MINEX Forum

Tag: Geological Exploration

  • New Support Measures for Kazakhstan’s Mining and Metallurgy Industry Under Consideration

    New Support Measures for Kazakhstan’s Mining and Metallurgy Industry Under Consideration

    In a recent meeting, the Committee of Geological, Mining, Coal, and Metallurgical Industries of the Presidium of Kazakhstan’s National Chamber of Entrepreneurs discussed new support measures for the mining and metallurgy industry. The proposed measures aim to attract additional investments to the sector.

    One key proposal is to reduce the mineral extraction tax by 10 times for companies engaged in extracting metals from technogenic mineral formations. Additionally, projects for processing mineral raw materials could be granted the same benefits as priority investment projects listed in Kazakhstan’s Entrepreneurial Code.

    Furthermore, the committee considered fully deducting expenses for geological exploration and proposed a five-year exemption from the mineral extraction tax for subsoil users developing low-grade and capital-intensive deposits (with an internal rate of return not exceeding 15%). Such mechanisms are already in place in the oil and gas sector.

    In 2025, Kazakhstan’s national railway holding, NC “KTZh”, plans to increase price limits on export transportation tariffs. Last year, railway transportation showed negative dynamics: coal transportation decreased by 7%, iron ore by 10%, and non-ferrous metals by 5%.

    To prevent mining and metallurgical enterprises from losing export markets, parties are trying to agree on a special methodology for decision-making on tariff reductions. One of the main criteria for setting prices will be the financial condition of the producers.

  • Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    At the annual meeting with his Government on 28 January 2025 Kazakhstan’s President Kasym-Jomart Tokayev has outlined the country’s commitment to strengthening its mining sector, with a particular focus on rare and rare-earth metals, including lithium. The global demand for these resources is on the rise, and Tokayev emphasised that Kazakhstan must seize this opportunity by attracting both foreign investment and advanced technologies.

    “Our country has great potential for the extraction and processing of rare and rare-earth metals,” said Tokayev. “The growing global demand for lithium presents a significant opportunity, and we must position ourselves to capitalise on this trend.”

    Kazakhstan has already seen the arrival of major foreign companies engaged in geological exploration. Additionally, a unified platform has been launched to facilitate the transparent and efficient distribution of subsoil use rights, which will further streamline and modernise the mining industry. President Tokayev stressed that the legal framework for this platform should be fully established by the end of the current parliamentary session.

    “Reforms in the area of subsoil use must continue, no matter the circumstances,” he continued. “This is a fundamental position that the government must steadfastly adhere to.”

    With its vast mineral resources, Kazakhstan is positioning itself as a key player in the global mining market, and these efforts to modernize and open up the industry aim to attract both international and domestic investors. The government’s commitment to these reforms underscores its focus on creating a more efficient, transparent, and competitive mining sector in the years to come.

  • Kazakhstan Expands Geological Exploration and Resource Discoveries in 2024

    Kazakhstan Expands Geological Exploration and Resource Discoveries in 2024

    Kazakhstan’s Ministry of Industry and Construction has highlighted a productive year in geological exploration, adding 17 deposits of solid minerals and six hydrocarbon fields to the national resource balance. Among the key findings are substantial reserves of gold (107.5 tons), silver (1,900 tons), copper (4.9 million tons), and iron ore (128 million tons). The year also saw reserves of tungsten, molybdenum, manganese, zinc, and lead significantly boosted, while chromium resources were documented at 464.1 thousand tons.

    Six newly identified hydrocarbon fields brought an estimated 1,776.5 million cubic meters of natural gas to the national inventory. However, the ministry did not specify the time frame for these discoveries. Looking ahead, over 20 billion tenge will be allocated for geological research between 2024 and 2026, with the goal of increasing Kazakhstan’s explored area from 1.5 million to 2.2 million square kilometers.

    Efforts are underway to study 60 promising locations for noble, ferrous, and non-ferrous metals, with a special focus on rare and rare-earth elements. Among these, the Kuyrektykol deposit stands out, with preliminary estimates indicating 800,000 tons of reserves. These developments underscore the country’s commitment to bolstering its mining sector and ensuring a robust resource base for future economic growth.

  • Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years

    Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years

    Kazakhstan’s mineral reserves are projected to last for 20 to 40 years, depending on the resource, according to Akbarov, head of the country’s Geological Committee. During a briefing at the Central Communications Service, Akbarov noted that while the situation for many resources is stable, with an average reserve life of 20 years, some deposits face significant geological and technical challenges.

    Key resources such as gold are estimated to last for 20 years, while copper reserves may sustain production for up to 40 years. However, certain deposits are nearing depletion, with reserves sufficient for only 5 to 10 years.

    To address this, Kazakhstan is intensifying efforts in geological exploration. Starting next year, the country will transition from a 1:200,000 scale to a more detailed 1:500,000 scale for geological mapping. This shift aims to identify hidden and geologically complex deposits, enhancing the mineral resource base. Akbarov emphasized that these initiatives could significantly boost the efficiency of exploration and replenish Kazakhstan’s mineral reserves.

  • Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    During a discussion, President Kassym-Jomart Tokayev emphasized Kazakhstan’s dedication to the Extractive Industries Transparency Initiative (EITI) since joining the organization in 2007. He noted that Kazakhstan has legislatively mandated subsoil users to comply with the organization’s standards, including reporting on taxes and other payments to the national budget.

    President Tokayev informed the head of EITI, Helen Clark, about regulatory measures aimed at enhancing the country’s geological exploration and mining industries. Key initiatives include the adoption of a Comprehensive Development Plan, the launch of a Unified Subsoil Use Platform featuring an interactive map and access to more than 50,000 geological reports, and streamlined processes for obtaining exploration and production licenses.

    In response, Helen Clark shared the strategic priorities of EITI for the coming period and praised Kazakhstan’s efforts to improve legislation in line with transparency standards for the extractive sector.

  • Ak Metal to Launch Iron Ore Mining Project in East Kazakhstan

    Ak Metal to Launch Iron Ore Mining Project in East Kazakhstan

    Ak Metal, a company led by an Almaty-based entrepreneur, is gearing up to commence iron ore mining at the Kuzinskoye deposit in East Kazakhstan. The site, located in Shemonaikha District near the village of Poperechnoye, spans 2.84 hectares and boasts two promising ore formations awaiting further evaluation.

    Initial plans include pilot industrial mining, scheduled to start in 2025. During the first two years, the company expects to extract 110,000 tons of ore annually, scaling down to 44,000 tons in 2027. This will involve 144,000 cubic meters of stripping operations, with the ore transported for processing via rail from Shemonaikha station.

    Ak Metal has been actively investing in geological exploration, with 2023 expenditures reaching 39.8 million tenge, far exceeding the required 7.9 million tenge. The company has shown steady growth, reporting 2023 revenue of 589.1 million tenge, a significant rise from 340.9 million tenge in the previous year, while net profit increased to 101.8 million tenge.

    The start of industrial mining marks a significant milestone for Ak Metal, solidifying its position in the iron ore market and driving further development.

  • Kazakhstan Plans to Boost Investment in Geological Exploration by 2029

    Kazakhstan Plans to Boost Investment in Geological Exploration by 2029

    Kazakhstan’s National Development Plan through 2029 aims to increase investments in geological exploration to $90 per square meter, up from the current $63 per square meter, which is 39.6% below the global average, according to a report by LS. The plan addresses the country’s insufficient reserves of key minerals ready for development, particularly in the areas of chromium, copper, and iron.

    Kazakhstan is rich in nickel, cobalt, and lithium, metals essential for the green economy. However, due to limited investment in geological exploration, the full potential of these resources has not been realized. The same issue affects rare earth metals.

    To improve the situation, the government plans to stimulate investments in junior companies by simplifying their access to the stock exchange and revising tax deduction conditions for investors. Additionally, the taxation system for mining companies will be overhauled, shifting to a model that considers the volume of product sales and profits rather than just the amount of raw materials extracted. This new system will first be tested on several pilot sites.

    Moreover, geological data will be digitized, and administrative barriers to obtaining exploration and mining licenses will be reduced.

  • Kazakhstan to Boost Investments in Mineral Exploration by 2029

    Kazakhstan to Boost Investments in Mineral Exploration by 2029

    The National Development Plan of Kazakhstan aims to increase investments in geological exploration to $90 per square meter by 2029, a significant rise from the current spending of $63 per square meter. According to LS, this current expenditure is 39.6% below the global average, leading to insufficient reserves ready for development, particularly in critical minerals such as chromium, copper, and iron.

    Kazakhstan possesses valuable resources like nickel, cobalt, and lithium, essential for the green economy, but their potential remains underutilized due to limited exploration investments. The same issue affects the development of rare earth metals.

    To address these challenges, the plan proposes to stimulate investments in junior mining companies by simplifying their access to the stock exchange and revising tax deduction conditions for investors. The taxation for companies involved in extraction will also be reformed, shifting to a system based on the volume of product sales and profits rather than just the amount of raw material extracted. This new system will initially be tested on several pilot projects.

    Additionally, geological exploration data will be digitized, and administrative barriers for obtaining exploration and mining licenses will be reduced.

  • Kazatomprom Begins Geological Exploration at the Eastern Section of Zhalpak Deposit

    Kazatomprom Begins Geological Exploration at the Eastern Section of Zhalpak Deposit

    Kazatomprom, the leading uranium company in Kazakhstan, has received permission to conduct geological exploration at the Eastern section of the Zhalpak deposit. This authorization will enable the company to investigate and refine the uranium reserves in this area. Previously, exploration funded by Kazatomprom discovered uranium deposits of categories P1 and P2. The potential reserves at the Zhalpak deposit are preliminarily estimated at 30 thousand tons of uranium. The new geological exploration aims to convert these resources into reserves of categories C2 and C1 and to determine more accurate uranium reserves. The exploration project is planned for six years, after which the calculated reserves will be recorded on the state balance sheet. Currently, Kazatomprom is extracting uranium from 26 deposits and accounted for about 20% of the world’s primary uranium production in 2023.

     

  • Kazakhstan Proposes New Tax Code Affecting Mining Companies

    Kazakhstan Proposes New Tax Code Affecting Mining Companies

    The Ministry of National Economy has introduced a draft of the new tax code for discussion on the “Open NPA” portal. Several changes in the code will impact the activities of mining companies.

    Specifically, oil companies are offered an alternative mineral extraction tax with reciprocal investment obligations instead of benefits under the current mineral extraction tax (MET). This measure aims to stimulate the development of depleting fields. Companies will be required to invest the freed-up funds into intensifying production and the socio-economic development of the region, rather than distributing them as dividends.

    Additionally, the new code includes changes for geological exploration. Companies will be allowed to deduct all expenses related to subsurface studies as part of non-contractual activities and other contracts or licenses. This initiative aims to reduce all risks for potential investors in the event of unsuccessful exploration.

    The Ministry also seeks to draw more attention to waste processing in mining. Those engaged in the development of man-made mineral formations can now expect reduced MET rates.

    Another proposal includes temporary benefits for those developing new sections of existing fields with low profitability.

    Overall, the new code aims to reduce the number of taxes and other mandatory payments in the country by more than 20%.