MINEX Forum

Tag: Kazakhstan

  • Coal Production in Kazakhstan Drops by 7.8% in First Seven Months of 2024

    Coal Production in Kazakhstan Drops by 7.8% in First Seven Months of 2024

    Kazakhstan’s coal miners extracted nearly 59.6 million tons of coal from January to July 2024, marking a 7.8% decrease compared to the same period in 2023, according to the Bureau of National Statistics’ monthly report. The majority of this volume was bituminous coal, totaling 57.26 million tons, which saw an 8.6% year-on-year decline.

    The decline in lignite production was even more significant. Brown coal output fell by nearly half, with 1.37 million tonsextracted over seven months. Although July saw a slight production increase compared to June, with 80.4 thousand tonsof lignite produced, this figure remains 68.5% lower than in July 2023.

    Conversely, companies extracting bituminous coal experienced a significant boost in July, increasing production by 23%to 8.73 million tons.

    Additionally, coal enrichment plants in Kazakhstan reported increased activity since the beginning of the year. The country’s processing plants produced 2.33 million tons of coal concentrate, a 14.3% increase compared to the previous year. In July alone, production reached 651 thousand tons, up 3.2% year-on-year.

    On August 20, the Prime Minister’s website published details of a government meeting where the upcoming heating season was discussed. According to the Ministry of Energy, current stockpiles include 3.7 million tons of coal and 90 thousand tons of fuel oil. However, four power stations currently have energy resource reserves below the required level.

  • Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Ministry of Finance is planning to introduce export duties on major types of mineral resources in an effort to reduce the country’s growing budget deficit. According to a report by Bloomberg, the government is expected to make a decision on this initiative by the end of August this year.

    The proposed export taxes would target a range of domestic products, including coal, copper and iron ores, metal concentrates, ferroalloys, sulfur, and others. While the final list of taxable products has yet to be determined, it is expected to include those resources that would generate the most revenue for the state.

    Local media will be provided with the official list only after a consensus is reached between the National Chamber of Entrepreneurs “Atameken” and government bodies. At that point, the government will also finalize the exact rates for the export duties.

    This initiative by the Ministry of Finance is not entirely new. Discussions about imposing such duties began a year ago, with the project initially justified as a means to stimulate the domestic processing of ferrous metals. Currently, only oil and alloy exporters are subject to such payments.

    Kazakhstan’s budget is in urgent need of additional revenue. By the end of the first quarter of 2024, the deficit had reached 1 trillion tenge (a 24.2% increase year-on-year). In June, former Prime Minister Alikhan Smailov described the deficit as chronic and criticized the inefficient use of public funds.

  • EBRD Makes First Direct Investment in Central Asia’s Graphite Sector

    EBRD Makes First Direct Investment in Central Asia’s Graphite Sector

    The European Bank for Reconstruction and Development (EBRD) has made its first direct equity investment in the graphite and critical raw materials sector in Central Asia by acquiring a stake in Sarytogan Graphite Limited. This Australian Securities Exchange-listed company is engaged in the exploration of the Sarytogan graphite depositlocated in the Karaganda region of central Kazakhstan.

    The EBRD’s investment of AUD 5 million (€3 million), representing a 17.36 per cent shareholding in Sarytogan Graphite, will fund the company’s development programme. This includes the preparation of a feasibility study and meeting its working capital needs. Through this investment, the EBRD continues its support for Kazakhstan’s mining sector and its junior mining companies.

    Graphite, classified as a critical raw material (CRM) by the EU, has a wide range of applications, including in the production of electric vehicle batteries, the electric power industry, and metallurgy. The Sarytogan graphite depositis one of the largest known graphite deposits globally, with the potential to become a major supplier of natural graphitein the region and beyond.

    This project aligns with the EBRD’s new mining sector strategy, which emphasizes the importance of the mining industry in fostering greener economies. The strategy supports the exploration, development, production, and processing of metals and minerals essential for the green and digital transition and new technologies.

    Additionally, the project is consistent with the EU-Kazakhstan strategic partnership on raw materials, batteries, and renewable hydrogen. The EBRD’s investment is a continuation of its policy work with Kazakhstan authorities, which has already led to the adoption of the new Subsoil Use Law.

    To date, the EBRD has invested €10.2 billion in 324 projects in Kazakhstan, primarily supporting private entrepreneurship.

  • Zijin Mining Group Discusses Major Mining Projects in Kazakhstan

    Zijin Mining Group Discusses Major Mining Projects in Kazakhstan

    Zijin Mining Group Co., Ltd recently held discussions with Kazakhstan’s Deputy Foreign Minister and representatives from Kazakh Invest regarding potential projects in the mining and metallurgical industry. The foreign investor plans to open a processing plant in the republic, according to a report from the Kazakh Ministry of Foreign Affairs.

    The new facility is expected to produce concentrates of precious and non-ferrous metals. However, this project is likely to be a long-term endeavor, as Zijin Mining is still in the process of identifying a suitable mineral resource basefor the plant.

    The company has expressed its readiness to develop Kazakhstan’s gold, copper, and polymetallic deposits. The specific region for the project has yet to be determined.

    The concentrates produced by the new processing plant are intended to be sent to local metallurgical plants for the extraction of valuable metals. An initial investment of $100 million is planned for the project, which is expected to create at least 1,000 new jobs in the republic.

    Additionally, Zijin Mining plans to engage in geological exploration of new prospective areas. The Kazakh authorities, keen on expanding the country’s mineral resource base, are prepared to offer state-level support to their Chinese partner.

    Zijin Mining is a multinational mining conglomerate that operates over 30 projects in 12 countries. Last year, the company’s assets produced 720,000 tons of copper and 250 tons of refined gold.

  • Quarmet инвестирует $1,48 млрд в проекты по железной руде и углю к 2025 году

    Quarmet инвестирует $1,48 млрд в проекты по железной руде и углю к 2025 году

    В ближайшие годы компания собирается потратить $1,48 млрд на проекты железорудного и угольного департаментов. Из этой суммы $500 млн будет выделено на развитие железорудного подразделения, и $978 млн — на угольное. Об этом стало известно после визита президента Касыма-Жомарта Токаева на металлургический комбинат.

    На официальном сайте главы республики сообщается, что руководство предприятия уже внедрило ряд преобразований в производстве и поделилось планами на будущее. С момента перехода комбината к новому инвестору был реализован ряд крупных проектов общей стоимостью свыше $3,5 млрд.

    Программа реновации завода на 2024 год включает более сотни объектов и замену 50 тыс. квадратных метров кровли. Кроме того, будут отремонтированы санитарно-бытовые объекты.

    Касым-Жомарту Токаеву продемонстрировали работу конверторного цеха №2 и машин непрерывного литья заготовок. В дальнейшем Qarmet планирует модернизировать системы управления и гидравлики на этом участке.

    Компания запустила программу «5-9-5»: 5 млн тонн стали, 9 млн тонн угля и 5 млн тонн железорудного концентрата ежегодно. Таким образом, к 2025 году мощности металлургического завода вырастут на 66% по сравнению с прошлым годом.

    В 2023 году добыча угля велась только на трёх шахтах; сейчас Qarmet управляет восемью шахтами в Казахстане. В следующем году все объекты будут оснащены системами позиционирования.

    Президент Токаев резюмировал, что власти приняли «правильное решение», пригласив казахстанского инвестора управлять компанией. Он поручил «возродить былую славу» металлургического комбината.

  • Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Over the next few years, the company plans to invest $1.48 billion in its iron ore and coal departments. Of this amount, $500 million will be allocated to the development of the iron ore division, and $978 million to the coal division. This was announced following President Kassym-Jomart Tokayev‘s visit to the metallurgical plant.

    The official website of the President of the Republic reported that the plant’s management had already implemented several production upgrades and shared future plans. Since the plant was transferred to a new investor, a series of major projects worth over $3.5 billion have been initiated.

    The 2024 plant renovation program includes more than a hundred facilities and the replacement of 50,000 square meters of roofing. Additionally, sanitary and household facilities will be repaired.

    Kassym-Jomart Tokayev was shown the operation of Converter Shop No. 2 and the Continuous Casting Machines. Qarmet intends to further modernize the control systems and hydraulics in this section.

    The company has launched a “5-9-5” program: 5 million tons of steel, 9 million tons of coal, and 5 million tons of iron ore concentrate annually. As a result, by 2025, the metallurgical plant’s capacity will increase by 66% compared to last year.

    In 2023, coal mining was carried out at only three mines; now, Qarmet operates eight mines in Kazakhstan. Next year, all facilities will be equipped with positioning systems.

    President Tokayev summarized that the authorities made the “right decision” by inviting a Kazakh investor to manage the company. He instructed to “restore the former glory” of the metallurgical plant.

  • АО «Алтыналмас» начинает новый проект по добыче золота на месторождении Бактай в Казахстане

    АО «Алтыналмас» начинает новый проект по добыче золота на месторождении Бактай в Казахстане

    Золотодобывающая компания АО «Алтыналмас» представила план горных работ на месторождении Бактай, расположенном в Актогайском районе Карагандинской области Казахстана. План был опубликован на Едином экологическом портале Казахстана. Согласно проектной документации, месторождение Бактай ранее не разрабатывалось, однако геологоразведка на этом участке велась еще с прошлого века. В период с 2018 по 2021 годы компания пробурила 52 скважины и взяла 30 тыс. проб.

    Месторождение Бактай находится в пределах 100 км от одного из основных активов компании «Алтыналмас» — ГОК «Пустынное», где будет перерабатываться золотосодержащая руда с нового месторождения. Добыча руды планируется открытым способом. Минеральные ресурсы оценены в соответствии с кодексом KAZRC и поставлены на баланс в 2021 году. Выявленные запасы составляют 1,23 млн тонн руды (содержат 2328 кг золота, среднее содержание — 1,89 г/т), предполагаемые запасы — 577 тыс. тонн (содержат 698 кг золота, среднее содержание — 1,21 г/т).

    Компания планирует отрабатывать месторождение в течение двух лет с производительностью 940 тыс. тонн руды в год. После завершения добычи компания займется дальнейшими эксплуатационно-разведочными работами на Бактайском рудном поле.

    Кстати, недавно компания получила сертификат ICMI от Международного института по обращению с цианидами на месторождение Пустынное.

     

     

  • Altynalmas Begins New Gold Mining Project at Bakhtai Deposit in Kazakhstan

    Altynalmas Begins New Gold Mining Project at Bakhtai Deposit in Kazakhstan

    The gold mining company Altynalmas JSC has unveiled its mining plan for the Bakhtai deposit, located in the Aktogay district of Kazakhstan’s Karaganda region. The plan was presented on the Unified Environmental Portal of Kazakhstan. According to the project documentation, the Bakhtai deposit has never been developed before, although geological exploration of the site has been ongoing since the last century. From 2018 to 2021, the company drilled 52 boreholes and collected 30,000 samples.

    The Bakhtai deposit is situated within 100 km of one of Altynalmas’ main assets, the Pustynnoe mining and processing complex, where the gold-bearing ore from the new deposit will be processed. The company plans to extract the ore using open-pit mining. The mineral resources were evaluated according to the KAZRC code and were registered in 2021. The identified reserves are estimated at 1.23 million tons of ore (containing 2,328 kg of gold with an average grade of 1.89 g/t), with inferred resources at 577,000 tons (containing 698 kg of gold with an average grade of 1.21 g/t).

    The company intends to develop the deposit over a two-year period, with the quarry expected to produce 940,000 tons of ore per year. Following this, Altynalmas plans to conduct further operational exploration work in the Bakhtai ore field.

    Notably, the gold mining company recently received an ICMI certificate from the International Cyanide Management Institute for its Pustynnoe deposit.

  • Kazakhstan Plans to Boost Investment in Geological Exploration by 2029

    Kazakhstan Plans to Boost Investment in Geological Exploration by 2029

    Kazakhstan’s National Development Plan through 2029 aims to increase investments in geological exploration to $90 per square meter, up from the current $63 per square meter, which is 39.6% below the global average, according to a report by LS. The plan addresses the country’s insufficient reserves of key minerals ready for development, particularly in the areas of chromium, copper, and iron.

    Kazakhstan is rich in nickel, cobalt, and lithium, metals essential for the green economy. However, due to limited investment in geological exploration, the full potential of these resources has not been realized. The same issue affects rare earth metals.

    To improve the situation, the government plans to stimulate investments in junior companies by simplifying their access to the stock exchange and revising tax deduction conditions for investors. Additionally, the taxation system for mining companies will be overhauled, shifting to a model that considers the volume of product sales and profits rather than just the amount of raw materials extracted. This new system will first be tested on several pilot sites.

    Moreover, geological data will be digitized, and administrative barriers to obtaining exploration and mining licenses will be reduced.

  • Kazakhstan to Boost Investments in Mineral Exploration by 2029

    Kazakhstan to Boost Investments in Mineral Exploration by 2029

    The National Development Plan of Kazakhstan aims to increase investments in geological exploration to $90 per square meter by 2029, a significant rise from the current spending of $63 per square meter. According to LS, this current expenditure is 39.6% below the global average, leading to insufficient reserves ready for development, particularly in critical minerals such as chromium, copper, and iron.

    Kazakhstan possesses valuable resources like nickel, cobalt, and lithium, essential for the green economy, but their potential remains underutilized due to limited exploration investments. The same issue affects the development of rare earth metals.

    To address these challenges, the plan proposes to stimulate investments in junior mining companies by simplifying their access to the stock exchange and revising tax deduction conditions for investors. The taxation for companies involved in extraction will also be reformed, shifting to a system based on the volume of product sales and profits rather than just the amount of raw material extracted. This new system will initially be tested on several pilot projects.

    Additionally, geological exploration data will be digitized, and administrative barriers for obtaining exploration and mining licenses will be reduced.