MINEX Forum

Tag: Kazakhstan

  • President Calls for Bold Decisions to Accelerate Kazakhstan’s Development

    President Calls for Bold Decisions to Accelerate Kazakhstan’s Development

    President Kassym-Jomart Tokayev urged government members to take decisive actions for impactful socio-economic progress. He emphasized the importance of tracking the implementation of his directives, particularly through a newly established center to enhance reform efficiency, coordinated by First Deputy Chief of Staff Darhan Satybaldy.

    The President highlighted key strategic priorities, including large-scale infrastructure projects, digitization, artificial intelligence, and nuclear energy. He stressed the urgency of building two or three nuclear power plants to establish Kazakhstan as a leader in advanced nuclear energy and digital technology.

  • Sarytogan secures 25-year mining licence for Kazakhstan graphite mine

    Sarytogan secures 25-year mining licence for Kazakhstan graphite mine

    Sarytogan Graphite has received a significant boost with the granting of a 25-year mining licence by the Kazakhstan Ministry of Industry and Construction for its graphite mine in the Karaganda region.

    The licence, covering an area of 8.88km², provides the company with the right to mine for graphite for the next quarter century. Importantly, the licence includes an option to extend for an additional 20 years, and thereafter until the mineral resource is fully depleted. This long-term security underscores the government’s confidence in the project’s viability and potential.

    This milestone follows the company’s successful acquisition of an environmental permit last month, demonstrating its commitment to responsible and sustainable mining practices.

    The licence comes with specific obligations designed to benefit both the company and the local community. Sarytogan is required to maintain a minimum annual expenditure of 8,938 monthly calculated indicators (MCIs), indexed yearly, ensuring continuous investment in the mine’s operations.

    The company is committed to supporting the development of the Kazakh industry by utilizing at least 50% of domestic works and services in its production activities. Sarytogan will also invest 1% of its production costs in training local personnel and another 1% in research and development, fostering local skills and innovation.

    Sarytogan Graphite will contribute 1,000 MCIs, approximately $7,500 in 2025, annually to the socioeconomic development of the region, demonstrating its commitment to being a responsible corporate citizen.

    This comprehensive licence agreement sets the stage for Sarytogan Graphite to become a significant player in the global graphite market, while simultaneously contributing to the economic and social development of the Karaganda region.

  • Celebrating 80 Years of Kazakhstan’s First Steel Production

    Celebrating 80 Years of Kazakhstan’s First Steel Production

    In 2024, Kazakhstan marked the 80th anniversary of its first steel production—a milestone that symbolized resilience and industrial growth. The Kazakh Metallurgical Plant in Temirtau, commissioned during WWII, became a cornerstone of economic development. This achievement was commemorated with events involving metallurgical veterans, youth, and cultural programs.

    Artworks by prominent Kazakh artists capture the essence of the industry. Paintings like Turysyn Abuov’s “Renowned Steelworkers of Temirtau” showcase the grit and passion of metallurgists, while P. Antonyenko’s portraits immortalize their legacy.

    Qarmet, Kazakhstan’s largest steel company, continues this tradition of innovation, aiming for record production by 2028 and investing in modernization efforts. The company’s acquisition by Andrey Lavrentyev in 2023 has sparked reforms, including community projects like restoring Temirtau’s tram system. Qarmet employs 35,000 people and exports to over 40 countries, embodying the enduring spirit of Kazakhstan’s metallurgical industry.

  • Central Asia Metals Confident About 2025 Despite Mixed 2024 Production Results

    Central Asia Metals Confident About 2025 Despite Mixed 2024 Production Results

    Central Asia Metals (CAML), the operator of the Kounrad copper recovery plant in Kazakhstan and the Sasa zinc-lead mine in North Macedonia, reported mixed production results for 2024 but remains optimistic for 2025.

    Key highlights:

    • Copper Production: Full-year output at Kounrad reached 13,439 tonnes, within guidance but slightly lower than 2023’s 13,816 tonnes.
    • Zinc and Lead Production: At Sasa, zinc-in-concentrate production totaled 18,572 tonnes and lead-in-concentrate production 26,617 tonnes, both slightly below guidance and 2023 levels.
    • Safety Record: Kounrad reported zero lost time injuries, while Sasa had two incidents.
    • Strategic Progress: Significant advancements were made at Sasa, including near-completion of the dry stack tailings (DST) plant, transition to paste-fill mining, and the central decline project.

    Financials and Outlook:
    CAML ended 2024 with a strong cash position of $67.6 million. For 2025, the company targets:

    • Copper: 13,000–14,000 tonnes
    • Zinc-in-concentrate: 19,000–21,000 tonnes
    • Lead-in-concentrate: 27,000–29,000 tonnes

    CEO Gavin Ferrar expressed confidence in achieving 2025 production guidance, citing experience gained during the 2024 transition to paste-fill mining and the anticipated operational launch of the DST plant in Q1 2025.

  • Tokayev Pushes for Faster Nuclear Power Plant Construction in Kazakhstan

    Tokayev Pushes for Faster Nuclear Power Plant Construction in Kazakhstan

    Kazakh President Kassym-Jomart Tokayev has called for the acceleration of nuclear power plant construction in Kazakhstan. According to Tokayev, the country may build two or three large nuclear stations to advance its nuclear energy sector.

    “We are currently focused on major infrastructure projects, digitalization, artificial intelligence, and nuclear energy. These are the key strategic areas for the development of our country. The government must prioritize these critical issues in its work,” the president emphasized.

    Tokayev also discussed the future of nuclear energy in Kazakhstan, noting the need for faster progress.

    “Regarding the construction of nuclear power plants — we need to speed up. As I mentioned in an interview, we plan to build two large plants, possibly three. We must transform Kazakhstan into a country with a developed nuclear energy sector, a nation where artificial intelligence functions and digitalization is fully implemented,” he concluded.

    On October 6, 2023, Kazakhstan held a referendum on the construction of nuclear power plants in the Almaty region. Tokayev had stated that, should the public approve, the construction would be undertaken by an international consortium of companies.

    The referendum results showed that 71.12% of Kazakh citizens voted in favor of nuclear plant construction. The Ministry of National Economy announced that the state would not fund the project. Instead, the government is considering project financing, with funds potentially provided by a consortium of international financial institutions. The state would repay this loan not from the national budget, but from the revenue generated by the nuclear plants.

    Kazakhstan is currently considering four companies as potential suppliers of nuclear technology: CNNC (China), Rosatom (Russia), KHNP (South Korea), and EDF (France).

  • Key Barriers in Kazakhstan’s Mining Sector Hinder Investment Climate

    Key Barriers in Kazakhstan’s Mining Sector Hinder Investment Climate

    Barriers within Kazakhstan’s mining sector have been identified as a major hurdle for investment in the country. A recent consultation document on proposed legal amendments highlighted concerns about access to mineral rights, including convoluted regulations and a lack of automation in government services.

    Further issues stem from inconsistencies between mining regulations and other areas of law, such as tax, water, land and environmental legislation. These inconsistencies create uncertainty for mining companies and hinder their ability to meet their licence obligations.

    Regulatory and Procedural Barriers

    • The current regulatory framework for mining lacks clear and efficient procedures, leading to complexities in obtaining and exercising mining rights. This includes inadequate automation of state services, insufficient regulation of state information resources, and overlapping legislation in areas such as ecology, land use, and taxation.

    Legislative Inconsistencies

    • There are inconsistencies between the mining code and other related legislation, such as water, land, and environmental laws. For example, the mining code prohibits operations on certain territories, including those within water fund lands, which contradicts previous legislation and restricts activities like sand extraction from river beds.

    Specific Issues

    • Unclear regulations on the reclamation of mining sites, conflicting provisions with the Civil Code regarding contract and license obligations, and the lack of clear guidelines on servitude payments and compensation for land use are significant issues.
    • The prohibition on mining in certain areas, such as those with high natural methane content without prior degasification, creates operational challenges due to the absence of specific norms and authorities to set these standards.

    Institutional and Administrative Challenges

    • The process of forming the State Fund for Mineral Resources Management is marred by lack of transparency and coordination between state bodies. This leads to inefficiencies in the allocation of mining rights and the management of mineral resources.
    • The requirement for exclusive rights to specific territories is not adequately ensured, leading to conflicts between different mining users.

    Practical Challenges

    • The use of experimental-industrial mining is often abused, hiding industrial-scale extraction under the guise of exploration. This practice undermines the integrity of the exploration phase.
    • The high cost of acquiring machinery for small-scale mining operations is a significant financial burden, suggesting the need for more flexible arrangements such as equipment rental.

    International Comparisons and Recommendations

    • Kazakhstan ranks 56th out of 84 countries in the Investment Attractiveness Index by the Fraser Institute, with negative evaluations in legal, tax, and labor legislation, as well as in geological data quality. To improve, Kazakhstan should analyze and adopt best practices from other countries, engage in consultations with stakeholders, and streamline regulatory processes to enhance transparency and efficiency.

    Addressing these issues is crucial for improving Kazakhstan’s investment climate, particularly in the mining sector, and aligning it with international standards to attract more foreign and domestic investment.

  • Kazakhstan Revives Mining at Key Deposits in 2024

    Kazakhstan Revives Mining at Key Deposits in 2024

    In 2024, several mining companies in Kazakhstan resumed operations at significant deposits, submitting project plans through the Unified Environmental Portal.

    OralElectroService has returned to the Uzynzhal deposit in the Karaganda region, targeting 500,000 tons of zinc-lead ore annually. The project will use open-pit mining until 2033 before transitioning to underground methods, with total reserves of 12.5 million tons.

    In East Kazakhstan, Taskara will mine gold and silver at the Taskora deposit. The three-year project focuses on processing 31,000 tons of ore annually.

    In the Zhambyl region, Ushalyk Gold Operating plans to extract 727,000 tons of ore at the Ushalyk deposit over four years, processing up to 250,000 tons annually to produce flotation concentrate.

    These initiatives highlight the mining sector’s sustained importance in Kazakhstan’s economy.

  • Kazakhstan Intensifies Search for Rare Earth Metals

    Kazakhstan Intensifies Search for Rare Earth Metals

    Kazakhstan continues exploration efforts across 12 sites as part of a government initiative to study mineral resources and boost the development of the rare earth metals sector.

    According to Kanat Sharlapayev, the Kuyrektikol site in the Karaganda region has shown significant promise, with reserves estimated at approximately 800,000 tons and forecasted resources reaching 935,400 tons of rare earth metals, including cerium and lanthanoids.

    Private companies like Cove Capital and HMS Bergbau are spearheading these exploration activities. Sharlapayev noted that the Ministry of Industry is actively working to declassify reserve data, excluding osmium and rhenium, to attract investment and enhance the sector’s development potential. This initiative is expected to be completed by the end of 2024.

    Currently, Kazakhstan boasts 15 rare earth deposits, 11 of which are under subsoil use agreements. Key deposits include Melovoye, Tomak, Taybogar, Tasmuryn, Kundybay, Akbulakskoye, Dzhamschi, Moynkum, Inkay, Akdala, Kanjugan, Mynkuduk, and Budenovskoye.

  • Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years

    Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years

    Kazakhstan’s mineral reserves are projected to last for 20 to 40 years, depending on the resource, according to Akbarov, head of the country’s Geological Committee. During a briefing at the Central Communications Service, Akbarov noted that while the situation for many resources is stable, with an average reserve life of 20 years, some deposits face significant geological and technical challenges.

    Key resources such as gold are estimated to last for 20 years, while copper reserves may sustain production for up to 40 years. However, certain deposits are nearing depletion, with reserves sufficient for only 5 to 10 years.

    To address this, Kazakhstan is intensifying efforts in geological exploration. Starting next year, the country will transition from a 1:200,000 scale to a more detailed 1:500,000 scale for geological mapping. This shift aims to identify hidden and geologically complex deposits, enhancing the mineral resource base. Akbarov emphasized that these initiatives could significantly boost the efficiency of exploration and replenish Kazakhstan’s mineral reserves.

  • Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    During a discussion, President Kassym-Jomart Tokayev emphasized Kazakhstan’s dedication to the Extractive Industries Transparency Initiative (EITI) since joining the organization in 2007. He noted that Kazakhstan has legislatively mandated subsoil users to comply with the organization’s standards, including reporting on taxes and other payments to the national budget.

    President Tokayev informed the head of EITI, Helen Clark, about regulatory measures aimed at enhancing the country’s geological exploration and mining industries. Key initiatives include the adoption of a Comprehensive Development Plan, the launch of a Unified Subsoil Use Platform featuring an interactive map and access to more than 50,000 geological reports, and streamlined processes for obtaining exploration and production licenses.

    In response, Helen Clark shared the strategic priorities of EITI for the coming period and praised Kazakhstan’s efforts to improve legislation in line with transparency standards for the extractive sector.