MINEX Forum

Tag: Kassym-Jomart Tokayev

  • 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.

  • Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Kazakhstani President Kassym-Jomart Tokayev expressed his sincere condolences to the families and loved ones of the miners who lost their lives in the fire at the Kostenko Mine in the Karaganda region. The head of state instructed the Government to provide all necessary assistance to the families of the miners. A government commission has been established to investigate the circumstances of the incident.

    The government has been instructed to terminate investment cooperation with the company “ArcelorMittal Temirtau.”

    The emergency occurred during the night.

    It is worth noting that just two months ago, a tragedy occurred at the “Kazakhstanskaya” mine (also owned by “ArcelorMittal Temirtau”).

    It has recently become known that the management is entirely responsible for the tragedy that led to the deaths of miners following the fire at the “Kazakhstanskaya” mine.

    The staggering statistics of fatal accidents at AMT facilities have caused outrage and angry comments not only from internet users but also from officials, starting with the head of state. The rumors about a possible “divorce” with a foreign investor have gone beyond kitchen table discussions and have taken concrete shape in parliamentary inquiries. To understand what is happening, the correspondent of Ulysmedia.kz analyzed, remembered, and reviewed personal archives.

    On April 23, it became known that Irina Em, a lawyer at “ArcelorMittal Temirtau,” was killed. Her body, showing signs of violent death, was discovered by firefighters from the city of Shakhtinsk who responded to a call. The most significant question actively discussed on social media is whether the woman’s murder is related to her professional activities. The Ulysmedia.kz correspondent investigated why deaths at “AMT” are associated with production.

  • Kazakhstan’s Plans for Uranium Sector Development

    Kazakhstan’s Plans for Uranium Sector Development

    The main players in this field are Russia, Germany, the Netherlands, the United Kingdom, the United States, France, and China. The establishment of enrichment facilities is under the control of the IAEA and the global community.

    “The Ministry of Energy, together with Kazatomprom and other interested organizations, is working on the development of the nuclear fuel cycle in the atomic industry,” explained the ministry.

    In turn, Kazatomprom reported that through the Russian-Kazakh Uranium Enrichment Center, they have access to enrichment services of up to 2.5 million SWU* per year until 2043 based on long-term contracts.

    “This option is used to ensure the production of Ulba-TVS fuel with a designed capacity of 200 tons of uranium per year in the form of fuel assemblies. The plant was launched in 2021 and, according to Kazatomprom, fully satisfies the enriched element requirements for the implementation of this fuel project for the entire duration.”

    The national company also holds a 10% stake in the International Uranium Enrichment Center, a joint venture with Russia, Ukraine, and Armenia. The center was established to strengthen the non-proliferation regime of nuclear weapons. Shareholders of the center have access to enrichment services based on their guaranteed SWU quota proportionate to their share in the center for the production of fuel for their own nuclear energy needs. The national company noted that this covers the demand for low-enriched uranium.

    It is worth mentioning that President Kassym-Jomart Tokayev previously instructed to focus on several areas, including uranium enrichment.

    *SWU: Separative Work Unit

  • Korean companies are interested in projects related to engineering, mining, and nuclear energy

    Korean companies are interested in projects related to engineering, mining, and nuclear energy

    The President of Kazakhstan recently engaged in negotiations with the President of the Republic of Korea, Moon Jae-in, as reported by the Akorda press service. The discussions centered around the future prospects of the strategic partnership between Kazakhstan and South Korea.

    Kassym-Jomart Tokayev, the President of Kazakhstan, emphasized the friendly relations shared between the two nations and highlighted the significance of the dynamic development of their economic ties. The President noted that bilateral trade turnover has consistently shown growth, surpassing 6 billion dollars last year. Furthermore, Korean companies have made substantial investments in Kazakhstan’s economy, totaling over 8 billion dollars, positioning them as one of the top 10 major investors in the country.

    The President also drew attention to the presence of more than 700 Korean companies and joint ventures currently operating in Kazakhstan, including prominent names such as KIA, Hyundai, Samsung, LG, and others. During the negotiations, Kassym-Jomart Tokayev outlined promising areas of economic cooperation, particularly in the extraction of rare earth metals and the development of nuclear energy.

    President Moon Jae-in of Korea expressed his country’s keen interest in further enhancing mutually beneficial cooperation with Kazakhstan. He emphasized that Korean companies exhibit a special interest in expanding existing projects and undertaking new ventures in machinery manufacturing, mining, and nuclear energy sectors.

  • The distinguished head of state of Kazakhstan had the honor of receiving Jacob Stausholm, the Chief Executive Officer of Rio Tinto

    The distinguished head of state of Kazakhstan had the honor of receiving Jacob Stausholm, the Chief Executive Officer of Rio Tinto

    The meeting provided an opportunity to discuss the implementation of joint investment projects within the realms of geological exploration, mining, and metallurgical industries.

    During the fruitful exchange, Kassym-Jomart Tokayev was apprised of Rio Tinto’s plans to expand its operations in Kazakhstan. Jacob Stausholm also provided an update on the progress of projects related to the exploration of copper deposits in the Kostanay and Karaganda regions.

    The President acknowledged Kazakhstan’s substantial reserves of vital minerals and raw materials that are currently in high demand for the advancement of cutting-edge technologies. Kazakhstan is actively undertaking measures to expand the scope of geological exploration work while embracing globally recognized best practices that contribute to significant geological discoveries.

    Rio Tinto, with a market capitalization of $99 billion USD, stands as the largest Anglo-Australian mining and metallurgical company. Its diverse portfolio encompasses assets primarily located in Australia (35%), Canada (34%), Europe (13%), and the United States (11%). The company’s business segments encompass various commodities, including iron ore, aluminum, copper, bauxite, diamonds, uranium, and industrial minerals.

    This meeting between the head of state of Kazakhstan and the Chief Executive Officer of Rio Tinto underscores the mutual interest in fostering fruitful partnerships and capitalizing on the vast potential of Kazakhstan’s mineral resources. It sets the stage for further collaboration and the realization of shared objectives in the realm of sustainable economic development.

  • Kazakhstan, a land rich in natural resources, is set to put up 12 plots containing rare earth metal deposits for auction

    Kazakhstan, a land rich in natural resources, is set to put up 12 plots containing rare earth metal deposits for auction

    The Department of Subsoil Use of the Ministry of Industry and Construction, under the guidance of Chairman Erlan Akbarov, announced this exciting development. Akbarov clarified that the plots currently do not hold any reserves of rare earth metals. The selection of these plots was based on a comprehensive analysis conducted by the government in 2016, and exploration work is currently underway. Once the exploration is completed, an auction will be held, allowing interested parties to become subsoil users.

    Private companies, supported by state funding, have been responsible for carrying out the exploration work. The 12 plots, including Rzhavaya Sopka, Aktobe Quartz, Kuneoy, Mirolyubovsky, Bokay, Brusilovsky, Kuyrektykol, Khorgos, Kenkuduk, Chulaktau, Keltemshatsky, and Akbulak, are predominantly located in eastern Kazakhstan.

    Akbarov also pointed out that Kazakhstan does not have purely rare metal or rare earth deposits. Instead, these metals are found in combination with other solid minerals. The chairman cited Ahmirovo, Novo-Ahmirovo, and Bakenno as examples of such deposits, where the primary useful mineral is accompanied by secondary rare earth metals.

    The Bakenno rare metal deposit, situated in the Ulan district of the East Kazakhstan region, is expected to resume underground mining operations. The project aims to extract the maximum possible reserves over a 25-year period, with an estimated annual ore processing capacity of 350 thousand tons. The tantalum-rich deposit, located 60 km from Ust-Kamenogorsk, is owned by Dinara Ospanova, Zhalyin Kabiken, and Ayaulym Kasymkhan.

    Another notable rare earth deposit, Novo-Akhmirovo, is located near Ust-Kamenogorsk. CREADA CORPORATION, owned by Erlan Issekesh and Daniar Aubakirov, is engaged in the exploration of this deposit. The company plans to drill eight vertical wells from 2022 to 2026, covering an area of 4.42 square kilometers. The extracted rare metals will be processed at the Ulbinsky Metallurgical Plant, a subsidiary of “Kazatomprom.”

    Furthermore, German company HMS Bergbau AG has expressed a keen interest in lithium mining in Kazakhstan. With an investment of $700 million, they have partnered with a private company to exploit lithium resources at two deposits. This collaboration will enable the Kazakh partner to acquire valuable expertise, and the success of lithium-ion battery production will depend on the availability of lithium resources.

    The European Union is also actively seeking alternative sources of critical materials, including lithium, to reduce its dependence on China. As part of this effort, the EU has entered into an agreement with Kazakhstan, aiming to replace some of its Chinese imports with products from the Republic.

    President Tokayev has emphasized the importance of expanding geological studies in Kazakhstan, particularly in the search for rare and rare-earth metals. The government aims to increase the area of geologically studied land to 2.2 million square kilometers by 2026. Currently, 1.25 million square kilometers are available for subsoil use, and state-funded geological exploration receives an annual budget of approximately 7.5 billion tenge, significantly less than countries like Uzbekistan, Australia, and Canada.

    To facilitate geological research, Kazakhstan has launched the unified subsoil use platform minerals.gov.kz. This platform allows potential investors to access geological reports and submit applications for plots and licenses electronically. The platform initially focuses on uploading secondary geological reports, with the primary reports expected to be digitized and uploaded by 2026. Additionally, the National Geological Service plans to obtain unique geological reports on Kazakhstan’s areas from Rosgeolfond, which were previously sent to Moscow during the Soviet era.

    In light of the decreasing reserves of various solid minerals over the past three decades, the Committee on Geology has proposed measures such as abolishing the value-added tax on geological exploration work and allocating a portion of the mineral extraction tax for state geological exploration.

    Kazakhstan’s commitment to exploring and harnessing its natural resources, particularly rare earth metals, paves the way for economic growth and potential partnerships with international investors.

  • Personnel Changes in Kazakhstan: New Ministries, Ministers, and Other Appointments

    Personnel Changes in Kazakhstan: New Ministries, Ministers, and Other Appointments

    [vc_row][vc_column][vc_column_text]On September 1, 2023, the Head of State, Kassym-Jomart Tokayev, delivered his annual Address to the people of Kazakhstan and announced numerous changes in the country. To learn more about how the composition of key government agencies has changed and what experts think about it, read the material from the analytical observer of the Kazinform News Agency.

    Presidential Assistants and Other Appointments in the Presidential Administration:

    • Ruslan Zheldibay (born in 1989) was appointed as the Assistant to the President of Kazakhstan for Domestic Policy and Communications. Previously, he held the position of Deputy Head of the Presidential Administration and Press Secretary to the Head of State.
    • Erzhan Kazyhan (born in 1964) assumed the role of Assistant to the President of Kazakhstan for International Affairs. Previously, he held the position of Deputy Head of the Presidential Administration and Special Representative of the President of Kazakhstan for International Cooperation.
    • Erzhan Zhiyenbayev (born in 1981) took the position of Assistant to the President of Kazakhstan for Legal Affairs. Previously, he held the position of Deputy Head of the Presidential Administration.
    • Asset Irgaliev (born in 1986) was appointed as the Assistant to the President of Kazakhstan for Economic Affairs. Previously, he held the position of Chairman of the Agency for Strategic Planning and Reforms.

    For more details on personnel changes in the Presidential Administration, you can refer to the provided link.

    Other Appointments:

    • Gizat Nurdauletov (born in 1964) assumed the position of Secretary of the Security Council of Kazakhstan. Murat Baymukashev (born in 1967) was appointed as the Deputy Secretary of the Security Council.
    • Ernar Baspaev (born in 1979) became an Advisor to the President of Kazakhstan.
    • Kanat Bozumbaev, formerly known as the ex-Minister of Energy (2016-2019), now holds the position of Advisor to the President’s Advisor.

    New Deputy Prime Ministers:

    • Serik Zhumangarin (born in 1969) was appointed as the Deputy Prime Minister. Previously, he headed the Ministry of Trade and Integration and simultaneously served as Vice Prime Minister. Arman Shakkaliev (born in 1977) was appointed as the new Minister of Trade.
    • Tamara Duisenova (born in 1965) also assumed the position of Deputy Prime Minister. Previously, Tamara Duisenova served as the Minister of Labor and Social Protection for many years and held the post of Minister of Health from 2014 to 2017.
    • Svetlana Zhakupova (born in 1968) was appointed as the Minister of Labor and Social Protection of the Population. She previously served as the Deputy Minister of this department in the years 2013-2014 and from 2017 to 2019.

    New Leaders in National Bank, Kazatomprom, and National Oncology Center:

    • Timur Suleimenov (born in 1978) was appointed as the new head of the National Bank. His candidacy for the position of the head of the National Bank of Kazakhstan was proposed in the Senate.
    • Galymzhan Pirmatov (born in 1972) was relieved of his position as Chairman of the National Bank of the Republic of Kazakhstan. The President thanked him for his work. Immediately after this, the Head of State appointed a new head of the National Bank and outlined several important tasks related to reducing inflation, developing financial technologies and innovations, and fully launching the national payment system in the coming year.
    • Sultan Temirbayev (born in 1972) assumed the position of Chief Executive Officer for Economics and Finance at JSC “National Atomic Company “Kazatomprom.” Previously, he served as Deputy Chief Executive Officer for Economics and Finance at LLP “SP” Inca”, a joint venture of “Kazatomprom” and “Cameco” Corporation.
    • Sanzhar Shalekenov (born in 1982) took the helm of the National Scientific Oncology Center LLP. From March to August 2023, he served as the Acting Chairman of the Board of LLP “National Scientific Oncology Center.

    “Five New Ministries Kassym-Jomart Tokayev has signed a decree establishing five new ministries in the country:

    • Ministry of Water Resources and Irrigation of the Republic of Kazakhstan;
    • Ministry of Transport of the Republic of Kazakhstan;
    • Ministry of Tourism and Sports of the Republic of Kazakhstan;
    • Ministry of Culture and Information of the Republic of Kazakhstan;
    • Ministry of Industry and Construction of the Republic of Kazakhstan.

    The Ministry of Ecology and Natural Resources has been reorganized by separating the Ministry of Water Resources and Irrigation from it. The Ministry of Industry and Infrastructure Development has been divided into the Ministry of Transport and the Ministry of Industry. The Ministry of Information and Public Development of the Republic of Kazakhstan has been transformed into the Ministry of Culture and Information of the Republic of Kazakhstan. And the Ministry of Culture and Sports of the Republic of Kazakhstan has been transformed into the Ministry of Tourism and Sports of the Republic of Kazakhstan.

    New Ministers Nurzhan Nurzhigitov (born in 1967) was appointed as the head of the new Ministry of Water Resources and Irrigation by the President’s decree. He previously held the position of deputy akim of Zhambyl region.

    Erlan Nysanbaev (born in 1961) has become the new Minister of Ecology and Natural Resources. He served as the deputy minister of the department from July 2019 to May 2021 and had previously held the position of deputy minister of agriculture for over five years (2014-2019). Zulfia Suleimenova was accordingly relieved of her position as Minister of Natural Resources.

    Marat Karabaev (born in 1987) has been appointed as the head of the newly created Ministry of Transport. He previously held the position of Minister of Industry and Infrastructure Development.

    The reorganized Ministry of Tourism and Sports is now headed by Ermek Marzhikpaev (born in 1969). He previously served as the akim of Akmola region.

    Aida Balaeva (born in 1974) has been appointed as the head of the new Ministry of Culture and Information. She previously held the position of deputy head of the Presidential Administration (PA).

    Kanat Sharlapaev (born in 1981) has become the Minister of the new Ministry of Industry and Construction. He previously held the position of Chairman of the Board and a member of the Board of Directors of the National Managing Holding Baiterek. Among his other positions were Chairman of the Board of Directors of the Housing Construction Savings Bank “Otbas Bank” and Chairman of the Board of Directors of the Industrial Development Fund.

    Other Appointments in the Government and Regions Erzhan Sadenov (born in 1968) has become the new Minister of Internal Affairs. He previously served as the Deputy Minister of Internal Affairs. Consequently, Marat Akhmetzhanov (born in 1964) was relieved of this position and appointed as the akim of Akmola region.

    Aidarbek Saparov (born in 1966) has been appointed as the new head of the Ministry of Agriculture. He previously held the position of the first deputy minister of agriculture from 2019 to 2022 and was subsequently appointed as the akim of North Kazakhstan region (NKR) starting from December 1, 2022.

    Erbol Karashukeev (born in 1976), who held the position of the head of the Ministry of Agriculture, was relieved of his duties and appointed as the akim of Zhambyl region.

    A new Chairman of the Committee for Higher and Postgraduate Education of the Ministry of Science and Higher Education (MSHE) was appointed, and it is Gulzat Kobenova (born in 1978). She has worked in various leadership positions within the Ministry of Education and Science of the Republic of Kazakhstan since 2010. Adlet Toibaev (born in 1982) has been appointed to lead the Committee for Quality Assurance in Science and Higher Education.

    Gabit Syzdykbekov (born in 1989) has been appointed as the new akim of Shymkent. From September 2019 to July 14, 2021, he served as the Extraordinary and Plenipotentiary Ambassador of the Republic of Kazakhstan to the Republic of Serbia.

    Residents of the North Kazakhstan Region (NKR) are still waiting for their new regional leader.

    Expert Opinions According to experts, a significant portion of the new appointments in the country’s government demonstrates a trend towards strengthening it with professionals. This opinion was shared by Kazakhstani political analyst Daniar Ashimbayev.

    “58-year-old Akim (Governor) of Akmola Region, Ermek Marzhikpaev, has been appointed to head the new Ministry of Tourism and Sports. Until today, he was the longest-serving akim of the region, known for his good and adequate practices. So far, most of the appointments in the government indicate a trend towards strengthening it with professionals,” noted the political analyst in his Telegram channel.

    He added that Svetlana Zhakupova, a 55-year-old who had been appointed as the Minister of Labor and Social Protection of the Population, previously held the position of Commissioner for the Rights of Socially Vulnerable Population Categories under the President earlier this year.

    According to him, Serik Zhumangarin and Tamara Duisenova were relieved of their positions as deputy prime ministers to focus on coordinating the work of the growing number of ministries.

    Aida Balaeva, an experienced practitioner and political heavyweight who previously served as Deputy Head of the Presidential Administration, has been appointed to head the new Ministry of Culture and Information—the government’s main ideological agency. According to the expert, this appointment indicates that the President has decided to shift practical work to the government.

    “So, Aida Balaeva’s new appointment is not a demotion but effectively just a change in the job title,” the political analyst added.

    Daniar Ashimbayev noted that Marat Karabaev, the former head of the Ministry of Industry and Infrastructure Development (MIID), now leads the new Ministry of Transport. Arman Shakkaliev, a 43-year-old former first deputy, has been promoted to the position of Minister of Trade and Integration. Before this, he headed the Committee for Technical Regulation and Metrology and was a member of the Eurasian Economic Commission (EEC) board.

    The political analyst also shared his opinion on the appointment of the new head of the Ministry of Internal Affairs (MIA).

    “The new head of the MIA is 58-year-old Erzhan Sadenov, a native of East Kazakhstan Region (VKO), who rose through the ranks from an investigator to the head of the Ust-Kamenogorsk Internal Affairs Directorate. He was the first deputy of the Department of Internal Affairs of Mangystau Region, headed the Department of Internal Affairs for Transport, the police in Akmola Region, and the capital. For the past one and a half years, he served as the deputy minister,” the expert noted.

    President Kassym-Jomart Tokayev has given a series of assignments to the new Minister of Internal Affairs, including continuing the development of a service-oriented model and improving interactions with the public, as well as adjusting the system for protecting the rights of minors.

    Overall, according to experts, the track records and experience of the new appointees indicate a societal demand for strong administrators and practitioners.

    Regarding the establishment of new government departments, speakers believe that it is a timely decision that addresses current needs and challenges. For example, Kazakhstan has many railways and highways passing through its territory. In the current geopolitical context, many countries, including China, Europe, and others, including Kazakhstan, are seeking alternative routes for transporting their goods. Therefore, the creation of a separate Ministry of Transport will contribute to the country’s economic growth.

    According to a geo-ecologist and former deputy of the Parliament of the Seventh Convocation, Aizhan Skakovaya, the functions related to water management were previously dispersed within the government.

    “In essence, several ministries dealt with water-related issues. However, considering the current realities, where Central Asia and Kazakhstan, in particular, face water shortages, the issue of managing water resources becomes highly relevant. It should be noted that since 2019, Kazakhstan has ranked near the bottom in global rankings for the efficiency of water resource management. This is, of course, due to the fact that the country is landlocked and receives almost 40-50% of its water resources from neighboring countries. Therefore, given the regional water scarcity threat, water management needs to be taken seriously and treated as a strategic resource,” Aizhan Skakovaya said in an interview with MIA Kazinform.

    She added that, with regard to financial and administrative burdens, there should be no problems because these structural units already exist within the government’s framework. And, apparently, this ministry will be created based on the Committee for Water Resources and Basin Inspections, which already exists.

    “Plus, water issues are being addressed at the local level by local executive authorities—akimats. And now, I think it is advisable to give more control and emphasize basin inspections because they can solve many issues locally. The focus should be on the integrated water resource management system (IWRM), which is already enshrined in our legislation but will now be strengthened,” Aizhan Skakovaya concluded.

    The expert expects that a new, modern, and up-to-date water code that reflects a more practical implementation of IWRM based on international experience will be adopted in the country before the new year.

    In general, according to experts, the creation of new departments and the subsequent personnel appointments respond to the current challenges facing the country and the region as a whole.[/vc_column_text][/vc_column][/vc_row]

  • Kazakhstan to hold referendum on first nuclear plant

    Kazakhstan to hold referendum on first nuclear plant

    The energy-rich Central Asian nation’s government has long discussed the idea, citing the need for diversification of the power generation capacity, and even identified a planned location for the facility in the southeastern Almary region and mentioned Russia’s Rosatom as a potential partner.

    But some activists oppose the project because of safety concerns and Kazakhstan’s history as home to the Soviet-operated Semipalatinsk nuclear weapons testing ground.

    “On the one hand, Kazakhstan, as the world’s biggest uranium producer, should have its own nuclear power capacity,” Tokayev said. “On the other hand, many citizens and some experts have concerns about the safety of nuclear power plants.”

    Aidarbek Khojanazarov, chairman of the Respublica Party and one of the six parties in the Mazhilis, emphasized the importance of an extensive public awareness campaign prior to the referendum. He insisted the public should be well-informed about what they will be voting for.

    “To address this issue adequately, one needs expertise. This isn’t a question to be answered emotionally; it requires expert consideration,” Khojanazarov said, as quoted by Kazinform.

    According to Tokayev, further public hearings are needed. The most recent one took place on 22 August in Ulken village in the Almaty Region, a location previously considered “optimal” for a future plant by the government. The hearing, however, was fraught with disputes between local supporters and opposing civic activists.

    Leader in uranium production

    Kazakhstan became the absolute leader in uranium mining, accounting for 42% of global production, with the share of Kazatomprom National Atomic Company constituting 22%, the Samruk Kazyna Sovereign Wealth Fund reported on 29 August.

    Kazatomprom is the world’s largest uranium producer, with its subsidiaries, affiliates, and joint ventures developing 26 deposits united into 14 uranium mining enterprises.