MINEX Forum

Tag: Kazakhstan

  • Kazakhstan Takes Measures to Enhance Workplace Safety and Reduce Work-Related Injuries

    Kazakhstan Takes Measures to Enhance Workplace Safety and Reduce Work-Related Injuries

    Kazakhstan witnesses over 1400 workplace accidents annually, with more than 200 resulting in fatalities. Among the various sectors of the Kazakhstani economy, the mining and metallurgical complex reports the highest number of casualties at 21.3%, followed by the construction industry at 10%, according to data from the Ministry of Labor and Social Protection cited by inbusiness.kz.

    More than 519,000 workers are employed in hazardous working conditions, with every third worker (37%) exposed to elevated levels of noise and vibration, every fourth worker (25%) operating in areas with increased gas and dust concentrations, and every eighth worker (13%) enduring unfavorable temperature conditions. Additionally, over 107,000 individuals (21%) are engaged in strenuous physical labor.

    In 2023, based on assessment results, 697,000 workers received various compensations for working in hazardous conditions, with employers allocating 255 billion tenge, a 23% increase from the previous year.

    Over the past five years, governmental and employer-initiated measures have contributed to a reduction in the rate of occupational injuries (frequency rate per 1,000 workers) from 0.23 to 0.21.

    Efforts towards ensuring healthy and safe working conditions in Kazakhstan continue with a comprehensive approach. In 2023, law enforcement agencies received 1055 reports on workplace accidents, resulting in 149 criminal cases being initiated.

    To evaluate actual workplace conditions, over 10,000 industrial facilities underwent assessment, while 3214 enterprises across the country implemented safety and labor protection standards to prevent violations.

    Since 2019, Kazakhstan has actively promoted the Vision Zero Concept, aiming for zero accidents. Currently, 536 national enterprises have joined this initiative, with 258 Kazakhstani enterprises adopting a vertical control model to ensure safety standards in subcontracting organizations within the construction sector.

    To further enhance social protection mechanisms for workers employed in hazardous conditions, special social payments were introduced from January 1, 2024, following the president’s directive. Nearly 6,000 workers have transitioned out of hazardous working environments and are receiving these special social payments.

    The Ministry of Labor and Social Protection of the Population of Kazakhstan aims to significantly reduce the number of hazardous workplaces and decrease the level of occupational injuries. Last year, the government approved the Safe Labor Concept until 2030, outlining plans for modernizing the national occupational safety management system, incentivizing measures to reduce professional risks, advancing professional competencies and scientific potential in labor protection, and improving the effectiveness of control and monitoring in the field of labor protection.

  • Deputy Raises Concerns Over Support for Domestic Producers in Kazakhstan

    Deputy Raises Concerns Over Support for Domestic Producers in Kazakhstan

    During a plenary session of the Mazhilis, Deputy Bolatbek Nazhmitdenuly addressed issues regarding supporting businesses through state procurements and purchases from quasi-governmental sectors and subsoil users from domestic manufacturers, as reported by inbusiness.kz.

    He revealed that the total amount of purchases in Kazakhstan currently stands at around 23-24 trillion tenge. Nazhmitdenuly pointed out discrepancies in government data, stating that while the Ministry of Industry and Infrastructure Development claims the state controls nearly 60% of purchases, other sources suggest it may be as low as 20%. He criticized the validity of the ST-KZ certificate and industrial certificate, questioning the effectiveness of government approaches.

    The deputy also sought clarification from officials on the criteria for inclusion in the registry of domestic producers and how to ensure only conscientious producers are listed.

    In response, Minister of Industry and Infrastructure Development Kanat Sharlapayev acknowledged the challenges in distinguishing between counterfeit producers and genuine Kazakhstani enterprises. He highlighted the need for modernization in the selection process and proposed adopting digital methods, drawing parallels with credit checks conducted by banks.

    Sharlapayev emphasized the importance of leveraging available data, suggesting that criteria such as electricity consumption could indicate manufacturing activity. He advocated for the involvement of industry associations in validating producer status and stressed the responsibility of government agencies in managing the registry.

    Furthermore, Sharlapayev outlined the importance of long-term contracts with producers, linking them to commitments for increased localization, improved employee income levels, and production expansion.

  • First Quantum Minerals Launches Extensive Geological Survey Project in Kazakhstan

    First Quantum Minerals Launches Extensive Geological Survey Project in Kazakhstan

    First Quantum Minerals (FQM) has unveiled plans for extensive geological survey operations in Kazakhstan, aiming to identify promising copper deposits, as reported by inbusiness.kz. Last year saw the establishment of FQM’s Kazakhstan division in Astana, accompanied by the recruitment of local personnel, signaling the company’s commitment to local engagement and investment.

    According to geologist James Banyard, overseeing FQM’s activities in Kazakhstan, the company’s specialists will commence geological surveying activities in the summer of 2024. Initial efforts will focus on mapping and geophysical exploration of subsurface formations, laying the groundwork for potential mining endeavors.

    In collaboration with Pallas Resources, an existing partner in several projects, FQM aims to execute its strategic vision of a five-year presence in Kazakhstan, with aspirations to discover lucrative copper-rich sites worthy of future investment.

    Currently, the company is in the process of securing exploration licenses for multiple sites across various regions of the republic. Prospecting efforts will primarily target areas with known concentrations of copper ore, including the Balkhash-Ili territories, Bozshakol-Chingiz, and the Chu-Sarysu basin.

    FQM’s foray into the Kazakh market follows the enactment of the Subsoil Code in 2018, reflecting the company’s strategic assessment of risks and opportunities within the region. Despite the inherent challenges, FQM remains optimistic about the prospects of collaboration in Kazakhstan’s burgeoning mining sector.

  • “Tau-Ken Samruk” at MINEX Kazakhstan 2024

    “Tau-Ken Samruk” at MINEX Kazakhstan 2024

    The 14th MINEX Kazakhstan Mining and Geological Forum opened today in Astana. The central theme of the forum is “Sustainable Development of the Mining Industry for the Benefit of Society and the Environment.”

    Approximately 120 speakers are scheduled to participate, including representatives from government agencies, international organizations, domestic and foreign mining companies, institutional and private investors, technological and consulting companies, the financial sector, industry associations, and more.

    Bakyt Chirchikbayev, Chairman of the Board of the National Mining Company “Tau-Ken Samruk,” spoke at the plenary session “Drivers of Development of the Mining and Metallurgical Industry in Kazakhstan.” He discussed the company’s priority projects and plans for further development, particularly focusing on the transfer of 100% of the shares of Kazgeology JSC to Tau-Ken Samruk. Chirchikbayev highlighted several advantages that partners could gain from this integration, stating, “The integration of Kazgeology into the structure of Tau-Ken Samruk will expand the potential scope of cooperation with existing and future partners, as Tau-Ken Samruk specializes not only in geological exploration but also in the further development of projects, including construction and production stages.”

    Chirchikbayev also emphasized that geological exploration projects remain a priority: “We plan to continue implementing current projects with partners and simultaneously study all available historical and modern geological information to identify prospective areas. Already, our geologists have made significant progress in this direction.”

    Aspects of international cooperation in geological exploration, mining, processing, and the creation of supply chains for uranium and materials critical for “green” energy technologies were discussed in a separate session of the MINEX Kazakhstan forum.

    Nariman Absametov, Chief Business Development Officer of the National Mining Company, outlined the main areas of focus for Tau-Ken Samruk regarding critical minerals. Firstly, work continues on the development of economically efficient ore enrichment technology at the largest domestic tungsten deposit, Upper Kayraktinsky. Research into the prospects of heap leaching has begun, and this year will see large-scale laboratory studies. If successful, the next step will be pilot technological tests.

    Simultaneously, the National Mining Company is exploring the reconnaissance of rare and rare-earth metals in the Akbulak area of the Kostanay region. Geological exploration is planned to begin soon in collaboration with the American company Cove Capital, with the relevant agreement already signed.

  • 14th MINEX Kazakhstan Forum in Astana: Sustainable Development in Mining Industry Takes Center Stage

    14th MINEX Kazakhstan Forum in Astana: Sustainable Development in Mining Industry Takes Center Stage

    Astana, Kazakhstan – The 14th Mountain Geological Forum, MINEX Kazakhstan, commenced its proceedings, focusing on the theme of “Sustainable Development of the Mining Industry for the Benefit of Society and the Environment.” Over 450 specialists from 235 companies and organizations spanning Kazakhstan and 32 countries across Europe, Central Asia, North and Latin America, Africa, Southeast Asia, the Middle East, and Australia are participating in the event.

    More than 50 Kazakhstani and international companies are showcasing cutting-edge technologies for prospecting, extraction, and processing of mineral resources at the forum’s exhibition. Attendance by approximately 1000 specialists from Kazakhstan and abroad is anticipated.

    Of notable significance this year is the record participation of foreign investors at the forum, demonstrating keen interest in exploring and developing deposits of precious metals, copper, coal, lithium, uranium, as well as rare and rare-earth metals.

    During the plenary session, the Executive Director of AGMP, Nikolai Radostovets, addressed the key directions for the development of the mining and metallurgical industry in Kazakhstan. He emphasized crucial tasks such as replenishing the mineral resource base, enhancing domestic value, and raw material processing.

    With the depletion of the mineral resource base and the decline in the content of useful components in ore, there is a pressing need to increase geological exploration activities and provide incentives for investments in geological exploration. In this regard, the association’s leader proposed revising the algorithm for accounting and taxing expenditures on geological exploration. Specifically, he suggested refining the Tax Code to allow deductions for all expenses on geological exploration regardless of the allocation of individual sites into new contracts, as well as establishing deductions for corporate income tax on expenditures for geological exploration of solid minerals through existing extraction contracts.

    To incentivize involvement in raw material processing, he proposed enshrining several provisions in legislation. These include exempting subsoil users’ non-extractive mineral resources from the mineral extraction tax (MET) and not levying fees for their re-placement after processing. Regarding non-state-owned mineral resources, extraction should proceed as per current regulations, with a reduced MET rate applied to stimulate their processing.

    Addressing tasks related to enhancing domestic value, Radostovets highlighted AGMP’s comprehensive approach aimed at satisfying the needs of domestic manufacturers and mitigating risks for subsoil users in procurement.

    “We plan to convene with domestic manufacturers at the NPP platform shortly and propose that for the products that Kazakhstani enterprises can produce, we will enter into off-take contracts,” he specified. “We are prepared to compile and approve a list containing the range of goods manufactured in Kazakhstan or those that can be produced in the medium term. For other types of products, we should have open procurement under standard conditions, possibly from a single source, as these are goods not produced in Kazakhstan.”

    The Executive Director of AGMP also underscored the development of raw material processing in Kazakhstan, recalling legislative amendments enacted for licensing metal exports. These amendments, effective from October of the current year, will only grant export licenses if metallurgical enterprises fulfill certain obligations and meet domestic market demands. He noted the association’s preference for stimulating enterprises to process natural resources within the country to foster the development of metal processing and the establishment of metallurgical clusters.

    “Investment agreements, processing agreements have not yet kicked off,” expressed R. Baimishev. “There hasn’t been a single agreement with an investment volume of $50 million. Yet, there are proposals to increase them by 10 times – up to $500 million. We believe these are premature steps. Furthermore, we believe it is necessary to stimulate the development of deeper horizons. Mine construction requires substantial investments and government support,” he observed.

    In turn, the Chairman of the Board of AO “National Mining Company “Tau-Ken Samruk” Bakyt Chirchikbayev provided an update on the completion of the transfer process of 100% of the shares of AO “NGC “Kazgeology” to “Tau-Ken Samruk” in September of the previous year. He outlined steps taken to optimize management processes, reduce costs, and eliminate duplicate functions, such as merging functions related to geological exploration and joint project implementation with foreign partners. Following the consolidation of these functions, their asset portfolio comprises 53 geological exploration projects, with collaboration involving more than 15 participants.

    “It can be noted that we have become a sort of unified window for investors in the geological exploration sector for developing joint projects, and we see ourselves as minority participants in the development of these projects to avoid burdening quasi-state companies with such requirements and to manage companies more flexibly,” he remarked.

    Chirchikbayev emphasized that the company’s geologists are currently exploring promising directions and have already identified several prospective sites. “Tau-Ken Samruk” is open to partners, including junior companies, for the development of these projects.

  • Kazakhstan’s “Tau-Ken Samruk” Partners with US Investors for Rare Metals Exploration

    Kazakhstan’s “Tau-Ken Samruk” Partners with US Investors for Rare Metals Exploration

    In a significant development, Kazakhstan’s mining company “Tau-Ken Samruk” has entered into a collaboration agreement with Cove Capital, a US-based organization, aimed at exploring Rare Metals (RM) and Rare Earth Metals (RZM) within the Republic of Kazakhstan (RK). The partnership entails joint geological exploration activities, particularly in the Kostanay region, as disclosed in a Telegram channel of the “Samruk-Kazyna” fund. The exploration focus will center on the Akbulak deposit near Arkalyk, with Cove Capital committed to fully funding the exploration until the resources are officially registered. While detailed project information remains scarce, it’s notable that the foreign entity and Tau-Ken Samruk’s subsidiary, “Kazgeology,” will establish a joint venture for this endeavor. Previously, experts from Kazgeology had hinted at the potential richness of the Akbulak site in RM and RZM, including yttrium, cerium, thulium, zirconium, lutetium, tin, and others. The company’s attempt to attract investors for the development of these reserves dates back to 2019. Forecasts estimate the resources of this area to be around 380,000 tonnes. This collaboration follows the signing of documents between “Samruk-Kazyna” and Cove Capital last September, indicating a broader partnership in critical raw materials.

  • British Concrete Canvas Ltd. to Establish Concrete Production Plant in Kazakhstan

    British Concrete Canvas Ltd. to Establish Concrete Production Plant in Kazakhstan

    British company Concrete Canvas Ltd. has revealed plans to construct a concrete slab manufacturing plant in Kazakhstan, as reported by Kazakh Invest. Originally intending to build the facility in Russia, geopolitical circumstances led to the decision to opt for Kazakhstan. The envisioned project, according to British investors, is poised to address critical challenges in the construction and renovation of irrigation systems in the country. The initiative is expected to significantly enhance the operational reliability of irrigation systems, eliminate water loss within the country’s agro-industrial complex, and reduce budgetary expenditures on canal renovation programs, protective dams, and other civil infrastructure assets. Concrete Canvas, known for producing geosynthetic cement composite mats that prevent water loss during filtration while maintaining material durability, has already established a presence in Almaty. The company is currently assessing market needs, engaging in discussions with relevant ministries and local executive bodies. Concrete Canvas Ltd. was among the 21 companies relocating to Kazakhstan from Russia and Belarus, as announced by the government in late December 2022. Furthermore, in November 2023, during a working trip to the United Kingdom, Kyrgyzstan’s Prime Minister, Akylbek Zaparov, proposed that Concrete Canvas consider establishing a plant in the republic.

  • Ministry of Industry and Infrastructure Development to Auction Over 100 Mineral Deposits

    Ministry of Industry and Infrastructure Development to Auction Over 100 Mineral Deposits

    By the end of the first summer month, the Ministry of Industry and Infrastructure Development will showcase more than 100 mineral deposits at an auction, including 23 returned and 83 reserve sites. This announcement was made by the head of the Ministry’s Committee of Geology, Erlan Akbarov, during a briefing at the SCC. All auctions will enforce commitments to ensure production levels do not fall below the average national output. Prospective bidders are reminded of the obligation to allocate funding for the development of regional social infrastructure. In 2023, the Ministry organized two auctions, offering 74 potentially valuable sites, with total subscription bonuses amounting to around 3.5 billion tenge, as reported by the Ministry’s press center. Mr. Akbarov stated that nearly 10 billion tenge is allocated annually for state geological exploration of mineral resources. Over the past five years, approximately 52 billion tenge has been invested in this sector, equating to 8 per square kilometer. Notably ,mineral rights holders have spent significantly more on geological exploration activities over the five−year period, totaling 357 billion tenge. 

  • Ulytau Resources to Conduct Uranium Exploration in Kazakhstan’s Jambil Region

    Ulytau Resources to Conduct Uranium Exploration in Kazakhstan’s Jambil Region

    Ulytau Resources is set to embark on uranium exploration at the Djusandalinskoye deposit in the Zhambyl region. Under the acquired license, the mining company will survey an area of 29.43 km² from 2024 to 2028 near the uranium-molybdenum Botaburum deposit in southern Pri-Balkhash, as reported by inbusiness.kz. In addition to seeking new uranium deposits, Ulytau Resources will evaluate previously identified reserves and monitor the natural radiation levels during drilling activities. Public discussions regarding the exploration license for uranium are scheduled for April 25th. The uranium deposits at Djusandalinskoye were first discovered in 1982, with the metal’s reserves classified under categories C1 and C2 in 1991 and subsequently studied by “Yuzhpolymetal” experts who have conducted geological surveys at Botaburum since 1957.

  • Irkaz Metal Corporation Plans Expansion of Copper Smelting Plant in Kazakhstan

    Irkaz Metal Corporation Plans Expansion of Copper Smelting Plant in Kazakhstan

    Irkaz Metal Corporation, an Iranian copper producer, is looking to construct the third phase of its copper smelting plant at the Borly deposit in the Karaganda region. The new facility will cover an area of 100 hectares, with construction set to commence in July 2024. This information was revealed on the AGMP portal. The hydro-metallurgical complex is expected to process 2.5 million cubic meters (approximately 4.6 million tons) of copper ore annually through heap leaching, enabling the company to produce 5,000 tons of cathode copper per year. The plant will require over 137,000 tons of sulfuric acid annually for processing. The Borly site currently hosts a shift camp for employees, who work in two 12-hour shifts year-round. Notably, the plant has a two-story fire station on-site. Irkaz Metal Corporation inaugurated the plant in November two years ago, with an initial project investment exceeding 9 billion tenge. Currently, the facility employs 140 individuals, with the copper smelting plant’s capacity standing at 5,000 tons.