MINEX Forum

Tag: Investments

  • Uzbekistan and US Expand Critical Minerals Cooperation with $1 Billion Investment

    Uzbekistan and US Expand Critical Minerals Cooperation with $1 Billion Investment

    During his visit to the United States, President of Uzbekistan Shavkat Mirziyoyev reached agreements to establish a joint working group aimed at accelerating existing projects and developing new initiatives in the field of critical minerals, according to the presidential press service.

    A key partner will be Traxys, one of the world’s largest suppliers of raw materials. The parties signed an agreement for exploration and joint development of deposits, with a total investment volume estimated at $1 billion. The deal also includes the transfer of advanced technologies and expertise in mining, processing, and ensuring stable supplies of critical raw materials.

    Plans are also underway to establish a Competence Center at the University of Geological Sciences in Tashkent, in cooperation with the Colorado School of Mines, to train world-class specialists for Uzbekistan’s mining sector.

    In addition, McKinsey has developed a comprehensive strategy for Uzbekistan covering subsoil studies, expansion of the mineral resource base, and deep transformation of the mining industry. Go Green Partners will carry out exploration works at prospective sites.

    Several Uzbek-American project agreements were also signed, including:

    • a joint venture between Technopark LLC and FLSmidth to produce mineral processing equipment;

    • geological exploration on new sites with Cove Capital;

    • cooperation between Yangi Kon LLC and SLB on a drilling project in the Ustyurt oil and gas region.

  • Kazakhstan Prepares New Subsoil Use Reform Bill for Parliamentary Review

    Kazakhstan Prepares New Subsoil Use Reform Bill for Parliamentary Review

    Kazakh government agencies have approved a draft law on reforms in geological exploration and subsoil use, Industry and Construction Minister Yersayin Nagaspaev announced at a cabinet meeting. The bill is set to be submitted to Parliament for consideration in September.

    The accompanying Regulatory Policy Advisory Document (KDRP) was endorsed at the 681st meeting of the Interdepartmental Commission on Legislative Activities. The new draft replaces an earlier package of amendments to subsoil use regulations initiated by members of the Mazhilis, which is expected to be withdrawn once the updated version is formally introduced.

    The proposed legislation contains 39 amendments to Kazakhstan’s Code “On Subsoil and Subsoil Use.” President Kassym-Jomart Tokayev underscored the importance of these reforms in his address on September 8, highlighting the need to modernise the legal framework to improve resource efficiency and attract investment.

  • Metinvest CEO Discusses Challenges and Prospects for Ukraine’s Metallurgy

    Metinvest CEO Discusses Challenges and Prospects for Ukraine’s Metallurgy

    Ukraine offers a wide range of investment opportunities across various industries, including rare earth metals mining, agriculture, automotive manufacturing, and household appliance production. However, according to Metinvest Group CEO Yuriy Ryzhenkov, investments in metallurgy are impossible without security guarantees, and the industry cannot fully develop without continuous investment.

    In an interview with BBC Talking Business, he stated that since 2022, Metinvest has lost about 40% of its assets, including Ukraine’s largest steel plants—Azovstal and Ilyich Iron and Steel Works. The blockade of Black Sea ports caused logistical disruptions, but deliveries were restored in 2023-2024, allowing Metinvest to operate at full capacity, supplying products to Europe and the Far East.

    The company also faced significant challenges in 2023 due to power supply disruptions and unstable electricity prices. To minimize losses, Metinvest had to shut down less energy-efficient facilities. Ryzhenkov noted that this was a major challenge for engineers, who had to maintain production while preventing industrial accidents.

    A key issue remains the high cost of electricity, which severely impacts iron ore mining—a crucial sector for Ukraine’s economy. One of Metinvest’s mining and processing plants halted operations in mid-2023 and remains idle.

    Despite these difficulties, Metinvest paid UAH 20 billion in taxes in 2024, a 36% increase from the previous year. Since 2022, the company has invested over UAH 30 billion in capital projects in Ukraine, making it the country’s second-largest investor.

  • Kazakhstan to Launch Five New Non-Ferrous Metallurgy Projects

    Kazakhstan to Launch Five New Non-Ferrous Metallurgy Projects

    Kazakhstan is set to commission five new projects in the non-ferrous metallurgy sector this year, with a total investment of 42.5 billion tenge. The initiative is expected to create approximately 1,300 permanent jobs, according to the QazIndustry project monitoring and analysis directorate.

    Among the new ventures are the production of gold dore alloy, cathode copper, and aluminum profiles. Once operating at full capacity, these projects are projected to generate 35.5 billion tenge in annual output, including 4.5 billion tenge worth of exports and 31 billion tenge in import substitution.

    Last year, the sector saw the launch of 10 projects worth 139.4 billion tenge, creating over 1,500 jobs. These included the production of gold dore alloy, refined copper sheets, aluminum rod, refined lead, and copper and aluminum ingots. The total production capacity of the newly launched projects is estimated at 117.2 billion tenge, with 71.7 billion tenge allocated for exports and 45.5 billion tenge for the domestic market.

    Currently, 36 projects worth approximately 2.2 trillion tenge are under development in the non-ferrous metallurgy sector. These projects are expected to generate over 9,800 permanent jobs, with around 7,600 in rural areas and 2,200 in urban centers. Once fully operational, they will contribute an estimated 2.1 trillion tenge in production output, including 1.2 trillion tenge in exports and 900 billion tenge in import substitution.

    The Karaganda region leads in the number of ongoing and planned projects in this sector. Non-ferrous metallurgy remains one of Kazakhstan’s key industrial sectors, driven by the country’s rich reserves of copper, zinc, nickel, lead, aluminum, gold, silver, and other valuable metals.

  • Kazakhstan’s Industry Minister Discusses Subsoil Use Reforms with Mining Chamber

    Kazakhstan’s Industry Minister Discusses Subsoil Use Reforms with Mining Chamber

    Kanat Sharlapaev, the Minister of Industry and Construction of Kazakhstan, held a quarterly meeting with members of the Kazakhstan Mining Chamber Association. The association unites 45 companies, both domestic and foreign investors.

    The Minister emphasized that junior and large international companies entered Kazakhstan after reforms in the subsoil use sector and are making significant contributions to the geological study of the country’s territory.

    He also underscored the importance of private investments and the introduction of advanced technologies in geological exploration.

    During an open dialogue, Kanat Sharlapaev and Chamber members discussed the further development of international reporting standards, taxation issues, and challenges affecting the investment climate.

    The Minister stressed the need to continue the reform process in the subsoil use sector and called for more active cooperation with the Association to develop Kazakhstan’s geological sector.

  • Kazakhstan Summarizes 2024 Results in Geology and Subsoil Use

    Kazakhstan Summarizes 2024 Results in Geology and Subsoil Use

    The Ministry of Industry and Construction of Kazakhstan has released its report on the results for 2024 in the fields of geology and subsoil use. A key objective for the Ministry is to increase the geological exploration of Kazakhstan’s territory to replenish the country’s mineral resource base, thus supporting the active development of all industrial sectors.

    Kazakhstan’s mineral resource base includes over 9,500 deposits, including 987 deposits of solid minerals, 355 hydrocarbon deposits, more than 3,500 deposits of common minerals, and over 4,500 groundwater deposits.

    In the past year, 23 new deposits were registered by subsoil users, and the exploration results showed an increase in reserves: 20 tons of gold, 48,000 tons of copper, 464,000 tons of chrome, and about 290,000 tons of lead and zinc.

    The average reserve fulfillment coefficient for gold, uranium, iron, and manganese has shown a 2% increase over the last decade.

    Efforts to attract investments into subsoil use are also ongoing, with the state geological exploration program identifying 38 promising areas for solid minerals, including rare earth metals (2.6 million tons), beryllium (23,800 tons), brown coal (1.1 billion tons), gold (19 tons), zirconium (2 million tons), niobium (500,000 tons), and tungsten (400,000 tons).

    Additionally, the Kuyretykol deposit has been discovered, with reserves of around 800,000 tons of rare earth metals, including cerium and lanthanoids.

    The opening of areas available for geological exploration has led to a significant rise in private investments for the exploration of solid minerals. In 2023, private investment increased 2.5 times compared to 2018, reaching 82 billion tenge.

    In 2024, 606 exploration licenses were issued, showing growth from previous years. For mining, 33 licenses were issued.

    Private investment in geological exploration is on the rise, as businesses show increased interest in searching for promising subsoil areas. In 2024, two electronic auctions took place, with major foreign companies such as Rio Tinto, Fortescue, Kratos Resources, and others competing with local companies like Kazakhmys and ERG Exploration for exploration rights.

    Foreign companies are already operating in Kazakhstan, investing in exploration with at least 41 billion tenge and social obligations totaling 7.8 billion tenge, covering an area of 25,000 km². The expected results from the exploration of these deposits are expected between 2026 and 2028.

    Growth in private investment in geological exploration is directly linked to the level of funding and effectiveness of early-stage geological studies that identify promising exploration areas. State geological exploration funding amounts to approximately 8 USD per square kilometer.

    From 2018 to 2023, the allocation for geological exploration amounted to 51.2 billion tenge, while investments in subsoil use exploration reached 357 billion tenge.

    In January 2025, an electronic auction for 21 plots took place, attracting over 50 companies. The total signing bonus amounted to 20 billion tenge, with investments of 40 million USD attracted.

    Stable funding for state geological exploration positively impacts private investments and stimulates further exploration. This is essential for expanding the country’s mineral resource base.

    On January 1, 2025, the Unified Subsoil Use Platform (minerals.e-qazyna.kz) was launched, providing open access to all geological data. The platform has digitized 22 government services, processing 506 applications since its launch. It contains a register of geological reports, including over 60,000 reports for free online access, and provides detailed information about licenses, contracts, occupied and free territories, and previous geological and geophysical studies.

    For specific geological materials, subsoil users can apply through the National Geological Service’s website, and requests are processed within five business days.

  • Kazakhstan Secures $370 Million in Hungarian Investments

    Kazakhstan Secures $370 Million in Hungarian Investments

    Since 2005, Kazakhstan has attracted $370 million in Hungarian investments, President Kassym-Jomart Tokayevannounced during a joint press conference with Hungarian Prime Minister Viktor Orbán in Budapest, as reported by Trend.

    The president noted a growing interest among Hungarian companies in investment opportunities within Kazakhstan. Key discussions were held with leaders from major firms such as MOL, OTP Group, and Gedeon Richter. Highlighting this partnership, Kazakhstan signed an agreement with UBM Holding to construct three feed production plants worth $62 million.

    Tokayev emphasized the potential for collaboration in sectors like rare metals mining and processing, water resource management, and agriculture. He outlined priorities including trade diversification, adopting cutting-edge technologies, and enhancing partnerships in energy, digitalization, and transport. These initiatives, supported by the Kazakh-Hungarian Intergovernmental Commission and Strategic Council, aim to deepen economic and investment ties.

  • Kazakhstan Issues 333 Licenses for Solid Minerals in 2024

    Kazakhstan Issues 333 Licenses for Solid Minerals in 2024

    From January to July 2024, Kazakhstan’s subsoil users received 333 licenses for solid minerals, reports the Ministry of Industry and Infrastructure Development of Kazakhstan. Most of these are exploration licenses, with only 13 issued for extraction. The total number of applications exceeded 800.

    According to the Ministry, auctions held in May alone added 89 million tenge to the budget. An auction was also held for the troubled Obukhovskoye deposit, where authorities expect the new owner to continue operating the processing plant and maintain jobs. The enterprise produces rutile-zirconium concentrate.

    On August 12, another 23 deposits of solid minerals will be put up for auction.

    The Ministry also monitors the fulfillment of obligations: since the beginning of the year, 32 licenses and 22 contractshave been terminated due to non-compliance with conditions.

    The Ministry emphasizes that a key task remains leveraging the country’s raw material potential to attract investments. To this end, amendments to the legislation are being made with the participation of the industry community.

  • Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Azerbaijan’s Minister of Economy Mikayil Jabbarov and President of SOCAR Rovshan Najaf met with Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó. According to the Ministry’s report to AZERTAC, it was emphasized that economic ties between the countries are continuously developing due to the special importance placed by the leadership of both countries on fostering relations and effectively utilizing existing potential.

    It was noted that the second strategic partnership document signed in January last year, along with more than 50 documents signed in the areas of investment promotion, economic cooperation, prevention of double taxation, and other fields, have created a solid foundation for expanding cooperation in various directions.

    The discussion included issues arising from the Cooperation Agreement between the Azerbaijan Investment Company OJSC and the Hungarian company Hell Energy, as well as the current situation. The parties exchanged views on joint projects that strengthen mutual economic ties, active cooperation in the fields of energy, transport, pharmaceuticals, activities of Hungarian companies in Azerbaijan, and the development of investment partnerships.

    During the meeting, a document was signed for the purchase of a stake in the Shah Deniz project by the Hungarian company MVM. It was noted that this document will further strengthen the economic and energy partnership between the two countries.

  • Representatives of Ministries Hold Meeting with Residents of East Kazakhstan Region

    Representatives of Ministries Hold Meeting with Residents of East Kazakhstan Region

    Representatives of the Ministry of Industry and Infrastructure Development and the Ministry of Ecology, Geology and Natural Resources of Kazakhstan met with residents of several districts in the East Kazakhstan Region to discuss issues related to subsoil use and attracting investments to the region. Several industrial projects are being implemented in the region. In particular, exploration work has been ongoing in the Samar district since 2006, and the company “Cascade-N” plans to build a gold extraction plant here. Deputy Minister of Industry and Infrastructure Development of Kazakhstan, Iran Sharkan, noted that the opening of the plant will create new jobs for local residents and will also provide appropriate social benefits. The Samar project has passed all stages of development and complies with the current legislation on ecology and subsoil use.