MINEX Forum

Tag: Kazakhstan

  • Kazakhmys and CNCEC Consortium to Construct New Sulfuric Acid Plant at Zhezkazgan Smelter

    Kazakhmys and CNCEC Consortium to Construct New Sulfuric Acid Plant at Zhezkazgan Smelter

    Kazakhmys, a leading player in the mining and metallurgy sector, has announced a significant development in its operations with the signing of an agreement with a consortium from the China National Chemical Engineering Company (CNCEC) to construct a new sulfuric acid plant at its Zhezkazgan copper smelter in Kazakhstan. The engineering, procurement, and construction (EPC) contract is valued at approximately $213.76 million, marking a substantial investment in the modernization of the facility.

    The decision to build the new sulfuric acid plant is part of a broader initiative aimed at modernizing the Zhezkazgan copper smelter and aligning it with contemporary environmental standards. The existing metallurgical gas utilization infrastructure, which dates back to the 1970s, is in dire need of technological upgrades. The project will not only involve the construction of the new production facility but also the modernization of the process gas capture and purification system, which will include the installation of advanced equipment such as converter enclosures, cooling towers, and electrostatic precipitators.

    One of the key goals of this project is to enhance the efficiency of gas capture, with expectations that the new system will achieve a capture rate of 99%. Furthermore, the residual sulfur dioxide concentration in the treated gases will meet the stringent requirements outlined in the international Best Available Techniques Reference Documents (BREF), significantly reducing SO₂ emissions and the overall environmental impact of the Zhezkazgan smelter.

    The new sulfuric acid plant is designed to have a production capacity of 350,000 tons per year and will be capable of processing up to 300,000 normal cubic meters of process gases per hour. The commissioning of the plant is tentatively scheduled for 2028, with full-scale mobilization and preparatory work expected to commence by the end of 2026. The construction and installation phase is projected to take around 29 months.

    This initiative is a crucial part of Kazakhmys’ long-term modernization program for the Zhezkazgan copper smelter, aimed at improving the reliability of the gas purification system and ensuring compliance with modern environmental regulations. Kazakhmys Group, known for its vertically integrated operations in mining and non-ferrous metallurgy, ranks among the top producers globally, holding the 20th position in copper-in-concentrate production and 12th in blister and cathode copper production, according to the company’s website.

  • Kazakhstan at the Centre of New Uranium Shortage Amid Rising Demand for Nuclear Energy

    Kazakhstan at the Centre of New Uranium Shortage Amid Rising Demand for Nuclear Energy

    Kazakhstan has emerged as a pivotal player in the global uranium market, currently facing a significant shortage of this critical mineral due to an upsurge in demand driven by renewed interest in nuclear energy. Anna Bryndza, Executive Vice President for International Affairs at the pricing agency UxC, discussed the complexities surrounding uranium extraction during a recent podcast with World Nuclear News (WNN). She highlighted that uranium mining remains one of the most challenging phases of the nuclear fuel cycle, compounded by supply disruptions, geopolitical risks, trade sanctions, construction delays, and rising production costs.

    Kazakhstan is responsible for approximately 40% of the world’s natural uranium oxide production, serving as a stable source of this energy resource for nuclear power plants in countries such as the USA, Russia, France, India, and China. Bryndza noted that the current deficit in uranium supply will not be resolved quickly, as new capacities are required across all sectors of the nuclear fuel market. The industry is responding to clear price signals, indicating a pressing need for timely operationalisation of new capacities to meet forecasted demand.

    Recent announcements from companies engaged in the nuclear fuel cycle, including Orano, Urenco, and Solstice, regarding major production expansion projects, have been viewed positively. However, there is a cautious approach to increasing supply, influenced by past experiences, particularly the long-lasting effects of the Fukushima disaster, which severely disrupted supply chains. Suppliers are now meticulously planning their expansion rates to ensure they align with actual demand rather than mere signals.

    Since the early 2010s, Kazakhstan has been ramping up uranium production, but the market faced a downturn following the Fukushima incident in 2011. Production levels from 2015 to 2024 fluctuated between 19,500 and 24,700 tonnes, with Kazatomprom and its affiliates aiming to produce between 27,500 and 29,000 tonnes this year, up from 25,800 tonnes last year. The peak of low-cost uranium production in Kazakhstan is expected to occur in the early 2030s.

    Bryndza also pointed out that recent geopolitical events have shifted the perception of nuclear energy and uranium supply towards national security concerns. This has led to government policies aimed at ensuring domestic capabilities, particularly regarding high-assay low-enriched uranium (HALEU), which is becoming increasingly important for the next generation of small modular reactors. Currently, there is no established market for HALEU, and significant gaps must be addressed to create a viable supply chain.

    UxC, known for its price information services, has been publishing uranium price indicators for over three decades. The agency’s approach to pricing aims to encompass a broad range of market participants, facilitating collective decision-making and enhancing the effectiveness of price indicators. Despite Kazakhstan’s status as a leading uranium producer, global prices for this critical mineral are set abroad, raising questions about how UxC’s pricing impacts Kazatomprom’s revenues and tax contributions to the state.

  • Investment Programme Advances at Nurkazgan Mine with New Infrastructure Developments

    Investment Programme Advances at Nurkazgan Mine with New Infrastructure Developments

    The Nurkazgan mine’s Western section is undergoing significant advancements as part of its investment programme aimed at enhancing production infrastructure and improving extraction efficiency. A key milestone in this initiative is the construction of a crushing and conveyor complex, along with ore pass No. 16, located at a depth of -140 metres. This project is set to facilitate the continued extraction of lower levels of the deposit and enable the transition to continuous ore transportation to the surface. Over 8.4 billion tenge will be allocated for the creation of this autonomous infrastructure network across various levels of the mine.

    The majority of the funding, exceeding 6 billion tenge, is earmarked for the construction of the crushing and conveyor complex at the -140 metre level, which is expected to commence operations by the end of 2026. The remaining funds will support the establishment of a service base, which will be relocated underground to optimise processes. Plans for 2027 include the commissioning of an underground explosives storage facility with a capacity of 30 tonnes at the 0 metre level, alongside the launch of a repair station. By 2028, the construction of a refuelling station at the -60 metre level is anticipated to be completed.

    The necessity for extensive modernisation stems from the progressive shift of mining operations to deeper levels of the mine, and subsequently, the development of the Eastern section of the Nurkazgan deposit. As part of the project, builders are excavating conveyor drifts, transfer chambers, and crushing chambers, where technological equipment will soon be installed. The rock mass will be transported by load-haul-dump (LHD) machines over minimal distances and dropped into the ore pass, where a crushing complex will be installed to process large rock blocks.

    A significant advantage of this project is its execution by the Corporation’s own resources. All phases of the work are being carried out by internal specialised divisions and relevant services, ensuring a high level of coordination, quality of work, prompt resolution of emerging issues, and effective use of internal resources. The management, coordination, and support of the project are overseen by the Capital Production Projects Department. Construction and installation work is being performed by the G. Omarov Shaft Construction Trust, while the installation of conveyor equipment is managed by the Repair and Mechanical Specialised Management. The manufacturing of technological equipment and metal structures is provided by Maker LLP. Quality control of mechanical and electrical work is conducted by the respective services of the chief mechanic and chief energy specialist of Nurkazgan TKO.

    Crushed ore will be fed into a new conveyor cascade with a total length of 844 metres. With a belt width of 1200 mm and a speed of 3.5-4 m/s, the system will ensure the continuous lifting of 1200 tonnes of ore per hour to a height of nearly 100 metres. At this point, the complex will connect with the existing main conveyor 3.2. The scheme includes the physical extension of the existing mainline and the phased augmentation of current main conveyors, creating a seamless transport artery for delivering ore from the depths of the mine directly to the processing plant.

    In addition to direct economic benefits and reduced fleet maintenance costs, the project enhances workplace safety. The automation of processes for moving large volumes of rock mass will completely remove personnel from potentially hazardous areas of underground mining. The implementation of these engineering solutions will ensure uninterrupted ore delivery, improve production efficiency, and establish a reliable foundation for the sustainable operation and long-term development of the Nurkazgan mine.

  • Zijin RG Gold Expands Equipment Fleet with New Komatsu Bulldozers

    Zijin RG Gold Expands Equipment Fleet with New Komatsu Bulldozers

    Zijin RG Gold has celebrated the acquisition of two new Komatsu bulldozers, the WD600 and D275A, marking a significant milestone in the company’s strategy to enhance its mining equipment fleet and improve operational efficiency. This initiative is part of a broader plan to transition towards a self-sufficient operational model, bolstering production resilience, enhancing industrial safety, and creating additional avenues for future growth. The strategy is supported by its parent company, Zijin Mining Group.

    With the addition of these bulldozers, Zijin RG Gold now boasts a fleet of over 45 Komatsu machines. The company has established a long-term partnership with KOMEK MACHINERY Kazakhstan, which provides comprehensive service support aimed at ensuring reliable, safe, and efficient operation of the equipment throughout its lifecycle. This collaboration underscores the commitment to maintaining high operational standards and maximising the longevity of the machinery.

    On the same day, representatives from Zijin RG Gold and KOMEK MACHINERY Kazakhstan held a working meeting to discuss future collaboration directions. Key topics included enhancing workplace safety, improving equipment productivity and reliability, developing personnel competencies, and implementing advanced global practices from Komatsu.

    The expansion of its equipment fleet is a crucial step in strengthening Zijin RG Gold’s production capacity and reaffirms the company’s commitment to sustainable development, modern technology adoption, and increased efficiency in mining operations. This strategic move is expected to not only enhance operational capabilities but also contribute to the overall growth and sustainability of the mining sector in Kazakhstan.

  • Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Corporation has embarked on one of the largest investment projects in recent years with the construction of the ‘Air Supply Shaft-2’ at the Nurkazgan deposit in the Karaganda region. The project, which involves an investment exceeding 32.5 billion tenge, aims to enhance the development of the Eastern section of the deposit and marks a significant milestone in the evolution of the Nurkazgan mine.

    The new shaft, projected to reach a depth of 1,283.9 meters, will become the deepest mine shaft in Kazakhstan. Its construction is expected to facilitate the further exploration of ore reserves, improve industrial safety standards, and establish a modern infrastructure that will support the mine’s operations for decades to come. A ceremonial event to mark the commencement of construction was attended by key figures, including Nurmukhamet Abdibekov, Chairman of the Board of Kazakhmys, and other senior executives.

    Abdibekov highlighted the project’s significance, stating that it represents a long-term investment in safety, production development, and the strengthening of the company’s resource base. The primary objective of the project is to uncover the ore reserves in the Eastern section, ensure a fresh air supply to underground workings, and create a safe environment for workers.

    Construction will involve the excavation of over 65,000 cubic meters of rock and the establishment of nine connections with existing mine horizons. The completion of the shaft is anticipated by 2031, after which it will be equipped with advanced technological systems, including a cage lift, main ventilation unit, and a modular heating boiler to warm the air entering the mine.

    Looking ahead, Kazakhmys plans to initiate the construction of the ‘Ventilation Shaft-2′ in 2027, which will complement the newly built shaft and create a unified engineering infrastructure. This infrastructure will ensure effective ventilation and safe operations at the mine, enabling the further exploration of new ore reserves.

    The confirmed reserves at the Nurkazgan deposit, which contain copper, gold, and silver, support the sustainable operation of the mining and processing complex for over 40 years. The project’s implementation is a crucial step in Kazakhmys’ long-term investment programme aimed at enhancing production capacities, improving industrial safety, and reinforcing the company’s resource base.

  • Kazakhstan Government Discusses New Fluorspar Concentrate Plant in Zhambyl Region

    Kazakhstan Government Discusses New Fluorspar Concentrate Plant in Zhambyl Region

    The government of Kazakhstan has recently convened to discuss an investment project aimed at constructing a new plant for the production of acid-grade fluorspar concentrate in the Zhambyl region. The meeting, chaired by First Deputy Prime Minister Nurlan Naliбаев, included representatives from Western Mining Corporation Limited, a consortium of leading Chinese companies spearheading this initiative. The proposed plant is set to produce fluorspar concentrate, which is highly sought after in the chemical industry, new energy sector, and both ferrous and non-ferrous metallurgy.

    During the meeting, Nurlan Naliбаев highlighted the government’s commitment to providing comprehensive support to investors. He underscored the strategic importance of developing the mining and processing industries, attracting foreign investments, and implementing modern environmental production standards to ensure sustainable economic growth in Kazakhstan. The project is expected to create over 200 permanent jobs, contributing to local employment and economic development.

    Following the discussions, relevant government bodies and organizations have been tasked with conducting a comprehensive assessment of the project’s economic and strategic viability. This initiative reflects Kazakhstan’s ongoing efforts to enhance its mining sector and attract international collaboration, particularly in the context of increasing demand for fluorspar in various industrial applications. As the country seeks to bolster its position in the global mining landscape, projects like this one are crucial for fostering innovation and sustainability in the industry.

  • Kazakhstan’s Kazcink Reports Decline in Profit Despite Increased Revenue

    Kazakhstan’s Kazcink Reports Decline in Profit Despite Increased Revenue

    Kazakhstan’s mining giant, Kazcink, has reported a decline in profitability for the first half of 2026, despite an increase in revenue. According to the financial report from Glencore, the Anglo-Swiss commodity group that controls nearly 70% of Kazcink’s shares, the company’s adjusted EBIT fell to $301 million, down from $387 million during the same period last year. Revenue for the first half of 2026 reached $2.458 billion, a slight increase from $2.393 billion in the first half of 2025.

    The increase in revenue can be attributed to higher prices for key metals produced by Kazcink, including zinc and gold, although gold prices have seen a slight decline since early spring. However, the company experienced a reduction in production volumes for both its own and third-party zinc, with a more significant drop in precious metal output. Additionally, a new progressive mineral extraction tax (NDT) on gold, based on price levels, is expected to further impact Kazcink’s profitability this year.

    Kazcink’s adjusted EBITDA for the reporting period was $588 million, significantly lower than the $708 million reported in the same timeframe last year. The company’s depreciation costs also decreased to $287 million from $321 million in the previous year. Furthermore, capital expenditures saw a dramatic reduction of over 50%, falling to $145 million compared to $340 million in the first half of 2025.

    Glencore’s report highlighted a recovery from a $99 million impairment on the Zhairem project, reflecting improved operational performance and more optimistic price forecasts for zinc. In contrast, the Zhairem mining and processing plant reported a loss of $25 million last year, despite generating $307 million in sales.

    Overall, Glencore’s financial performance for the first half of 2026 was robust, with a net profit of $4.4 billion and a nearly twofold increase in adjusted EBITDA to $10.12 billion. The adjusted EBIT surged 3.7 times to $6.65 billion. In 2025, Kazcink reported a net profit of $771 million on revenues of $5.069 billion, indicating a challenging year ahead for the company amidst fluctuating metal prices and production challenges.

  • Kazakhstan’s Samruk-Kazyna Fund Acquires 40% Stake in Eurasian Resources Group

    Kazakhstan’s Samruk-Kazyna Fund Acquires 40% Stake in Eurasian Resources Group

    In a significant development for Kazakhstan’s mining sector, the National Wealth Fund ‘Samruk-Kazyna’ has acquired a controlling 40% stake in Eurasian Resources Group S.à r.l. (ERG), a major player in the mining industry. This transaction, which took effect on August 4, 2026, marks a strategic shift in the ownership structure of ERG, previously held by the State Property and Privatisation Committee of the Ministry of Finance of Kazakhstan.

    The acquisition was confirmed by ERG, which stated that the fund is now the sole owner of the 40% stake, while the heirs of Alidjan Ibragimov, one of the founding shareholders, hold 20.7%, and Shakhmurat Mutalip retains 39.3%. This change in shareholding is part of a broader strategy by the Kazakh government to manage state assets effectively through Samruk-Kazyna, which is tasked with ensuring the sustainable operation of businesses in the country.

    On the same day, Samruk-Kazyna released an official statement regarding the acquisition, highlighting its commitment to managing state assets in the interests of Kazakhstan. The fund’s involvement is expected to enhance the operational stability of ERG, which has assured stakeholders that its enterprises will continue to operate normally and adhere to its development strategy.

    The transaction follows earlier discussions regarding the potential restructuring of ERG, with reports suggesting negotiations between shareholders Mutalip and the Ibragimov heirs about possibly dividing the group into separate Kazakhstan and international entities. However, the Ministry of Finance has stated that it has not received any formal requests regarding such a division.

    Additionally, the acquisition comes amid ongoing negotiations between ERG and Portuguese company Mota-Engil concerning the sale of Bahia Mineração (BAMIN), which holds iron ore assets in Brazil. These talks have reportedly slowed due to the recent changes in ERG’s ownership structure, with a deal initially expected to be finalised by mid-2026 now facing delays.

    As the Ibragimov family ranks among Kazakhstan’s wealthiest, with a net worth of $1.677 billion as of May 2026, the implications of this ownership shift are significant for the future of ERG and its operations both domestically and internationally. The mining sector in Kazakhstan continues to evolve, with state involvement poised to play a crucial role in shaping its trajectory.

  • Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Corporation has commenced the excavation of the ‘Air Supply-Cage-2’ mine shaft at the Nurkazgan deposit in the Karaganda region, which is set to become the deepest mine shaft in Kazakhstan, reaching a projected depth of 1,284 metres. The investment for this construction is estimated at 32.5 billion tenge. This shaft will serve as a crucial hub for the future infrastructure of the Eastern section of the deposit, primarily aimed at accessing ore bodies located at deep levels, ensuring ventilation for the mine, and facilitating the descent and ascent of workers.

    The project entails a significant volume of work, with approximately 65,000 cubic metres of rock mass expected to be extracted during the excavation process. There are plans for nine intersections with existing levels. The excavation is scheduled to continue until 2031, after which modern equipment will be installed in the shaft, including a cage lift, a main ventilation unit, and a modular boiler that will heat the air entering the underground workings.

    In parallel, Kazakhmys is preparing for a new phase of development at the site, with work on the companion shaft ‘Ventilation-2’ set to begin next year. Once all operations are completed, the finished shafts will form a comprehensive infrastructure for the future extraction of copper, gold, and silver. Geologists estimate that the confirmed reserves at Nurkazgan will allow the mining and processing plant to operate for over four decades.

  • Kazakhstan’s Tau-Ken Samruk Utilises Drones for Geological Surveying in Ulytau Region

    Kazakhstan’s Tau-Ken Samruk Utilises Drones for Geological Surveying in Ulytau Region

    The national mining company Tau-Ken Samruk has initiated the use of drone technology for state geological exploration in Kazakhstan’s Ulytau region. This project, which is part of a larger initiative by the Ministry of Industry and Infrastructure Development, aims to cover approximately 50,000 square kilometres with airborne geophysical studies. Currently, the company Kazgeologia is conducting these studies, as reported by the press service of the Samruk-Kazyna fund.

    The drones, equipped with geophysical sensors, are capable of conducting simultaneous magnetic, gamma-spectrometric, and gravimetric surveys. The measurement system includes devices from Medusa Radiometrics (Netherlands) for spectrometry, Geometrics (USA) for magnetometry, and iMAR Navigation (Germany) for inertial navigation. The positioning accuracy claimed is within a few centimetres, facilitated by RTK navigation technology combined with lidar systems that adjust flight trajectories, enabling the drones to operate effectively in complex terrain.

    Data processing at low altitudes provides sufficient resolution to detect small geological anomalies that might not be visible through traditional aerial surveys. This project aligns with a broader goal set by the Ministry of Industry and Infrastructure Development of Kazakhstan, which aims to conduct detailed geological mapping of the entire country at a scale of 1:50,000 by the end of 2026. To achieve this, modern technologies, including drone systems, will be integrated into the geological survey processes.

    In 2026, Kazakhstan allocated over 40.7 billion tenge from the government reserve to launch 20 geological survey projects at the 1:50,000 scale. The total area to be explored is around 100,000 square kilometres, with geological exploration expected to conclude by the end of 2028. This initiative is a significant step towards enhancing the country’s geological data and resource management, showcasing the integration of advanced technology in the mining sector.