MINEX Forum

Tag: Kazakhstan

  • Court Overturns Illegal Seizure of Solid Metals’ Property in Kazakhstan

    Court Overturns Illegal Seizure of Solid Metals’ Property in Kazakhstan

    In a landmark decision, the specialized inter-district administrative court of Zhetysu region has annulled two critical resolutions connected to the unlawful seizure of land and assets from the company Solid Metals. On April 9, 2024, the court invalidated the Sarkand district akimat’s Resolution No. 275, which had transferred a land plot granted to Solid Metals for temporary compensated land use into communal property. Additionally, the court overturned the regional coordination council’s decision to revoke the investment status of Solid Metals’ plant construction project.

    These resolutions were originally made possible due to a raid in November 2019, facilitated by former Vice Minister of Industry and Infrastructure Development (MIIR) Timur Toktabayev. Toktabayev, later arrested and sentenced to seven years for abuse of office, had acted in the interests of certain entrepreneurs, illegally transferring sites with discovered mineral deposits under the guise of exploration. This led to significant state losses amounting to billions of tenge.

    Solid Metals, which had legally acquired 420,000 tons of technogenic mineral formations (TMF) in 2017 and invested heavily in a processing plant, was forcibly evicted from their property by Aksenger Ltd, a company allegedly set up to facilitate this illegal takeover. Despite proving the legality of their acquisition in court, Solid Metals continues to battle for the return of their assets, emphasizing the need for transparent legal proceedings to mitigate external pressures on the judicial process.

  • EBRD and Kazakhstan Collaborate to Modernize Mining Sector

    EBRD and Kazakhstan Collaborate to Modernize Mining Sector

    An a significant move to enhance the national mining sector, the European Bank for Reconstruction and Development (EBRD) and Kazakhstan have signed a Memorandum of Understanding (MoU). The agreement, aimed at promoting modernisation and development within the sector, was formalized today by Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapaev, and EBRD First Vice President, Jürgen Rigterink. This partnership will focus on improving governance, transparency, and regulation, adhering to international standards and practices.

    The MoU is a crucial element of the EBRD’s strategy for responsible exploration and mining of critical raw materials. It includes the creation of an advanced system for capturing, processing, and disseminating geoscientific documents such as maps and data. Additionally, the initiative aims to develop the legal and regulatory frameworks governing the mining sector.

    The signing ceremony was attended by EU Executive Vice-President Valdis Dombrovskis, underscoring the agreement’s importance within the EU-Kazakhstan critical raw materials roadmap and their broader strategic partnership.

  • Kazakhstani Deputies Propose Measures to Sustain Mining Towns Amid Resource Depletion

    Kazakhstani Deputies Propose Measures to Sustain Mining Towns Amid Resource Depletion

    Kazakhstan is home to numerous towns where mining enterprises are the backbone of local economies. However, according to Majilis deputy Ekaterina Smyshlyaeva, approximately thirty mining sites in the country are nearing critical depletion levels, reports kaztag.kz. The closure of these key enterprises would result in significant job losses for a large portion of the population, leading to a downturn in other sectors such as services and small businesses, ultimately causing population decline in these towns and settlements.

    To delay the closure of mining operations and proactively prepare new employment opportunities in these monocities, deputies have proposed several measures. They suggest monitoring the extraction levels at mining sites that may cease operations within the next decade and striving to extend the life of valuable deposits. This would require subsoil users to ensure comprehensive processing of extracted minerals, including the utilization of technogenic mineral wastes.

    For sites already at critical depletion, the recommended solution is to conduct further exploration to extend their operational life. In areas with low profitability, there is a proposal to expand the application of a special tax regime. Additionally, deputies emphasize the need to address economic diversification in towns and settlements facing the closure of mining enterprises within ten years. This includes preemptively retraining workers who will soon lose their jobs due to the shutdowns.

  • ERG Exploration Granted Exploration Rights in Mughalzhar District

    ERG Exploration Granted Exploration Rights in Mughalzhar District

    ERG Exploration, a subsidiary of ERG, has been authorized to conduct geological exploration for solid minerals across 8.9 thousand hectares in the Mughalzhar district of Aktobe region. According to a decree by Darhan Yermagambetov, the district’s akim, a public easement will be established on land plots in the Kayyndy rural district without removing land users. The exploration rights are valid until May 6, 2030. The public discussion of the decree will continue until May 30, and it will be published on the district akimat’s website.

    The company received a license for solid mineral exploration, numbered 2633-EL, on May 6. Last October, ERG Exploration began geological work on 2.8 thousand hectares in the Aktogay district of Karaganda region, focusing on areas predominantly within the district’s land fund and two farming estates.

    ERG Exploration’s CEO, Azamat Shalabayev, revealed plans to digitize geological data and explore for various metals, including chromium, manganese, copper, and rare metals. The company recently secured the right to explore a copper site in North Pribalkhash, having paid over 420 million tenge. Initial studies, conducted during the Soviet era and later by Rio Tinto with Kazgeology, estimated the site contains up to 200 thousand tons of copper with low ore concentration. ERG plans to extend exploration to a depth of 700 meters to locate more minerals.

    ERG has acquired 43 licenses for mineral exploration, focusing on cobalt, lithium, and copper. ERG’s Board Chairman, Serik Shakhazhanov, emphasized the company’s dedication to exploring future-critical metals. ERG recently inaugurated the ERG GeoHub core storage in Rudny, and plans to invest around $6.5 billion in Kazakhstan over the next five years, significantly boosting production across various divisions.

    The ultimate owners of ERG include the Ministry of Finance with a 40% stake, Alexander Mashkevich and the Ibragimov family each holding 20.7%, and Patokh Shodiev with 18.6%. These stakeholders were the first Kazakh billionaires according to Forbes in 2005. Mashkevich and Shodiev have since changed their citizenships to Israeli and Belgian, respectively. Mashkevich ranked sixth among the wealthiest Israelis in Forbes 2022 with a net worth of $3.7 billion. The Ibragimov family’s net worth is currently estimated at $1.5 billion.

  • KazMunayGas Invests 68 Billion Tenge in Oilfield Rehabilitation Projects

    KazMunayGas Invests 68 Billion Tenge in Oilfield Rehabilitation Projects

    KazMunayGas, the national oil company of Kazakhstan, has allocated 68 billion tenge towards the rehabilitation of two valuable oil and gas fields, Uzenskoye and Karamanbas. This update was provided by the company’s press center. The project, which began last year, is being implemented by Ozenmunaigas, a major oil enterprise and subsidiary of KazMunayGas.

    This year, the company’s leadership has approved a detailed task list and budget for the ongoing project. Of the total investment, 17 billion tenge was allocated last year, with an additional 51 billion tenge being added this year. The rehabilitation plan includes the deployment of over 200 Electric Submersible Pumps (ESPs), drilling 31 new wells, and undertaking extensive capital repairs of existing wells. Additionally, new methods to enhance oil recovery will be introduced, and a diagnostic and repair hall for underground equipment will be upgraded.

    So far, 23 new wells have already been commissioned, and over 100 have been equipped with modern technology. The project aims to increase oil production by 136,000 tons by the end of the current year, with an overall goal of extracting nearly 19 million tons of additional oil by 2036.

  • Kazakh Coal Producer “Bogatyr Komir” Maintains Supply Agreement with Russian Company Despite U.S. Sanctions

    Kazakh Coal Producer “Bogatyr Komir” Maintains Supply Agreement with Russian Company Despite U.S. Sanctions

    Despite U.S. sanctions, the agreements between the Kazakh coal producer “Bogatyr Komir” and the Russian coal and energy company SUEK remain intact for regular fuel deliveries, as reported by inbusiness.kz.

    “TOO Bogatyr Komir” is a joint venture between AO Samruk-Energo and Rusal. Concerns had arisen over potential secondary sanctions against the coal mining company due to the inclusion of the Russian buyer, Siberian Coal Energy Company (SUEK), in the U.S. sanctions list.

    Annually, up to 10 million tons of “Bogatyr” fuel were shipped to the affiliated Reftinskaya GRES linked to SUEK.

    According to the “Bogatyr Komir” report, the Kazakh coal producer is operating at full capacity, fulfilling all obligations regarding extraction and export. Between January and April 2024, they extracted and shipped 15,255 thousand tons of coal, with 2,584 thousand tons shipped to Russia. These figures slightly decreased compared to last year, which saw 15,488 thousand tons extracted and 3,343 thousand tons shipped to Russia.

  • ACG-Asia Capital Group Plans Gold Exploration Project in Kazakhstan’s Katon-Karagay District

    ACG-Asia Capital Group Plans Gold Exploration Project in Kazakhstan’s Katon-Karagay District

    TOO “ACG-Asia Capital Group” is gearing up to conduct exploration and assessment work for alluvial gold in the Mayemer area of the Katon-Karagay district in the East Kazakhstan Region. The project documentation from the license holder has been made available for public review on Kazakhstan’s Unified Environmental Portal.

    The commencement of geological exploration is scheduled for May 2024, with completion expected by the autumn of 2026. Specialists aim to evaluate the reserves of the promising area according to categories C1 and C2 and include them in the state balance sheet based on the results of the exploration.

    The licensed area covers 4.54 square kilometers. While targeted exploration for alluvial gold has not previously been conducted within Mayemer, the company notes that based on tailings sampling and general geological indicators, the territory holds promise for identifying deposits. Preliminary estimates suggest prospective resources of 68 kilograms of precious metal under category P2.

    The plan includes conducting mining operations, tailings sampling, collecting large-volume samples, and estimating reserves. A total of 950 samples are set to be collected from all excavations (mining and routes) in the Mayemer area.

  • Kazakhstan Ranks Sixth in Gold Production, Surpassing Previous Year’s Output

    Kazakhstan Ranks Sixth in Gold Production, Surpassing Previous Year’s Output

    Kazakhstan’s gold mining industry witnessed a notable surge last year, with the country extracting 130 tons of gold, propelling it to sixth place in the global ranking of gold-producing nations. This information comes from a report by “Kazinform,” citing data from the United States Geological Survey.

    The recorded gold output of 2023 surpassed the previous year’s production by 15 tons, which stood at around 115 tons. China claimed the top spot in 2023 with 370 tons of gold production, followed by Russia and Australia sharing second and third place, respectively, with 310 tons each.

    Overall, gold miners worldwide extracted 3,000 tons of the precious metal last year, with estimated reserves totaling 59,000 tons. When considering gold reserves, both explored and unexplored, Australia and Russia lead the pack, with reserves of 12,000 and 11,100 tons, respectively.

    The United States Geological Survey assesses Kazakhstan’s gold resources at 1,000 tons. It’s worth noting that earlier, Erlan Akbarov, the Chairman of the Committee of Geology under the Ministry of Ecology, Geology, and Natural Resources of Kazakhstan, stated that the country’s reserves amount to 20,000 tons.

  • Kazakhstan Implements Measures to Address Raw Material Shortage

    Kazakhstan Implements Measures to Address Raw Material Shortage

    The Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan has mandated domestic raw material producers to supply the necessary volumes of products to enterprises in the processing industry. This decision comes in response to the ongoing challenge of raw material shortages faced by Kazakh metallurgists, primarily due to exports. On average, around 87% of primary metals were shipped to other countries, exacerbating the deficit domestically. It is expected that the amendments introduced in May will alleviate this issue, ensuring that domestic industrial enterprises are adequately supplied with raw materials. Additionally, these measures aim to replenish the domestic market with finished products and enhance Kazakhstan’s export potential. By 2029, Kazakhstan intends to increase lead and aluminum processing by four and five times respectively, while copper processing is projected to increase thirteenfold by that time.

  • Kazakhstan to Collaborate with Afghanistan in Geology and Natural Resource Extraction

    Kazakhstan to Collaborate with Afghanistan in Geology and Natural Resource Extraction

    In a bid to enhance cooperation in the field of geology and natural resource extraction, Kazakhstan announces plans to establish a technical committee comprising domestic and foreign geologists, as reported by the press service of the Prime Minister of the republic. Vice Prime Minister of Kazakhstan, Serik Zhumangarin, engaged in discussions with Afghan counterparts to pave the way for future collaboration. Notably, representatives from Kazakhstani companies such as “Kazakhmys Barlau” and ERG Exploration were also involved in the deliberations.

    Afghanistan’s subsoil is renowned for its wealth in iron and non-ferrous ores, coal, and rare earth minerals. Additionally, the country boasts significant hydrocarbon reserves. It is anticipated that the potential partnership will soon provide Kazakh specialists with maps highlighting prospective areas and documents verifying the presence of mineral resources.