MINEX Forum

Tag: Kazakhstan

  • Scythian Mining Group Advances London Stock Listing Plans

    Scythian Mining Group Advances London Stock Listing Plans

    Scythian Mining Group Ltd has reaffirmed its commitment to pursuing a listing on the London Stock Exchange’s AIM market. Despite facing challenges in 2023-2024, the mining company is moving forward with its plans to go public. Previously, the company struggled with a lack of funds, which hindered its progress on its flagship gold project in Kazakhstan. As a result, drilling operations planned for the year did not take place, as the expected funding from Canadian investors failed to materialise. The company had initially announced its intention to list on the London Stock Exchange’s AIM market in late 2023. Following this announcement, updates were scarce until now. Scythian Mining has now appointed London-based brokerage firm, Tavira Securities, to assist in planning a pre-IPO fundraising of up to $10 million. This staged funding will cover drilling, exploration, and other costs before the Initial Public Offering (IPO). The company remains optimistic about its chances of going public on the London Stock Exchange’s AIM market.

    In late 2023, Scythian discovered a significant copper-gold (Cu-Au) porphyry system in Kazakhstan. Subsequently, Scythian negotiated a 50/50 joint venture with the US-based company IG Global. The joint venture has applied for two new exploration licenses in the region. Under the terms of the agreement, IG Global will finance and conduct exploration activities for the first two years. This arrangement allows Scythian to concentrate on exploring and developing the Kokkus project and preparing for its IPO. To manage its interest in the project, Scythian has established a new wholly-owned subsidiary, Scythian Copper Ltd.

  • Kazakhstan’s Investment Strategy Amid Geopolitical Shifts: Challenges and Opportunities

    Kazakhstan’s Investment Strategy Amid Geopolitical Shifts: Challenges and Opportunities

    Amid the ongoing war in Ukraine and geopolitical tensions, Kazakhstan is positioning itself to attract $150 billion in foreign direct investment (FDI) by 2029. The conflict has provided Central Asian nations, including Kazakhstan, opportunities to strengthen economic ties with the West. In 2022-2023, the Netherlands emerged as the leading investor, contributing over $12 billion to Kazakhstan’s economy, followed by the US and Switzerland.

    However, despite its ambitious goals, Kazakhstan faces challenges. In 2023, FDI inflows dropped by 32.3%, reflecting a lack of comprehensive development strategies for industries and regions. To counteract this, the government has introduced initiatives inspired by British and UAE models, notably through the Astana International Financial Center, which is modeled after Dubai’s financial hub. These measures aim to attract global investors by offering tax breaks, reduced bureaucracy, and a regulatory framework based on British Common Law principles.

    Kazakhstan is also focusing on long-term agreements with foreign companies, particularly in its oil and gas sector. President Kassym-Jomart Tokayev acknowledged that renegotiating production-sharing agreements on favorable terms is essential for securing large investments. However, some companies view these moves as signs of “resource nationalism.”

    Further strategies include initiatives like the Digital Nomad visa to attract remote workers and businesses relocating from Russia. Kazakhstan has already attracted 41 foreign companies worth over $1.5 billion and is in talks with Chinese firms such as Xiaomi and TCL to move production facilities.

    The geopolitical realignment caused by sanctions on Russia has also funneled trade through Central Asia, benefiting Kazakhstan’s economy. The government is investing in developing the Trans-Caspian International Transport Route to strengthen its trade links with Europe and Asia.

    Despite inflation and economic stability challenges, Kazakhstan’s prospects remain strong. The country is now ranked among the world’s top 35 most competitive nations, with the Asian Development Bank projecting 5.1% economic growth by 2025. Kazakhstan’s strategic location, trade agreements, and ongoing reforms position it well to become a regional economic leader.

  • Kazakh Scientists Develop Innovative Technology for Processing Polymetallic Ore

    Kazakh Scientists Develop Innovative Technology for Processing Polymetallic Ore

    Scientists from the Kazmekhanobr Research and Production Enterprise, a branch of the National Center for Complex Processing of Mineral Raw Materials of Kazakhstan, have developed an innovative technology for processing polymetallic ore from the Chinasyl-Sai deposit. The breakthrough was reported by El.kz, citing the Ministry of Industry and Construction of Kazakhstan.

    The primary challenge in processing such ores lies in their complex composition. The Chinasyl-Sai deposit contains gold, silver, lead, zinc, and pyrite, requiring a method to efficiently extract valuable components while minimizing costs.

    A key achievement of the new technology is the elimination of cyanide reagents, making the process safer and more environmentally friendly. The researchers have perfected a gravity-flotation method that allows ore enrichment without additional grinding of the industrial product.

    The innovative process yields three types of concentrates:

    • A gravity concentrate enriched with gold and silver;
    • A lead flotation concentrate;
    • A zinc flotation concentrate.

    All these products meet the requirements for further production of valuable metals. Moreover, the technology is adaptable for processing similar ores from other deposits, opening new opportunities for the development of Kazakhstan’s mining industry.

  • Arras Minerals Announces Encouraging Drilling Results at Elemes Project in Kazakhstan

    Arras Minerals Announces Encouraging Drilling Results at Elemes Project in Kazakhstan

    Arras Minerals Corp. (TSX-V: ARK, OTCQB: ARRKF) has announced the results from the final five drill holes of its initial Phase 1 program at the Berezski target on its Elemes project in Northeast Kazakhstan. The results confirm the presence of significant copper-gold porphyry and epithermal-style mineralization, further bolstering the project’s potential.

    The Elemes project is strategically located in the Bozshakol-Chingiz Magmatic arc, near Kaz Minerals’ Bozshakol Copper Mine, a major operation producing substantial amounts of copper and gold. Arras’s Phase 1 drilling program targeted geophysical and geochemical anomalies identified through extensive exploration work, including airborne magnetic surveys, ground IP surveys, and soil sampling.

    Key Highlights from the Final Drill Holes:

    • EL24005: A remarkable 547m intercept grading 0.70% copper equivalent (CuEq), including higher-grade sections up to 1.15% CuEq, starting near surface. The hole ended in strong mineralization, suggesting further potential at depth.
    • EL24006: 56m grading 0.68% CuEq, including a 20m section at 1.02% CuEq, indicating another porphyry center approximately 1km west of EL24005.
    • EL24010 & EL24011: While these holes returned lower grades, they provided valuable geological information, indicating the periphery of a porphyry system and helping guide future exploration.

    CEO’s Perspective:

    Tim Barry, CEO of Arras Minerals, expressed enthusiasm about the Phase 1 results. He highlighted the strong indications of another porphyry center at Berezski, particularly the high-grade intercepts in EL24005 and the discovery of porphyry-style mineralization in EL24006. Barry emphasized the significant exploration potential remaining at Berezski, with approximately 90% of the target still untested.

    Phase 2 Exploration Plans:

    Arras is already planning a Phase 2 program, subject to financing, which will include:

    • Ground magnetic surveys at Berezski and Aimandai.
    • Detailed analysis of soil samples.
    • Approximately 20,000m of drilling at Berezski.
    • Initial IP surveys and approximately 5,000m of drilling at the Aimandai target.

    President’s Commentary:

    Darren Klinck, President of Arras Minerals, echoed Barry’s excitement and highlighted the team’s successful exploration efforts. He noted the two high-priority target areas at Berezski and the potential for new discoveries within the large, prospective land package. Klinck also mentioned the planned exploration at the Aimandai target, a 14km copper-in-soil anomaly. He added that Arras is well positioned to have multiple drill rigs operating across its license package in the coming year.

  • Kazakhstan’s Unified Subsoil Use Platform Processes 506 Applications

    Kazakhstan’s Unified Subsoil Use Platform Processes 506 Applications

    Since the launch of minerals.e-qazyna.kz, authorities have processed 506 applications from subsoil users for geological exploration, mining, and other state services. This was announced during an expanded meeting of the Ministry of Industry and Construction of Kazakhstan.

    According to Vice Minister of Industry Zhanat Dubirova, by 2025, the Unified Subsoil Use Platform (USP) will offer a seamless process, from application submission to auction participation and license issuance for exploration or extraction.

    The official noted that the full launch of the USP in early 2024 was the result of extensive work since July 2024. Developers analyzed international geological portals from Canada, the UK, Finland, and the UAE, redesigned business processes, and restructured the platform’s architecture.

    Currently, the website provides 22 state services in geology and subsoil use. To facilitate transactions, an “electronic wallet” service has been introduced, allowing companies to pay subscription bonuses directly on the platform.

    The National Geological Service has digitized and uploaded approximately 56,200 secondary geological reports. Additionally, the monitoring of contractual obligations for solid mineral deposits and the submission of annual reports by exploration and mining companies has been automated.

    In January 2024, the USP auctioned 26 subsoil plots, with investors acquiring 21, generating 20.69 billion tenge in revenue.

  • China Imports Up to 70% of Critical Metals from Central Asia

    China Imports Up to 70% of Critical Metals from Central Asia

    Despite the lack of official data on the export of rare earth metals by Central Asian countries, an analysis of ore, slag, and ash exports reveals interesting trends. These exports often include critical resources highly sought after by leading global powers, particularly metals such as molybdenum, titanium, and vanadium.

    According to Trademap.org data from 2019 to 2023, Central Asian countries exported a wide range of ores and concentrates, including copper, iron, precious metals, zinc, lead, molybdenum, chromium, and niche metals such as niobium and tantalum.

    In recent years, the market has also seen the introduction of products such as tin, tungsten, and titanium ores. For example, copper ore exports showed stable growth—from approximately $1.17 million in 2019 to around $3.15 million in 2023. Iron ore peaked at $1.6 million in 2021 before experiencing a decline in export volumes in subsequent years.

    One notable trend is the significant increase in molybdenum ore exports, which surged from about $4 million in 2019 to approximately $144 million in 2023. This is a clear reflection of increased global demand and investment.

    An analysis of trade with the European Union under the category “26 Ores, Slags, and Ash” shows that molybdenum stands out: its exports increased from around $11 million in 2021 to nearly $60 million in 2023. In this segment, Kazakhstan holds a dominant position, providing nearly the entire cumulative export value, while contributions from other Central Asian countries remain significantly lower.

    Central Asian countries’ export portfolios reveal a trend towards transitioning from traditional raw materials such as copper and iron to more valuable niche ores, especially molybdenum. This trend is evident both in the global market and in trade with the European Union, where Kazakhstan acts as a key supplier.

    Will the European Union be able to position itself as a key importer of critical metals from Central Asia? The future will tell.

  • Kazzinc Raises Employee Salaries Across All Divisions

    Kazzinc Raises Employee Salaries Across All Divisions

    Kazakhstan’s largest mining and metallurgical company Kazzinc has announced salary increases for its employees. After discussions with shareholders, the company’s management approved an average 8.5% wage hike starting from January 2025.

    This follows two salary increases in 2024 – in March and October – which totaled approximately 10%.

    “It’s no secret that inflation doesn’t stand still and the cost of essential goods is rising. The salary level directly affects the well-being of Kazzinc employees. It’s extremely important for us to maintain it, taking into account market changes,” said Zhanat Zhanbotin, CEO of Kazzinc. “We approached shareholders with a proposal to consider raising Kazzinc employees’ wages at the beginning of this year and they supported us. January salaries have been increased by an average of 8.5%.”

    The raise applies to workers across all divisions of Kazzinc, which is the largest company in East Kazakhstan.

    This move aims to help employees keep pace with inflation and rising costs of living. It demonstrates Kazzinc’s commitment to supporting its workforce’s financial well-being amid changing economic conditions.

  • 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.

  • Unified Subsoil Use Platform Launched in Kazakhstan

    Unified Subsoil Use Platform Launched in Kazakhstan

    Kazakhstan has launched a unified platform for subsoil use, a digital system streamlining the process from applying for exploration or mining to auctioning and licensing. Kazakh Vice-Minister of Industry and Development Zhannat Dubiyrova announced the launch during a meeting of the Ministry of Industry and Infrastructure Development.

    As of today, 22 state services in the sphere of geology and subsoil use are available on the platform. The system allows potential users to pay their subscription fees directly through the platform.

    The interactive map feature on the platform provides a comprehensive picture of the requested area, from infrastructure to geological and geophysical reports.

    Moreover, the platform automates the control process for licenses and contracts related to solid minerals, increasing transparency and efficiency. Previously, this control was conducted manually for 3,000 licenses and contracts.

    The system has also automated the annual reports of subsoil users, eliminating the need for paperwork.

    The Kazakh Government’s National Geological Service has digitized over 56,000 open secondary geological reports to populate the platform.

    The launch of the platform was the result of significant work conducted since July 2024, which included studying international experience, re-engineering business processes, and reviewing system architecture. The project was based on best practices from Finland, Canada, the United Kingdom, and the United Arab Emirates.

    The development of the platform was carried out by the Information and Accounting Center (AIOC) under the Ministry of Finance of the Republic of Kazakhstan. The platform can be accessed at minerals.e-qazyna.kz.

    Since its launch, the platform has processed 506 applications for licenses and other state services in the digital format. In January 2025, the platform successfully held auctions for 21 mining sites, with over 50 companies participating. The total subscription bonus payment was 20.069 billion tenges.

    Thus, the launch of the Unified Platform for Subsoil Use marks an important milestone in the geology and subsoil use sector, elevating the interaction between state authorities and subsoil users to a new level, ensuring transparency and control over subsoil resources.

    Main Photograph: A screenshot of the Unified Platform for Subsoil Use in Kazakhstan

  • Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s coal industry should remain under the Ministry of Industry and Construction rather than being transferred to the Ministry of Energy, according to the Association of Mining and Metallurgical Enterprises (AMME). The proposal was voiced by AMME representative Tulegen Mukhanov during a ministry meeting.

    Mukhanov emphasized that the Ministry of Industry plays a crucial role in developing the sector, addressing export challenges, railway logistics, and ensuring the timely supply of coal for communal and residential needs during the heating season.

    Additionally, the ministry has worked with mining enterprises, research institutions, and potential investors to develop a national coal chemistry industry program. As part of this initiative, a scientific and technical center for coal chemistry is planned at the Institute of Coal Chemistry and Technology.

    Upon learning of the government’s intention to transfer oversight of the coal sector to the Ministry of Energy, AMME conducted a survey among mining companies. The respondents unanimously opposed the move and expressed their willingness to appeal directly to the Prime Minister and the President.

    Although Kazakhstan’s coal industry was previously under the Ministry of Energy, it was later separated—a structure that coal companies now wish to maintain. They argue that the Energy Ministry already oversees multiple sectors, while the current arrangement under the Ministry of Industry is more effective.