MINEX Forum

Tag: Kazahstan

  • Reserves of non-ferrous metals in Kazakhstan may be depleted within 10-15 years

    Reserves of non-ferrous metals in Kazakhstan may be depleted within 10-15 years

    Addressing the 1st Congress of Geologists of Kazakhstan, Zholmagambetov emphasized the drawbacks associated with importing raw materials, including high transportation costs and the vulnerability to political instability in the extraction countries, which may result in restrictions on raw material exports. The extensive exploitation of inherited reserves of valuable minerals from the Soviet era, coupled with limited replenishment rates, is gradually depleting these resources.

    Zholmagambetov highlighted that notable lead-zinc deposits in Eastern Kazakhstan, such as Shemonaiha, Yubileino-Snegirikha, and Zyryanovsk, have been entirely depleted. Consequently, after 65 years of operation, the Torgai Bauxite Ore Management of Aluminum Kazakhstan JSC, a subsidiary of ERG, has ceased all activities. Overall, reserves of non-ferrous and noble metals, which significantly contribute to the country’s exports, could be exhausted within the next 10-15 years.

    Furthermore, Zholmagambetov addressed the issue of raw material shortages in certain industrial enterprises within the country. Ulbinsky Metallurgical Plant JSC, one of only three global producers of beryllium alongside the United States and Japan, and one of four producers of tantalum products alongside the United States, Japan, and China, faces this challenge. The plant’s output is entirely exported and utilized by European companies such as Plansee SE, Auerhammer Metallwerk GmbH, and AVX Lanskroun.

    “Due to the absence of domestic reserves, tantalum-niobium raw materials are imported from the Congo. A similar situation arises for the Ust-Kamenogorsk Titanium-Magnesium Plant JSC, which imports raw materials for titanium production from Norway. There is also a dependency of the State Enterprise Zhezkazganredmet on Corporation Kazakhmys LLP for raw materials. Consequently, 100% of the products produced by Zhezkazganredmet transition into the ownership of Corporation Kazakhmys LLP,” added Zholmagambetov.

    In pursuit of the goal to transition to deep processing, Kazakhstan has proposed to the European Union the establishment of joint production for the processing of metallic ores and the production of finished products, including lithium-ion batteries, electrical products, and catalysts, within the country.

    “To achieve this, it is imperative for Kazakhstan, especially its domestic industries, to ensure resource independence. Our current endeavors are focused on the creation of technologically advanced industries that prioritize the production of intermediate and high value-added products,” explained Zholmagambetov.

    In the medium term, Zholmagambetov stressed the importance of the following actions for Kazakhstan:

    • Continuously conduct geological exploration, involving specialized domestic and foreign companies, to search for new deposits.
    • Establish a register of all accumulated technogenic waste, accompanied by laboratory analysis of their chemical composition.
    • Update the register of all existing deposits (copper, uranium, phosphate, coal, etc.) of minerals in Kazakhstan to assess the potential of subsoil resources, confirm the reliability of reserves in terms of minerals and metals, and determine a list of valuable components to be extracted from each deposit, specifying minimum extraction coefficients for concentrates and metals.

    During the congress, a memorandum of understanding was signed between the National Geological Survey and the British Geological Survey to further cooperation in this field.

  • Kazakhstan Coal Production Declines: Impact on Exports and Industry

    Kazakhstan Coal Production Declines: Impact on Exports and Industry

    From January to July this year, the Republic of Kazakhstan extracted a total of 65 million tons of hard coal, encompassing both brown coal and coal concentrate, as reported by energyprom.kz. This figure reflects a decrease of 2.1% compared to the previous year. The primary coal mining regions in the country, Pavlodar and Karaganda, contributed significantly, accounting for 92% of the nation’s overall coal, lignite, and coal concentrate production. In Pavlodar, coal production reached 39.2 million tons, marking a modest increase of 0.5% from the previous year, while the Karaganda region produced 20.6 million tons, representing a decrease of 3.3%. The Abay region secured a place in the top three leading regions with a production of 4.2 million tons, albeit experiencing a 10.3% decline year-over-year.

    For the entire year of 2022, Kazakhstan produced 117.8 million tons of coal, indicating a 1.4% increase from the previous year. Directly, 60.4 million tons of hard coal were extracted, a decrease of 1.7% compared to the preceding year. This production also included 4.2 million tons of coking coal, marking a 6% decrease, and 8.9 million tons of energy coal, a 4% decrease. Brown coal (lignite) production decreased by 0.9%, reaching 2.6 million tons, while coal concentrate production experienced a substantial 12.4% decline, totaling 2 million tons.

    During the January-June period of this year, Kazakhstan exported 13 million tons of coal, valued at $370.8 million. In terms of quantity, this represented a 20.4% reduction in exports, and in terms of value, an 18.9% decrease. Within these exports, 8.3 million tons of coal were directed to CIS countries, marking a 24.2% decrease compared to the previous year. Notably, Russia emerged as the primary importer of coal from Kazakhstan, accounting for 7.4 million tons and a 27.2% decrease year-over-year. The top three importing countries also featured Kyrgyzstan and Uzbekistan. The rest of the world received 4.7 million tons of Kazakh coal, experiencing a 12.7% decrease from the previous year. In monetary terms, these exports declined by 12.3%, amounting to $264 million. Among these exports, prominent importers of Kazakh coal included Poland, Latvia, and Turkey.

  • Lithium Brine Co. Awarded 100%-Interest Kazakhstan Mining License

    Lithium Brine Co. Awarded 100%-Interest Kazakhstan Mining License

    Condor Energies Inc. has released its results from the second quarter of this year (Q223), including financial statements and management discussion and analysis. These documents are available on the company’s website.

    The report has included the highlights of Q2. In July of 2023, Kazakhstan gave Condor a 100% working interest for six years in a 37,300-hectare lithium brine mining license. The company is awaiting final approval from the government of Kazakhstan for its 95% working interest in a separate lithium brine mining license in Kazakhstan.

    In June, Condor created a US$5.9 million three-year term loan facility, with interest at 9.0% per annum, that is intended for working capital needs and corporate purposes.

    Condor is undertaking final negotiations in order to run the day-to-day operations of eight gas-condensate fields in Uzbekistan. In Kazakhstan, Condor is still attempting to lock in a long-term LNG feed gas supply contract.

    Prior to the government of Kazakhstan granting Condor a lithium mining license, in July of 2023, a well drilled on a previously acquired license found brine deposits that contained concentrations of 67 milligrams per liter of lithium in carboniferous aged intervals.

    A 670m column of lithium brine has been identified using historical records and data from core drilling. This well touched the top of Denovian-aged sediments. Reservoir sands that were found were not tested.

    Condor’s lithium licenses are ideally positioned between Europe and Asia. This location provides access to robust lithium markets. Condor’s goal is to produce lithium through closed-looped direct lithium extraction technologies, which is more cost-effective than other lithium extraction technologies.

    Analyst Malcolm Shaw of Hydra Capital identified Condor Energies as a company worth looking into.

    According to Shaw, “It took flight after the company announced that it is in advanced discussions with respect to taking over eight gas fields in Uzbekistan, along with an exploration block or two.”

    Condor is unique because its goal is “to revitalize Soviet-era fields with standard Western development practices.” He specifically compared it to the early success of PetroKazakhstan, which sold for CA$4 billion.

  • MAXAM Considers Moving Production from Russia to Kazakhstan

    MAXAM Considers Moving Production from Russia to Kazakhstan

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Forbes Kazakhstan” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fforbes.kz%2Feconomy%2Fenergy-subsoil%2Fkazahstan_naraschivaet_proizvodstvo_dragmetallov%2F%3Futm_source%3Dforbes%26utm_medium%3Dtop_articles_block|target:_blank”][distance desktop_type=”30″][vc_column_text]Spanish company MAXAM is considering moving its production from Russia to Kazakhstan.

    According to a representative from the Spanish company, due to the geopolitical situation in the region, the company has started to experience difficulties in transporting its products and accessing raw materials. As a result, they are considering moving their production facilities from Russia to Kazakhstan. The investment amount could be more than $15 million.

    In turn, according to Kazakh Invest, negotiations have already taken place with the CEO of MAXAM, Juan Carlos Garcia. The parties discussed the implementation of a project for the production of special components for mining operations in the country.

    MAXAM is an industrial group that is one of the world leaders in the development and production of explosives and blasting systems for civilian use in mining, construction, and sporting activities.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]