MINEX Forum

Tag: industrial investment

  • Kazakhstan Needs $10-12 Billion to Unlock Copper and Aluminium Processing Potential as 97% of Copper Exported Unrefined

    Kazakhstan Needs $10-12 Billion to Unlock Copper and Aluminium Processing Potential as 97% of Copper Exported Unrefined

    Kazakhstan requires between $10 billion and $12 billion in investment to develop its copper and aluminium processing industries to their full potential, with the country currently exporting up to 97% of its copper in raw or insufficiently processed form, the deputy minister of national economy has told the Senate.

    Arman Kasenov, speaking during a government session in parliament, said the copper segment alone represents potential projects exceeding $5 to $6 billion, with more than 100 leading international companies possessing deep expertise available as potential partners. Copper ranks as the second most important segment in Kazakhstan’s metallurgy sector after gold in terms of significance and value-added potential, yet the overwhelming majority of output continues to leave the country without meaningful processing.

    Among the specific opportunities Kasenov identified is the production of ultra-thin copper foil for batteries and electric vehicles, alongside other potential downstream manufacturing facilities. He said Kazakhstan has room for at least one large modern copper smelter, which could be built either by domestic companies independently or in partnership with leading international firms.

    The aluminium processing gap presents a parallel challenge. Kazakhstan converts bauxite into alumina, but only one third of that alumina is then processed into primary aluminium at ERG’s Pavlodar plant, which is already running at 100% capacity. The remaining two thirds of domestically produced alumina is exported. Kasenov said the country has a clear opportunity to establish full alumina-to-aluminium conversion domestically, enabling the production of downstream metal products including wire, cable and rolled goods — an investment he estimated at more than $5 to $6 billion.

  • Kazakhstan Sees $10-12 Billion Opportunity in Copper and Aluminium Processing as 97% of Copper Currently Exported Without Deep Refining

    Kazakhstan Sees $10-12 Billion Opportunity in Copper and Aluminium Processing as 97% of Copper Currently Exported Without Deep Refining

    Kazakhstan could attract between $10 billion and $12 billion in investment for copper and aluminium processing projects, a deputy minister of the national economy has told the country’s Senate, highlighting a structural weakness in which the overwhelming majority of the country’s copper leaves the country in raw or minimally processed form.

    Deputy Minister Arman Kasenov told senators that copper ranks second only to gold in terms of importance and value-added potential within Kazakhstan’s metallurgical sector — yet up to 97% of the metal extracted is currently exported either without processing or after only primary treatment. He said investment in the copper segment alone could exceed $5 to $6 billion, with priority directions including the production of ultra-thin copper foil, a material in high demand for battery and electric vehicle manufacturing.

    Kasenov said Kazakhstan has the conditions to establish at least one large modern copper smelting plant, either through domestic companies or in partnership with credible international players. The statement aligns with the government’s broader push to move from a raw material export model toward domestic value-added industrial production.

    On aluminium, the deputy minister highlighted a similar processing gap. Kazakhstan currently produces alumina from bauxite, but only one third of that alumina is converted into primary aluminium at ERG’s Pavlodar plant, which is already operating at full capacity. The remaining two thirds of Kazakhstani alumina is exported. Expanding domestic alumina-to-aluminium conversion would open opportunities for the production of aluminium wire, cable, rolled products and other downstream goods. Kasenov estimated the investment required for such expansion at more than $5 to $6 billion — a figure consistent with the scale of the East Hope Group’s proposed $12.6 billion full-cycle aluminium project in Kostanai Region currently under discussion with the government.

  • Kazakhstan Launches Eight New Non-Ferrous Metal Projects in 2026 as 34-Project Pipeline Targets 17,000 Jobs and 6.9 Trillion Tenge in Investment

    Kazakhstan Launches Eight New Non-Ferrous Metal Projects in 2026 as 34-Project Pipeline Targets 17,000 Jobs and 6.9 Trillion Tenge in Investment

    Kazakhstan is accelerating the development of its non-ferrous metals sector, with eight new industrial projects set to launch this year attracting investments of approximately 80.1 billion tenge and creating more than 1,500 permanent jobs, according to the Ministry of Industry and Construction.

    The country holds significant deposits of copper, zinc, nickel, lead, aluminium and precious metals, and is now moving to maximise the industrial value extracted from those resources through a structured programme of processing capacity expansion.

    In Karaganda Region, production of copper cathode has already begun at a facility that received 8 billion tenge in investment and currently employs 512 specialists. New production lines for copper rod and cable, aluminium powder and unalloyed aluminium bars are planned to come online before the end of 2026.

    Six further non-ferrous metallurgy projects are at an active implementation stage, including facilities for doré alloy production and aluminium billets and profiles. These are expected to be commissioned in 2027 and 2028, with combined investment exceeding 532.1 billion tenge and around 800 new jobs — approximately 140 of them in rural areas.

    A further 34 projects are at the planning and development stage, targeting production of gold and silver doré bars, nickel matte, unalloyed aluminium, tungsten, lead and zinc. This pipeline would require a total of 6.9 trillion tenge in investment and is projected to create 17,100 jobs across the sector.

    Key industrial sites will be concentrated in Kostanai, Pavlodar, Karaganda and Abai regions — locations chosen to leverage local raw material resources and stimulate the growth of related industries, while consolidating Kazakhstan’s position as a leading non-ferrous metals producer in the region.

  • Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan is set to accelerate development of its metallurgical sector, with seven new metallurgical enterprises scheduled to begin operations in 2026, according to the Ministry of Industry.

    The total investment in the first phase of projects is estimated at KZT 154 billion. By the end of the year, the country expects to commission new production facilities manufacturing ferrosilicon, longitudinal welded and galvanised pipes, as well as reinforcing steel products of various diameters. The projects are expected to create more than 1,100 jobs across several regions.

    A further seven metallurgical plants are planned for launch within the following two years, supported by investments exceeding KZT 2 trillion. These facilities will focus on the production of ferroalloys, profile and strip steel, steel billets, large-diameter pipes and industrial wire products.

    The Ministry projects that expansion in the ferrous metallurgy sector will generate approximately 3,500 additional jobs between 2027 and 2028, including around 1,200 positions in rural areas.

    In parallel, another 16 industrial projects are currently at the design and approval stage. Planned developments include production of high-purity manganese, hot-briquetted and sponge iron, premium-grade steel, grinding balls and other materials required by Kazakhstan’s mining and metallurgical complex.

    Potential investment in these longer-term initiatives could reach KZT 2.8 trillion and is expected to create up to 5,500 additional jobs nationwide.

    Despite strong investment momentum, early-year production indicators in the sector showed mixed performance. Steel output declined by 5.7 percent to 339,500 tonnes, while rolled steel production increased by 11.1 percent to 292,400 tonnes, reflecting shifting demand dynamics within domestic and export markets.

  • Development Bank of Kazakhstan Transfers Aktogay Project Financing to Halyk Bank Under New Investment Model

    Development Bank of Kazakhstan Transfers Aktogay Project Financing to Halyk Bank Under New Investment Model

    The Development Bank of Kazakhstan (DBK), a subsidiary of Baiterek Holding, has completed a landmark refinancing transaction for the Aktogay mining and processing complex, demonstrating a new model for attracting private capital into large-scale industrial projects.

    KAZ Minerals Aktogay LLP operates one of Central Asia’s крупнейших open-pit copper mines in the Abai Region. The complex includes two sulphide concentrators with a combined capacity of 50 million tonnes of ore per year, along with a cathode copper plant processing oxidised ore. The facility employs advanced mining and beneficiation technologies, including automated process control systems.

    DBK first financed the Aktogay project in 2016 during the high-risk construction and commissioning phase. With the Bank’s support, a second concentrator was built, doubling sulphide ore processing capacity from 25 million to 50 million tonnes annually and creating more than 2,100 permanent jobs. The initial financing facility has since been fully repaid, and the first phase of the project has reached its planned payback.

    In a significant next step, Halyk Bank refinanced the company’s outstanding debt to DBK, assuming responsibility for servicing the now operational and financially stable project. The transaction reflects a structured approach in which DBK assumes early-stage project risks, while commercial banks step in once operational performance and cash flows become predictable.

    According to Marat Yelibayev, Chairman of DBK’s Management Board, the refinancing frees up state development funds for new capital-intensive industrial projects, reinforcing an investment cycle in which DBK supports projects from inception to stability before transferring them to private lenders.

  • China’s East Hope Group to Invest $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

    China’s East Hope Group to Invest $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

    China’s East Hope Group (EHG) has announced plans to build a vertically integrated non-ferrous metals production facility in Kazakhstan. The project, which includes an industrial park, a mining and processing plant, an electrolysis plant, and a power plant, is expected to attract over $12 billionin investment. The announcement was made during a meeting on February 17 between Kazakh First Deputy Prime Minister Roman Sklyar and EHG’s General Director Changjun Meng.

    According to the Prime Minister’s press service, the initiative will create approximately 10,000 jobs and focus on export-oriented production. EHG, which has previously developed a similar 20-square-kilometer project in China, discussed plans to finalize an investment agreement with Kazakh officials.

    On February 18, EHG signed an agreement to implement the project, which will establish new production facilities in two regions of Kazakhstan. The project will incorporate advanced metallurgical technologies, boost exports to international markets such as the European Union, Central Asia, and China, and include the construction of new electrical capacities. Both parties also agreed to finalize an investment agreement outlining specific cooperation terms, government support measures, and mutual obligations.

    EHG, a global leader in non-ferrous metals, semiconductor technologies, and industrial innovations, is known for its investments in low-carbon industrial complexes and international projects.