Kazakhstan plans to transition from its current mineral extraction tax to a royalty-based system, calculated on the sale value of mineral raw materials. Minister of Industry Kanat Sharlapayev believes this will enhance transparency and attract foreign investors. The new model aims to incentivize domestic processing by imposing lower taxes on minerals processed locally compared to those exported raw. The proposal is set to be included in the 2026 Tax Code. Additionally, the minister emphasized boosting geology research as a fundamental science, advocating increased state funding.
Tag: Kazakhstan
-
Kazakhstan Secures $370 Million in Hungarian Investments
Since 2005, Kazakhstan has attracted $370 million in Hungarian investments, President Kassym-Jomart Tokayevannounced during a joint press conference with Hungarian Prime Minister Viktor Orbán in Budapest, as reported by Trend.
The president noted a growing interest among Hungarian companies in investment opportunities within Kazakhstan. Key discussions were held with leaders from major firms such as MOL, OTP Group, and Gedeon Richter. Highlighting this partnership, Kazakhstan signed an agreement with UBM Holding to construct three feed production plants worth $62 million.
Tokayev emphasized the potential for collaboration in sectors like rare metals mining and processing, water resource management, and agriculture. He outlined priorities including trade diversification, adopting cutting-edge technologies, and enhancing partnerships in energy, digitalization, and transport. These initiatives, supported by the Kazakh-Hungarian Intergovernmental Commission and Strategic Council, aim to deepen economic and investment ties.
-
India and Kazakhstan Establish Joint Venture to Strengthen Titanium Production
In a landmark agreement, India and Kazakhstan have collaborated to launch a joint venture named IREUK Titanium Limited, aimed at boosting titanium slag production in India. This venture represents India’s first joint initiative in Central Asia and is a significant move in enhancing the titanium value chain for the country.
The agreement was finalized between Indian Rare Earths Limited (IREL) and Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP), two renowned players in the titanium industry. This collaboration will focus on converting low-grade ilmenite into high-grade titanium feedstock, fostering titanium production in India and generating local employment.
IREL, operating under India’s Department of Atomic Energy (DAE), has access to ample ilmenite reserves from its Odisha facilities, while UKTMP, a globally recognized vertically integrated titanium producer, will contribute its specialized knowledge in refining raw materials into valuable titanium products like titanium sponge and ingots.
The official signing of the agreement was conducted by Deependra Singh, Chairman and Managing Director of IREL (India) Limited, and Assem Mamutova, President of UKTMP. This partnership is expected to solidify India’s stance in the global titanium market and bolster the rare earth and critical minerals sector in the region.
-
Solidcore Resources Acquires 55% Stake in Kazakhstan’s Only Tin Deposit
Solidcore Resources plc, a gold mining company, has announced the acquisition of a 55% stake in the Syrmbet tin deposit from Lancaster Group, as reported by Ulysmedia.kz. This undeveloped polymetallic deposit is the only one of its kind in Kazakhstan, primarily containing tin. Solidcore’s investment in the deposit will be $82.5 million, marking a notable development in a country with no prior tin production history. Lancaster Group had initially planned to invest $410 million in a concentrating plant, with financing from the Development Bank of Kazakhstan, but construction never commenced.
Located in northern Kazakhstan, the Syrmbet deposit was discovered in 1985. In 1998, it was incorporated as AO Syrmbet and later rebranded as Tin One Mining in 2017. Currently, Berkut Mining, a subsidiary of Lancaster Group, is the sole shareholder of Tin One Mining.
Previously known as Polymetal, Solidcore Resources relocated from Jersey to Kazakhstan and registered on the AIX exchange. Following U.S. sanctions on its Russian assets, Solidcore sold these to Russian company Mangazeya Plus for $3.69 billion. In 2024, a consortium of Omani investors, led by Maaden International Investment, acquired a 23.9% stake in Solidcore, formerly owned by Powerboom Investments. Solidcore’s CEO Vitaliy Nesis, a Russian entrepreneur, leads its development of Varvarinskoye and Bakyrchik mines in Kazakhstan.
Lancaster Group, founded by four business partners in 2003, includes Nurlan Kapparov, Erbolat Dosaev, Berik Kaniev, and Yuri Pak. According to Forbes Kazakhstan, Kaniev and Pak share the 73rd position among Kazakhstan’s wealthiest individuals, each valued at $64 million. Lancaster Group’s portfolio includes Tin One Mining, oilfield services companies, and a stake in the Quantum Stem school network.
-
Kazakhstan: A Strategic Partner for Europe’s Green Transition and Rare Earth Supply Chain
Kazakhstan’s Minister for Industry and Construction, Kanat Sharlapaev, has highlighted the country’s pivotal role as a supplier of critical raw materials to Europe, positioning Kazakhstan as a strategic partner for the continent’s green transition. Speaking with Euronews on The Big Question, Sharlapaev discussed the growing trend of “friendshoring”, where Europe shifts production to trusted geopolitical allies to secure a reliable supply of essential resources.
According to the Brookings Institution, China produced around 60% of the world’s rare earth elements as of 2023. The pandemic revealed the risks of dependency on single-region suppliers, and with the shift toward greener technologies, Europe’s need for critical minerals is only increasing. Kazakhstan, which has long supported Europe’s energy stabilityand is Germany’s fourth-largest energy trading partner, could be the solution for Europe to reduce its reliance on China.
Kazakhstan’s proximity to Europe also lowers shipping costs and emissions compared to sourcing from more distant suppliers in China or South America. The nation is rich in critical minerals, with 17 out of the 30 elements on the EU’s critical raw materials list available within its borders. It holds 20% of the aerospace-grade titanium market, 10% of manganese sulfate, 30% of global beryllium supply, and 17% of rhenium. Additionally, Kazakhstan ranks as the 11th largest copper producer globally.
Sharlapaev underscored Kazakhstan’s commitment to expanding local processing capabilities to retain more value within the country, fostering job creation and regional economic growth. He explained that Kazakhstan aims to move beyond raw exports by enhancing its value chain. With the mining sector contributing between 12% and 15% of Kazakhstan’s GDP, this strategic focus is expected to further bolster the economy.
Kazakhstan’s mining workforce is composed of 99% local talent, trained through its own educational institutions, setting it apart from the global trend of expatriate staffing in mining industries. “This strong human capital base enables companies to start operations more efficiently in Kazakhstan,” Sharlapaev noted, reinforcing the country’s appeal as a reliable partner in Europe’s pursuit of green energy goals.
-
Kazakhstan Launches Lithium Recovery Facility Through Battery Recycling
In Kazakhstan, while the industrial-scale extraction of lithium is not yet fully developed, the country has started obtaining this rare metal by recycling batteries. The first facility dedicated to extracting valuable components from lithium-ion batteries has been launched at the Industrial Place business park. This new production line has a capacity of processing at least 20 tons of raw material per month, according to a report from the Almaty Social Entrepreneurship Corporation (SPK). The facility was built by the company Technic Destroy.
The facility employs a recycling technology designed to recover lithium-containing powder, aluminum, copper, and other metals from spent batteries. The SPK estimates that 1 ton of used batteries can yield up to 250 kg of lithium, reducing the need for raw material extraction. Battery recycling is said to produce 70-80% fewer emissions compared to primary lithium mining operations.
At present, local companies in Kazakhstan are not directly engaged in lithium extraction. The country is actively inviting foreign investors into the rare metals and rare earth industries. Earlier this year, three German companies formed a consortium to develop lithium production in Kazakhstan.
-
Surge in Chinese Companies Registered in Kazakhstan Marks Record Growth
The number of Chinese companies registered in Kazakhstan has surged, with a 3.3% increase in August 2024 alone, as 150 new entities were added, bringing the total to 4,700 legal entities, according to the First Credit Bureau (FCB). This marks the highest monthly growth since 2022. Analysts attribute the steady rise to favorable business conditions in the region, despite a slight dip in November 2023, when the number of registered Chinese firms decreased by 20.
Of the registered Chinese companies, more than 3,000 are currently operational, indicating strong market engagement. No other foreign partner country showed a similar increase in August. Additionally, the number of jointly owned Chinese companies rose by 2.6% month-on-month (MoM), reaching 902.
In contrast, the number of Russian companies in Kazakhstan has been decreasing for the first time since Russia’s invasion of Ukraine in February 2022. In August, the number of registered Russian enterprises dropped by 13 compared to July, and operating Russian firms fell by 138, reducing the total to 23,500. However, joint ventures with Russian partners increased slightly by 0.6%, bringing the total to 5,000.
According to the Bureau of National Statistics, Kazakhstan had 31,900 registered foreign companies by August, with 12.1% based in Almaty, 11.7% in Astana, and 6.7% in the Karaganda region. The largest sectors for company registration were services, wholesale and retail trade, and professional research and engineering activities.
-
Kazakhstan and South Korea to Establish High-Tech Materials Research Center for Rare Metals
This week, Kazakhstan’s Metallurgy and Enrichment Institute under the Satbayev University and the Korea Institute of Industrial Technology signed a memorandum of cooperation. The partnership aims to establish a research center in Kazakhstan focused on high-temperature and high-activity materials based on rare metals. According to a press release from Kazakhstan’s Ministry of Science and Higher Education, the collaboration will also advance technologies for producing high-quality industrial products.
Kazakhstani scientists are keen to commercialize domestic innovations related to the extraction of strategically important metals. Meanwhile, South Korean developers will contribute technologies for producing high-tech products using these rare metals.
The two institutes plan to invest over $10 million in this five-year project, with Kazakhstan’s Minister of Science, Sayasat Nurbek, overseeing its progress personally.
The ministry also highlighted that the collaboration will include joint scientific seminars and master classes, as well as potential bilateral exchange programs for scientists to effectively develop innovative solutions.
It is worth noting that last year, the Korea Institute of Geoscience and Mineral Resources (KIGAM) discovered a major new lithium deposit in Kazakhstan, which is likely to attract foreign investors for its development.
-
Tarutinskoye Company to Begin Copper Ore Mining in Kostanay Region by 2028
The Tarutinskoye Company is planning to start mining copper ore in the Karabalyk District of Kazakhstan’s Kostanay Region. The company has been conducting exploration since 2013, as detailed in the mining plan available on Kazakhstan’s Unified Environmental Portal.
The East Tarutinskoye deposit was added to the state balance of mineral resources in early 2021, with confirmed reserves of 2.226 million tons of ore, containing 22.1 thousand tons of copper (average content of 1.09%), 5.6 tons of silver (average content of 2.76 g/t), and 88.5 kg of gold (average content of 0.39 g/t).
In addition, off-balance reserves amount to 10 million tons of ore, containing 69.7 thousand tons of copper (0.7%), 27.4 tons of silver (2.81 g/t), and 297.5 kg of gold (1.19 g/t).
The company plans to extract the ore through open-pit mining across three quarries: South, North 1, and North 2. The estimated period for industrial exploitation is five years, with a maximum annual production capacity of 500 thousand tons of ore.
Currently, there is no infrastructure, including transportation, in place to support the mining operations. Therefore, extraction at the East Tarutinskoye deposit is not expected to begin until 2028. The company still needs to finalize construction projects for an evaporation pond, an access road, and a rail spur at the Buskul station.
While the company has not disclosed which factories will process the ore, it has indicated that the most efficient enrichment method has already been selected.
-
Kazakhstan Extends Metal Scrap Export Ban to All Transport Types
The Republic’s Ministry of Industry and Construction has extended the export restrictions on scrap and waste of ferrous and non-ferrous metals for another six months. While the previous ban only applied to railway transportation, the new directive now covers all forms of transport, according to Kursiv. The ministry’s order prohibits the export of copper, aluminum, and lead scrap, used lead batteries, waste containing lead, cadmium, or mercury, ferrous metal ingots suitable for remelting, and railway track elements.
This measure aims to secure raw materials for Kazakhstan’s metallurgical plants. The country is currently focusing on establishing advanced processing clusters, with the deep processing of secondary metals being a crucial step towards this goal. Additionally, the metal scrap export ban is expected to boost the domestic steel industry.
It should be noted that the ban has faced opposition from third-country buyers of ferrous metal scrap. The Russian Association of Electrometallurgical Enterprises has already voiced its protest.