MINEX Forum

Tag: Kazakhstan

  • Kazakhstan’s Strategic Position in the Global Critical Minerals Market

    Kazakhstan’s Strategic Position in the Global Critical Minerals Market

    Kazakhstan is poised to strengthen its position in the global supply chains of critical minerals amid rising worldwide demand. The country’s rich resource base is becoming increasingly significant for high-tech industries, energy, IT, aerospace, and defence sectors. The desire of major economies to diversify their supply sources opens up additional opportunities for attracting investment and developing processing capabilities. This strategic importance was highlighted during a Security Council meeting chaired by President Kassym-Jomart Tokayev, who noted the intensifying competition for rare and rare earth metals. He emphasised the need to effectively utilise the country’s resource and production potential while developing local competencies and creating higher value-added products.

    The discussion on Kazakhstan’s prospects in this market, the development of geological exploration, attracting technology and investment, and transitioning to deeper processing was led by industry expert Telman Shuriyev. He pointed out that while Kazakhstan remains a resource-rich country, with a significant portion of its exports comprising oil, gas, and metals, there is a growing trend towards developing the mining and metallurgical complex. The increasing demand for critical minerals from Europe, China, and the USA provides a strong impetus for Kazakhstan to leverage its capabilities in this sector.

    Kazakhstan currently holds a leading position in Central Asia, but neighbouring Uzbekistan is also developing rapidly and offering its metals to Chinese, European, and American markets. To maintain its competitive edge, Kazakhstan must not fall behind in this race. The country has substantial geological potential yet to be unlocked, necessitating an increase in geological exploration and the attraction of new technologies. Cooperation with China, particularly in technology transfer, is seen as essential for accessing other markets.

    The President has tasked the nation with moving away from a raw material model to producing higher value-added products. However, Kazakhstan still predominantly exports metals in the form of concentrates or raw materials, with fewer projects focusing on high-value production. The next step involves producing finished metal products and utilising rare earth metals in high-tech components. The government is gradually regulating this transition, including limiting the export of certain concentrates to encourage domestic processing.

    Geological exploration plays a crucial role in this strategy. Historically, many deposits were discovered based on the most obvious and in-demand raw materials, such as copper and gold. However, there is now a growing interest in tungsten, molybdenum, and rare earth metals. To better understand its critical material reserves, Kazakhstan must enhance the accessibility of geological information for investors and stimulate the arrival of new technologies.

    Kazakhstan’s significant stock of technogenic mineral formations (TMOs) presents another opportunity. With over 58 billion tonnes of TMOs accumulated, there is potential for these to serve as a new raw material base. Recent tax incentives introduced in 2024 have already increased interest in this area, particularly from Chinese companies looking to invest in Kazakhstan’s industrial projects. By effectively processing TMOs, Kazakhstan can extract valuable metals while addressing environmental concerns.

    The elevation of critical materials to the level of the Security Council underscores their strategic importance. This move signals to industrial companies, small and medium businesses, government bodies, and investors that Kazakhstan is serious about diversifying its economy and enhancing its technological sovereignty. With the right investments, technology transfers, and a well-thought-out tax incentive system, Kazakhstan can carve out a niche in the global market for critical minerals, contributing to the diversification of supply chains for the USA, Europe, and beyond. The country has the potential to become a significant player in this field, provided it acts swiftly to develop its resources and capabilities.

  • Oman Delegation Visits Solidcore Resources in Kazakhstan to Explore Investment Opportunities

    Oman Delegation Visits Solidcore Resources in Kazakhstan to Explore Investment Opportunities

    A delegation from the Sultanate of Oman, led by His Excellency Abdul Salam Al Murshidi, President of the Oman Investment Authority (OIA) and Chairman of the Board of Solidcore Resources, recently visited Kazakhstan to engage with the leadership of Solidcore and tour the Kyzyl mine and processing complex. The visit underscores Oman’s commitment to strengthening its investment ties with Kazakhstan, particularly through Solidcore, where Maaden International Investment, a wholly-owned fund of the Omani government, holds a significant 31.7% stake.

    Accompanying the delegation were key figures from Minerals Development Oman (MDO), including Chairman Hamid Al Naamani and CEO Mattar Al Badi. MDO is a partner in a joint venture with Solidcore on the Khabiyat copper-gold project, which marks the first international geological exploration project in Oman, with an agreement signed earlier this year.

    During their meeting with Solidcore’s management, the delegation was briefed on the company’s operations and the progress of the Ertis hydrometallurgical plant (EGMK). His Excellency Al Murshidi highlighted Solidcore as a flagship investment project for Oman in Kazakhstan, emphasising the importance of a predictable regulatory environment in the country. He stated, “We view Kazakhstan as a long-term strategic partner. The stable and predictable investment climate established under the President’s leadership, along with the government’s efforts to protect sovereign investments, forms the basis for long-term cooperation. We intend to continue supporting the growth of Solidcore and expand our investments in the country. The recently signed Investment Cooperation Agreement between our countries is a significant step in defining new investment opportunities between Oman and Kazakhstan.”

    The Omani delegation also visited the Kyzyl mine, Solidcore’s largest operation, which produces approximately 350,000 ounces of gold annually at a grade of 5 g/t. His Excellency Al Murshidi concluded by noting that Solidcore’s deep expertise in ore processing and responsible mining provides a solid foundation for prospective joint projects in Oman, the Gulf region, and potentially Africa. These opportunities will contribute to Solidcore’s evolution into an international mining company, leveraging its technical competencies, quality assets, robust corporate governance, and experienced team.

  • Kazakhstan’s Lomonosovskoye Iron Ore Deposit Set to Resume Operations in 2029

    Kazakhstan’s Lomonosovskoye Iron Ore Deposit Set to Resume Operations in 2029

    Kazakhstan is gearing up for a significant project aimed at the extraction of iron ore from the Lomonosovskoye deposit, located in the Kostanay region. According to financial reports from the company managing the site, preparations for mining operations are set to commence, with the first extraction planned for 2029 after years of inactivity. The report indicates that the amendment to the mining contract is in its final stages of approval, which includes a working programme extending until December 31, 2046, and plans for the construction of a beneficiation plant.

    The timeline for the project outlines that preparatory work will be conducted until the end of 2026, followed by stripping operations from 2026 to 2028, without any concurrent ore extraction. The proposed beneficiation plant is expected to have a capacity of 16 million tonnes of iron ore per year, and the project has already received preliminary approval from the Ministry of Industry.

    Originally acquired by the Austrian company Safin Handelsges. GmbH in 2008, the Lomonosovskoye deposit was initially projected to produce 6 million tonnes of iron ore annually starting in 2015. However, plans changed, and the asset was put up for sale in 2010. In 2011, Canadian firm Newbridge Capital Inc. purchased the majority stake for $70.3 million, while retaining a 15% share for Safin Handelsges. As of the end of 2025, Kazco Beteiligungs GmbH, linked to Kazax Minerals Inc., holds a 99.99% stake in the deposit, with the remaining shares held by minority investors.

    The mining contract for Lomonosovskoye was originally signed in 2009 for a duration of 21 years, allowing for five years of exploration. The reserves were officially approved at 177 million tonnes of iron ore by the state commission in 2015. Subsequent assessments indicated measured and inferred resources of 507.8 million tonnes as of October 31, 2014. The project has faced delays, including a two-year conservation period initiated in 2016, but has recently made strides towards resuming operations.

    Future cash flow projections for the project are based on key assumptions, including an iron ore price of $100 per tonne. The total expected ore production over the life of the deposit is estimated at 275.3 million tonnes, with a projected output of 73.5 million tonnes of iron concentrate containing 67% iron. The project aims to gradually increase production capacity to reach an annual extraction of 22 million tonnes in the later years of operation. Overall, the project’s implementation cost is estimated to be around $1.5 billion, highlighting its significance in Kazakhstan’s mining sector.

  • Kazakhstan’s Ministry of Ecology Implements AI and Digital Management System

    Kazakhstan’s Ministry of Ecology Implements AI and Digital Management System

    The Ministry of Ecology and Natural Resources of Kazakhstan is undergoing a comprehensive digital transformation aimed at streamlining the management of environmental processes. This initiative marks a significant shift from fragmented information systems to a unified digital management framework. Currently, 15 out of 29 process groups have been fully digitised, while an additional eight are partially digitised. According to the architecture of the digital government, 71% of sectoral data is now available in digital format.

    The next phase of this transformation will focus on reengineering the remaining processes, consolidating data, and integrating artificial intelligence tools. This strategic move is expected to facilitate a transition from reactive responses to environmental violations towards a proactive approach in identifying ecological risks. Furthermore, it aims to enhance the transparency of waste management, improve the efficiency of environmental monitoring, and increase the responsiveness to natural threats.

    This digital overhaul is not only a step towards modernising Kazakhstan’s ecological governance but also aligns with global trends in leveraging technology for sustainable development. By adopting advanced digital solutions, the Ministry seeks to bolster its capability in managing environmental challenges effectively and responsibly, ensuring a healthier ecosystem for future generations.

  • Kazakhstan’s Strategic Balancing Act in the Global Uranium Market

    Kazakhstan’s Strategic Balancing Act in the Global Uranium Market

    Kazakhstan is navigating a complex geopolitical landscape in the global uranium market, which has seen significant shifts due to rising demand for green energy and geopolitical tensions. As the country accounts for nearly 40% of the world’s uranium supply, its strategic decisions are under scrutiny. Political analyst Komron Rahimov discusses the delicate balance Kazakhstan is attempting to maintain between asserting control over its resources and engaging with Russian state corporation Rosatom.

    In recent developments, Kazakhstan has unilaterally reclaimed control over the Akdala uranium deposit from Rosatom while simultaneously awarding the construction of its first nuclear power plant, the Balkhash Nuclear Power Plant, to the Russian corporation. This dual approach raises questions about whether Kazakhstan is losing control over its resources or if it is executing a calculated strategy to enhance its sovereignty. Rahimov argues that the current dynamics reflect a nuanced compromise rather than a straightforward expansion by Rosatom.

    Kazakhstan’s recent amendments to its subsoil code require that up to 90% of uranium contract renewals be allocated to the state-owned Kazatomprom, reinforcing the country’s commitment to reclaiming its natural resources. This shift has already resulted in the loss of Rosatom’s control over the Akdala deposit, which transitioned entirely to Kazakh ownership in March 2026.

    Despite these gains, Kazakhstan’s relationship with Russia remains significant, particularly in high-tech sectors. The agreement for the Balkhash Nuclear Power Plant, valued at over $14 billion, sees Russia financing 85% of the project, ensuring its technological influence in the region. This dependency on Russian expertise and nuclear fuel could pose long-term challenges for Kazakhstan’s energy independence.

    Rahimov highlights that while Kazakhstan is enhancing its economic sovereignty by reclaiming resources, it is also entering a strategic alliance with Russia that could bind it to Russian technology and services for decades. The construction of the Balkhash plant is expected to take around ten years, further solidifying Russia’s presence in Kazakhstan’s energy sector.

    The geopolitical landscape is further complicated by sanctions against Rosatom from the United States, which could impact Kazakhstan’s access to Western financial markets. However, Kazakhstan is actively diversifying its uranium export routes, with China emerging as a significant buyer, accounting for 44% of its revenue. The development of the Trans-Caspian route aims to mitigate risks associated with reliance on Russian supply chains, although its capacity limitations present challenges.

    In conclusion, Kazakhstan’s multi-faceted strategy reflects a sophisticated balancing act between asserting its resource sovereignty and maintaining essential partnerships. The country is poised to navigate a complex geopolitical environment while striving to secure its long-term interests in the uranium market.

  • New Uranium Complex Launched at Zhalpak Mine in Kazakhstan

    New Uranium Complex Launched at Zhalpak Mine in Kazakhstan

    The mining company ‘Ortalyk’ has officially launched a new uranium processing complex at the Zhalpak mine, with an initial capacity of 500 tonnes of uranium per year. This development is part of a broader project aimed at enhancing the production infrastructure, ultimately targeting a project capacity of 900 tonnes annually.

    Gumar Sergazin, Deputy Chairman of the Atomic Energy Agency, highlighted the significance of developing uranium mining enterprises and exploring new deposits to strengthen Kazakhstan’s mineral resource base. He expressed confidence that this new phase of the Zhalpak mine’s development will not only boost the company’s production capabilities but also contribute to the growth of the nuclear sector in Kazakhstan. Additionally, it was reported that Kazatomprom has added six new promising uranium sites to its portfolio, indicating a strategic move towards expanding the country’s uranium mining operations. This initiative aligns with Kazakhstan’s goals to enhance its position in the global uranium market, given its status as one of the leading producers of uranium worldwide.

  • Shugyla Gold to Commence Gold Production at Akdingek Deposit in 2027

    Shugyla Gold to Commence Gold Production at Akdingek Deposit in 2027

    Shugyla Gold LLP is set to begin gold extraction at the Akdingek deposit in the Zharminsky district of the Abai region, with production slated to start in 2027. The company plans to extract 100,000 tonnes of gold-bearing ore annually, utilising open-pit mining techniques and employing blasting operations. The mine is expected to operate for five years, from 2027 to 2031, with a daily production capacity of 137 tonnes.

    The geological structure of the Akdingek deposit allows for open-pit mining to a depth of 40 metres. While the specific gold content in the ore has not been disclosed, the project documentation indicates that mining operations will be conducted in shifts, with a continuous work schedule throughout the year. The site will be powered by a diesel-electric station.

    In January 2025, Shugyla Gold announced plans to extract placer gold from the valleys of the Büyük and Colorado rivers, also located in the Zharminsky district. This area is part of the Boko-Vasilyevsky ore field, with confirmed reserves estimated at 905,100 cubic metres of ore, containing 202.4 tonnes of pure gold at an average concentration of 0.224 grams per cubic metre.

    The company aims to mine 392,700 cubic metres of ore from this site between 2026 and 2028. However, financial reports for 2024 indicate that Shugyla Gold incurred a loss of 4.8 billion tenge, a significant increase from a loss of 200.1 million tenge in 2023. Despite these losses, the company reported its first revenue of 281.1 million tenge in 2024, marking a shift from its previous focus solely on mineral exploration.

    Shugyla Gold is owned by Shugyla Kent LLP, both of which are registered at the same address in the Akzhal village of the Zharminsky district. Shugyla Kent also owns KST Production, based in Ust-Kamenogorsk, which is managed by Tazlime Sarsebaeva and Abzal Nuriyev.

  • Qarmet Recycling Launches Aluminium and Metal Recovery Plant in Kazakhstan

    Qarmet Recycling Launches Aluminium and Metal Recovery Plant in Kazakhstan

    Qarmet Recycling, formerly known as Recycling Company, has unveiled plans for a new facility aimed at recycling metals, including aluminium, from old vehicles. Located in the village of Doskey in the Bukhar-Jyrau district of the Karaganda region, the plant is part of Kazakhstan’s industrial and innovative development programme. The facility, which was established on June 15, 2016, has recently undergone ownership changes and is now under the management of Qarmet, which acquired the property in 2024.

    The primary operations of the plant involve the production of cast iron, steel, aluminium, and non-ferrous metal alloys from scrap materials derived from decommissioned vehicles, special machinery, and agricultural equipment. The recycling process includes melting metals and converting waste oils into fuel and gas, as well as processing hydrocarbon-containing waste, such as used tyres, into usable energy sources. This shift in focus comes as the company adapts to new emission standards that were revised following changes in ownership and operational scope.

    With an annual processing capacity of up to 80,000 tonnes of end-of-life vehicles (ELVs), the plant is expected to yield approximately 63,750 tonnes of ferrous scrap and 16,250 tonnes of other materials annually. The facility sources its raw materials through a tendering process involving both individuals and legal entities. However, the actual volume of recycling and the specific client list are contingent upon the outcomes of these competitive procedures.

    In addition to vehicle recycling, the plant has the capability to process up to 14,000 tonnes of oil-containing waste per year, including 7,000 tonnes of used oils and lubricants from its pyrolysis facilities. The facility also handles solid hydrocarbon waste, such as tyres, with a processing capacity of up to 9,000 tonnes annually. The output from these operations includes up to 6,000 tonnes of liquid pyrolysis fuel and between 3,500 to 4,500 tonnes of fuel oil each year, along with 600,000 cubic metres of fuel gas.

    Before recycling, vehicles undergo a preparation process where oils and technical fluids are removed. The vehicles are then compressed into briquettes, which are sorted and processed into different categories of metals and other materials. The plant features advanced shredding and melting equipment, including two induction furnaces capable of producing 2,000 tonnes of metal annually. The melted metal is then cast into moulds for further use.

    Qarmet Recycling is part of the Qarmet group, owned by entrepreneur Andrei Lavrentev, who ranks 11th on Forbes’ list of Kazakhstan’s wealthiest individuals, with a net worth of $877 million.

  • Norterra Resources: Early-Stage Mining Opportunities in Central Asia

    Norterra Resources: Early-Stage Mining Opportunities in Central Asia

    In the world of mining, the most intriguing opportunities often lie in the shadows, waiting to be discovered. This sentiment resonates deeply with the team at Norterra Resources, where the focus is on early-stage exploration in regions like Central Asia and Africa. The thrill of examining geological data, historical work, and promising indicators is what drives their exploration efforts. At Norterra, the journey begins with a thorough review and screening of potential projects, seeking those where geology, scale, and exploration potential converge.

    One such project is A14-KZ-0325, a copper-zinc exploration asset located in East Kazakhstan’s Rudny Altai metallogenic belt. Historical assessments suggest the presence of a mineralized system that extends for up to 2 km at the surface, with impressive reported grades of up to 2.35% zinc and 1.36% copper. However, the objective at this stage is not to assert that the answers are already known; rather, it is about identifying the right questions worth pursuing and understanding where further exploration could yield significant value.

    This approach encapsulates the essence of early-stage mining: the ability to uncover potential before it becomes apparent to the broader market. Norterra Resources is committed to this philosophy, continuously seeking out opportunities that may not yet be on the radar of other industry players. As they delve deeper into their portfolio, more insights and developments are expected to emerge, highlighting the importance of early exploration in the mining sector. The excitement of finding hidden gems in the mining landscape is what keeps the industry vibrant and full of possibilities.

  • The Role of SKZ-U in Kazakhstan’s Uranium Industry: A Comprehensive Overview

    The Role of SKZ-U in Kazakhstan’s Uranium Industry: A Comprehensive Overview

    The uranium industry in Kazakhstan is not solely about the extraction of raw materials; it encompasses a complex network of enterprises that support the production process. One such enterprise is SKZ-U LLP, located in the Kyzylorda region, which specializes in the production of sulfuric acid, a critical technological reagent for uranium mining companies under Kazatomprom. As the national operator for the export and import of natural uranium and its compounds, Kazatomprom is the world’s largest producer of natural uranium, leveraging one of the largest resource bases in the industry.

    Kazatomprom employs in-situ recovery technology, which allows for uranium extraction directly from the ore-bearing horizon. This method involves injecting special solutions through wells to convert uranium from minerals into a solution, which is then extracted. Sulfuric acid plays a vital role in this process, creating the necessary chemical conditions for uranium leaching. Therefore, the production of sulfuric acid at SKZ-U is integral to the uranium extraction process, ensuring a consistent supply for operations utilizing this technology.

    Founded in 2007 with the participation of Kazatomprom, SAP-Japan Corporation, and UrAsia London Limited, SKZ-U began construction of its sulfuric acid plant in 2010, reaching a designed capacity of 500,000 tonnes per year. The plant commenced industrial operations in 2013 and has since maintained a production capacity of approximately 1,500 tonnes per day. The facility includes a sulfuric acid workshop, an energy complex, and infrastructure for employee accommodation, alongside initiatives for renewable energy generation.

    The production process at SKZ-U is highly efficient, with a raw material conversion rate of 99.7%. The primary raw material, granulated sulfur, is sourced from Samruk-Kazyna Ondeu, which acquires it from Tengizchevroil. The manufacturing process involves several chemical transformations, ultimately producing sulfuric acid while simultaneously harnessing the heat generated for steam and electricity production. This dual approach not only meets industrial demands but also promotes energy efficiency.

    Since 2013, SKZ-U has generated its own electricity, and in 2014, it established a solar power station with a capacity of 418 kW, aligning with Kazakhstan’s transition to a green economy. The plant employs 277 individuals, with a significant majority residing in the local area, reflecting the company’s commitment to regional development and social responsibility.

    SKZ-U has implemented various social support initiatives, including special payments for employees working in hazardous conditions and health-related programs. The company also actively engages in community support, participating in charitable initiatives and providing assistance to vulnerable populations.

    As SKZ-U continues to evolve, it has become a vital link in the broader industrial chain, integrating the oil and gas, chemical, energy, and uranium sectors. The company remains focused on ensuring stable production, product quality, and reliable supply for uranium mining enterprises while advancing technology, safety, and social infrastructure. This interconnectedness within the production chain is essential for the industrial resilience of Kazakhstan’s uranium sector.