MINEX Forum

Tag: Kazakhmys

  • Digital Kazakhmys: Embracing Technology for a Sustainable Future

    Digital Kazakhmys: Embracing Technology for a Sustainable Future

    The integration of automation represents an investment in the future, where technology benefits both businesses and people. The use of artificial intelligence in automation takes production efficiency to a new level. This was highlighted by Saken Shayakhmetov, Director of Sustainable Development at Kazakhmys Corporation, during his speech at the Digital Almaty 2025 forum.

    “Our main focus in developing the digital agenda is to nurture the competencies of the younger generation. Hence, we have a project with The Ulytau Educational Foundation, currently covering 85 schools across our regions. Through this foundation, we implement STEM laboratories, smart libraries, and career guidance activities. By educating skills and competences, we are developing digital proficiencies,” said Saken Shayakhmetov.

    Kazakhmys also operates two technological colleges that specialise in mining education. Currently, there are active efforts to establish a technical foundation in the Ulytau region.

    In addition, the company is addressing the challenges faced by Lake Balkhash. According to McKinsey’s research, by 2030, Balkhash may face a water deficit of up to 1.9 billion cubic metres, which would have serious consequences. Understanding these challenges, the corporation is implementing several significant projects to preserve this Kazakhstani gem. At the end of 2024, it was announced that $5 million would be allocated for the preservation of Lake Balkhash’s ecosystem, including research projects and the implementation of sustainable water management approaches in the region.

    Another crucial principle is employee safety, which involves monitoring their location and using an automated medical examination system to eliminate human error. Among the technologies being employed are predictive maintenance to minimise downtime, optimise technological processes, enhance safety, and reduce human factor risks.

    In 2018, at the 67th mine of the Zhezkazgan field, the company specialists implemented the DMMS (Digital Monitoring and Management System) for the first time, in compliance with industrial safety legislative requirements. As of today, this system is implemented in 13 underground facilities, with plans to cover four more in 2025.

  • Kazakhmys Ships First Batch of Refined Selenium Using New Eco-Friendly Technology

    Kazakhmys Ships First Batch of Refined Selenium Using New Eco-Friendly Technology

    Mining and metals giant Kazakhmys has dispatched its first 100-tonne shipment of high-purity technical selenium, marking a significant milestone for Kazakhstan’s metals industry.

    The technical selenium, graded ST-1, was produced at Kazakhmys Progress LLP’s selenium refining and slag processing plant in Balkhash. This represents the first industrial-scale production in Kazakhstan using a unique vacuum distillation method. The innovative technology has increased the added value of selenium from 30% to 97% of the global market price. The inaugural shipment contained selenium with a purity of at least 99.5%.

    “The vacuum distillation method ensures a high degree of selenium purification without using reagents, making the process environmentally safe,” a company spokesperson explained. “This technology was developed by scientists at the Institute of Metallurgy and Ore Beneficiation of Satbayev University. It has enabled the operation of a unique facility that produces selenium meeting global non-ferrous metals market standards.”

    The project’s origins trace back to the modernisation of the gas cleaning system at the precious metals shop of Kazakhmys Smelting LLP’s Balkhash Copper Smelter in 2017-2018. This upgrade increased crude selenium production from 60 to 100 tonnes annually, making refining economically viable.

    “The implementation of the crude selenium refining project, produced as a by-product of precious metals production, began at the Balkhash industrial site in 2020. A new production unit was launched in 2022, with full-scale industrial operations commencing in 2023,” the spokesperson added.

    Prime Minister Olzhas Bektenov highlighted the significance of this unique technology at an extended government meeting. He noted that selenium is widely used in the production of solar panels, photocopiers, glass, ceramics, as well as in medicine and the chemical industry. The launch of this new production facility in Balkhash opens up prospects for strengthening Kazakhstan’s and Kazakhmys’ economic positions in the global non-ferrous metals market.

    This development represents a major step forward in Kazakhstan’s metallurgical capabilities, combining environmental responsibility with economic advancement.

  • Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    On January 22, 2025, LLP “Kazakhmys Corporation” officially signed a new collective agreement for 2025-2029. This new document not only incorporates proposals from company management and unions, but also directly considers the wishes of the employees. The 2025-2029 collective agreement is aimed at strengthening employee social protection and developing corporate social policy.

    One of the key achievements is the substantial expansion of support measures for workers and their families. Many of the changes were initiated by the company itself, highlighting its commitment to investing in employee welfare. Among the innovations of the collective agreement are a fivefold increase in childbirth benefits compared to the previous agreement. Similar benefits are provided for employees entering into marriage. New support measures have also been introduced for workers, including those raising children with special needs.

    Nurakhmet Nuriev, Chairman of the Board of LLP “Kazakhmys Corporation”, emphasized that this is not just a corporate document, but the result of extensive diligent work and complex discussions based on a deep understanding of the situation and analysis of internal operations. The signing of the new collective agreement will qualitatively elevate employee well-being to a new level, providing additional social protection for employees and their families.

    “We are all one big team, and each of us is interested in ensuring that people work in safe conditions. Safety is our number one priority. The second priority is employee social protection. The third is the productivity of enterprises, which supports the economy and upholds all the good initiatives we are laying out today,” stressed Nurakhmet Nuriev.

    The company also emphasized the importance of cooperation with trade unions, which played a significant role in the development of the new agreement. Their contribution to supporting social stability and increasing employee awareness of labor rights will continue to be strengthened.

    According to the union leaders, this document is one of the best in recent years, as it emphasizes the employer’s increased social responsibility and takes into account the proposals of unions and direct wishes from the employees themselves.

    The new collective agreement reflects Kazakhmys’ commitment to being a socially responsible employer and lays the foundation for the company’s sustainable development in the future.

    In addition to the innovations of the collective agreement itself, Kazakhmys is allocating significant financial resources to implement other social programs. For example, from 2025, employees working under normal conditions will be included in the existing voluntary health insurance. Also, this year, more than 200 service apartments will be donated to employees. Furthermore, specific categories of employees will receive targeted social assistance. Funds are also being allocated for the rehabilitation of children with disabilities.

  • Resolving Black Snow Issue in Satpayev Requires Time

    Resolving Black Snow Issue in Satpayev Requires Time

    Evgeny Kravchuk, CEO of Kazakhmys Distribution, confirmed that the company faces significant challenges in addressing the black snow problem in Satpayev. The heating plant, which serves the city’s population, is the primary source of the issue, exacerbated by the use of low-quality coal. Residents have expressed concerns about health risks, prompting local authorities and environmental agencies to prioritize the problem.

    Kazakhmys Distribution has begun steps to reduce emissions by installing emulgators on boilers to capture 98% of harmful particulates. The first device is already operational, with plans for six more by the end of 2024. However, the company’s investment program, limited to 700-800 million tenge annually, leaves little room for simultaneous modernization and maintenance efforts.

    Kravchuk emphasized a phased approach, beginning with ensuring stable heating services in winter. The long-term strategy will involve more extensive technological upgrades.

    Public concern continues to grow, as black snow has become a recurring issue. Many residents hesitate to let children play outside, while others view the phenomenon as a dangerous norm. Environmental advocates have linked the problem to pollution from Kazakhmys Distribution, and local government representatives have acknowledged the need for sustainable solutions.

    The broader implications of air pollution in Satpayev echo challenges in other regions of Kazakhstan. For instance, cities like Ust-Kamenogorsk have faced similar issues, resulting in school closures and increased health risks. The complexity of addressing these environmental crises underscores the need for systemic changes in industrial and energy practices.

  • Kazakhmys Corporation to Resume Development of Konyrat Mine in 2026

    Kazakhmys Corporation to Resume Development of Konyrat Mine in 2026

    Kazakhmys Corporation has announced plans to resume development of the Konyrat mine in 2026. The company aims to annually extract 6 million tons of ore. According to an 18-year development plan, the ore reserves are estimated at 94.6 million tons and 325,800 tons of copper with an average copper content of 0.34%, reports Kursiv citing company data.

    The development will run from 2026 to 2043. Kazakhmys expects to reach the projected annual output of 6 million tons of ore by 2029 and maintain this level until 2041. The ore will be processed at the Balkhash Concentrator.

    Currently, the mine is idle, with 2.8 million cubic meters of wastewater accumulated at a depth of 287.5 meters. Water diversion is planned for further development. Once mining activities resume, the mine water will be used in the concentrator’s production processes.

    Kazakhmys began developing the Konyrat copper mine in 2014. Ore extraction was halted in 2016 due to a sharp decline in metal prices but resumed in July 2017. Mining activities stopped again in 2020. In 2021, the contractor Karaganda Mining and Construction Enterprise LLP took over the project. The development plan was revised, setting a 24-year extraction target of 127 million tons of ore and 423,900 tons of copper with an average copper content of 0.33%. In 2022-2023, water at the bottom of the mine allowed work only to a depth of 290 meters.

    Recently, Kazakhmys has been offered an efficient waste processing technology. This will enable the production of 3,000 tons of cathode copper annually over the next nine years.

  • Kazakhmys to Boost Capacity of Balkhash Copper Smelter

    Kazakhmys to Boost Capacity of Balkhash Copper Smelter

    Mining and metallurgical holding Kazakhmys plans to enhance the capacity of the Balkhash Copper Smelter. The project will be implemented by CNMC (China). The parties have already agreed on the contract details and signed the necessary documents.

    It is expected that after extensive modernization, the Balkhash plant, which previously produced no more than 250,000 tons of copper per year, will be able to reach 300,000 tons. If the new capacities are successfully launched, the plant will achieve this output by 2028.

    Mr. Nuriyev reported that the Chinese partners are to provide a basic 3D model of the new facility by September 2024. The feasibility study will be received by the Kazakh side in October-November.

    The head of Kazakhmys also noted that after the launch of the copper smelter in Aktogay, the company’s processing capacities will be underutilized. Therefore, it is crucial to focus on expanding the raw material base. Nuriyev also reminded that according to the approved development plan of Kazakhmys, ore extraction, which is economically feasible, is planned until 2058.

  • Kazakhmys Faces Ministry Notice Over Contract Violations

    Kazakhmys Faces Ministry Notice Over Contract Violations

    Kazakhmys has been notified by the Ministry of Industry and Infrastructure Development regarding breaches of obligations under multiple contracts for exploration and extraction of copper and other metals, reports Exclusive.kz citing “Kursiv.”

    The ministry directed a notification to the company, signed by Deputy Minister of Industry and Infrastructure Development Iran Sharkhan, concerning violations of obligations under the contract for the extraction of copper-containing ores from the Zhilandy group deposits in the Karaganda region. The breaches include failure to meet investment plans, taxes, financing for research and development, and extraction.

    The penalty for 2020 amounted to 71.2 million tenge, and for 2021, it was 27.3 million tenge.

    In addition to the non-payment of research and development investments, the ministry identified serious violations under contracts for gold-copper-poly-metallic ore exploration, copper exploration, and extraction in various regions, including the Karaganda region.

    Another company, Kazakhmys Coal, created in 2018 by spinning off coal companies “Razrez Molodezhny” and “Razrez Kuu-Chekinsky” from Kazakhmys, was also subject to inspection. It was found to have violated its contract for coal mining at the Borly deposit in the Karaganda region.

    In total, violations totaling over 260 million tenge for 2020-2022 were identified, along with non-compliance with investments totaling over 300 million tenge. All violations were found in the Karaganda region. The company is required to rectify the violations within a month, otherwise, the ministry may take measures, including unilaterally terminating the contract.

    The Ministry and the company have not commented on the information at this time. However, two weeks ago, the Ministry officially threatened to terminate a coal mining contract due to investment breaches by Shubarkol Premium, owned by Timur Kulibaev, the son-in-law of Nazarbayev, and Shubarkol Komir, owned by Alexander Mashkevich.

    99.1% of Kazakhmys Corporation is owned by Kazakhmys Copper. The ultimate parent company is Kazakhmys Holding Limited, registered in the Astana International Financial Centre. Vladimir Kim, who owns 70% of the group, is Kazakhstan’s wealthiest businessman, with a fortune of $4.6 billion according to Forbes 2023. Eduard Ogay holds the 11th position among the richest Kazakhstani citizens, with a fortune of $750 million.

    Exclusive.kz previously reported on the problem of underpayment by subsoil users for research and development in January 2023.

  • Black snow in Satpaev is associated with gases from the Kazakhmys Distribution boiler house

    Black snow in Satpaev is associated with gases from the Kazakhmys Distribution boiler house

    Black snow in Satpayev is associated with gases from the boiler house of Kazakhmys Distribution, the agency’s correspondent reports.

    “On January 31, 2024, in the afternoon, almost all residents of the city of Satpayev witnessed the fall of “black snow.” It has been established that the fall of “black snow” is due to air pollution from the exhaust gases of the boiler house of Kazakhmys Distribution LLP,” the KazTAG editors answered in the Department of Ecology for the Ulytau region on Saturday.

    In fact, as they say in the department, unburnt coal dust fell on Satpayev.

    Experts said the direction of the wind contributed to the “black” precipitation. Environmentalists say that all boiler equipment of Kazakhmys Distribution is obsolete and incorrect operation of treatment facilities has been observed; a number of violations have been identified regarding the depressurization of equipment. In addition, “the boiler house is designed to consume high-ash coal and replacement with low-ash coal is technically impossible.”

    The company has already been repeatedly subject to administrative penalties and issued orders.

    “According to Kazakhmys Distribution LLP, the program for switching to gas turned out to be unfeasible due to the shortage of gas in the republic in a number of regions. Accordingly, the department has set a task to review it within a 10-day working period and replace it with measures to reduce emissions through the introduction of additional treatment systems or the adoption of technical solutions to actually reduce emissions of both gases and solids,” the department concluded .

    Experts promise to inspect the boiler room in February.

  • Kazakhmys proposed support measures for metallurgists

    Kazakhmys proposed support measures for metallurgists

    Investment programs to expand existing metallurgical production and launch new ones should be a priority for Kazakh development institutions. The management of the Kazakhmys Corporation made such a proposal at a meeting of the Council of Domestic Entrepreneurs. The press center of the Association of Mining and Metallurgical Enterprises of the Republic writes about this.

    Chairman of the Board of Kazakhmys Nurakhmet Nuriev noted that projects aimed at increasing the production of metal products should be among the priority projects that receive financial support from the Development Bank of Kazakhstan, Baiterek, the Industrial Development Fund of the Republic of Kazakhstan and other organizations.

    According to Mr. Nuriev, last year the consumption of metals in the manufacturing industry decreased compared to 2022. Experts emphasize that the situation with the shortage of domestic raw materials for enterprises could not be improved through discounts for individual manufacturers.

    In return, Kazakhmys management proposes to establish general discounts on metals for the manufacturing industry. The measure should help the development of metallurgical clusters and the production of metal products with high added value.

    Let us remind you: in the manufacturing industry of Kazakhstan in 2024 they want to implement 180 investment projects worth 1.5 trillion tenge.

  • Kazakhmys will allocate more than 15.5 billion tenge for the development of the Ulytau region in 2024

    Kazakhmys will allocate more than 15.5 billion tenge for the development of the Ulytau region in 2024

    As part of the memorandum, Kazakhmys Corporation LLP will finance 30 social projects implemented this year in the Ulytau region in the areas of education, healthcare, sports, infrastructure development and human capital. The total cost of the projects being implemented is more than 15.5 billion tenge.

    Major projects for 2024 are: construction of a sports and recreation center for 320 seats in the city of Zhezkazgan, construction of the embankment of the Kengir reservoir, construction of a mosque, construction of a kindergarten for 280 places in the city of Zhezkazgan, major renovation of the Akbota kindergarten in the city of Satpayev, reconstruction of the Shakhterskaya square glory in the city of Satpayev, reconstruction of Metallurgists Square in the city of Zhezkazgan, etc.

    In 2023, the company allocated 11 billion tenge for the implementation of 30 projects. Of these, 14 projects were successfully completed. Among them: the acquisition and renovation of a building for a day care center for disabled children, renovation of a secondary school named after. S. Seifullina in the city of Satpayev, Development of design documentation “Modernization of groundwater intake structures of the Eskulinsky deposit”, opening of the Ulytau football club, etc. The implementation of the remaining 16 major projects will continue this year.