MINEX Forum

Tag: Kazakhmys

  • Kazakhstan’s Industry Minister Holds Talks with Kazakhmys Leadership on Modernisation and Safety

    Kazakhstan’s Industry Minister Holds Talks with Kazakhmys Leadership on Modernisation and Safety

    Kazakhstan’s Minister of Industry and Construction, Yersayin Nagaspayev, held a working meeting with Ruslan Oskinali, Chairman of the Management Board of Kazakhmys Corporation, to discuss the current state and future priorities of the country’s metallurgical sector.

    During the meeting, Nagaspayev highlighted the central role of mining and metallurgy in Kazakhstan’s economy. According to the minister, the sector accounts for around 40% of total manufacturing output, while cathode copper production represents 23% of the metallurgical industry. Kazakhmys alone contributes about 78% of national cathode copper output, underscoring its systemic importance.

    The discussions focused on ensuring the stable operation of production facilities, strengthening occupational safety, and advancing modernization and technological upgrades. Nagaspayev stressed that mining and metallurgy are high-risk industries, requiring strict compliance with industrial safety standards and enhanced oversight at hazardous sites.

    He also pointed to the growing importance of digital transformation, calling for greater use of artificial intelligence and digital technologies to improve production efficiency and operational control.

    In addition, the minister reiterated that expanding domestic processing remains a strategic priority for Kazakhstan’s non-ferrous metallurgy sector. From the government’s perspective, it is essential that large industrial players continue to invest in equipment renewal, improve the efficiency of processing stages, and reduce costs and environmental impacts through the adoption of modern technologies.

  • Mercuria lends $1.2 billion to finance Kazakhmys buyout, strengthening its push into global copper markets

    Mercuria lends $1.2 billion to finance Kazakhmys buyout, strengthening its push into global copper markets

    Commodity trading house Mercuria Energy Group has agreed to lend $1.2 billion to help fund the buyout of major Kazakh copper producer Kazakhmys, marking one of the largest metals pre-financing deals ever concluded. The transaction underscores Mercuria’s rapid expansion in metals trading and financing, a space long dominated by rivals Glencore and Trafigura Group.

    The Kazakhmys deal is the biggest among more than $3.5 billion in metals financing and prepayment agreements Mercuria has signed in just over a year, following its strategic push into metals under the leadership of Kostas Bintas, the former co-head of metals at Trafigura. Bintas has been a long-time bull on copper and has capitalized on supply chain disruptions, rising geopolitical risks and the threat of US import tariffs that have helped push copper prices above $13,000 per tonne.

    Under the terms of the agreement, Mercuria will provide financing over an eight-year period. In return, it will receive 200,000 tonnes of copper cathodes annually during the first four years, followed by a percentage of production thereafter. Bintas described the transaction as one of the largest pre-financing deals of his career and noted that such long-tenor, large-scale arrangements were historically more common in energy markets than in metals.

    The financing highlights Mercuria’s growing footprint in Kazakhstan, a market traditionally dominated by Glencore in metals and Vitol Group in oil. The deal comes amid a broader reshaping of ownership across Kazakhstan’s resource sector, as economic influence shifts away from elites linked to former president Nursultan Nazarbayev toward a new business class under President Kassym-Jomart Tokayev.

    Kazakhmys, once part of one of the London Stock Exchange’s largest listed copper producers, was recently acquired by construction magnate Nurlan Artykbayev through his company Qazaq Acquisition Corp. The purchase price was not disclosed. Mercuria has also previously struck a prepayment deal with Eurasian Resources Group, another major Kazakh miner facing potential ownership changes.

    Mercuria’s aggressive expansion mirrors a broader trend of trading houses stepping in as financiers to miners, providing upfront capital in exchange for long-term commodity flows. With copper prices remaining elevated, Bintas said Mercuria expects metals financing activity to increase further in 2026, even as high prices have temporarily dampened physical buying in China, the world’s largest copper consumer.

  • Sale of Kazakhmys Corporation Finalised, New Owner to Take Over in December

    Sale of Kazakhmys Corporation Finalised, New Owner to Take Over in December

    Negotiations over the sale of Kazakhstan’s Kazakhmys Corporation have been completed, with the company expected to change ownership in December. According to National Business Kazakhstan, the agreement on the transfer of ownership is planned to be signed before the end of the year and has already received regulatory approval.

    The new owner of Kazakhmys will be Nurlan Artykbayev, founder of construction group Qazaq Stroy, whose personal wealth is estimated at about 228 million dollars. Qazaq Stroy’s press service told NBK that the preliminary value of the transaction, based on both independent and joint audits, stands at 3.85 billion dollars.

    Following the ownership change, Kazakhmys’ strategic priorities are expected to remain intact. Qazaq Stroy said the arrival of a new shareholder will strengthen the company’s long-term strategy, focusing on improving operational efficiency, expanding the resource base, and implementing a large-scale investment program. The Kazakhmys group currently includes 37 companies and major production facilities, many of which are operating at around 50% capacity and require modernization.

    For the period from 2026 to 2045, planned investments exceed 3 trillion tenge, or more than 5.5 billion dollars. These funds are earmarked for upgrading processing plants, introducing hydrometallurgical technologies, developing underground mining projects, and expanding power generation capacity. The company’s target is to increase copper production to about 500000 tons per year by 2032.

    Nurlan Artykbayev, aged 50, has also controlled Qazaq Kalium Ltd. since 2023, a company developing the Satimola potash deposit. In 2024, one of his companies acquired a 9% stake in Kazakhtelecom from Jusan Bank.

    Kazakhmys’ main shareholder has been oligarch Vladimir Kim, who owns 70% of the corporation and is also the principal owner of KAZ Minerals Group and RBK Bank. The remaining 30% of Kazakhmys Holding Ltd is controlled by his business partner Eduard Ogay. Media outlets have indicated they will continue to monitor developments surrounding the transaction in case its terms change.

  • Kazakhmys Overhauls Safety Protocol Following Jomart Mine Tragedy

    Kazakhmys Overhauls Safety Protocol Following Jomart Mine Tragedy

    Kazakhstan’s mining and metallurgical giant Kazakhmys is implementing sweeping safety reforms following the February 2025 methane explosion at its Zhomart copper mine, which claimed seven lives. The tragedy exposed systemic risks in the sector, long regarded as one of the most hazardous in the country, and prompted regulators to issue 45 safety directives, over half of which have already been addressed.

    The company has since launched a comprehensive modernisation programme under its Digital Kazakhmys initiative. Key measures include real-time GPS tracking of all underground staff, predictive gas monitoring via advanced sensors integrated into the DMMS digital platform, and the installation of an in-house gas analysis laboratory. Additional safeguards—such as automatic equipment shutdowns when methane thresholds are exceeded—aim to reduce reliance on human intervention.

    Kazakhmys is also working with scientific institutes to study gas emissions in copper ore deposits, a relatively new phenomenon for the industry, with the aim of shaping updated mining regulations by 2026. The Zhomart mine has effectively become a testing ground for technologies that could transform Kazakhstan’s mining sector from one of the deadliest into a more predictable and manageable industry.

  • Kazakhmys Launches New Industrial Safety Strategy with Digital Overhaul and Risk-Based Approach

    Kazakhmys Launches New Industrial Safety Strategy with Digital Overhaul and Risk-Based Approach

    Kazakhstan’s mining giant Kazakhmys is ramping up its commitment to industrial safety with a comprehensive new strategy focused on digital transformation, increased investment, and a proactive risk management model, according to CEO Nurakhmet Nuriev, who presented the measures at a recent government meeting.

    Digital Tools Take Center Stage

    A key pillar of the safety overhaul is digitization. Since 2021, Kazakhmys has implemented real-time tracking systems for personnel and equipment in its mines, enabling quicker emergency responses. In 2022, a process monitoring system was deployed at the Balkhash enrichment plant, and in 2025, the company launched pilot versions of a barrier-based injury prevention system and the integrated Kazakhmys SuperAPP, which digitizes HR and workplace safety workflows.

    Kazakhmys is also rolling out automated PPE (personal protective equipment) tracking, digital medical screening systems, and a centralized platform for occupational safety management.

    Tangible Results: 25% Drop in Workplace Incidents

    Over the past three years, Kazakhmys has achieved a 25% reduction in workplace accidents. Although a gas explosion at the Zhomart mine in 2025 marked the first such incident since 2014, the overall safety trend remains positive. The most common risks—rockfalls and machinery collisions—are now under tighter control.

    The company has invested 24 billion tenge in labor safety since 2022, with an additional 26 billion tenge allocated for 2025. These funds support not just technical upgrades but also employee training, culture-building, and safety tech innovation.

    New Strategy Anchored on Five Key Priorities

    Kazakhmys’s updated safety framework for 2025 is built around five core principles:

    1. Fostering a culture of safety;

    2. Shifting toward proactive labor protection management;

    3. Deepening digitization;

    4. Implementing barrier-based, risk-oriented oversight;

    5. Expanding occupational health systems.

    A technical audit conducted in 2025 uncovered 2,378 safety violations, with 64 operations suspended until issues were resolved. The company now tracks 15 key production risks and has tightened internal control protocols.

    Accountability and Inclusion

    Safety KPIs are being extended to top management, while contractors, who significantly impact incident rates, are now held to strict safety standards. A violation tracking system is also in place, and serious incidents are reviewed at plant-level safety councils, with individuals held personally accountable.

    Kazakhmys’s approach signals a shift from reactive measures to a preventative, risk-aware safety culture embedded at every level of the organization.

  • Kazakhmys to Launch Fund for Preservation of Lake Balkhash Ecosystem

    Kazakhmys to Launch Fund for Preservation of Lake Balkhash Ecosystem

    A new initiative to establish a dedicated fund for the preservation of the Ili-Balkhash basin and Lake Balkhash’s ecosystem was announced during a seminar held at the Central Asian Institute for Environmental Research (CAIER) in Almaty.

    The event, titled “Development of the Master Plan for the Preservation of Lake Balkhash Ecosystem,” brought together representatives from Kazakhmys Corporation, Kazakhstan’s Ministry of Water Resources and Irrigation (MWRI), international organizations, the French Consulate General in Almaty, as well as scientists and experts.

    According to Saken Shayakhmetov, Deputy Chairman of Kazakhmys for Sustainable Development and Communications, the seminar successfully fostered a shared understanding among stakeholders on next steps and responsibilities.

    A joint roadmap will now be developed by Kazakhmys and the MWRI for implementing the Master Plan, which includes selecting a pool of actionable projects. The roadmap will cover key areas such as assessing the quality of surface and groundwater in the basin, launching a digital platform for real-time lake monitoring, and automating hydraulic infrastructure.

    As part of this strategy, Kazakhmys has committed to creating a dedicated fund to support initiatives aimed at preserving water resources, biodiversity, and ecosystems in the region. The fund will operate alongside the Ministry, drawing in experts and identifying impactful projects for implementation across the company’s regions of operation.

    First Vice Minister of Water Resources and Irrigation Bolat Bekniyaz noted that for too long, Lake Balkhash issues were tackled in isolation. The new Master Plan aims to provide a unified, multi-sectoral strategy for sustainable water resource management, balancing ecological, economic, and societal interests.

    The initiative is also supported by French partners, including the French Development Agency (AFD) and the Bureau of Geological and Mining Research (BRGM), who are currently collecting field data and plan to conduct on-site inspections of wells, hydrological posts, and irrigated lands in the lake basin.

  • Kazkahmys Halts Operations Over Safety Concerns

    Kazkahmys Halts Operations Over Safety Concerns

    Kazakhmys, the Central Asian mining giant, has announced a temporary shutdown of its higher-risk production facilities across Kazakhstan for a comprehensive safety review. The company will be halting operations at various sites in stages, following a pre-determined schedule.

    This decision comes after management identified a need to strengthen industrial safety and workplace protections.

    Phased Shutdown Schedule:

    • March 20: Eastern Jezkazgan, Abyz, Sayak, Konirat mines; Nurkazgan, Karagaylin, Balakhsh concentrating mills; repair and maintenance, construction, foundry-mechanical plant, and energy repair specialists’ management units.
    • March 21: Southern Jezkazgan, Akbasta, Khachikong, Shatyrkol, Zaysan mines.
    • March 22: Western Jezkazgan mine.
    • March 23: Zhylandi mine.
    • March 24: Jezkazgan concentrating mill.
    • A review is ongoing at the Jomaart mine, which was temporarily halted earlier.

    A dedicated commission has been established to meticulously inspect all operations to ensure compliance with safety regulations. Operations at each site will only resume after all identified violations are rectified and safe working conditions are confirmed.

    “Kazakhmys is fully committed to the well-being of its employees,” said Arman Tleukenenov, an official representative of the Kazakhmys Corporation. “During this temporary shutdown, all employees will continue to receive their full salaries. This demonstrates our dedication to labour rights and workplace safety.”

    Kazakhmys Group is determined to fortify its safety protocols across all its facilities. This initiative will involve strengthening oversight to ensure compliance with all regulations and implementing additional measures to enhance working conditions.

  • Kazakhmys Denies Allegations of Illegal Export of Rare Earth Metals

    Kazakhmys Denies Allegations of Illegal Export of Rare Earth Metals

    Kazakhmys Corporation has officially denied media reports alleging the illegal export of copper ores and concentrates without proper analysis and the concealment of rare earth metal content. The company stated that all its products undergo strict quality control, and in cases where copper concentrates are exported, independent chemical analyses are conducted in world-class laboratories such as SGS Kazakhstan.

    Kazakhmys also emphasized that it does not engage in the targeted extraction of rare earth metals. Small amounts of rare metals are recovered from production waste and processed at state-owned and private enterprises within the country, in full compliance with legal regulations.

    The company assured that its operations are entirely transparent and are closely monitored by the relevant authorities. Kazakhmys supports enhanced government oversight of raw material exports and is open to cooperation with authorities for any necessary inspections.

  • Kazakhstan Seeks Innovation With New “Science-Industry” Format

    Kazakhstan Seeks Innovation With New “Science-Industry” Format

    Kazakhstan is taking a bold step towards bridging the gap between academia and industry with a new format of “scientific-technical sessions” aimed at driving innovation in key sectors.

    The inaugural session, focusing on “Modern Methods of Leaching and Prospects for their Application in the Mining and Metallurgical Industry of Kazakhstan,” was held on 11 February at Karaganda Technical University. Organised with support from the Ministry of Science and Higher Education and leading mining corporation “Kazakhmys,” the event brought together scientists, experts, and industry representatives to explore cutting-edge technologies in hydrometallurgy.

    “These scientific-technical sessions represent a new paradigm for the interaction between science and industry,” emphasised Minister of Science and Higher Education, Sayasat Nurbek, during the opening ceremony.

    New Funding Models and Collaboration

    Besides promoting collaboration, the event signified a shift in how Kazakhstan finances its scientific research. Minister Nurbek highlighted this new approach, stating, “We are moving towards a model where our researchers, institutes, and universities work directly with large enterprises. The goal is to identify real-world problems and develop solutions that directly benefit these industries.”

    He cited several successful examples of this model in action, emphasizing its potential to propel Kazakhstan’s leading companies into a new technological era.

    The culmination of the event was the presentation of these prototypes and project solutions, demonstrating the tangible outcomes of this innovative approach to science-industry collaboration.

  • Kazakhmys Corporation Explores New Ore Enrichment Technologies

    Kazakhmys Corporation Explores New Ore Enrichment Technologies

    In a bid to bolster its resource base, Kazakhmys Corporation is actively seeking new technologies in ore dressing. A recent hackathon held at the Karaganda Technical University named after S.D. Saginov focused on innovative solutions for flotation, a crucial process in the metallurgical industry.

    As many of Kazakhmys’ deposits are nearing depletion and current resource extraction methods are outdated, the corporation is looking to the future.

    “The challenge now is to find engineering solutions that are applicable to our specific cases – our ore, its chemical composition and properties,” explained Saken Shayakhmetov, Director of Sustainable Development at Kazakhmys JSC. “If we can significantly increase efficiency through these solutions, it will be a major breakthrough.”

    Three promising projects from the hackathon will be piloted on a smaller scale production. If proven successful, they will be implemented in larger-scale operations across the corporation.

    This initiative aligns with the government’s focus on sustainable development in the mining industry.

    “Today, we are tackling a specific problem – innovative copper leaching methods,” stated Sayasat Nurbek, Minister of Science and Higher Education of Kazakhstan. “This approach allows for the extraction of valuable minerals without disrupting the land, minimising mining damage, and promoting environmental protection.”

    Beyond technological advancements in ore dressing, Kazakhmys Progress, a subsidiary of Kazakhmys, has achieved a significant milestone.

    “Kazakhmys Progress” has launched the first production line of industrial selenium in Balhash. This marks the beginning of an environmentally friendly industrial-scale production process using a unique vacuum distillation method. The technology was developed by researchers at the Institute of Metallurgy and Enrichment, Satbayev University.