While Kazakhstan has established itself as one of the most attractive jurisdictions for geological exploration investment, recent developments have unsettled international partners. Ruslan Baimishev, President of the Kazakhstan Mining Chamber, outlined these concerns during a panel discussion in Almaty, as reported by LS.
Baimishev noted that major industry players invest with long-term horizons—often 10 to 15 years—making regulatory stability crucial. He acknowledged that reforms in 2018 had positioned Kazakhstan as a globally competitive mining jurisdiction. However, he warned against backtracking, citing attempts to reintroduce restrictive policies, such as stricter reserve reporting rules and restricted access to geological data.
“During the last parliamentary session, several draft laws initially welcomed by MPs were later amended, effectively reverting to outdated practices and deviating from international standards,” Baimishev explained. Though these changes were ultimately halted, the mere attempt sent worrying signals to investors.
Another pressing issue is tax reform. The new Tax Code, set to take effect in 2026, introduces higher land lease fees, which could discourage large-scale exploration. Baimishev argued that while the intent—to incentivise faster project development—is logical, investors need clarity on post-exploration taxation. He also criticised proposed royalty rates, which, despite being marketed as investor-friendly, may apply unevenly, disadvantaging existing license holders.
On a positive note, Baimishev praised ongoing government-business dialogue and improvements in geological data accessibility. However, he urged further refinements, particularly in licensing procedures for restricted areas.
Separately, Nikolai Radostovets of the Republican Association of Mining and Metallurgical Enterprises raised concerns over a proposed 1% R&D levy. While 30% would fund geological studies—a sector priority—he argued the remaining 70% should support industry-specific innovation rather than being absorbed into the state budget.
Saken Shayakhmetov of Kazakhmys added that without strategic R&D investment, Kazakhstan risks falling behind technologically as mineral reserves deplete.
