Kazakhstan’s artisanal gold mining sector, legalised under the 2018 Subsoil Code, is in need of significant regulatory reform if it is to fulfil its original promise of bringing small-scale gold extraction into the legal economy — and the country could simultaneously develop a gold prospecting tourism industry, according to Said Sultanov, founder of Aurora Minerals Group.
Speaking to inbusiness.kz, Sultanov identified three drivers behind the renewed interest in artisanal mining reform: sustained demand for small-deposit gold extraction that holds no interest for major subsoil users, improved technology that has made alluvial gold recovery more accessible to small entrepreneurs, and record gold prices that have raised the economic attractiveness of the activity.
The 2018 reforms introduced a first-come, first-served licensing system that was a meaningful step forward, Sultanov said, but practical experience has exposed systemic problems. Licensing procedures remain burdensome, land use coordination and environmental requirements add complexity, and the available licence area of five hectares is too small for efficient operation — the industry is proposing expansion to 15 hectares. Most tellingly, not a single gram of gold has officially been submitted to refining enterprises by artisanal miners since the mechanism was launched. “This indicates the existence of systemic problems in market regulation,” Sultanov said. The legal route, in other words, remains less attractive than informal channels.
Sultanov was direct about the implication: legalisation created the foundation for reducing illegal extraction but did not solve the problem. “If legal work turns out to be more complicated, more expensive and less profitable than illegal activity, some participants continue to work in the grey zone.”
On the proposed development of artisanal mining tourism, Sultanov described a potentially viable model combining gold-panning instruction, historical mining site visits, geological excursions and educational programmes for schools and universities. Suitable regions include Akmola, Abai, East Kazakhstan, Karaganda and Pavlodar, all of which have historical gold mining heritage. He cautioned that without licensing of operators, designated sites, environmental requirements and mandatory instructor accompaniment, such tourism could become uncontrolled and environmentally damaging — but argued the risks were manageable with proper regulation. He also highlighted the vocational dimension: exposure to real mineral exploration processes could help address Kazakhstan’s shortage of geologists, mine surveyors, mining engineers and hydrogeologists.
The reforms Sultanov considers essential are straightforward: reduce the financial burden of closure guarantee requirements, expand available licence areas, simplify licensing procedures and create a transparent official market for selling artisanal gold. Without these changes, the sector risks remaining a niche experiment rather than becoming a genuine contributor to regional economic development and gold market formalisation.
