MINEX Forum

Tag: Kazakhstan

  • SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    Sokolovsko-Sarbayskoye Mining Production Association (SSGPO), part of the Eurasian Resources Group (ERG), has opened a new syndicated credit line worth up to $400 million with other firms under common control, according to its recently published financial report. The agreement was finalised in February 2025 and is set to run until 2029. The document states that the interest rate on the loans, denominated in US dollars and euros, will be a market rate.

    This latest move follows a similar arrangement made in 2024, when SSGPO signed a syndicated credit line agreement with affiliated companies for up to $300 million, with a repayment deadline of the end of 2028. Furthermore, SSGPO acts as a co-guarantor for ERG’s loans, alongside other subsidiaries within the group. As part of the new credit line, SSGPO provided a loan of $6 million to an unnamed company under common control in June 2025.

    SSGPO’s core business is the extraction and processing of iron ore. The company holds a number of iron ore mining contracts in the Kostanay region, which are due to expire in 2033, 2035, and 2040. In addition, SSGPO is currently constructing a hot-briquetted iron plant in Rudny, which is scheduled to commence operations in late 2027. The company’s financial performance for 2024 showed an increase in revenue to 424.1 billion tenge from 389.6 billion tenge in the previous year, although it recorded a loss of 69.3 billion tenge, a slight improvement on the 71.4 billion tenge loss in 2023. The sole owner of SSGPO is ERG Iron Ore Holding B.V., which is part of the broader ERG group. The Eurasian Resources Group itself is co-owned by the Ministry of Finance of the Republic of Kazakhstan, which holds a 40% stake, with the remaining shares divided between the heirs of Alexander Mashkevich and the Ibragimov family, each with 20.7%, and Patokh Shodiev, who holds 18.6%. The Ibragimov family is listed by Forbes as the seventh wealthiest in Kazakhstan, with a net worth of $2.06 billion.

  • Eurasian Resources Group Launches Major Wind Farm in Kazakhstan

    Eurasian Resources Group Launches Major Wind Farm in Kazakhstan

    Eurasian Resources Group (ERG), a global metals and mining company headquartered in Luxembourg, has opened the Khromtau wind farm in Kazakhstan with a capacity of 150 megawatts of green energy. The project is one of the largest renewable energy facilities in Kazakhstan and Central Asia and required an investment of more than US$142 million. The wind farm is located in the Aktobe Region and includes 24 turbines. The facility will generate more than 500 million kilowatt hours of green energy annually. All in all, the facility will help reduce up to 440,000 tonnes of carbon dioxide emissions and save more than 300,000 tonnes of coal each year. The project has been implemented by ERG Capital Projects, a Group subsidiary, with financial support from the Development Bank of Kazakhstan.

    During the opening ceremony of this critical green energy project, Shukhrat Ibragimov, CEO and Chairman of the Board of Directors of ERG, said: “With its Khromtau wind power project, the Group makes a major contribution towards achieving Kazakhstan’s national goal of increasing the share of renewable energy sources. ERG is committed to ESG principles, and the new Khromtau wind power farm is a logical and very ambitious next step while implementing this. ERG’s first wind power project has already become a symbol of our transition to green energy.”

    The ESG Agenda is part of the company’s Strategy. The Group’s medium-term goal is to reduce the carbon footprint of its core products (aluminium, ferroalloys and iron ore pellets) by 30%. To achieve this, ERG is implementing projects with cumulative investments totalling US$300 million. In addition to wind power, these projects include switching the Kacharsky heating centre to gas in the Iron Ore Division, reducing steam consumption and improving the alumina production process in the Aluminium Division, and building a ferroalloy gas recycling power facility at the Aktobe Ferroalloys Plant to convert secondary energy resources into electricity.

  • Kazakhstan Detects $1.9 Million in Subsoil Use Violations Through Digital Monitoring

    Kazakhstan Detects $1.9 Million in Subsoil Use Violations Through Digital Monitoring

    Since January 2025, Kazakhstan has operated a Unified Subsoil Use Platform, through which 2,443 operators have submitted electronic reports. The new digital monitoring tool has enabled regulators to uncover violations of subsoil use legislation.

    As a result, companies received notifications of breaches across 196 contracts and licenses, with total penalties amounting to 910 million tenge (approx. $1.9 million). In addition, 37 contracts were terminated — 30 for geological exploration, five for extraction, and two for combined activities. Authorities also revoked 61 licenses from non-compliant operators.

    The Ministry of Internal Affairs and the National Security Committee have halted illegal mining operations in four regions of the country. In the third quarter of this year, the agencies plan to issue about 350 notifications and conduct 65 on-site inspections.

    By the end of the year, a draft law on digitalization and auctions, along with amendments to allocate 50% of subscription bonuses to state geological exploration, will be submitted to the Parliament of Kazakhstan, Kazinform reports.

  • Kazakhstan and US Forge Strategic Alliance in Rare Earth Exploration

    Kazakhstan and US Forge Strategic Alliance in Rare Earth Exploration

    Kazakhstan’s state mining company, Tau-Ken Samruk, and US-based Cove Capital are set to begin geological exploration at the Akbulak site in the Kostanai Region, targeting the discovery of rare earth elements in a significant international venture.

    “This initiative reflects our commitment to modernising industry and infrastructure while building a research base capable of supporting high-technology sectors,” said a spokesperson for the Samruk Kazyna Sovereign Wealth Fund.

    The exploration forms part of a wider strategic partnership between the firms, focusing on advancing high-potential industries. In line with this, Kazakhstan aims to overhaul its production capabilities, introduce advanced processing technologies, and further strengthen its scientific foundation.

    According to the Ministry of Industry and Construction, rare and rare-earth metals contribute 2.4% of the nation’s metallurgy output. Since 2018, the government has allocated 67 billion tenge (£114 million) to support the industry. Large-scale geological surveys are ongoing, with 25 sites across 100,000 square kilometres and 38 promising mineral deposits identified in 2024 alone.

    Currently, Kazakhstan produces a wide array of strategic metals including beryllium, tantalum, niobium, scandium, titanium, rhenium, and osmium, with by-products such as bismuth, antimony, selenium, and tellurium. Technologies for extracting gallium and indium are also in place. Future economic opportunities are seen particularly in the production and recycling of battery materials, heat-resistant alloys, semiconductor materials, and permanent magnets.

  • Labour Costs Climb in Kazakhstan’s Mining Sector Amid Industry Expansion

    Labour Costs Climb in Kazakhstan’s Mining Sector Amid Industry Expansion

    Kazakhstan’s mining industry is seeing a notable surge in labour costs as companies compete for skilled workers in a tight labour market. Official figures reveal that wages in the sector are outpacing the national average, a trend that is putting upward pressure on operational expenses for mining firms.

    According to data from the Bureau of National Statistics (BNS), the average nominal salary in the mining and quarrying sector reached 888,900 Tenge (approximately $1,650 USD) in the second quarter of 2025. This makes it the second-highest paying industry after the financial sector. This rise is particularly pronounced when compared to the broader economy, with nominal wages in mining increasing by 12.9% in the first half of the year, while the national average grew by 10.7%.

    This overall average, however, is skewed by high salaries in the oil and gas subsector. For example, workers in crude oil and natural gas extraction earn an average nominal salary of 1.4 million Tenge (approximately $2,600 USD). In contrast, those in coal mining and metal ore extraction earn significantly less, at 673,100 Tenge (approximately $1,250 USD) and 698,000 Tenge (approximately $1,290 USD), respectively.

    Mining companies are facing pressure to offer competitive salaries to attract and retain talent, especially in physically demanding and high-risk roles. Vacancies for underground miners on job sites like Enbek.kz and Hh.kz offer salaries ranging from 165,300 to 500,000 Tenge (approximately $300 to $925 USD), with experienced roles like mine foreman and driller commanding salaries between 400,000 and 500,000 Tenge.

    While nominal wages provide a statistical average, they often don’t reflect the reality for most workers. The most common or modal salary is typically much lower, often only 30-50% of the nominal figure. In 2024, the modal salary in the mining sector was 372,600 Tenge (approximately $690 USD), approximately 43% of the nominal average of 866,500 Tenge (approximately $1,600 USD), closely aligning with the current salary offers for entry-level positions.

    Despite the challenges of rising costs, the increase in wages also reflects a growth in purchasing power. Real wages in the mining industry grew by 2.3% in the first half of 2025, significantly higher than the 0.3% growth seen across the wider economy.

  • Astana and Amman to Establish Joint Venture for Uranium Development in Jordan

    Astana and Amman to Establish Joint Venture for Uranium Development in Jordan

    Tuesday, 27 August 2025

    Kazakhstan and Jordan have announced plans to create a joint venture for the development of uranium deposits in Jordan. The agreement was revealed by Nurlan Zhakupov, Chairman of the Board of the “Samruk-Kazyna” Sovereign Wealth Fund, during a press briefing on Wednesday.

    According to Zhakupov, the joint venture will be established between Kazatomprom, Kazakhstan’s national uranium company, and Jordan’s national uranium company. The agreement, signed during the visit of Jordan’s King Abdullah II, is a legally binding document that outlines the creation of the joint venture by the end of 2026.

    Scientific and Industrial Collaboration

    Under the agreement, both parties will conduct scientific research and pilot industrial work to assess the extractability and enrichability of uranium in Jordan. If the results are positive, the joint venture will be finalized by the end of 2026, with Kazatomprom holding a 70% stake and the Jordanian company owning the remaining 30%.

    Kazatomprom, the national operator for uranium exports and related products in Kazakhstan, operates under the management of the “Samruk-Kazyna” fund. The company is responsible for the export of uranium, rare metals, nuclear fuel for power plants, and specialized equipment.

    Previous Agreements and Future Prospects

    In February 2025, Kazatomprom and the Jordan Uranium Mining Company (JUMCO) signed a memorandum of cooperation to jointly study projects related to uranium exploration and mining in Jordan. The decision to collaborate was made during the fifth meeting of the Kazakh-Jordanian intergovernmental commission at the end of 2024.

    The establishment of this joint venture underscores the strategic cooperation between Kazakhstan and Jordan in the nuclear energy sector, with both countries aiming to leverage their resources for mutual economic benefit.

  • Kazakhstan’s Mining Industry Grows 8.5% in First Seven Months of 2025

    Kazakhstan’s Mining Industry Grows 8.5% in First Seven Months of 2025

    Kazakhstan’s mining industry recorded an 8.5% increase in output in January–July 2025, according to figures presented at a government press conference on the country’s socio-economic performance.

    The official website of the Prime Minister noted strong results from companies extracting hydrocarbon raw materials: oil production rose by 11.9%, while gas output increased by 14.3%. Coal enterprises also posted gains, with fuel production up 10.6% despite ongoing logistical challenges.

    The manufacturing sector also saw positive momentum, expanding by 6.1%. Minister of National Economy Serik Zhumangarin highlighted ongoing efforts to diversify the economy and deepen raw material processing. Over the reporting period, machinery production rose by 14%, oil refining by 8.6%, and chemical manufacturing by 6%.

    Investments in fixed capital increased by 16.1% overall, with particularly strong growth of 38.7% in manufacturing.

  • Kazakhstan Eyes Industrial Revolution Through Waste Mineral Reprocessing

    Kazakhstan Eyes Industrial Revolution Through Waste Mineral Reprocessing

    Kazakhstan is sitting on more than 55 billion tonnes of technogenic mineral formations (TMFs) — the result of decades of intensive mining and mineral processing. But while this massive reserve of industrial waste is growing by 300–700 million tonnes annually, only 11% is currently being recycled, far behind the 70–80% reprocessing rate in developed countries.

    TMFs — tailings, slags, ashes, and waste rock — often contain valuable residual metals such as copper, zinc, and rare earth elements. As traditional ore reserves diminish, these “wastes” present a significant opportunity to recover critical resources and reduce environmental harm.

    President Kassym-Jomart Tokayev has highlighted the importance of moving from accumulation to utilization of TMFs. Reprocessing could not only ease ecological pressure, but also fuel industrialization, support single-industry towns, create jobs, and help diversify the national economy.

    Experts warn, however, that current legislation lacks clarity. TMFs are simultaneously classified as both waste and subsoil resources, meaning they are taxed like raw mineral output but lack a clear legal framework for extraction and reuse. Calls are growing for reforms to reclassify certain TMFs as secondary resources under Kazakhstan’s Environmental Code.

    The Ministry of Industry and Construction has begun an inventory of TMFs and is working on a roadmap to support rare and rare earth metal sectors. Officials are considering simplified licenses for TMF processing and legal changes to allow removal of TMFs from residential areas.

    At the same time, industrial players are already investing in practical solutions. Qarmet is advancing 10 reprocessing projects worth over $137 million, while ERG Recycling processes over 1 million tonnes of TMFs annually, developing new materials for construction and metallurgy.

    Experts emphasize that unlocking the full potential of TMFs requires tax incentives, green investment, and robust science-business-government coordination. Kazakhstan’s new Tax Code includes a reduced mineral extraction tax rate (0.1 coefficient) for materials recovered from TMFs, signaling progress.

    Ultimately, stakeholders agree that TMF reprocessing must become core industrial policy. “It’s not just a technological issue — it’s a matter of national importance,” said Gulnara Bizhanova of Atameken. With soaring global demand for metals and a drive toward green energy, Kazakhstan could evolve from a raw material exporter into a producer of high-tech, value-added goods.

  • Kazakhstan Lifts Export Duty on Gallium to Boost Strategic Metal Production

    Kazakhstan Lifts Export Duty on Gallium to Boost Strategic Metal Production

    Kazakhstan’s government has officially lifted a 10% export duty on gallium, a strategic move aimed at boosting domestic production and strengthening the country’s role in the global supply chain for high-tech metals. The decision was confirmed by the Prime Minister’s press service following a meeting of the interdepartmental commission on foreign trade policy, chaired by Deputy Prime Minister Serik Zhumangarin.

    Officials highlighted that although Kazakhstan has not recently produced gallium, the global demand remains steady due to its essential role in electronics, semiconductors, and defense industries. Eurasian Resources Group (ERG) plans to capitalize on this opportunity, with exports to Europe expected to begin in 2026.

    ERG’s production will be sourced from red mud waste at the Pavlodar Aluminum Plant. The company initially targets 12 tons of gallium per year, with plans to scale up to 15 tons annually — positioning ERG as the world’s second-largest gallium producer behind China.

    In parallel, Kazakhstan has imposed a temporary export ban on non-ferrous metal blanks and ingots, including raw copper, aluminum billets, and lead ingots, effective until December 31, 2025. This measure is designed to support domestic processing and ensure strategic raw materials remain within the country.

    Gallium prices currently hover around $237 per kilogram, meaning 12 tons of exports could generate roughly $2.8 million. The government believes the policy shift will enhance Kazakhstan’s economic diversification and export revenues, while supporting critical minerals cooperation with partners such as the United States.

  • Kazakhstan to Become World’s Second-Largest Gallium Producer as ERG Commits $20M Investment

    Kazakhstan to Become World’s Second-Largest Gallium Producer as ERG Commits $20M Investment

    Eurasian Resources Group (ERG) announced plans to invest $20 million into facilities for producing gallium in Kazakhstan, marking the country’s entry into the global gallium supply chain. Starting in 2026, ERG will begin extracting the critical mineral from bauxite ore processed for alumina, with initial production targets set at up to 15 metric tons per year.

    Gallium, essential in the production of semiconductors, radar systems, and missile guidance technologies, is listed as a critical mineral by both the United States and the European Union. ERG’s initiative comes at a time of growing concern over China’s dominance in the gallium market, which currently accounts for the vast majority of the world’s 760-ton annual output, according to the US Geological Survey.

    “ERG plans to become a significant player in the global market for gallium, starting production in 2026 to supply OECD countries,” said ERG CEO Shukhrat Ibragimov. The move could make Kazakhstan the world’s second-largest gallium producer, directly challenging China’s supply monopoly.

    China imposed a ban on gallium exports to the U.S. in December 2024, following a broader crackdown by Washington on Beijing’s chip industry. This followed a series of tighter export controls and licensing regimes applied to gallium, germanium, and antimony over the prior 18 months, raising alarm bells among Western nations dependent on Chinese supply.

    ERG’s investment also reflects Kazakhstan’s rising profile as a key critical mineral supplier. With its bauxite-processing infrastructure already in place, the country is well positioned to enter strategic supply chains for electronics, defence, and advanced manufacturing across Europe and North America.