RG has now allocated a total of 500 million tenge for flood relief efforts and assistance to affected residents. Last week, the company had already allocated 400 million tenge in aid. In addition to financial assistance, Group enterprises continue to provide support with specialized equipment and personnel involved in flood prevention and mitigation efforts. Volunteer workers from the enterprises are also contributing to the relief efforts.
Tag: Kazakhstan
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Reforming Efforts Underway in Kazakhstan’s Geological and Mining Committee
The Committee of Geological, Mining, Coal Mining, and Metallurgical Industry (CGMCMI) of the Presidium of the National Chamber of Entrepreneurs of the Republic of Kazakhstan “Atameken” is currently undergoing a phase of restructuring. These changes not only affect the organizational structure but also aim to enhance the overall efficiency of its operations. Highlighting the committee’s proactive approach, Atameken’s Presidium Chairman Raimbek Batalov emphasized the necessity for adaptation, citing the evolving landscape of strategic issues within the mining and metallurgy sector, requiring innovative approaches and swift community consolidation.
During the latest committee session chaired by CGMCMI Director Nikolay Radostovets, discussions revolved around topics such as research and development funding amounting to 1% of extraction expenses, reforming commodity exchange legislation, procurement of goods by subsoil users, agreement on the roadmap for mining and metallurgy development, supply of metals to processing industry enterprises, and the establishment of a Working Group to incentivize waste processing. Deputy Chairperson of Atameken’s Presidium, Gulnara Bizhanova, also participated in the committee session.
Among the deliberations was the initiative from government bodies and parliamentarians to amend the funding procedure for research and development, setting it at 1% of extraction expenses. Within the Working Group discussing the science and technology policy bill, proposals were made to channel all allocated funds for research and development through the Science Fund via the national and local budgets.
According to Atameken’s expert, Erlan Smailov, centralizing research funding through the Science Fund could diminish the economy’s innovation capacity and pose financial burdens. He argued against interfering with a system that has demonstrated growth, presenting statistics indicating a 42% increase in research and development expenditure in the science and education sector in 2023 compared to the previous year.
Deputy Executive Director of the CGMCMI, Erbol Zakariyanov, reminded of similar discussions held three years ago when legislative amendments were proposed to ensure non-tax revenues to the national budget through subsoil user funds allocated for research and development. These proposals failed to gain government support.
Zakariyanov stressed the significant role of subsoil users in advancing industry science, conducting research in their own research centers and laboratories, partly financed through contractual obligations. He emphasized the need for a funding mechanism that prevents adverse impacts on subsoil users, maintains conditions for their research activities, and only centralizes unused funds.
The agenda also included discussions on the roadmap for mining and metallurgy development. Deputy Chairperson of Atameken’s Presidium, Gulnara Bizhanova, highlighted the industry’s lack of strategy and accumulated issues. As a result, a comprehensive set of proposals addressing key industry challenges was formulated within the roadmap. Two roadmaps were developed, one requiring decisions from the authorized body and the other involving the government with other state agencies. Both documents were endorsed during the session and will be submitted for government approval.
Attention was also given to ensuring domestic raw material supply to processing industry enterprises based on relevant agreements. Domestic raw materials refer to goods listed in the domestic raw material products list approved by the Ministry of Industry and Infrastructure Development. Export of domestic raw materials listed in the list is allowed based on licenses issued by the authorized body. The licensing mechanism will be enforced six months after the law comes into effect.
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Kazakhstan Advances Tungsten Mining Project in Almaty Region
Kanat Sharlapaev, Minister of Industry and Infrastructure Development of Kazakhstan, met with representatives of Jiaxing International Resources Investment LTD to discuss the progress of the tungsten mining project at the Bugytinskoye deposit in the Almaty region.
TOO “Zhetysu Tungsten” is constructing a mining enterprise to implement the tungsten mining project at the Bugytinskoye deposit. The deposit holds a contract for mineral extraction (Contract No. 4608-TPI dated June 2, 2015, for a term of 25 years).
Construction, installation, and mining operations are actively underway with operations scheduled to commence by the end of 2024. The deposit and processing plant are expected to create 1000 job opportunities.
The project aims to mine and process 3.3 million tons of tungsten ore, producing 65% tungsten concentrate. Currently, there’s an economic feasibility study for constructing a deep processing complex to further process the 65% tungsten concentrate into 88.5% ammonium paratungstate and high-purity tungsten carbide.
Following the meeting, both parties expressed gratitude and underscored the importance of bilateral relationship development.
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Concrete Canvas Ltd. Explores Plant Construction for Innovative Technology in Kazakhstan
Yerzhan Yelekeyev, Chairman of the Board of JSC “NC KAZAKH INVEST,” convened a meeting with the leadership of British company Concrete Canvas Ltd. to discuss the potential establishment of a concrete canvas production plant in Kazakhstan.
Concrete Canvas Ltd. has recently established a representative office in Kazakhstan, conducting market research and engaging in negotiations with relevant governmental bodies. Initially considering production localization in Russia, the company pivoted to Kazakhstan due to geopolitical circumstances.
The proposed project aims to address Kazakhstan’s urgent needs in irrigation system construction and reconstruction using innovative Concrete Canvas technology. This initiative promises to enhance the operational reliability of irrigation systems, mitigate water loss in the agro-industrial sector, and decrease budgetary expenditures on infrastructure renovation programs.
Concrete Canvas Ltd. specializes in geosynthetic cement composite mats, ensuring water retention during filtration while maintaining material durability. Their technology utilizes a rolled multicomponent material with a cement filler, rapidly solidifying to form a thin, robust, reinforced, and waterproof concrete layer. Notably, the installation process is significantly faster, requiring 95% fewer materials compared to conventional concrete methods, thus reducing environmental impact.
Yelekeyev acquainted Concrete Canvas representatives with Kazakhstan’s investment policies and the extensive support provided by KAZAKH INVEST for investment projects. Highlighting the British company’s intent to localize production in Kazakhstan, Yelekeyev detailed subsidy mechanisms and the benefits of concluding an Investment Agreement.
Assuring comprehensive support for the promising investment endeavor, Yelekeyev affirmed KAZAKH INVEST’s commitment following the meeting.
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Kazakhstan’s Colorful Metallurgical Industry Set for Expansion
Kazakhstan’s metallurgical sector anticipates the implementation of eight projects worth 169 billion tenge this year, involving the production of aluminum radiators, cathode copper, Dore alloys, and other products. These initiatives, upon full realization, are projected to create around 2000 job opportunities, as reported by the Project Implementation Monitoring and Analysis Directorate, QazIndustry.
“When all eight projects reach their designed capacity, production volumes will amount to about 136 billion tenge, including plans to export products worth 71 billion tenge,” the statement reads.
Currently, the metallurgical industry hosts 49 projects at various stages of implementation, including eight slated for 2024, with a total investment of 1.8 trillion tenge. The commencement of these productions is expected to provide employment to over 11,000 citizens, with approximately 7400 residing in rural areas and 377 in monotowns.
Upon reaching full capacity, the projected production volume of all 49 projects will reach around 2.3 trillion tenge. Notably, over half of this amount, approximately 1.4 trillion tenge, is earmarked for export.
In the previous year, the metallurgical sector saw the realization of five projects worth 26.8 billion tenge, resulting in the creation of 835 job opportunities. These projects encompassed the production of alloys of non-ferrous metals, Dore alloys, zinc products, among others.
Kazakhstan’s metallurgical industry stands as one of the largest and leading sectors of the domestic economy, buoyed by a sufficient reserve of raw materials, including copper, zinc, nickel, lead, aluminum, gold, and silver ores.
The majority of ongoing projects are concentrated in the Karaganda region and the city of Shymkent.
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China’s Strategic Dance: Unveiling the Depths of Sino-Kazakh Economic Cooperation
In a narrative often oversimplified by the Belt and Road Initiative, China’s economic entwinement with Kazakhstan goes beyond a mere node in a transregional strategy. While Kazakhstan undeniably serves as a linchpin in China’s westward connectivity ambitions, reducing its role solely to that obscures the nuanced interplay between Chinese adaptability and Kazakhstani agency.
A prime example is the symbiotic relationship forged in uranium extraction and nuclear fuel supply. Contrary to assumptions, Chinese entities find themselves navigating Kazakhstan’s terms, illustrating a power dynamic that challenges clichéd perceptions.
Kazakhstan reigns as the globe’s leading natural uranium producer, commanding 43% of the market in 2022. Its prowess stems from abundant resources and cost-efficient extraction methods, notably in-situ leaching (ISL). Kazatomprom, the national nuclear company, wields formidable influence, leveraging its dominance to modernize the sector and attract foreign investment.
Over two decades, Kazakhstan’s uranium output skyrocketed, facilitated by strategic alliances with China. Despite producing no nuclear energy domestically, Kazakhstan’s ambitions align with China’s voracious demand for uranium, driven by an ambitious nuclear energy expansion unmatched by the West.
China, with its burgeoning civilian reactor fleet, employs a multifaceted strategy to secure uranium supply, encompassing domestic mining, overseas ventures, and strategic reserves. Recent investments in domestic exploration signal China’s intent to reduce reliance on foreign suppliers, with Kazakhstan playing a pivotal role in historical uranium imports.
This intricate dance between China and Kazakhstan underscores a narrative far richer than the Belt and Road rhetoric suggests, revealing a strategic partnership shaped by mutual interests and strategic maneuvering.
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Kazakhstan Boosting Supply of Natural Uranium to American Energy Companies
Kazakhstan is actively working to increase the supply of Kazakh natural uranium to American energy firms, stated Almasadam Satkaliyev, Kazakhstan’s Minister of Energy, during a meeting with US Senator Steve Daines in Astana.
“As noted by A. Satkaliyev, there is active effort to enhance the share of natural uranium supply to American energy companies,” the ministry’s press service reported after the meeting, without specifying the potential increase in shipments.
According to the head of the Ministry of Energy, there are existing contracts for uranium deliveries until 2032 with American companies, “such as Southern Company, Constellation, Duke Energy, and others.”
Kazakhstan is the world’s largest uranium producer, accounting for 22% of global production. In 2022, the national company “Kazatomprom” sold uranium to over 24 buyers in 11 countries. The primary buyer of Kazakh uranium is China.
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Kazakhstan’s President Emphasizes Potential of Rare Earth Minerals Mining
President Kassym-Jomart Tokayev of Kazakhstan views the extraction of critical raw materials as a promising area for cooperation, as reported by the state leader’s press service.
“Rare earth metals have become a crucial component for a wide range of technologies. They are essential for achieving net-zero emissions and are vital in strategic sectors such as industry, digital technologies, space, and defense. We continue to work with international partners on the most effective ways to develop our large deposits of uranium, lithium, titanium, and other rare earth elements,” quoted the press service Tokayev’s remarks on Thursday at the plenary session of the Boao Asian Forum (BAF).
Earlier, it was reported that exploration work on the potential of lithium was planned to commence in three regions of Kazakhstan. In particular, during the partnership forum between the European Union and Kazakhstan in Belgium, Erlan Galiev, Chairman of the Board of JSC “National Geological Survey,” stated that “as part of state geological exploration, work is planned to begin on studying the potential of lithium in three regions of Kazakhstan.”
“If indigenous lithium deposits are projected in the eastern and southeastern parts, then the mineralized brines of the Aral sedimentary basin, according to preliminary data, are very favorable for lithium. Its geological conditions are similar to the Salar de Atacama salt flat in Chile, which holds about 30% of the world’s lithium reserves,” Galiev said.
According to the Chairman of the Board, as of 2023, six deposits where lithium may be present are listed on the state balance sheet in Kazakhstan: Jubilee, Verkhne-Baimurzinskoye, Bakenoye, Akhmetkino, Medvedka, and Akhmirovskoye.
“Significant lithium and REM (rare earth metals) reserves are concentrated in the tailings and ‘tail sand’ of beneficiation plants and deposits in central and southern Kazakhstan, as well as rare metal deposits in eastern Kazakhstan,” he said.
Galiev assured that JSC “National Geological Survey” is ready to partner with foreign companies and invited interested parties to familiarize themselves with the projects, promising to take all necessary measures to ensure favorable conditions for investors.
Later, it became known that German companies Knauf Gruppe, GP Gunter Papenburg AG, Roxtec, and the German Lithium Institute (ITEL) formed a consortium for the development and production of lithium, using Kazakhstan’s deposits as a basis.
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llegal Gold Trafficking Cases in Kazakhstan Result in Over 1.5 Billion Tenge Loss
In a recent report, it has been revealed that Kazakhstan has seen a surge in illegal gold trafficking cases between 2020 and 2023. Senator Andrey Lukin disclosed that during this period, authorities investigated seven criminal cases related to the illegal circulation of gold, with four cases being forwarded to court. The financial losses incurred from these activities have surpassed 1.5 billion Tenge. Lukin further elaborated that the General Prosecutor’s Office registered 133 criminal offenses associated with illegal gold trading, extraction, and embezzlement over the past four years. Currently, the country hosts 42 gold mining enterprises. Lukin cited a case from November 2023, wherein law enforcement dismantled a criminal group involved in purchasing illegally mined gold from “black miners.” The seized gold was later used to produce counterfeit products resembling renowned brands, which were then sold in Astana and Shymkent. The operation resulted in the confiscation of over 1 kg of gold and 100 counterfeit items. Lukin emphasized the need for stricter surveillance at gold mines to combat such violations. He estimated that for every three tons of legally mined gold, there is one ton mined illegally, accounting for approximately 25 tons of illegally sourced gold annually nationwide. Lukin proposed bolstering security measures at mining sites, including installing additional surveillance cameras, equipping mine shafts with fiber optic channels, implementing access control systems, utilizing screening complexes, erecting dual fencing, deploying automatic detection sensors, and other safety measures.
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Kazakhstan Cancels Planned Tariff Increase for Rail Transportation of Certain Goods
A letter from JSC “NC” Kazakhstan Temir Zholy “No. 459-I dated March 2, 2024, announced the planned increase in tariffs for regulated services by KTZ for the transportation of certain goods from March 9, 2024, to December 31, 2025. However, on March 13, by the order of Roman Sklyar, the First Deputy Prime Minister of the Republic of Kazakhstan, the order was revoked, with the cancellation taking effect from March 9, 2024. Companies involved in transportation in this direction, such as Global Logistics LLC, have confirmed the cancellation.