MINEX Forum

Tag: economy

  • Kazakhstan Detects $1.9 Million in Subsoil Use Violations Through Digital Monitoring

    Kazakhstan Detects $1.9 Million in Subsoil Use Violations Through Digital Monitoring

    Since January 2025, Kazakhstan has operated a Unified Subsoil Use Platform, through which 2,443 operators have submitted electronic reports. The new digital monitoring tool has enabled regulators to uncover violations of subsoil use legislation.

    As a result, companies received notifications of breaches across 196 contracts and licenses, with total penalties amounting to 910 million tenge (approx. $1.9 million). In addition, 37 contracts were terminated — 30 for geological exploration, five for extraction, and two for combined activities. Authorities also revoked 61 licenses from non-compliant operators.

    The Ministry of Internal Affairs and the National Security Committee have halted illegal mining operations in four regions of the country. In the third quarter of this year, the agencies plan to issue about 350 notifications and conduct 65 on-site inspections.

    By the end of the year, a draft law on digitalization and auctions, along with amendments to allocate 50% of subscription bonuses to state geological exploration, will be submitted to the Parliament of Kazakhstan, Kazinform reports.

  • Metinvest CEO Discusses Challenges and Prospects for Ukraine’s Metallurgy

    Metinvest CEO Discusses Challenges and Prospects for Ukraine’s Metallurgy

    Ukraine offers a wide range of investment opportunities across various industries, including rare earth metals mining, agriculture, automotive manufacturing, and household appliance production. However, according to Metinvest Group CEO Yuriy Ryzhenkov, investments in metallurgy are impossible without security guarantees, and the industry cannot fully develop without continuous investment.

    In an interview with BBC Talking Business, he stated that since 2022, Metinvest has lost about 40% of its assets, including Ukraine’s largest steel plants—Azovstal and Ilyich Iron and Steel Works. The blockade of Black Sea ports caused logistical disruptions, but deliveries were restored in 2023-2024, allowing Metinvest to operate at full capacity, supplying products to Europe and the Far East.

    The company also faced significant challenges in 2023 due to power supply disruptions and unstable electricity prices. To minimize losses, Metinvest had to shut down less energy-efficient facilities. Ryzhenkov noted that this was a major challenge for engineers, who had to maintain production while preventing industrial accidents.

    A key issue remains the high cost of electricity, which severely impacts iron ore mining—a crucial sector for Ukraine’s economy. One of Metinvest’s mining and processing plants halted operations in mid-2023 and remains idle.

    Despite these difficulties, Metinvest paid UAH 20 billion in taxes in 2024, a 36% increase from the previous year. Since 2022, the company has invested over UAH 30 billion in capital projects in Ukraine, making it the country’s second-largest investor.

  • Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    In Belchatow, Poland, the PGE coal-fired power plant, Europe’s largest and one of the world’s top polluters, has powered local industries and provided 20% of Poland’s electricity for decades. With EU-driven goals pushing its closure by 2036, the city of 55,000 braces for significant economic shifts. Efforts to retrain workers for “green collar” jobs and build renewable energy projects are underway, though residents worry about a lack of clarity on future job prospects. The transition’s impact is already visible: youth are increasingly leaving Belchatow, and a new wave of political support has emerged for Patryk Marjan, the city’s first far-right mayor, who campaigned against the EU’s Green Deal. Locals express concern over the region’s future, and some fear the city could lose its vitality and identity post-coal, with some joking it could become “churches and kebab shops.” The question remains whether Belchatow can secure an economically sustainable future in the clean energy era.

  • Kazakhstan’s Ambitious Industrial Expansion: 180 New Projects Set for 2024

    Kazakhstan’s Ambitious Industrial Expansion: 180 New Projects Set for 2024

    Kazakhstan is set to launch 180 new projects by the end of 2024, with an estimated investment of 1.4 trillion tenge (US$2.9 billion), creating approximately 17,400 new jobs, according to the Prime Minister’s press service on July 24. These projects are expected to produce goods valued at nearly 1.8 trillion tenge (US$3.7 billion), including 400 billion tenge (US$843 million) for export and 1.4 trillion tenge (US$2.9 billion) for import substitution.

    Key projects include the EkibastuzFerroAlloys plant in the Pavlodar Region, which will create 800 jobs with a 92.4 billion tenge (US$194 million) investment, producing 240,000 tons of ferrosilicon annually. In the Kostanay Region, a factory will produce cast iron components for trucks, providing 360 jobs with a 78.2 billion tenge (US$164 million)investment and an annual capacity of 45,000 tons.

    The Zhetysu Wolfram company will develop the Boguty tungsten ore deposit in the Almaty Region, investing 135 billion tenge (US$284 million) to create 350 jobs and achieve an annual production of 3.3 million tons of ore and 10,000 tons of concentrate.

    In the Almaty Region, a factory will produce thermal insulation materials, offering 220 jobs with a 43.9 billion tenge (US$92.6 million) investment, producing 1.4 million cubic meters of rock wool and 400,000 cubic meters of polymer insulation annually. Another facility will manufacture springs for rolling stock, creating 51 jobs with a 1.1 billion tenge (US$2.3 million) investment and an annual capacity of 298,500 springs.

    Kazakhstan’s metallurgical production grew by 54.2% in the first five months of 2024, driven by increased output of ferroalloys, raw aluminum, raw lead, and refined copper. The country remains a major exporter of ferrous and non-ferrous metals, with exports rising by 8.3% to $4.7 billion in the first four months of 2024. The government has introduced new regulations for scrap metal collection and processing, including a ban on exporting ferrous scrap and non-ferrous metal waste.

    The chemical industry saw investments reach 68.4 billion tenge (US$144 million) from January to May 2024, with new projects in technical silicon, hydrogen peroxide, and liquid nitrogen production. Nine new small enterprises opened, focusing on regions like Pavlodar and Zhambyl.

    In the coal industry, a new government decree has granted exclusive licenses to coal mining and processing enterprises, aiming to meet domestic coal needs, particularly for the heating season.

    Kazakhstan’s non-ferrous metallurgy sector has strengthened international cooperation, with agreements signed with China and South Korea. The machinery industry saw significant investment and modernization, with industrial production reaching 814.4 billion tenge (US$1.7 billion) in the first half of 2024.

    The building materials and furniture industries also experienced growth, with regulations supporting local producers. The light industry saw a significant rise in production and exports, with investments in clothing and leather production increasing notably.

  • Polish Mining Industry Faces Challenges, Ministry Official Warns

    Polish Mining Industry Faces Challenges, Ministry Official Warns

    During the European Economical Congress in Katowice, Marta Jamo, the director of the Ministry of Industry’s analytics department, highlighted the critical state of Poland’s mining sector. Despite turning a profit last year, the industry struggles to convert it into tangible assets, she stated. Jamo pointed out the persistent issue of high coal piles, stemming from past practices of unregulated imports and a lack of understanding of market and energy industry demands. Emphasizing the urgency, she stressed the need to address the social contract.

  • Coal Production Decline in Kazakhstan’s Deposits in February 2024

    Coal Production Decline in Kazakhstan’s Deposits in February 2024

    According to data from the second month of 2024, coal production in Kazakhstan’s deposits decreased to 9.083 million tons, marking a 9.6% decline compared to February of the previous year. While various types of coal are mined in the country, coal accounts for the majority. The beginning of the year has seen a decrease in coal production of this type by 11.3%.

  • Zangezur Copper-Molybdenum Combine and Kajaran community signed a memorandum of cooperation

    Zangezur Copper-Molybdenum Combine and Kajaran community signed a memorandum of cooperation

    On July 13, 2023, the Zangezur Copper-Molybdenum Combine and Kajaran community signed a memorandum of cooperation.

    Roman Khudoliy, President of the GeoProMining Group of Companies, CEO of ZCMC, and Manvel Paramazyan, head of the Kajaran community, stressed that there have always been close cooperative ties between the parties, and the memorandum will raise these relations to a new, institutional level.

    The memorandum provides for the development of strategic areas of cooperation in the fields of economy, culture, education and sports, social security, healthcare, as well as in urban planning.

    After the signing ceremony of the memorandum, ZCMC General Director Roman Khudoliy said: “Cooperation between our company and the Kajaran community can be considered an exemplary in terms of cooperation between the community and the company. We have reached such a level that we consider supporting social development projects not as a duty or as corporate social responsibility, but as an investment in the development of our company, because our success is ensured by our employees, and these are mainly residents of the Kajaran community. Today we are taking this cooperation to a strategic new level.”

    Mayor Manvel Paramazyan also welcomed the signing of the memorandum and stressed the ongoing close relationships between the enterprise and the community. “The role and significance of the Zangezur Copper Molybdenum Combine is undeniable in the history of the creation of the city of Kajaran and in the development of the community, from the day the city was founded to the present day, for more than seven decades. When we say Qajaran, we mean combine, and vice versa, when we say combine, we mean Qajaran. But this memorandum opened a new page in the recent history of Kajaran, reevaluating those decades and the great contribution and dedication of the leaders of the company from the beginning of history and all the heroes of this giant enterprise.”

    Zangezur Copper-Molybdenum Combine CJSC signed memorandums in the field of social development also with the Syunik region and the Kapan community recently.