MINEX Forum

Tag: export

  • Challenges Facing Ferrexpo and Metinvest Amid Black Sea Port Blockade

    Challenges Facing Ferrexpo and Metinvest Amid Black Sea Port Blockade

    The ongoing blockade of the Black Sea ports has severely impacted Ukraine’s mining and metallurgy sectors, particularly affecting major players like Ferrexpo and Metinvest. The closure of these ports has not only disrupted agricultural exports but has also halted the maritime export of iron ore, which is crucial for the economy. Ferrexpo has been forced to suspend production at its Poltava mining and processing plant, while Metinvest has temporarily halted operations at its Southern Mining and Processing Plant (Southern GOK).

    Before the war, Ukraine produced a record 81.2 million tonnes of iron ore in 2021, with a significant portion exported to China. However, the onset of the conflict led to a drastic decline in production and exports, dropping nearly 2.5 times due to the loss of key domestic buyers and the blockade of maritime routes. The only alternative has been to redirect iron ore exports via rail to the European Union, but this has proven economically unfeasible due to high logistics costs.

    The situation briefly improved in late 2023 when a maritime corridor reopened, allowing for a resurgence in exports. However, this recovery was short-lived, as Russian attacks on energy infrastructure led to rising electricity costs, which account for a significant portion of production expenses. The combination of low global iron ore prices and high transportation costs has made it difficult for Ukrainian companies to compete with Australian and Brazilian producers.

    As of early 2026, the situation remains dire, with exports dropping by 27.3% in the first half of the year. Ferrexpo, lacking its own steel production facilities in Ukraine, is particularly vulnerable, relying entirely on exports. The company has warned that without additional funding and the resumption of full-scale shipments, it may only have enough resources to operate until mid-September. Meanwhile, Metinvest, which has its own steel mills, is also facing challenges, including a significant reduction in production and increased transportation costs due to the blockade.

    Experts warn that the continued closure of maritime routes threatens the macroeconomic stability of Ukraine, with the potential for widespread plant shutdowns if the situation does not improve soon. The reliance on European markets is not a viable long-term solution, as the logistics and costs associated with land transport are prohibitive. The Ukrainian mining sector is at a critical juncture, with the need for government intervention and support to mitigate the impact of these challenges on the industry and the economy as a whole.

  • Kazakhmys Denies Allegations of Illegal Export of Rare Earth Metals

    Kazakhmys Denies Allegations of Illegal Export of Rare Earth Metals

    Kazakhmys Corporation has officially denied media reports alleging the illegal export of copper ores and concentrates without proper analysis and the concealment of rare earth metal content. The company stated that all its products undergo strict quality control, and in cases where copper concentrates are exported, independent chemical analyses are conducted in world-class laboratories such as SGS Kazakhstan.

    Kazakhmys also emphasized that it does not engage in the targeted extraction of rare earth metals. Small amounts of rare metals are recovered from production waste and processed at state-owned and private enterprises within the country, in full compliance with legal regulations.

    The company assured that its operations are entirely transparent and are closely monitored by the relevant authorities. Kazakhmys supports enhanced government oversight of raw material exports and is open to cooperation with authorities for any necessary inspections.

  • Prime Minister of Kazakhstan Olzhas Bektenov Inspects Development of Export-Oriented Industry in Pavlodar Region

    Prime Minister of Kazakhstan Olzhas Bektenov Inspects Development of Export-Oriented Industry in Pavlodar Region

    The Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, conducted an inspection of the progress in implementing the instructions of the Head of State, Kassym-Jomart Tokayev, regarding the development of export-oriented industry and technological modernization of enterprises in the Pavlodar region.

    Bektenov visited the leading enterprises of the region: KSP Steel, Aluminum of Kazakhstan, Kazakh Electrolysis Plant, Aksu Ferroalloy Plant, and Aksu Power Plant, which make a significant contribution to the regional economy.

    He familiarized himself with the production processes and products of the KSP Steel plant, which is the second-largest in the steelmaking sector and employs over 4,500 people. Bektenov noted the issue of bringing the enterprise to full production capacity and emphasized the need to create conditions for the utilization of domestic producers.

    He also visited Aluminum of Kazakhstan JSC, highlighting the importance of the existing aluminum cluster for the region and the entire country. Bektenov called for increasing production conversion and technical modernization of the enterprise in line with environmental requirements.

    The Prime Minister also inspected the work of Kazakh Electrolysis Plant, which ranks among the top ten plants in the world for producing high-grade primary aluminum. He expressed support for the strategy of increasing raw material processing within the country.

    As part of the trip, Bektenov also visited Aksu Ferroalloy Plant and Aksu Power Plant, where extensive modernization is underway. He underscored the importance of accelerating the modernization of the communal-energy sector and expressed support for ensuring dynamic industrialization of the country’s economy.

  • Problem point: the export figures of the Armenian mining industry are far from ideal

    Problem point: the export figures of the Armenian mining industry are far from ideal

    The authorities acknowledge the existence of problems associated with exports in the mining industry, which are not always made known in a timely manner. The corresponding statement in a conversation with journalists on December 19 was made by the Deputy Minister of Territorial Administration and Infrastructures of Armenia Hovhannes Harutyunyan.

    He assured that in terms of statistics, the Government is not keeping anything related to the non-functioning of the Sotsky mine secret. “The Teghout mine did not work for about 7-8 months,” Harutyunyan noted.

    He emphasized that Armenia ranks quite high in terms of transparency and accountability in the mining sector. “We are constantly tightening standards,” the official was quoted as saying by Armenian News.

    Meanwhile, the Zangezur Copper-Molybdenum Combine presented another report on sustainable development.

    General Director of ZMMK, Roman Khudoliy, noted in his welcoming speech: “We are confident that the path to mutually beneficial development of all stakeholders and making the maximum contribution to the economic progress of Armenia is the introduction of a responsible approach in all areas of our activities. This year, I am especially proud that we are publishing not only a Sustainability Report, but also conducting the first industry study based on TCDF principles in Armenia. This report includes not only our achievements, but also our omissions, and this is proof of real responsibility. Sustainability is not an end point, but a challenging endeavor and an ongoing journey that we take every day.”

    Deputy of the People’s Assembly of the Republic of Armenia, Chairman of the NA Standing Committee on Economic Affairs Babken Tunyan noted the importance of publishing the Sustainable Development Report, noting that this is a responsible approach to work. “It is gratifying that one of the pioneers of this style of work is ZMMK, which, as the largest mining company, becomes the standard and sets a new bar for the entire mining industry.

  • 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.

  • 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.

  • Uzbekistan’s Almalyk exports $465 million worth of products in January-August 2023

    Uzbekistan’s Almalyk exports $465 million worth of products in January-August 2023

    In January-August, Almalyk Mining and Processing Works exported products valued at $465.43 million, up by 0.4% from the forecast.

    In terms of products, 30,012 tons of copper and 17,549 tons of lead products were exported. 446 tons of molybdenum products were exported, the fulfilment of the forecast indicator in this direction amounted to 132.8%.

    Rhenium, copper sulphate, palladium powder, lead concentrate were also delivered to foreign consumers.

    Last year, the geography of exports expanded. Thus, new markets – Spain, Austria, Germany, Finland, Canada, the Republic of South Africa and Senegal were supplied with products worth 14.3 million US Dollars.

  • Mongolia harnesses surging mining exports

    Mongolia harnesses surging mining exports

    HIGH commodity prices and rising coal exports are propelling economic growth in Mongolia, allowing the country to develop its robust mineral resources, expand its services sector, and invest in green agriculture and energy.

    Mongolia exported 31.7 million tonnes of coal in 2022, an increase in volume of 102 per cent, or 16 million tonnes, from 2021 and an increase in export revenue of 135 per cent, or US$6.5 billion, due to higher coal prices, according to data from the Mongolian Customs General Administration.

    These figures undergirded economic growth of 4.7 per cent in 2022, with Mongolia forecast to grow by 5.2 per cent in 2023.

    As the world’s largest landlocked country, Mongolia relies on China for roughly 80 per cent of its exports, 60 per cent of its imports and 40 per cent of its GDP. It exported 29.8 million tonnes of coal to China in 2022, which was up 104 per cent from 2021 and accounted for 94 per cent of Mongolia’s total coal exports.

    China’s economic recovery in the first quarter of 2023 is enabling Mongolia’s cross-border trade with its southern neighbour to return to pre-pandemic levels. Mongolia exported 13.8 million tonnes of coal – of which 13.5 million tonnes went to China – from January to March, for a total of US$2.2 billion, up 232.2 per cent year-on-year.

    In February Mongolia also started conducting coal-trading contracts through auctions on the Mongolian Stock Exchange, ending the practice of direct contracts with foreign buyers. Using so-called border prices that factor in transport fees, the new electronic trading platform brings transparency and ease to the coal export process.

     

    New rail connections

    Recovery in coal exports has catalysed the construction of new railway projects to connect the country’s mines to the Chinese border.

    Last September Mongolia inaugurated a 233km railway from the Tavan Tolgoi coal field to the Chinese border that will have the capacity to transport 30 million to 50 million tonnes of coal to China per year and lower transport costs from US$32 per tonne using truck delivery to US$8 per tonne.

    In November the country commissioned the railway link from Zuunbayan to Khangi to transport coal, iron ore and other bulk commodities, including from multinational mining company Rio Tinto’s Oyu Tolgoi project.

    Several other shorter railway projects are also intended to facilitate cross-border trade with China.

    For instance, construction began in May on a 7.1-km railway from the Mongolia border point Shivee Khuren to the Chinese border, which is expected to be completed by October and will facilitate coal and copper shipments.

    Two other shorter border connections – from Gashuun Sukhait in Mongolia to Ganqimaodu in China and from Khangi to Mandula in China – are also mostly completed and will further facilitate cross-border trade.

    The construction of new railways is part of a larger strategy to link Mongolia to the broader region.

    In May 2023 China and Mongolia agreed on a series of economic and transport initiatives to bolster Mongolia as a trade route for China-Russia trade. Mongolia accounts for roughly 90 per cent of China-Russia freight, making a tri-nation economic corridor a key segment of Beijing’s Belt and Road Initiative.

    Mongolia relies on Russia for electricity, petrol, aviation fuel, liquefied petroleum gas and diesel, about 60 per cent of which comes from its northern neighbour. With the spike in prices since 2021, stronger links with its main energy supplier could improve its deficit.

     

    Diversification efforts

    In recent years Mongolia has taken steps to improve its domestic infrastructure to diversify its mining-based economy. Between 2016 and 2020 the government constructed a motorway system that connects all 21 provinces to the capital Ulaanbaatar.

    Western sanctions on Russia following its invasion of Ukraine in early 2022 led to difficulty importing key supplies, including food, as well as the loss of valuable airline navigation fees as airlines that formerly flew over Russia and Mongolia between Europe and Asia have been forced to fly over the North Pole or along a more southerly route.

    The conflict has caused a substantial rise in food prices, including for basic staples such as rice and flour, which are essential products for the country’s livestock herders.

    To address food insecurity and diversify its economy, the government is keen to encourage more foreign investment from China in non-mining sectors.

    In May Tuvdendorj Gendendorj, deputy minister of economy and development, called for greater investment in agriculture, including meat processing, dairy farming and raising goats for cashmere, as well as tourism.

    The agriculture sector reached a seven-year high of 12 per cent growth in 2022, supported by favourable weather conditions and increased livestock slaughter. The sector is forecast to grow by 0.9 per cent in 2023, 5.5 per cent in 2024 and 5.5 per cent in 2025, according to the World Bank. China may be incentivised to invest in agri-business in Mongolia given its rising demand for meat.

     

    Investment in sustainability

    Mongolia is also looking to harness green agri-business initiatives to address long-term food security. The Asian Development Bank (ADB) approved a US$448 million investment programme in March to support green and inclusive development.

    The programme seeks to promote a transformative model for green territorial development and green urban-rural linkages, with secondary towns becoming anchors of climate-smart agri-businesses that promote sustainable, resilient and low-carbon rangeland management. Rangelands cover more than 82 per cent of the country and are critical to the livestock industry.

    Another pressing concern is the intensification of the sandstorms originating in the Gobi Desert, caused by deforestation and higher regional temperatures. With China and Mongolia both suffering, the two countries have agreed to form a joint research team to study the problem this summer.

    Mongolia is also making a push into green energy. In April the country’s largest financial institution, Khan Bank, issued the first-ever green bond to spur the development of renewable energy, energy efficiency, green buildings, green mobility and climate-smart agriculture. The bond is valued at US$60 million, with the Dutch entrepreneurial development bank FMO providing US$35 million, the International Finance Corporation US$15 million and MicroVest Capital Management US$10 million.

    Although the country currently depends on coal and oil for more than 99 per cent of its energy needs, it has 12MW of installed hydropower capacity. In April Chinese engineering company PowerChina started construction on the 90MW Erdeneburen hydropower plant, which will provide power to five provinces in the western part of the country, with US$1 billion in financing from China.

    Mongolia’s vast tracts of rangeland offer ample space for solar and wind power. The country is estimated to have a combined wind and solar power potential of 2,600GW, more than enough to meet domestic demand.

    In 2020 the ADB loaned Mongolia US$100 billion to develop the country’s first utility-scale battery energy storage system, which should be ready in 2024.