MINEX Forum

Tag: investment

  • Concrete Canvas Ltd. Explores Plant Construction for Innovative Technology in Kazakhstan

    Concrete Canvas Ltd. Explores Plant Construction for Innovative Technology in Kazakhstan

    Yerzhan Yelekeyev, Chairman of the Board of JSC “NC KAZAKH INVEST,” convened a meeting with the leadership of British company Concrete Canvas Ltd. to discuss the potential establishment of a concrete canvas production plant in Kazakhstan.

    Concrete Canvas Ltd. has recently established a representative office in Kazakhstan, conducting market research and engaging in negotiations with relevant governmental bodies. Initially considering production localization in Russia, the company pivoted to Kazakhstan due to geopolitical circumstances.

    The proposed project aims to address Kazakhstan’s urgent needs in irrigation system construction and reconstruction using innovative Concrete Canvas technology. This initiative promises to enhance the operational reliability of irrigation systems, mitigate water loss in the agro-industrial sector, and decrease budgetary expenditures on infrastructure renovation programs.

    Concrete Canvas Ltd. specializes in geosynthetic cement composite mats, ensuring water retention during filtration while maintaining material durability. Their technology utilizes a rolled multicomponent material with a cement filler, rapidly solidifying to form a thin, robust, reinforced, and waterproof concrete layer. Notably, the installation process is significantly faster, requiring 95% fewer materials compared to conventional concrete methods, thus reducing environmental impact.

    Yelekeyev acquainted Concrete Canvas representatives with Kazakhstan’s investment policies and the extensive support provided by KAZAKH INVEST for investment projects. Highlighting the British company’s intent to localize production in Kazakhstan, Yelekeyev detailed subsidy mechanisms and the benefits of concluding an Investment Agreement.

    Assuring comprehensive support for the promising investment endeavor, Yelekeyev affirmed KAZAKH INVEST’s commitment following the meeting.

  • BGV Group Management Promotes British-Ukrainian Mining Partnership in London

    BGV Group Management Promotes British-Ukrainian Mining Partnership in London

    On March 26, BGV Group Management, one of Ukraine’s largest investment companies, showcased cooperation opportunities with Ukraine in the mining sector at a prestigious event in London. Founder Gennadii Butkevych and the management team were invited to join British parliamentarians, members of the House of Lords, and state ministers at the Houses of Parliament to discuss investment prospects in Ukraine. The focus was on fostering British-Ukrainian collaboration in critical minerals mining to facilitate the UK’s advancement in technology and its transition to clean energy.

    The event witnessed the participation of Lord Martin Callanan, Under Secretary for Energy Efficiency and Green Investment at the Department for Energy Security and Net Zero, and Bob Seely MP, alongside representatives from Ukrainian business entities.

    During their address, the BGV team outlined three key areas for bilateral development:

    1. Exploration of Ukraine’s Mining Potential: Highlighting Ukraine’s abundance of critical minerals essential for advanced technologies and clean energy transition. With over 117 mineral types discovered, including 22 out of 30 critical resources identified by the EU, Ukraine possesses substantial reserves of minerals like beryllium, zirconium, titanium, rare earths, and graphite, strategically located with favorable logistics.
    2. Risk Mitigation: Emphasizing the necessity of war risk insurance to safeguard foreign investments in Ukraine. The Multilateral Investment Guarantee Agency (MIGA) and other international entities offer insurance mechanisms to support investments in Ukrainian projects.
    3. Investment Opportunities: Encouraging increased British investment in Ukrainian mining. BGV Group, with over $100 million invested in Ukrainian mining projects, expressed readiness to collaborate with British investors. Projects such as the Balakhiv graphite production complex and the Perzhansk beryllium deposit were presented as potential areas for investment.

    The BGV team stressed that collaboration in critical minerals could provide Britain with a robust resource base for various industries, including medicine, automotive, technology, aerospace, while reducing European dependence on Chinese minerals.

  • Ussuri Capital Plans $1 Billion Investment for Carbon-Neutral Steel Mill in Romania

    Ussuri Capital Plans $1 Billion Investment for Carbon-Neutral Steel Mill in Romania

    Ussuri Capital, a Turkish investment firm, has unveiled plans to invest up to 960 million euros ($1 billion) in constructing a carbon-neutral steel mill in Romania. Completing the feasibility study and business plan in March, the company is now engaged in due diligence on potential land plots for plant location and exploring the project’s capital structure, as stated in a recent press release.

    The project’s initial phase, valued at 160 million euros, will involve installing a push-pull pickling line, a cold rolling mill, and a hot-dip galvanising line, along with a colour coating line. This phase is slated for commissioning in 2027, utilizing hot rolled coils imported from non-EU countries as the initial feedstock.

    The subsequent phase, estimated between 715 to 800 million euros, will encompass constructing an electric arc furnace and a continuous casting module, expected to be completed by 2030.

    Upon operationalization, the Romanian plant aims to annually produce 400,000 tonnes of pickled coils, 250,000 tonnes of cold-rolled coils, and 250,000 tonnes of hot-dip galvanised coils.

    Revenue projections from downstream operations are anticipated to hit 324 million euros, with an EBITDA of 38 million euros within two years post the first phase’s commissioning, yielding an EBITDA margin of roughly 12%.

    Ussuri Capital, headquartered in Istanbul, focuses on green steel investments, commodities, metals, and mining.

  • Central Asia Metals Releases Full-Year Results for 2023, Despite Economic Challenges

    Central Asia Metals Releases Full-Year Results for 2023, Despite Economic Challenges

    Central Asia Metals Limited (CAML), a London-based mining company with operations in Kazakhstan and North Macedonia, disclosed its full-year results for 2023, ending on December 31st, earlier this week on March 25th. Despite facing global economic headwinds, CAML continued its investment initiatives, particularly focusing on the development of its mining projects in North Macedonia and Kazakhstan. Nigel Robinson, CAML’s CEO, highlighted the company’s commitment to enhancing operations at the Sasa and Kounrad mines, including the transition to paste fill mining at Sasa and the completion of a solar power project at Kounrad. Despite challenges posed by a sluggish global economy and declining metal prices, CAML managed to meet its production targets, emphasizing its low-cost operations and robust financial position.

  • Central Asia Metals Makes Conditional Investment in Aberdeen Minerals

    Central Asia Metals Makes Conditional Investment in Aberdeen Minerals

    Central Asia Metals unveiled a conditional investment of £3 million ($3.8m) in Aberdeen Minerals on Monday, securing a 28.7% equity stake in the company. The move comes as Central Asia Metals, known for its operations in Kazakhstan and North Macedonia, diversifies its portfolio by venturing into the UK’s raw battery materials exploration domain. Aberdeen Minerals, a privately-held exploration firm based in Scotland, boasts a significant land package and has already identified promising copper-nickel-cobalt deposits at its Arthrath project, initially explored by Rio Tinto in 1968. This investment aligns with the UK government’s critical minerals strategy, aimed at bolstering national resilience in critical mineral supply chains, particularly in light of the green energy transition. Central Asia Metals expressed optimism about the UK’s burgeoning mining sector, driven by environmental imperatives, deeming it an attractive destination for exploration investment. The financing structure includes a £3 million cornerstone investment at 8.5 pence per share, with provisions for additional investment through warrants, potentially raising CAML’s ownership to 37.8%. Aberdeen Minerals CEO Fraser Gardiner welcomed CAML’s investment, highlighting its validation of their projects and exploration plans, signaling a promising partnership for future success and local economic growth tied to the energy transition.

  • Kazakhstan Addresses Concerns Over Geological Exploration Funding

    Kazakhstan Addresses Concerns Over Geological Exploration Funding

    In a recent off-site meeting in Kazakhstan, deputies, geologists, and representatives of authorized bodies convened to discuss issues pertaining to geological exploration and potential solutions. It’s worth noting that last autumn, Kazakhstan’s President Kassym-Jomart Tokayev instructed to increase the number of prospective territories for geological exploration to 2.2 million square kilometers by 2026.

    During the discussion, industry experts expressed concerns over insufficient funding for exploration activities, as reported by the AGMP press service. Recent records indicate a decline in investments in geological exploration in Kazakhstan. For instance, the value of minerals exported from the country in 2023 exceeded annual investments in exploration by six times.

    It is known that Kazakhstan’s investment in geological surveys amounts to only $8 per square kilometer, whereas Russia spends $28 on similar research areas, and Uzbekistan and the United Kingdom allocate $97 and $267 respectively.

    In light of this, Erlan Akbarov, the head of the RK Geological Committee, acknowledged that in the absence of funds to bolster efforts in exploring valuable subsoil resources, it might be necessary to reallocate finances earmarked for other purposes. According to Mr. Akbarov, a portion of the budget allocated for scientific research and experimental design work could be invested in geological exploration.

    As of today, subsoil users spend around 73 billion tenge on research and development.

  • Kazakhstan Senate Committee Discusses Geological Exploration Challenges

    Kazakhstan Senate Committee Discusses Geological Exploration Challenges

    Members of the Senate Parliament’s Committee on Economic Policy, Innovative Development, and Entrepreneurship convened for an off-site session in Eastern Kazakhstan to address pressing issues in geological exploration. Prominent heads of geological companies and representatives from authorized bodies participated in the session.

    Senator Shakarym Bukutgutov highlighted the historical significance of mining activities in the eastern region of the country, historically focused on tin, copper, lead, and other metals. However, reserves from previously explored deposits are dwindling. President Kassym-Jomart Tokayev has set a directive to expand geological surveys to 2.2 million square kilometers by 2026.

    Notably, the export value of minerals in 2023 was six times higher than the industry’s investments, reflecting concerning statistics. Currently, Kazakhstan allocates a mere eight dollars per square kilometer for geological exploration, significantly lower than comparable countries like Russia, Uzbekistan, and the UK.

    The industry requires substantial funding for modernization and development. Efforts are underway to digitize processes, with online portals facilitating licensing and reporting. Additionally, modern research methods such as remote sensing and spectral analysis are being employed to enhance exploration efficiency.

    However, the sector grapples with severe staffing shortages, necessitating investment in training programs to equip the workforce with advanced skills. Collaboration with German universities aims to address these challenges and foster innovation in the field.

    While the need for foreign investment is acknowledged, there is a call to increase state funding and restore the profession’s attractiveness through social incentives and recognition.

  • Serbia’s Mining and Energy Minister Unveils Ambitious Energy Plans

    Serbia’s Mining and Energy Minister Unveils Ambitious Energy Plans

    Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, has announced a significant investment of EUR 400 million in the rejuvenation of four state-owned hydropower plants operated by the power utility EPS. In addition, international financial institutions are posing challenges to gas investments, prompting the government to focus on renewable energy sources such as wind and solar power, with auctions scheduled for when the market is deemed ready.

    Handanović recently engaged in discussions with a delegation from the International Monetary Fund (IMF) to review Serbia’s standby agreement, emphasizing the importance of investments, energy sector reforms, and strategies to enhance energy security and diversify energy sources.

    “In our commitment to the decarbonization of the energy sector, it’s crucial for the government to act responsibly and ensure supply security while enhancing energy independence,” Handanović emphasized. She stressed the necessity of significant government investment to achieve decarbonization goals set forth in international agreements.

    Furthermore, Handanović highlighted the imminent completion of the desulfurization system at the TENT A coal-fired power plant, marking a significant environmental milestone. She also disclosed ongoing negotiations with Hyundai Engineering and UGT Renewables for a strategic partnership aimed at improving energy enterprise efficiency.

    Anticipating the commissioning of the new coal plant, Kostolac B3, Handanović outlined plans for additional renewable energy projects, including the construction of solar power plants with battery storage, with intentions to transfer these systems to EPS.

    The minister’s vision includes the swift completion of the Kostolac B3 coal plant and the inauguration of EPS’s first wind park in Kostolac by the first half of the following year. Additionally, progress has been made in preparing for the construction of the Bistrica pumped storage hydropower plant.

    Handanović also addressed plans for gas interconnections with North Macedonia and Romania as a priority for natural gas supply diversification. Despite challenges in securing financing for gas projects, collaboration with energy entities like Elektroprivreda Srbije and Srbijagas is ongoing to develop flexible pricing methodologies in response to market dynamics.

  • Eurasian Resources Group to Invest in Social Projects in Pavlodar Region

    Eurasian Resources Group to Invest in Social Projects in Pavlodar Region

    According to the press service of the regional akim, this year Eurasian Resources Group will allocate 2.9 billion tenge for the implementation of socially significant projects in the Pavlodar region.

    The cooperation agreement was signed by the shareholder and chairman of the supervisory board of Eurasian Group, Shuhrat Ibragimov, and the akim of the Pavlodar region, Asain Baykhanov.

    Traditionally, the funds will be allocated for projects aimed at maintaining stability and development in the region. They are selected by ERG and the regional akimat based on the comprehensive needs of the region. The projects cover areas such as healthcare, housing and communal services, landscaping, greening, and several other important directions.

    According to the press service of the akim of the Pavlodar region, this year 18 projects totaling 11.4 billion tenge are planned to be implemented from the budget. They will focus on landscaping and road repairs in cities and districts of the region, the renovation of Lermontov Street in the regional center, the construction of an ice arena in Aksu, the reconstruction of the “Shakhter” park in Ekibastuz, and others.

  • ArcelorMittal Secures $450 Million Guarantee from Kazakh Sovereign Wealth Fund

    ArcelorMittal Secures $450 Million Guarantee from Kazakh Sovereign Wealth Fund

    ArcelorMittal, in its corporate report for the year 2023, revealed that it obtained a guarantee from an undisclosed Kazakh sovereign wealth fund for the deferred repayment of a $450 million intra-group loan during the finalization of the sale of “ArcelorMittal Temirtau” (AMT) in December. The deal involved the transfer of ownership rights to the Republic of Kazakhstan, with the state-controlled direct investment fund Qazaqstan Investment Corporation (QIC) acquiring AMT. As per the terms of the transaction, ArcelorMittal received compensation of $286 million upon closing, along with an additional $250 million as payment for existing intra-group debt. Moreover, the steel group will receive a guaranteed payment of $450 million from the sovereign fund, to be disbursed in four equal annual installments for the repayment of the intra-group loan. However, the specific Kazakh sovereign wealth fund involved in the guarantee remains undisclosed, leading to speculation that it may have been issued by the National Fund. Notably, the obligations to repay the loans were expected to be assumed by the new investor, Andrey Lavrentyev, controlling AMT under the new name Qarmet through Qazaqstan Steel Group. Clarification from relevant entities regarding the guarantee’s source is pending.