MINEX Forum

Tag: Kazakhstan

  • New Nickel-Cobalt Deposit in Aktobe Region to Begin Development in 2025

    New Nickel-Cobalt Deposit in Aktobe Region to Begin Development in 2025

    A mining company plans to start extracting silicate-nickel ores from the Jusalinskoye deposit in 2025. The licensed area is located in the Aktobe region, and the project documentation has been published on Kazakhstan’s Unified Environmental Portal.

    The company plans to mine metals for 20 years. The reserves of the Jusalinskoye deposit were put on the state balance sheet in 2015 and amount to 44.2 thousand tons of nickel and 2.57 thousand tons of cobalt. Development will be carried out using open-pit mining due to the shallow occurrence of the components.

    By the fourth year, it is planned to achieve maximum annual productivity of the quarry, with over 63 thousand tons of ore expected to be sent for processing annually.

    The company “KazMetallGroup” previously announced a similar project and owns another nickel-cobalt deposit, Novo-Buranovskoye, in the same region. It is expected that the ore from both sites will be processed at a single mining and processing plant.

  • RG Gold Announces Reduction in Gold Extraction Volumes at the Raigorodok Deposit

    RG Gold Announces Reduction in Gold Extraction Volumes at the Raigorodok Deposit

    RG Gold company has announced a reduction in the extraction volumes of the yellow metal at the Raigorodok deposit in Akmola region. The decrease in extraction rates may occur as early as this year due to the depletion of oxide ore reserves, as reported by inbusiness.kz.

    Currently, the gold miner can process 7 million tons of raw material, with the majority (5 million tons) undergoing cyanidation followed by sorption on coal. The second technology – heap leaching of oxidized gold ore – is designed for 2 million tons.

    According to Marat Shaimardanov, the financial director of RG Gold, there is a high probability that the second processing method will need to be suspended, as the reserves of Raigorodok’s oxide ore are nearly depleted.

    It is known that in 2023, the EBITDA indicator was approximately $200 million with production of 190 thousand ounces. With the freezing of certain processing capacities, this figure is likely to decrease.

    However, the gold miner hopes that geologists will discover additional reserves in nearby areas. In that case, the company will be able to resume the heap leaching technology.

  • Arras Minerals Corp. Acquires Tay Exploration License in Kazakhstan

    Arras Minerals Corp. Acquires Tay Exploration License in Kazakhstan

    Arras Minerals Corp. (TSX-V: ARK) is thrilled to announce the acquisition of the Tay exploration license (“Tay”) in northeastern Kazakhstan. Covering an area of 118 square kilometers, Tay lies within the Bozshakol-Chingiz magmatic arc, an emerging porphyry province in the region. Situated 28 kilometers north of the Bozshakol open pit copper-gold mine operated by Kaz Minerals, Tay represents a significant addition to Arras’ portfolio, fully owned and not part of the Teck-Arras Strategic Exploration Alliance.

    Highlighted features of the Tay project include a 6.5 km x 2.1 km East-West trending coherent Soviet-era Induced Polarization (“IP”) chargeability anomaly, akin to the chargeability high observed at the Bozshakol mine. Despite being a buried target with no systematic modern exploration, Tay presents immense potential, strategically positioned with excellent accessibility and local infrastructure. The project boasts nearby high voltage power lines, railway connections, and roads, facilitating efficient exploration endeavors.

    Tim Barry, CEO of Arras Minerals, expressed enthusiasm, stating, “Discovering such a promising porphyry prospect adjacent to a major operational copper-gold mine like Bozshakol is rare. Tay’s historical IP anomaly mirrors the scale and strength of Bozshakol’s anomaly, remaining relatively unexplored. With shallow sediment cover and a clear continuation of the anomaly to the west, Tay holds significant promise for exploration discoveries.”

    Situated 28 km north of Kaz Mineral’s Bozshakol Mine and 85 km from Arras’ operational base in Ekibastuz, northeastern Kazakhstan, the Tay project lies within the Bozshakol-Chingiz metallogenic belt. The area is known for its mineral-rich deposits, including the Beskauga copper-gold-silver porphyry deposit and Arras’s Elemes project, an emerging copper-gold porphyry prospect.

    Geological assessments reveal that Tay’s geology comprises volcano-sedimentary and sedimentary rocks intersected by major fault zones and intrusive stocks. The historic chargeability anomaly suggests the presence of a buried porphyry-Cu-Au deposit beneath quaternary cover. Arras plans to conduct property-wide airborne magnetic surveys and drilling programs in 2024 to gain a better understanding of the property geology and unlock its full potential.

  • Kazakhstan Prepares for EU Carbon Regulations Impact on Export Industries

    Kazakhstan Prepares for EU Carbon Regulations Impact on Export Industries

    Representatives from the public sector, businesses, and experts gathered at a seminar for industrial exporters in Kazakhstan, organized by the OECD-SIPA and QazTrade, to discuss international experiences in decarbonizing the economy. From 2026, European countries will adopt transboundary carbon regulations, extending the new carbon tax to Kazakhstani export goods. As of January 1, 2024, a transitional period for businesses is in effect, after which increased environmental levies on emissions will affect six industrial sectors, including the production of ferrous metals, aluminum, cement, fertilizers, hydrogen, and electricity.

    Vice Minister of Ecology and Natural Resources Mansur Oshurbayev stated that the introduction of the border carbon mechanism entails significant collaborative work with relevant ministries and industrialists. An interdepartmental working group has already been established to swiftly develop proposals and identify risks for Kazakhstani enterprises.

    Nurlan Kulbatyrov, Deputy CEO of QazTrade, emphasized the relevance of the EU’s “Green Deal” and the introduction of the border carbon adjustment tax to Kazakhstan. With the existing Enhanced Partnership and Cooperation Agreement between the two parties, covering a wide range of initiatives, QazTrade has been conducting informational events on carbon taxation for export-oriented companies in collaboration with the Ministry of Trade and Integration since last year.

    While supporting the EU’s sustainable development and decarbonization goals, Kulbatyrov emphasized the need to ensure they don’t hinder international trade. Currently, the EU accounts for 39% of Kazakhstan’s exports, including oil, petroleum products, ferroalloys, coal, uranium, wheat, and other goods, with a positive trend in trade volumes. In 2023, Kazakhstan exported $41.4 billion worth of products to the EU, including $388.7 million worth of carbon-intensive goods.

    According to Delfin Salard, Senior Expert at the Directorate-General for Taxation and Customs Union of the European Commission, transboundary regulations will primarily affect Kazakhstan’s black metallurgy and aluminum sectors, which accounted for about 0.9% and 0.8% of Kazakhstan’s total exports to the EU in 2022. European experts anticipate increased shipments of Kazakhstani products with a high carbon content.

    Industrial enterprises will be required to submit quarterly reports to the European Commission, detailing export volumes, greenhouse gas emissions associated with production, and quota utilization. Amendments to reports can be made within two months after the reporting quarter.

    Post-2025, carbon regulation will come into effect, gradually phasing out free quotas. Initially targeting direct emissions, the scope may later expand to other sectors at risk of carbon leakage, such as oil refining and chemical industries.

    Rodrigo Pizarro, Head of the OECD Climate Action Programme, explained the formation of carbon quotas pricing and emissions trading systems, highlighting that the introduction of the border carbon adjustment mechanism aims to address global environmental challenges.

    Kazakhstan aims to reduce net emissions to 328.4 million tons of carbon by 2030 and cut emissions by 25% compared to 1990 levels with international support. This necessitates reducing the share of coal generation from 65% to 40% and increasing the share of renewable energy sources from 10% to 24% by 2030, according to OECD experts.

    During the seminar, Ainur Amirbekova, Director of the International Integration Department at QazTrade, outlined the challenges and risks facing Kazakhstani industrialists in the coming years. The introduction of the EU carbon tax will directly impact the cost of export goods and their competitiveness, potentially closing off certain markets. Thus, companies should begin decarbonization efforts and transition to alternative technologies promptly.

    European Commission experts, in collaboration with QazTrade, are prepared to continue training exporters, provide analytical support, facilitate negotiations, and adapt export strategies considering ecological measures.

  • Polymetal Completes Sale of Russian Assets, Focuses on Kazakhstan Operations

    Polymetal Completes Sale of Russian Assets, Focuses on Kazakhstan Operations

    Polymetal (Polymetal International plc) announced on March 11 the completion of the sale of its Russian assets. Polymetal, the second-largest gold producer in Kazakhstan, disclosed this information, as reported by Orda.kz.

    According to the company’s press service, Polymetal finalized the sale of 100% of the shares of JSC “Polymetal” (the holding company of the group’s Russian assets) to AO “Mangazeya Plus.” This move was aimed at mitigating risks. Vitaly Nesis, CEO of Polymetal, stated that the company intends to present a new strategy and capital allocation policy in May.

    “After the completion of the deal, the group’s net cash position is approximately $130 million,” the Polymetal press release stated.

    Polymetal Group is the second-largest gold producer in Kazakhstan, with two production assets in the country: Kyzyl (Bakyrchik deposit, Abai region) and Varvarinsky Hub (Varvarinsky and Komarovsky deposits, Kostanay region). The company also controls Irtysh GMK. Polymetal is registered with the MFCA with its head office in Astana, and its largest shareholder (23.9% stake) is Maaden International Investment from Oman.

    The company’s shareholders approved the sale of Russian assets at a meeting on March 7. The deal aims to restore the shareholder value of the Polymetal group by reducing risks. Selling the Russian business will enable the company to focus on the development and exploration of Kazakh deposits.

    Polymetal International plc was one of the companies that relocated to Kazakhstan from Russia. It was reported in May 2023 that the group was shifting its focus to the development of its Kazakh business and would be registered with the MFCA.

  • Kazakhstan’s Vice Minister Visits UK for Forum on Ore Processing and Circular Economy

    Kazakhstan’s Vice Minister Visits UK for Forum on Ore Processing and Circular Economy

    Iran Sharhan, Vice Minister of Industry and Infrastructure Development of the Republic of Kazakhstan, undertook a working visit to the United Kingdom to participate in the “Mineral Processing and Circular Economy” business forum from March 11 to 15, 2024. The primary purpose of the trip was to explore British opportunities in critical raw materials.

    During the forum, Kazakhstan and the UK signed a Roadmap for Strategic Partnership in Critical Minerals, marking a new chapter in their relationship in sustainable mineral resources.

    In a meeting with the UK’s Minister of Industry and Economic Security, Nusrat Ghani, Iran Sharhan emphasized Kazakhstan’s principles of exchanging raw materials for technology and integrating into the global value chain. He also invited British companies to participate in investment projects in Kazakhstan.

    Minister Nusrat Ghani praised the work of both countries in forming a long-term partnership and expressed confidence in the swift implementation of the signed Roadmap, considering it a significant event in the development of cooperation between London and Astana in the field of critical minerals.

    The event also included meetings between entrepreneurs from both countries to discuss the development of cooperation in the field of critical raw materials and to present specific projects.

    The visit also included familiarization trips to the production sites of British companies, where their production capacities and technologies were presented.

    All these activities were organized with the assistance of the Embassy of the Republic of Kazakhstan in the United Kingdom and Northern Ireland.

  • ERG Plans Environmental Rehabilitation Projects for Depleted Mines in Kazakhstan

    ERG Plans Environmental Rehabilitation Projects for Depleted Mines in Kazakhstan

    The Eurasian Resources Group (ERG) has initiated a project to mitigate the environmental impact caused by the extraction of chrome ores at the 40 Let deposit in the Kazakh SSR – Molodezhnoe (Molodezhnaya mine) of the Donskoy GOK, a branch of Kazchrome. The project, unveiled during a gathering hosted by the Kazakh Embassy in Belgium, is aimed at addressing the consequences of mining operations and ensuring sustainable practices.

    According to the project’s non-technical summary, the plan entails commencing the elimination of the mining consequences in 2025, considering the completion of reserve development at the 40 Let Kazakh SSR – Molodezhnoe deposit in 2024. ERG confirmed the operational history of the field since its inception in 1970 and stated that the project has been submitted for state environmental assessment.

    The project outlines measures such as flooding mine workings with groundwater and isolating mine shafts to prevent access. Additionally, the liquidated quarry will be secured with a metal fence along its perimeter to ensure safety. However, the use of groundwater for any purposes post-liquidation is not envisioned.

    In a parallel effort, ERG is also addressing environmental concerns at the East Ayat bauxite deposit, owned by Aluminum of Kazakhstan, another ERG entity. The project aims to eliminate the consequences of mining activities at quarry No. 5 of the East Ayat deposit. This project, too, has undergone public scrutiny through hearings.

    The organizers of the hearings addressed public queries regarding the potential for fishing in the exhausted quarry post-flooding. While stocking of fish is deemed possible, safety measures will be implemented due to the steep slopes. ERG confirmed the initiation of this project, with plans to begin the elimination of mining consequences this year and complete them by next year.

    These environmental rehabilitation efforts come in the wake of similar endeavors undertaken by ERG previously, such as the cessation of operations at the Torgai Bauxite Mining Department due to depleted reserves. ERG completed the rehabilitation of the TBRU, underlining its commitment to sustainable resource management.

  • Kazakhstan-EU Meeting Emphasizes Collaboration on Critical Raw Materials and Green Energy Initiatives

    Kazakhstan-EU Meeting Emphasizes Collaboration on Critical Raw Materials and Green Energy Initiatives

    A gathering convened by the Kazakh Embassy in Belgium on March 5th attracted approximately 60 high-ranking officials from the European Union alongside representatives from the EU business community. Central to the discussions at this significant meeting was the collaboration between Kazakhstan and Europe pertaining to critical raw materials (CRM), green hydrogen, and batteries.

    In November 2022, Kazakhstan and the European Union cemented their cooperation by signing a Memorandum of Understanding on sustainable raw materials, batteries, and renewable hydrogen value chains. This milestone agreement was accompanied by the adoption of a detailed Roadmap for implementation throughout 2023.

    During the meeting, Bolat Akchulakov, energy advisor to the president of Kazakhstan, underscored the strategic significance of the Kazakhstan-EU Memorandum of Understanding. He highlighted its pivotal role in fostering a strategic partnership aimed at collectively advancing the objectives of a green transition.

    Luc Devigne, deputy managing director for Eastern Europe and Central Asia at the European External Action Service (EEAS), lauded the Kazakhstan-EU relationship as a “success story of cooperation.” He reiterated the EU’s commitment to further strengthen this partnership, ensuring the sustainability of supply chains and the mutual achievement of climate change goals.

    As part of the event, Kazakhstan’s national company, Kazakh Invest, delivered a comprehensive report on CRM at its Brussels office. The report highlighted that Kazakhstan currently produces 19 out of the 34 critical raw materials listed by the European Union. Additionally, it was emphasized that Kazakh manufacturers presently supply the EU with beryllium, tantalum, and titanium. Furthermore, there exists untapped potential to explore other raw materials in Kazakhstan, with the prospect of establishing processing plants for nickel, cobalt, manganese, and lithium. This strategic initiative would enable Kazakh enterprises to make substantial contributions to the production of batteries, which are integral components for electric vehicles.

  • New lithium deposit discovered in Eastern Kazakhstan: Foreign investors show interest in development

    New lithium deposit discovered in Eastern Kazakhstan: Foreign investors show interest in development

    In 2023, experts from the Korea Institute of Geoscience and Mineral Resources (KIGAM) announced their discovery of a new lithium deposit in Kazakhstan. The information about the unnamed deposit was published by the “Kursiv” newspaper, citing the Korea Times.

    The discovery of the deposit occurred as a result of geological studies on an area of 1.6 km² in Eastern Kazakhstan. Foreign investors have already shown interest in developing this deposit.

    KIGAM experts estimated the potential resources of the new deposit at $15.7 billion, although the exact amount of lithium found in the ground has not been disclosed. According to estimates, the deposit contains high concentrations of lithium up to 5.3%, making it potentially profitable.

    According to previous data, German companies have actively invested in lithium mining in Kazakhstan. Three major enterprises, including GP Gunter Papenburg AG, Knauf Gruppe, and Roxtec, have formed a consortium to develop production of this strategically important metal in the republic.

  • “Ridder-Polymetal” plans to extract polymetallic and copper-bearing ores at the Strezhansky deposit.

    “Ridder-Polymetal” plans to extract polymetallic and copper-bearing ores at the Strezhansky deposit.

    Ridder-Polymetal, a mining company, is gearing up to extract polymetallic and copper-bearing ores from the Strezhansky deposit located in the East Kazakhstan region. Having secured the necessary license in 2017, the company plans to initiate underground mining operations, slated to continue until 2038.

    The mining plan has been made public on Kazakhstan’s Unified Environmental Portal, with scheduled public hearings on March 11, 2024. Pending coordination with environmentalists and the public, development of the deposit is expected to commence this year.

    The Strezhansky deposit, whose reserves were integrated into the state balance in 2016, boasts significant ore reserves. On the state balance, ore reserves amount to 4,831 thousand tons, while off-balance reserves stand at 2,362 thousand tons. Notably, the deposit holds valuable components including copper, zinc, lead, gold, silver, cadmium, and bismuth.

    Ridder-Polymetal aims to ramp up productivity at the mine, targeting 240 thousand tons of ore per year by the second year of operation, and 360 thousand tons annually by the fifth year.

    Furthermore, the company highlights the strategic significance of the project, emphasizing its role in supplying raw materials to the ore processing plant in Altai. This becomes crucial as the plant’s capacity faces reduction due to the depletion of local deposits.