Korean Institute of Geoscience and Mineral Resources (KIGAM) reveals plans to exploit a lithium deposit in eastern Kazakhstan, covering an area of 1.6 square kilometers, as reported by Orda.kz citing The Korea Times. The region, previously mined for tantalum, has resources estimated at around $15.7 billion. KIGAM, responding to Kazakhstan government’s request, studied the area since May last year, considering the significance of tantalum coexisting with lithium and cesium. Lithium, a crucial mineral for electric vehicle and modern industries, is a key component in batteries. KIGAM aims to apply for drilling rights in the region, intending to commence lithium extraction next year.
Tag: Kazakhstan
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Kazakhstan Canada Business Council Strengthens Ties at PDAC 2024 Convention
The 6th plenary session of the Kazakhstan Canada Business Council (KCBC) unfolded within the framework of the annual international Prospectors & Developers Association of Canada (PDAC) 2024 Convention. Co-chaired by Mr. Meirzhan Yussupov and Mr. Tim Gitzel, representing Kazatomprom and Cameco Corporation respectively, the session fostered collaboration on key sectors.
Preceding the plenary, three working groups convened in January and February, engaging over 250 participants in discussions on mining and metallurgy, agriculture, and education. Government and business representatives explored current challenges, cooperative solutions, priority areas, and potential projects to boost mutual trade and investment.
With over 150 delegates from Canadian and Kazakhstani business circles, the plenary session covered diverse topics, including energy security, carbon neutrality, environmental sustainability, corporate governance, trade, investment attraction, and education. Led by Honourable Kanat Sharlapayev and Honourable Ahmed Hussen, the Kazakhstani and Canadian delegations emphasized bilateral cooperation.
In the first panel, co-chairs Gitzel and Yussupov delved into uranium industry development, energy security, and environmental sustainability. Yussupov highlighted Kazatomprom’s global energy security contribution, while Gitzel underscored Cameco’s 35-year leadership and commitment to ESG issues. The discussion explored strategies for achieving net-zero emissions, reflecting on the future of both companies and the KCBC.
Working group reports by Yerlan Galiyev, Margaret Skok, and Alibek Sagidulla addressed mining, education, and agriculture respectively. Representatives from JSC “NC “KazakhInvest,” Export Development Canada, and the government of Alberta contributed to the event.
A dedicated session focused on the education sector, where Vice Minister Darkhan Akhmed-Zaki outlined Kazakhstan’s plans to establish an academic hub for higher education. The event concluded with a Networking Reception.
The KCBC, a vital platform for Kazakhstan-Canada business relations, expressed gratitude to the Canada-Eurasia Chamber of Commerce (CECC) for organizing the event, supported by the Canadian and Kazakhstani Embassies and companies like Lotz & Company, Teck Resources, SIMSA, and Techgarden.kz.
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Kazakh Minister Explores Economic Opportunities and Investment Collaborations in U.S. Visit
Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapayev, embarked on a productive visit to the United States, seeking to enhance collaboration with the U.S. International Development Finance Corporation (DFC) and key players in the energy, geology, and mining sectors. During discussions with DFC Deputy CEO Nisha Desai Biswal, economic development, and the notable 12% increase in U.S. companies operating in Kazakhstan over the past year were addressed. Minister Sharlapayev highlighted Kazakhstan’s potential in processing rare metals, emphasizing opportunities in titanium, beryllium, tantalum, and niobium.
The meeting delved into various projects, including the construction of the KazAzot fertilizer plant, the production of electric vehicle charging stations, and the development of strategic hubs at the Aktau port and in the West Kazakhstan Region. Expressing interest, Biswal conveyed the DFC’s intention to explore large-scale projects in collaboration with Kazakhstan and expressed a desire to visit the country for further discussions.
Beyond DFC engagements, Minister Sharlapayev is set to meet with members of the U.S.-Kazakhstan Business Council and the U.S. Geological Survey. The focus will be on exploring new avenues for investment collaboration, addressing aspects like volumes, long-term contracts, and investment incentives. Kazakhstan’s well-established regulatory environment adds to the appeal for potential collaborations.
Highlighting Kazakhstan’s significance in the global supply chain, the ministry noted that the country produces and processes 17 of the 50 types of critical minerals identified by the United States. Notable examples include the successful cooperation in supplying beryllium and tantalum to major U.S. entities like Transport Technologies, International Business Corporation (IBC) U.S. Holdings, and Tosoh Specialty Metals Division (SMD).
In a strategic move, Minister Sharlapayev also plans to discuss the country’s collaboration in critical minerals with the U.S., aligning with similar efforts made with European partners, as emphasized in his interview with CNBC in December last year.
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Prime Minister of Kazakhstan Olzhas Bektenov Inspects Development of Export-Oriented Industry in Pavlodar Region
The Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, conducted an inspection of the progress in implementing the instructions of the Head of State, Kassym-Jomart Tokayev, regarding the development of export-oriented industry and technological modernization of enterprises in the Pavlodar region.
Bektenov visited the leading enterprises of the region: KSP Steel, Aluminum of Kazakhstan, Kazakh Electrolysis Plant, Aksu Ferroalloy Plant, and Aksu Power Plant, which make a significant contribution to the regional economy.
He familiarized himself with the production processes and products of the KSP Steel plant, which is the second-largest in the steelmaking sector and employs over 4,500 people. Bektenov noted the issue of bringing the enterprise to full production capacity and emphasized the need to create conditions for the utilization of domestic producers.
He also visited Aluminum of Kazakhstan JSC, highlighting the importance of the existing aluminum cluster for the region and the entire country. Bektenov called for increasing production conversion and technical modernization of the enterprise in line with environmental requirements.
The Prime Minister also inspected the work of Kazakh Electrolysis Plant, which ranks among the top ten plants in the world for producing high-grade primary aluminum. He expressed support for the strategy of increasing raw material processing within the country.
As part of the trip, Bektenov also visited Aksu Ferroalloy Plant and Aksu Power Plant, where extensive modernization is underway. He underscored the importance of accelerating the modernization of the communal-energy sector and expressed support for ensuring dynamic industrialization of the country’s economy.
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Kazakhstan Implements Measures to Develop Coal Exchange Trading
According to the announcement by the Agency for Protection and Development of Competition of the Republic of Kazakhstan, a comprehensive set of measures aimed at developing coal exchange trading in the country will be implemented in 2024. These measures include tightening requirements for exchanges and expanding access to trading.
Until 2022, major producers of municipal coal, such as “Karazhyra” and “Shubarkol Komir,” sold it through unproductive intermediaries, accounting for up to 97% of sales volume. The subsequent resale of coal to end retail sellers with an average markup of 40-45% also became problematic.
To overcome these intermediary schemes and ensure direct access to coal producers, a requirement was introduced in 2021 to sell a portion of the coal at exchange auctions directly to end consumers. The share of this is planned to be increased to 80%.
In addition, the Agency intends to conduct an analysis of competition in the wholesale coal market to regulate coal sales outside exchanges and prioritize deliveries to qualified suppliers.
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ArcelorMittal Secures $450 Million Guarantee from Kazakh Sovereign Wealth Fund
ArcelorMittal, in its corporate report for the year 2023, revealed that it obtained a guarantee from an undisclosed Kazakh sovereign wealth fund for the deferred repayment of a $450 million intra-group loan during the finalization of the sale of “ArcelorMittal Temirtau” (AMT) in December. The deal involved the transfer of ownership rights to the Republic of Kazakhstan, with the state-controlled direct investment fund Qazaqstan Investment Corporation (QIC) acquiring AMT. As per the terms of the transaction, ArcelorMittal received compensation of $286 million upon closing, along with an additional $250 million as payment for existing intra-group debt. Moreover, the steel group will receive a guaranteed payment of $450 million from the sovereign fund, to be disbursed in four equal annual installments for the repayment of the intra-group loan. However, the specific Kazakh sovereign wealth fund involved in the guarantee remains undisclosed, leading to speculation that it may have been issued by the National Fund. Notably, the obligations to repay the loans were expected to be assumed by the new investor, Andrey Lavrentyev, controlling AMT under the new name Qarmet through Qazaqstan Steel Group. Clarification from relevant entities regarding the guarantee’s source is pending.
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Kazakhstan Explores Geology-AI Integration with Key MoUs Signed at PDAC-2024 Conference in Canada
Kanat Sharlapaev, the Minister of Industry and Construction of Kazakhstan, spearheaded a delegation from Kazakhstan during the recent PDAC-2024 conference in Canada, where they inked Memorandums of Understanding (MoUs) focusing on geology, as reported by the Ministry of Industry and Construction.
These MoUs included partnerships between the National Geological Survey of Kazakhstan (NGS) and Koan Analytics Inc., as well as between NGS and the Geological Survey of Finland (GTK), marking a significant advancement towards integrating artificial intelligence (AI) into geological practices.
The primary objective of these agreements is to explore the establishment of a Center of Excellence in AI within the NGS framework, aimed at enhancing the precision and efficacy of mineral exploration processes through advanced technologies such as data transformation techniques, predictive models, and algorithms.
Canadian firm Koan Analytics Inc., known for its expertise in providing industrial solutions, will be pivotal in this venture, leveraging its proficiency in data transformation and machine learning to support NGS in leveraging AI for geology.
Furthermore, the MoU with GTK underscores the global interest in Kazakhstan’s geological resources, with GTK’s extensive experience enriching collaborative efforts in advancing the field of geology in Kazakhstan.
Yerlan Galiyev, Chairman of the Board of NGS, emphasized the significance of these agreements in strengthening international cooperation in the geology sector and enhancing investment opportunities.
The PDAC Convention, where these agreements were signed, serves as a crucial platform for the mining industry, fostering strategic partnerships and driving innovation amidst a diverse array of stakeholders from around the globe.
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Foreign investors have united to search for copper in the Republic of Kazakhstan
Getech Group and East Star Resources plc have decided to establish a joint venture for copper exploration in Kazakhstan. Both foreign companies are registered in the United Kingdom, according to the AK&M news agency.
The name of the new subsidiary has not been disclosed yet. It is known that East Star will lead the operational activities. Getech states that it will analyze the mineral structures and copper systems from under-explored sedimentary basins in Kazakhstan. The company’s geologist data will complement the capabilities of artificial intelligence.
The enterprises aim to identify new prospective areas rich in copper in the republic and subsequently commence joint mining operations. Before deciding on the development of deposits and obtaining licenses, Getech’s stake in the project will be 5%. As part of the deal, the company has a call option for 5% of the JV’s shares at zero cost after receiving permission for geological exploration.
East Star already holds nine licenses for mineral exploration in Kazakhstan. Specialists are studying three mineral regions: the Rudny Altai belt, the Chu-Ili ore belt, and the Eastern Kostanay.
Reminder: Another foreign investor, Rio Tinto, plans to conduct exploration of copper deposits in the Ulytau region.
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The North Shuak gold deposit will be developed in the south of Kazakhstan
The company Appak Minerals intends to put the North Shuak gold deposit in the Moiynkum district of the Zhambyl region into industrial operation. The plan for mining operations by the subsoil user was found on Kazakhstan’s Unified Environmental Portal.
The North Shuak reserves were registered with the state in January 2023. The gold-bearing ore reserves were categorized as follows: proven reserves – 438 thousand tons (826 kg of precious metal with an average grade of 1.88 g/t), probable reserves – 288 thousand tons (533 kg of precious metal with an average grade of 1.85 g/t), inferred reserves – 162 thousand tons (323 kg of precious metal with an average grade of 1.99 g/t).
Appak Minerals has not specified the year it will commence quarrying. It is only known that the mining plan is calculated for six years. The productivity of the future enterprise has been determined at 150 thousand tons of ore per year.
For the project, the optimal processing technology has been selected – flotation enrichment. Concentrates with gold content of up to 43.6 g/t will be obtained at the flotation plant, with precious metal extraction rates of 90-92%.
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Partnership at the intersection of sciences: Kanat Sharlapaev’s meeting with the Director of the U.S. Geological Survey
In the continuing effort to bolster bilateral relations between Kazakhstan and the United States of America, Kanat Sharlapaev, the Kazakh Minister of industry and construction, conducted a meeting with David Applegate, the Director of the U.S. Geological Survey.
This visit signifies a considerable advancement in the collaborative efforts between the two nations in geology, a field of strategic significance for Kazakhstan’s industrial progression, particularly in the extraction of critical minerals.
The discussion during the meeting focused on the prospects for cooperation in research. A particular focus was placed on the potential use of the U.S. Geological Survey’s advanced technologies and methodologies to improve the efficiency of Kazakhstani geological research and development projects.
«I also want to highlight that our countries have historically established close trade relationships, including in the realm of critical minerals. We have unique capabilities in producing a range of rare and rare-earth metals», noted the Minister.
Moreover, Kanat Sharlapaev emphasized the importance and potential for expanding the existing cooperation, especially in the exploration and development of critical mineral deposits in Kazakhstan, 17 out of 50 types of which are identified by the U.S. Geological Survey as crucial.
The key directions for future collaboration will involve attracting investment in geological exploration, mining, and processing of rare and rare-earth metals, as well as facilitating Kazakhstan’s integration into the global value chain through cutting-edge technologies and expertise.
This meeting paves new avenues for further development and deepening of industrial and scientific ties between Kazakhstan and the USA, affirming a mutual interest in joint exploration and utilization of natural resources for the benefit of both countries.