MINEX Forum

Tag: Kazakhstan

  • Kazakhstan Discusses Digitalization of Subsoil Use at Round Table Meeting

    Kazakhstan Discusses Digitalization of Subsoil Use at Round Table Meeting

    A round table was held in Astana at Maqsut Narikbayev University under the chairmanship of the Minister of Industry and Construction of Kazakhstan, Kanat Sharlapaev. The event brought together representatives of subsoil user companies to discuss key issues in the fields of geology and subsoil use.

    The Minister emphasized that one of the ministry’s priorities is to enhance geological exploration across Kazakhstan to replenish the country’s mineral resource base. He also reviewed the past year’s results and outlined plans for the current period.

    Deputy Minister Zhannat Dubirova presented projects aimed at digitalizing the sector, including the Unified Subsoil Use Platform (minerals.e-qazyna.kz). According to her, since its launch, the platform has processed 506 applications and provides users with open access to all geological data, including 60,000 reports.

    The platform’s interactive map enables subsoil users to analyze infrastructure, geological, and geophysical data for specific areas, as well as submit auction applications. Additionally, by April, an electronic system for monitoring compliance with license and contract obligations is set to be introduced.

    Round table participants also discussed the digitalization of primary geological reports and the need to integrate the platform into company operations.

  • Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    The beginning of 2025 proved to be successful for Kazakhstan’s mining enterprises: in January, 3.42 million tonnes of gold-bearing ore were extracted, marking a 14.1% increase compared to the same period last year, according to a report by the Bureau of National Statistics.

    Gold concentrate production surged by 46.4% to 36,000 tonnes. However, due to the declining gold content in ores at major deposits, gold extraction showed a negative trend. As a result, companies produced 8.38 tonnes of unrefined and semi-refined gold, 16% less than in January 2024. Refineries produced 3.4 tonnes of gold, reflecting a 32.8% decline year-on-year.

    The situation is even more challenging for silver producers. The output of unrefined and semi-refined silver amounted to 32.55 tonnes, while refined silver production totaled 31.63 tonnes, both figures showing a 50% drop compared to the previous year.

    Meanwhile, Kazakhstan’s international reserves showed positive dynamics for the first time since September 2024. According to Zakon.kz, the growth was driven by an increase in net foreign exchange reserves, reaching $45 billion.

  • Kazatomprom Expands Global Presence with Swiss and Jordanian Partnerships

    Kazatomprom Expands Global Presence with Swiss and Jordanian Partnerships

    Kazakhstan’s national atomic company is strengthening its international partnerships by signing new agreements with Swiss and Jordanian enterprises. These contracts will allow Kazatomprom to expand its global market presence, according to official reports.

    The first agreement was signed with Axpo Power AG and Kernkraftwerk Leibstadt AG, a nuclear power plant in Switzerland. Under this deal, Kazatomprom will supply uranium to Western Europe’s nuclear reactors. Additionally, another Swiss nuclear power plant will start purchasing Kazakh uranium fuel.

    The second contract was signed with JUMCO, a Jordanian uranium mining company. The two sides plan to conduct joint geological exploration in Jordan, leveraging Kazakhstan’s expertise as a global uranium industry leader.

    Beyond exploration, the partners may collaborate on metal extraction, resource assessment, and optimizing the in-situ leaching technology. JUMCO emphasizes the need to prioritize environmental protection and industrial safety in their operations.

    Earlier this year, Kazatomprom expanded its exploration portfolio within Kazakhstan, securing a new license for a uranium deposit at the Inkai site.

  • Fincraft Group Pivots to Green Energy and Critical Minerals in Kazakhstan

    Fincraft Group Pivots to Green Energy and Critical Minerals in Kazakhstan

    As the world transitions to cleaner energy sources, Kazakhstan is emerging as a key player in the global energy market. Fincraft Group’s President, Kenges Rakishev, joins Proactive to discuss the country’s promising region for energy and resource investments.

    Kazakhstan, strategically located between China, Europe, and Russia, boasts a rich hydrocarbon industry, but is also emerging as a significant supplier of critical minerals essential for the energy transition. The country is investing in the renewable sector, particularly wind and solar power, to complement its oil and gas sector and strengthen long-term energy security.

    Diversified Investments Shape the Local Energy Sector

    Fincraft’s strategic approach and diversified investments have helped shape the local energy sector. The company balances traditional energy, oil, and gas with next-generation resources like nickel, cobalt, and renewable energy, ensuring long-term resilience. Fincraft’s investments in infrastructure and technology to reduce emissions and increase efficiency are also key to Kazakhstan’s success.

    Investments and Strategies

    Rakishev highlights the company’s investments in Equus Petroleum and Tethys Petroleum as part of its energy transition strategy. Focusing on cleaner extraction and refining technology is essential to meet the growing global demand for locally produced carbon-hydrocarbon. Gas is a significant component of Fincraft’s strategy, with a major project under way to construct and finish a gas plant.

    The company has divested from ARK Petroleum and Nomad Oil and redirected capital to projects that align with global trends in critical minerals, low-carbon energy, and sustainable extraction.

    Global Resources Portfolio and Energy Security

    Fincraft’s resource portfolio includes lithium, nickel, and cobalt, essential for the renewable energy sector. The company plans to create a holding for oil and gas as well as resources like lithium, nickel, and cobalt. The development of Beineu Petroleum contributes to boosting both economic growth and energy security in Kazakhstan by securing domestic oil and gas supply while integrating with new energy infrastructure.

    Positioning Kazakhstan for Success

    Kazakhstan’s partnership with major players like China and the US will enable it to remain competitive and secure in the energy market. The country’s unique position allows it to bridge east and west, while maintaining energy independence. By investing in critical minerals and renewables, Kazakhstan is positioning itself as a future leader in the green energy supply chain.

    Future Opportunities and Trends

    As Kazakhstan embarks on a new step in the energy transition, carbon capture and low emission oil production will become priorities. The country will also focus on strengthening its pipeline energy export network to Europe and China as demand for stable non-Russia energy sources increases. Growing investment in critical minerals, rare earth materials, and grid storage will drive Kazakhstan’s development as a key player in the global shift towards electrification.

  • Hungary’s MOL Expands Oil and Gas Operations in Kazakhstan, Eyes Broader Energy Partnership

    Hungary’s MOL Expands Oil and Gas Operations in Kazakhstan, Eyes Broader Energy Partnership

    Hungarian energy company MOL has secured approval to expand its oil and gas extraction operations in western Kazakhstan, following a new agreement with the Kazakh government. To date, MOL has invested 80 billion forints in the region, producing 300 million cubic meters of gas from a field where it operates five wells. The agreement supports MOL’s participation in developing additional oil and gas fields, leveraging its advanced extraction technologies to tackle challenging reserves.

    Hungarian Foreign Minister Péter Szijjártó announced the deal at a press conference, highlighting the emergence of a broader Kazakh-Chinese-Hungarian strategic partnership. This collaboration could enable MOL to participate in the development of a large, technologically complex field, further boosting energy production.

    The partnership also opens doors for cooperation in nuclear energy. Szijjártó revealed that dry cooling technology, developed by Hungarian company MVM, is being considered for cooling future nuclear power plants in Kazakhstan. This follows a recent referendum in Kazakhstan approving the construction of such facilities.

    In addition, Hungarian firm Globalia has been approved to build solar power plants in several regions of Kazakhstan. Key initiatives under the partnership include the construction of a multimodal cargo terminal in Budapest, increased supplies of Kazakh oil to Hungary, and the transport of uranium and critical minerals.

    To support these projects, a joint investment fund will be established, strengthening energy and infrastructure ties between the two nations.

  • China’s East Hope Group to Invest $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

    China’s East Hope Group to Invest $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

    China’s East Hope Group (EHG) has announced plans to build a vertically integrated non-ferrous metals production facility in Kazakhstan. The project, which includes an industrial park, a mining and processing plant, an electrolysis plant, and a power plant, is expected to attract over $12 billionin investment. The announcement was made during a meeting on February 17 between Kazakh First Deputy Prime Minister Roman Sklyar and EHG’s General Director Changjun Meng.

    According to the Prime Minister’s press service, the initiative will create approximately 10,000 jobs and focus on export-oriented production. EHG, which has previously developed a similar 20-square-kilometer project in China, discussed plans to finalize an investment agreement with Kazakh officials.

    On February 18, EHG signed an agreement to implement the project, which will establish new production facilities in two regions of Kazakhstan. The project will incorporate advanced metallurgical technologies, boost exports to international markets such as the European Union, Central Asia, and China, and include the construction of new electrical capacities. Both parties also agreed to finalize an investment agreement outlining specific cooperation terms, government support measures, and mutual obligations.

    EHG, a global leader in non-ferrous metals, semiconductor technologies, and industrial innovations, is known for its investments in low-carbon industrial complexes and international projects.

  • Glencore Considers Selling Its Assets in Kazakhstan

    Glencore Considers Selling Its Assets in Kazakhstan

    Glencore, the Swiss multinational with a 70% stake in Kazakhstan’s Kazzinc, is again exploring options to sell its assets in the country, according to Bizmedia.kz.

    The Financial Times reported that Glencore has held informal talks with potential buyers in recent weeks regarding the future of its assets in Kazakhstan.

    This news comes after a series of reports in June 2024 by Bloomberg that Glencore was planning to sell its stake in Kazzinc to Chinese investors, as well as considering the sale of the Vasilkovskoye gold mine, which is operated by Kazzinc. However, in July 2024, Bloomberg reported that the company had abandoned the deal.

    It remains to be seen whether Glencore will be able to reach an agreement this time. The company has not commented publicly on the reports.

    If Glencore does sell its assets in Kazakhstan, it would be a major shake-up for the country’s mining industry. Kazzinc is one of the largest zinc producers in the world, and the Vasilkovskoye gold mine is a significant gold producer. A sale of these assets would likely lead to significant changes in the ownership and operation of these mines.

    Glencore has been under pressure from investors to streamline its operations and focus on its core business. The sale of its assets in Kazakhstan would be in line with this strategy.

  • Kazakhstan Mining Sector Seeks New Financing Solutions Amidst Global Energy Transition

    Kazakhstan Mining Sector Seeks New Financing Solutions Amidst Global Energy Transition

    Ainur Kapparova, Executive Director Business Relations, AIFC (Astana International Financial Centre) a financial expert with 18 years of experience at international companies such as HSBC, State Street Bank, and McKinsey & Company, shares insights on financing opportunities for Kazakhstan’s mining sector. Having worked in the US, Japan, and the UK, Ms Kapparova now focuses on financing solutions for the mining industry in Kazakhstan.

    A New Phase for Mining Amid Global Energy Transition

    “The Kazakhstan mining sector is entering a new phase of development amid the global energy transition,” states Kapparova. “In this context, access to efficient financing instruments is becoming a key factor.”

    Working with leading global financial players, Kapparova and her colleague Temirlan Mukhanbetzhanov have conducted an in-depth analysis of available financing mechanisms at every stage of a mining project’s lifecycle.

    “We’ve identified solutions for financing early exploration stages, streaming mechanisms that allow capital attraction without diluting shareholder stake or creating debt burden, as well as instruments for junior companies to access IPOs in Kazakhstan and abroad,” explains Kapparova.

    Early-Stage Exploration Financing

    When a project is at its earliest stage—with only a land plot and a few test wells—significant investments are needed to develop the deposit to the level of confirmed reserves and obtain an internationally recognized JORC report or equivalent.

    “This is the riskiest phase, so private investment and government support play crucial roles,” notes Kapparova. “Currently, four private companies in Kazakhstan are planning to launch specialized funds for financing such projects.”

    According to Kapparova, the Astana International Financial Centre (AIFC) offers the most convenient platform for structuring these funds, allowing for flexible LP/GP models adapted for the mining sector. Private junior companies, including foreign players, are also active in the country. Some attract financing from global mining companies, but this requires either preliminary confirmation of reserves or an excellent international reputation.

    Financial Solutions for Companies with Confirmed Reserves

    For companies that have already invested in deposit studies and can obtain a JORC report or equivalent, more financing options become available.

    “One such instrument is an IPO on the Astana International Exchange (AIX), which operates a special listing program for juniors,” Kapparova explains. “Additionally, Kazakhstani companies can access foreign exchanges such as the Toronto Stock Exchange (TSX) through SPACs.”

    Kapparova reveals that discussions with several SPACs trading on the TSX have confirmed interest in quality Kazakhstani projects. The Toronto Stock Exchange and its venture platform (TSX Venture Exchange) are leading global venues for capital raising in the mining industry, providing 36% of global equity capital attracted in the mineral extraction sector from 2019 to 2023.

    Financial Instruments for Pre-Feasibility, Feasibility, and Production Stages

    “At the pre-feasibility, feasibility, and production stages, streaming and royalty instruments become available,” says Kapparova. “These allow financing in exchange for a share of future metal supplies or revenue, without diluting equity or creating debt burden before production begins.”

    While this mechanism is currently used on a limited basis in Kazakhstan, Kapparova believes it could become widespread given its flexibility and adaptability to specific projects. Traditional capital raising methods—equity and debt financing—also remain available, with growing interest from both local and foreign investors.

    Comprehensive Approach to Mining Project Financing

    Kapparova emphasises that financing mining projects requires a comprehensive approach involving government, private, and international investments.

    “We’ve identified effective instruments for each stage—from exploration to extraction and processing,” she concludes. “Kazakhstan’s mining sector has enormous growth potential, and the application of modern financial solutions will help companies minimize risks and achieve sustainable development.”

  • Ivanhoe Mines and Pallas Resources Launch Major Copper Exploration in Kazakhstan

    Ivanhoe Mines and Pallas Resources Launch Major Copper Exploration in Kazakhstan

    Canadian mining company Ivanhoe Mines and UK-based Pallas Resources have announced a joint venture for geological exploration in the Chu-Sarysu Copper Basin in Kazakhstan, according to Interfax-Kazakhstan.

    The Chu-Sarysu Basin is the third-largest sedimentary-hosted copper basin in the world. Experts predict that this project could lead to one of the biggest copper discoveries in Central Asia in recent decades.

    The companies have secured the largest exploration license package in Kazakhstan, covering 16,000 square kilometers—a scale comparable to Ivanhoe Mines’ past exploration projects in Mongolia and the Democratic Republic of Congo.

    According to Robert Friedland, founder of Ivanhoe Mines, Kazakhstan has the potential to become a global hub for copper production. The U.S. Geological Survey estimates that the Chu-Sarysu Basin holds up to 25 million tons of copper resources.

    While the exact start date for exploration has not been disclosed, the companies plan to invest $18.7 million in the first two years. The project will utilize advanced airborne geophysical technologies and digital data analysis, elevating Kazakhstan’s geological exploration to a new level.

  • Kazchrome Implements Advanced Ore Analysis System

    Kazchrome Implements Advanced Ore Analysis System

    Kazchrome, a subsidiary of ERG, has installed a state-of-the-art system for real-time elemental analysis at its Donskoy Mining and Processing Plant. This innovation marks the first of its kind in Kazakhstan’s mining and metallurgical industry, enabling instantaneous quality checks of the extracted ore. Traditionally, determining the elemental composition of raw materials on conveyor belts required taking samples and conducting chemical analysis, a process that took several hours. At Donskoy MPP, this process has been fully automated. Last year, the plant’s Crushing and Processing Plant No. 1 installed a “Sample Tower” system, eliminating the need for manual sampling. This has reduced the need for specialists to carry heavy samples and increased conveyor productivity by removing the need for frequent stops. The newly installed Geoscan-M system further simplifies raw material processing, providing real-time analysis of ore composition and moisture content directly on the conveyor belt. “The system is fully automated and all data is immediately transferred to the enterprise’s information system. Technologists, miners, and other specialists can instantly see the chromium content in the ore and adjust the enrichment processes accordingly. Besides minimizing technological errors, the system also enhances inventory accuracy,” said Project Manager Alexey Ganyushkin. The new analysis system can determine the content of five chemical elements and moisture in the ore (chromium, iron, calcium, silicon, and aluminum) in real-time, with a measurement error of no more than 1%. The analyzer can process up to 1,200 tons of ore per hour at conveyor belt speeds of up to 2 meters per second.