MINEX Forum

Tag: Kazakhstan Mining

  • Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Authorities in Kazakhstan’s Pavlodar region have signed a social memorandum with Ertis Hydrometallurgical Plant LLP, a flagship project of Solidcore Resources, outlining new investments in social and environmental initiatives.

    Under the agreement, the company will allocate approximately KZT 900 million toward socially significant projects in the city of Pavlodar. The funding will support capital repairs at three schools and two kindergartens, as well as broader improvements to the city’s social infrastructure.

    The memorandum also includes environmental commitments. As part of conservation measures, the project will finance the purchase of 65 units of specialised equipment for regional forestry and wildlife protection institutions.

    Vladimir Dudin, General Director of Ertis Hydrometallurgical Plant LLP, said the company aims to ensure that industrial development directly contributes to improving living standards in the region.

    “For us it is important to build a model of cooperation where industrial growth directly contributes to improving the quality of life for people. Social investment is not a one-time initiative but part of the company’s long-term strategy,” he said.

    Pavlodar regional governor Asain Baikhanov highlighted the importance of cooperation between government and business in achieving sustainable regional development.

    The Ertis Hydrometallurgical Plant is planned to become Kazakhstan’s first full-cycle facility for processing gold-bearing concentrates. The plant is scheduled to begin operations in 2028 and is expected to strengthen the country’s downstream processing capacity in the mining sector.

  • Katco JV Boosts Uranium Output to 3,700 Tonnes in 2025, Strengthening Orano’s Overseas Portfolio

    Katco JV Boosts Uranium Output to 3,700 Tonnes in 2025, Strengthening Orano’s Overseas Portfolio

    The uranium joint venture Katco, owned by France’s Orano (51%) and Kazakhstan’s Kazatomprom (49%), produced more than 3,700 tonnes of uranium in 2025, marking a significant increase in output following the commissioning of the South Tortkuduk section at the Moinkum deposit.

    The figures were disclosed during a conference call by Orano, which confirmed that production at Katco rose from just under 2,400 tonnes in 2024 to slightly above 3,700 tonnes in 2025. Katco operates at the South and Tortkuduk sections of the Moinkum uranium field in the Sozak district of Turkestan region.

    Development of the South Tortkuduk project, formalised through an additional agreement in 2022, has enabled the joint venture to extend production by up to 15 years while targeting annual output of around 4,000 tonnes. A new uranium processing plant under the South Tortkuduk project was launched in July 2024, with production from the new section gradually replacing output from older mining areas.

    According to Kazatomprom’s annual reports, Katco produced 2,564 tonnes in 2022, 2,103 tonnes in 2023 and 2,388 tonnes in 2024, underscoring the scale of the 2025 increase. As of the end of 2024, Katco’s uranium reserves stood at 47,900 tonnes. Based on 2025 production levels, reserves may have declined to approximately 44,200 tonnes by year-end. With a subsoil use contract valid until 2039, sustained production at 4,000 tonnes per year would allow remaining reserves to be mined over roughly 11 years.

    Financially, Katco remains one of Orano’s most profitable international uranium assets. In 2025, the Kazakh joint venture generated €628 million in revenue and €324 million in net profit, compared with €479 million and €273 million respectively in 2024.

    Kazatomprom’s share of net income amounted to €159 million, reflecting its 49 percent ownership stake, along with an additional €36 million under a previously agreed 11 percent profit distribution arrangement valid through the end of the contract period. This implies that Orano’s net income from Katco in 2025 totalled approximately €129 million, a significant contribution given the French group’s adjusted net loss of €25 million for the year.

    During the call, Orano’s management also indicated plans to expand exploration activities into Canada, Botswana, Australia and Mongolia, as the company seeks to diversify its uranium portfolio following the loss of operations in Niger, which had previously accounted for a substantial share of its global production.

  • Kazakhmys Launches 2026 Digital Modernisation Programme for Exploration and Geological Operations

    Kazakhmys Launches 2026 Digital Modernisation Programme for Exploration and Geological Operations

    Kazakhmys Corporation has announced a comprehensive modernisation programme for its geological exploration system in 2026, focusing on digital transformation and the development of new geological infrastructure in Zhezkazgan.

    The decision follows an independent audit conducted across five Kazakhmys deposits using Micromine software, which revealed that existing digital tools were not being fully utilised. According to the assessment, geological calculations were frequently performed in two-dimensional formats, limiting the accuracy of modelling and resource forecasting.

    Under the new programme, the company plans to transition to full three-dimensional geological modelling to improve exploration efficiency and decision-making. Around 400 employees will undergo training in Micromine Origin & Beyond, alongside advanced professional courses under the Micromine Advance programme.

    Kazakhmys has already begun developing integrated lithological and hydrological models for its mining operations, incorporating both ore body geometry and complex natural conditions. A centralised geological data storage and analytics platform, Geobank, will also be introduced across company assets to streamline data management and interpretation.

    The digital transformation initiative will be supported by new physical infrastructure in Zhezkazgan, where construction of a geological cluster covering approximately 14,000 square metres is underway. The facility will include a modern core storage centre with capacity of up to 200,000 linear metres, to be operated jointly with Australian laboratory services provider ALS.

    The planned geo-cluster will additionally house geo-mineralogical and geophysical laboratories, training facilities and a museum. The educational component of the project will be developed in cooperation with the Colorado School of Mines, strengthening professional training and technical expertise within Kazakhstan’s mining sector.

  • KazZinc Reports $5.1 Billion Revenue in 2025 as Profit Surges on Higher Metal Prices

    KazZinc Reports $5.1 Billion Revenue in 2025 as Profit Surges on Higher Metal Prices

    Kazakhstan-based KazZinc generated $5.1 billion in revenue in 2025, according to preliminary financial results published by its main shareholder, the Anglo-Swiss commodity group Glencore, which owns nearly 70% of the company. The remaining stake is largely held by state mining holding Tau-Ken Samruk.

    In addition to revenue, the report disclosed key performance indicators for KazZinc in 2025, including adjusted EBITDA of $1.642 billion, depreciation of $666 million and adjusted EBIT of $976 million.

    For comparison, in 2024 KazZinc recorded revenue of $4.2 billion, adjusted EBITDA of $1.185 billion, depreciation of $725 million and adjusted EBIT of $460 million.

    Operating costs in 2025 amounted to $4.333 billion, resulting in net profit of $774 million for the year. Of this, approximately $540 million was attributable to Glencore as the controlling shareholder. Dividends paid to the non-controlling shareholder, primarily Tau-Ken Samruk, reached $242 million. In 2024, KazZinc’s net profit stood at $308 million with costs of $3.9 billion.

    The improved financial performance was largely driven by higher prices for key metals produced by the company, including zinc, gold and copper. In its annual presentation, Glencore reported that adjusted EBITDA for its metals and minerals segment rose 18% year-on-year to $7 billion, supported by stronger zinc margins, gold-related investments at Altyntau Kokshetau and increased copper volumes and prices in the second half of the year.

    Glencore also recorded a non-cash balance sheet capitalisation of $249 million related to the extension of KazZinc’s lease of the Bukhtarma hydropower plant. The group noted expectations of closures of several smaller Kazakh mines.

    According to Interfax-Kazakhstan, Glencore’s net profit in 2025 amounted to $363 million on revenue of $247.54 billion, while its net debt at year-end stood at $11.17 billion.

    Earlier reports indicated that as part of its portfolio restructuring, Glencore may announce in the coming weeks the sale of its 70% stake in KazZinc. Analysts estimate the asset’s value at approximately $5 billion.

  • Coal Self-Ignition at Pavlodar Deposits Triggers Fines and Environmental Scrutiny

    Coal Self-Ignition at Pavlodar Deposits Triggers Fines and Environmental Scrutiny

    Environmental inspectors have identified multiple violations at coal deposits in Kazakhstan’s Pavlodar region after detecting spontaneous coal combustion at four separate sites, leading to excessive atmospheric emissions.

    According to Kazinform, supervisory authorities launched inspections following complaints from local residents about persistent smog. Investigations confirmed air pollution caused by burning coal waste at the Bogatyr, Shygys, Angrensor Energo and Maikuben deposits. Three of the affected sites are located in Ekibastuz, while the Maikuben operation lies in the Bayanaul district.

    Regulators found that the subsoil users had failed to fully comply with the conditions of their environmental emission permits. As a result, the companies were held administratively liable and fined. Bogatyr Komir was ordered to pay 680,000 tenge, Eurasian Energy Corporation’s Shygys mine 889,000 tenge, Angrensor Energo 702,000 tenge, and Maikuben-West 658,000 tenge.

    In addition to the penalties, the coal producers have been instructed to develop and implement technical action plans aimed at containing and eliminating the self-ignition hotspots. The regional environmental department will oversee compliance with the prescribed deadlines.

  • Kazakhstan Emerges as Key Tungsten Supplier Amid Global Shortage

    Kazakhstan Emerges as Key Tungsten Supplier Amid Global Shortage

    A supply deficit in the global tungsten market in 2025, triggered by tighter production controls in China, has pushed the United States and other international investors to seek alternative sources, placing Kazakhstan’s tungsten reserves firmly in the spotlight.

    According to data from Kazakhstan’s Ministry of Industry and Construction cited by LS, the country holds a significant and geographically diverse tungsten resource base. In northern Kazakhstan, four deposits are currently in operation, with combined balance reserves of about 77,100 tonnes of tungsten trioxide. Central Kazakhstan represents the core of the country’s resource potential, hosting 14 deposits, including 10 with balance reserves totaling around 1.69 million tonnes. Major sites such as Karaoba, North Katpar, Verkhne-Kairakty, Akshatau, and Batystau have already been transferred to subsoil users.

    Eastern Kazakhstan accounts for a smaller share, with two deposits holding an estimated 4,000 tonnes of off-balance reserves, while southern Kazakhstan contains more than 230,000 tonnes of balance reserves concentrated at the Bogutinskoye and Karagailyaktas deposits, both of which are in industrial operation.

    Growing international interest has also been driven by joint projects involving foreign capital. US-based Cove Capital, together with Tau-Ken Samruk, is preparing to begin development at the North Katpar and Verkhne-Kairakty deposits, which together hold approximately 410,000 tonnes of tungsten resources under the JORC classification.

    China continues to dominate the global tungsten market, accounting for about 80% of world production. However, export restrictions introduced in February 2025 significantly reduced Chinese tungsten exports by 20% year on year, while imports into China surged by more than 58%. These shifts have reshaped trade flows.

    Data from the Shanghai Metals Market show that Kazakhstan became China’s largest supplier of tungsten concentrates in 2025. Shipments from Kazakhstan reached 6,900 tonnes during the year, representing roughly one-third of China’s total imports. A substantial share of these volumes came from the Bogutinskoye deposit, which was brought into operation in mid-2025.

    As supply constraints persist and demand for tungsten grows in strategic industries, Kazakhstan is increasingly viewed as a critical player in the global tungsten market and a potential counterbalance to China’s dominance.

  • Why Junior Exploration Companies Remain the Weakest Link in Kazakhstan’s Mining Investment Cycle

    Why Junior Exploration Companies Remain the Weakest Link in Kazakhstan’s Mining Investment Cycle

    Kazakhstan’s Subsoil and Subsoil Use Code, introduced in 2018, significantly liberalised access to geological exploration and opened the market to junior mining companies. Since then, exploration investment has tripled to more than $1 billion, attracting international players such as Barrick Gold, Fortescue, Teck, Ivanhoe and First Quantum. However, despite this progress, junior explorers continue to face severe financing constraints that threaten the long-term sustainability of the country’s resource base.

    Junior companies typically operate at the highest-risk stage of the mining cycle, conducting early-stage exploration years before reserves can be confirmed under international standards such as JORC or KAZRC. This risk profile makes them unattractive to banks and cautious investors, while major mining companies usually only engage once resources are already proven. As a result, juniors struggle to raise capital despite being responsible for up to 80–90% of primary mineral discoveries globally.

    Industry experts note that Kazakhstan has the geological potential for world-class discoveries, similar to Mongolia’s Oyu Tolgoi deposit, which was initially discovered by a junior company before attracting a major multinational partner. In Kazakhstan, some successful partnerships have emerged, including foreign majors entering joint ventures with juniors, but these remain the exception rather than the norm.

    Analysts also warn that the rapid increase in exploration licences does not necessarily reflect genuine growth of the junior sector. A portion of licence holders conduct minimal fieldwork and focus on speculative resale of licences, undermining confidence in the junior market and creating unfair competition for companies carrying out real exploration.

    Another major challenge is regulatory uncertainty. Frequent changes in subsoil, environmental and tax legislation increase project risk, particularly at the transition from exploration to mining. Juniors preparing assets for sale or partnership with major companies can see project value eroded if regulatory conditions change materially at later stages.

    Experts argue that state involvement is essential to unlock junior financing. International practice shows that governments often share early-stage exploration risk through grants, co-investment funds, tax incentives or specialised venture exchanges. Canada, Australia, Saudi Arabia and Chile all provide structured public support for early exploration, recognising it as critical infrastructure for future mining development.

    Without targeted financial instruments such as exploration funds, risk-sharing mechanisms or state-backed venture vehicles, Kazakhstan risks underinvesting in early-stage geology. Industry specialists warn that without sustained junior exploration, the country’s mining sector could face a shrinking resource base in the decades ahead, undermining future production, processing and export potential.

  • Chinese investor plans ferrochrome processing project in Kazakhstan’s Aktobe region

    Chinese investor plans ferrochrome processing project in Kazakhstan’s Aktobe region

    Chinese ferrochrome producer Suzhou Hunan New Materials is planning to implement an investment project in Kazakhstan’s Aktobe region focused on the deep processing of chromite ores.

    The initiative was discussed during an official visit to Shanghai by Abzal Abdikarimov, deputy akim of the Aktobe region, who held talks with the company’s management. Following the meeting, the parties signed a memorandum of cooperation aimed at establishing advanced chromite processing facilities in the region.

    The project is designed to be implemented in two stages. The first phase предусматривает construction of a chromite concentrate processing plant with an investment volume of $150 million. At the second stage, the project will expand to include processing of metallic chromium, increasing the depth of value addition.

    Representatives of Suzhou Hunan New Materials said during the talks that the company is ready to move forward with the practical implementation of the project and to continue cooperation with Kazakhstan’s national and regional authorities.

    The Aktobe region hosts the South Kempirsai chromite deposits, an area that ranks second globally in terms of confirmed chromium reserves. Most of the chromite ore mined in the region is currently processed by the Aktobe and Aksu ferroalloy plants operated by Kazchrome.

  • Kazakhstan’s mining majors step up decarbonization with renewables and waste recycling projects

    Kazakhstan’s mining majors step up decarbonization with renewables and waste recycling projects

    In 2025, Kazakhstan’s leading mining and metals companies continued to expand environmental programmes focused on emissions reduction, waste processing and biodiversity protection, while also completing several major renewable energy projects.

    In December, Solidcore Resources announced the completion of a solar power plant at its Varvarinskoye gold mine. The facility has an installed capacity of 22.6 MW and is expected to generate around 28.5 million kWh of electricity annually. The project, which includes more than 36,000 solar panels and a supplementary gas piston power plant to cover periods of low solar output, required investments of about 29 billion tenge. Solidcore estimates that switching Varvarinskoye to renewable energy will cut indirect greenhouse gas emissions by approximately 50%.

    Another major producer, Eurasian Resources Group (ERG), reported in September that all 24 wind turbines had been installed near its Donskoy Mining and Processing Plant. Once operating at full capacity, the wind farm is expected to generate more than 500 million kWh of electricity per year. The project will allow ERG to save over 300,000 tonnes of coal annually and reduce emissions by up to 440,000 tonnes.

    Alongside renewable energy investments, ERG also launched processing of accumulated tailings at the Donskoy plant. Chromium is now being recovered from technogenic mineral raw materials using flotation technology, supporting both waste reduction and resource efficiency.

    Another notable initiative is the gasification of the Qarmet metallurgical plant. In July, the company began pressure testing and commissioning a new gas pipeline. Partial replacement of fuel oil and coke with natural gas is expected to significantly reduce atmospheric emissions from steel production.

    Together, these projects highlight a broader shift by Kazakhstan’s mining and metals sector toward cleaner energy, circular resource use and lower environmental impact.

  • 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.