    • Branch of JSC “Eurasian Energy Corporation” – “Open Mine “Vostochny”.
    • JSC “Karazhyra”
    • JSC “Maikuben-West”
    • JSC “Shubarkol Komir” and “Shubarkol Premium”.
    • Kazakhmys Coal LLP (Kazakhmys Coal).
    • “Sherubai Komir” LLP.
    • LLP “Trade and industrial company “BAS”.
    • LLP “Bogatyr Komir” 

    The Rules for the suspension or termination of an exclusive license for the export of certain types of coal have also been approved.

    Thus, the licensor may suspend the exclusive license in the following cases:

    • voluntary application of the licensee;
    • suspension of one or more documents on the basis of which the exclusive license was issued;
    • failure by licensees to submit quarterly, before the fifteenth day of the month following the reporting quarter, a report on the progress of execution of the exclusive license to the licensor;
    • indications by licensees of false information in quarterly reports on the progress of execution of the exclusive license;
    • presence of a judicial act. 

    The resolution will come into force on December 1, 2023.

    Earlier it was reported that Kazakhstan extended the ban on the export of certain types of coal from November 21, 2023 for a period of six months.

  • The transfer of ArcelorMittal Temirtau to the Kazakh investor will be completed by the end of November – Smailov

    The transfer of ArcelorMittal Temirtau to the Kazakh investor will be completed by the end of November – Smailov

    The Kazakh government is committed to completing the transfer of ArcelorMittal Temirtau to the Kazakh investor by the end of November, Prime Minister Alikhan Smailov said. He hopes that no force majeure will happen and the deal will be officially announced next week.

    “We are now specifically working on this (on the transfer – V.). And we set ourselves a deadline – to complete this deal and legalize this deal by the end of November. We are heading towards this. God grant that nothing force majeure happens, and next week, I think, we will complete it,” Smailov told reporters on Thursday on the sidelines of the Senate.

    He once again emphasized that budget funds will not be used to buy out the enterprise; it is planned to attract money from a Kazakh investor.

    The prime minister recalled that the preliminary purchase and sale agreement was signed a month ago, and the final one is scheduled to be signed next week.

    Earlier, Minister of Industry and Construction Kanat Sharlapaev said that the issue of attracting a new foreign investor for the ArcelorMittal Temirtau company, which becomes the property of the government, is not being considered. He also assured that all the current conditions of the enterprise, based on collective agreements with trade unions, wages, and the number of employees will remain unchanged when a new investor arrives. At the same time, Sharlapaev refused to announce the terms of the deal for ArcelorMittal Temirtau, but named preliminary dates – the end of November. He also said that the issue of appointing former Prime Minister Serik Akhmetov as head of the company “was not discussed.”