MINEX Forum

Tag: Kazakhstan

  • Russian metallurgists are asking the Republic of Kazakhstan to lift the ban on scrap metal exports.

    Russian metallurgists are asking the Republic of Kazakhstan to lift the ban on scrap metal exports.

    The six-month ban on the export of ferrous scrap metal imposed by Kazakhstan in February 2024 will negatively impact the operations of Russian plants, according to a statement from the Association of Electrometallurgical Enterprises, as reported by “Kommersant”.

    The association is urging the Ministry of Economic Development, the Ministry of Industry and Trade of the Russian Federation, as well as the Eurasian Economic Commission, to influence the decision of the Kazakh authorities regarding the restriction on shipments. Although bans on exporting scrap metal by rail have been imposed before, they did not affect the Russian side.

    Last year, Russia purchased approximately 1 million tons of scrap metal from its neighboring republic. However, electrometallurgical plants will now face a shortage of raw materials. The Association of Electrometallurgical Enterprises warns that finished products, particularly construction steel, will become more expensive.

    Thanks to the embargo on the export of ferrous scrap metal, Kazakhstan hopes to increase the utilization of its own metallurgical enterprises. According to the Ministry of Industry of the Republic, the domestic market demand for raw materials reaches 3.9 million tons.

    According to Vladimir Dvoretsky, Chairman of the Republican Union of Secondary Metallurgy Industrialists, after the imposition of the ban, the price of scrap metal in Kazakhstan will decrease by 20-40%, which is seen as lobbying by metallurgists, particularly by companies like ArcelorMittal Temirtau (now Qarmet).

  • Meeting of Kanat Shralapayev with the leadership of the Kazakhstan-American Business Council at the US Chamber of Commerce

    Meeting of Kanat Shralapayev with the leadership of the Kazakhstan-American Business Council at the US Chamber of Commerce

    As part of strengthening the multifaceted partnership between Kazakhstan and the United States, Minister of Industry and Infrastructure Development of the Republic of Kazakhstan Kanat Shralapayev participated in a roundtable with members of the Kazakhstan-American Business Council (USKZBC) and representatives of American companies. The event took place at the US Chamber of Commerce, where key representatives of the business community gathered, such as Bechtel, BHP, Brownstein Hyatt Farber Schreck, Chevron, Morgan Stanley, Turkish Airlines, the U.S. Chamber of Commerce, as well as USKZBC.

    The US Chamber of Commerce, the leading business association in the country, represents the interests of over 3 million companies, advocating for the American business community at national and international levels. Acting within the framework of the Chamber of Commerce, USKZBC promotes the development of trade and investment relations between Kazakhstan and the United States, opening up new opportunities for both countries.

    During the roundtable, Kanat Shralapayev emphasized the importance of the longstanding and successful partnership between Kazakhstan and the United States, focusing on the strategic potential of cooperation in the field of rare earth metals extraction, as well as industrial cooperation development. The Minister highlighted key areas for investment and technological cooperation, emphasizing the significance of creating a cluster in Kazakhstan for battery raw materials production, including nickel, cobalt, manganese, and lithium. Particularly noting the key reforms in the field of subsoil use aimed at attracting investments, the Minister invited US mining companies to participate in upcoming auctions for subsoil use and emphasized the key role of the Investment Council under the chairmanship of the First Deputy Prime Minister of the Republic of Kazakhstan as a guarantee for project support.

    This event opened a new chapter in the history of bilateral relations, confirming both sides’ readiness for deep and fruitful cooperation. The roundtable served as a vivid testimony to mutual interest in further expanding industrial and trade ties, contributing to the strengthening of economic partnership between Kazakhstan and the United States.

  • Kazakhstan-Uzbekistan cooperation discussed in Navoi

    Kazakhstan-Uzbekistan cooperation discussed in Navoi

    Ambassador of Kazakhstan to Uzbekistan Beibut Atamkulov paid a working visit to Navoi region, Uzbekistan. The meeting with activists of the Kazakh Cultural Center in Navoi took place. Then, the ambassador visited the Seitkul Aulie – Aiteke bi mausoleum and the Chachma memorial complex located in Nurata district. On May 15-16, 2024, the 380th anniversary of the outstanding statesman Aiteke bi is expected to be celebrated in Navoi region, Kazinform News Agency cites the press service of the Kazakh MFA.

    The head of the Diplomatic Mission also visited the Kazakh secondary school No. 14, founded in 1966 in Kenimekh district of the village of Terikkuduk. During the meeting the issues of educational process were discussed with the teaching staff of the school and the elders of the settlements. In 28 schools out of 36 operating in Kenimekh region, education is conducted in the Kazakh language.

    Ambassador Beibut Atamkulov held a meeting with the Khokim of Navoi region Normat Tursunov. During a meeting the issues of trade, economic, cultural and humanitarian ties with the regions of Kazakhstan were discussed.

    Particular attention was paid to the development of cooperation in chemical and mining industries, organizing mutual visits of delegations, holding a joint business forum, as well as a Youth Festival in Navoi.

    The parties also considered the possibility of establishing sister city ties between Navoi region and its administrative center of Navoi with the regions and cities of Kazakhstan, as well as developing interregional dialogue by establishing direct contacts between business circles.

    The head of the Kazakh Diplomatic Mission visited the Navoi free economic zone and got acquainted with the activities of large industrial complexes of the region as Navoi Mining and Metallurgical Plant JSC, Navoiyazot JSC, Kizilkumcement JSC and Gidro Stanko Servis LLC. Significant potential between the two countries was noted to increase the trade turnover.

  • Kazatomprom Claims Top Spot Among Global Uranium Producers

    Kazatomprom Claims Top Spot Among Global Uranium Producers

    Kazatomprom National Atomic Company has secured its position as the leading global uranium producer, as reported by Insider Monkey, a financial website renowned for its expertise in insider trading and hedge fund data, on February 23.

    Serving as Kazakhstan’s premier operator for uranium export and import, nuclear power plant fuel, and associated technologies, Kazatomprom contributes a remarkable 23% to the global uranium supply, solidifying its status as the largest producer and distributor of natural uranium on a worldwide scale.

    In the year 2022 alone, Kazatomprom achieved an impressive production output of 11,373 tons of uranium, showcasing its significant contribution to the global uranium market.

    Data from the Samruk Kazyna Sovereign Wealth Fund reveals that Kazakhstan emerged as a dominant force in uranium mining during the same year, accounting for a substantial 42% of global production, with Kazatomprom alone representing 22% of this share.

    Furthermore, according to the European Atomic Energy Community (Euroatom), Kazakhstan played a pivotal role in 2022, contributing to 26.82% of the European Union’s uranium imports, underscoring its significance as a key player in the European uranium market.

    Insider Monkey, renowned for its reputable financial news and investment insights, provides comprehensive analysis, data-driven articles, and market updates to empower investors of all levels. With a focus on topics such as stock market trends, investment strategies, and financial news, Insider Monkey equips individuals with the knowledge needed to make informed investment decisions through its extensive coverage and thorough research.

  • The National Geological Service (NGS) plans to develop another database of geological data, which will be integrated into the information platform minerals.gov.kz

    The National Geological Service (NGS) plans to develop another database of geological data, which will be integrated into the information platform minerals.gov.kz

    According to the comments made by the head of the national company, Erlan Galiev, during the capital conference “Increasing the Investment Attractiveness of Kazakhstan’s Mining Industry,” organized by the Kazakhstan Mining Chamber and reported by inbusiness.kz, the NGS intends to create a database specifically for primary geological information within the minerals.gov.kz portal.

    The minerals.gov.kz platform, which supports solid mineral exploration, was launched into industrial operation last year with the technical support of the national company “Kazakhstan Garysh Sapary.” The Subsoil Code, which came into effect in 2018, anticipated the creation of a special information system in the form of a National Bank of Mineral Resources, through which market participants could access all geological information and submit online applications for subsoil plots based on the “first come, first served” principle.

    Galiev mentioned that 20% of all primary geological information was digitized last year, and this year, they plan to digitize another 30%. By the end of 2025, they expect to fully digitize and populate the minerals.gov.kz IT platform with primary geological reports from the NGS.

    Regarding the selection of IT solutions, negotiations are currently underway with potential suppliers, whom Galiev preferred not to name, among global vendors with experience in working with national geological data banks for Asian, European, and American countries.

    Galiev emphasized the necessity of a separate database for primary geological information to ensure that it is properly structured, cataloged, and accompanied by metadata for the convenience of investors. He explained that the information digitized last year is currently stored on hard disks because simply dumping it into the system without proper organization would be incorrect. The data must be cartographically referenced, and if it involves geophysical information, it must be visualized.

    Galiev clarified that all primary geological data will be stored as part of the activities of the state technical service in Kazakhstan. After digitization, the reports will be translated into English using optical character recognition and artificial intelligence technologies.

    Currently, the downloaded secondary geological data cannot be accessed as minerals.gov.kz is migrating to another platform with the participation of “Kazakhstan Garysh Sapary.” Once the migration is complete, mechanisms for downloading geological reports will be linked to the platform, and users will be able to access them after connecting the acquiring tool.

    Galiev addressed the issue of increasing fees for providing geological data, stating that the pricing list was approved in 2022 and has not been changed since. He emphasized that efforts are being made to improve data packaging for users and expedite the process, reducing the waiting time for reports from several months to 10 working days, or two days at most if the report has already been scanned. Thus, there are no plans to increase fees for geological data provision.

  • East Star Resources awarded copper porphyry exploration licence

    East Star Resources awarded copper porphyry exploration licence

    East Star Resources Plc, a company focused on copper exploration and resource development in Kazakhstan, has secured its first copper porphyry exploration license under a new strategy, funded in part by a US$500,000 grant from the BHP Xplor program.

    Partnering with BHP, East Star aims to generate regional targets for copper porphyry deposits, primarily in the Balkash-Ili magmatic arc, which hosts significant deposits like Kounrad and Aktogai-Aidarly. Utilizing modern mineral systems concepts and advanced analytical techniques, East Star plans to secure additional exploration licenses and conduct fieldwork in the region.

    The BHP Xplor grant will cover license costs, field programs, desktop evaluations, and administrative expenses. The program, managed by East Star with guidance from BHP and experts, aims to advance prospects identified through satellite imagery and geological mapping.

    Alex Walker, CEO of East Star, expressed satisfaction with obtaining the first license under the new strategy, highlighting the identification of hydrothermal alteration associated with a silica lithocap during an initial site visit. The license is located in the Balkash-Ili volcanic arc, known for hosting copper and gold-rich porphyry and skarn deposits.

    The Aktogai cluster, located nearby, contains significant copper and gold reserves. The historical data on the license indicates anomalous gold and secondary quartzites, characteristic of porphyry intrusions, further confirming its prospectivity.

    The license benefits from existing infrastructure, including a railway and a gravel road, facilitating access to the site. Initial work will include geological mapping and soil sampling to assess the prospectivity of the area based on metal zonation patterns and clay species analysis.

  • Kazakhmys acquired 15 licenses for solid mineral exploration

    Kazakhmys acquired 15 licenses for solid mineral exploration

    In 2024, Kazakhmys Corporation LLP obtained 15 new licenses for exploration of solid minerals deposits in Kazakhstan. The mineral user aims to expand its own mineral resource base through these new areas, as reported by the company’s press service.

    In its statement, Kazakhmys also refutes the information that it violates contractual obligations regarding subsoil use. The enterprise notes that from 2020 to 2022, it fulfilled investment commitments under 10 contracts in full. Additionally, over the past two years, the company has invested around 45 billion tenge in the development of the Karaganda and Ulytau regions.

    Over the last five years, the corporation has invested over 31 billion tenge in 47 geological exploration projects. Kazakhmys conducts exploration activities in seven regions of the republic. The explored area during this period amounted to 20,000 square kilometers.

    The new areas where the mineral user will begin geological exploration work are likely located near the Sokyrka deposit (Balkhash ore district). The contract for the extraction of copper and polymetallic ores on this deposit was signed by Kazakhmys in 2019.

  • Kazakhstan is focused on strengthening cooperation with countries in Northern Europe and the Baltics

    Kazakhstan is focused on strengthening cooperation with countries in Northern Europe and the Baltics

    Deputy Minister of Foreign Affairs of the Republic of Kazakhstan, Roman Vasilenko, held meetings with the Ambassadors of Finland, Soile Mäkeläinen-Buchanist, Sweden, Eva Polano, and Latvia, Irina Mangule, as reported by “ZhambylNews” citing the Ministry of Foreign Affairs of the Republic of Kazakhstan.

    During the discussions, the parties talked about further enhancing political dialogue and activating economic ties between Kazakhstan and its partners in Northern Europe and the Baltics.

    During the meeting with the Finnish Ambassador, the Deputy Minister expressed commitment to maintaining active bilateral contacts with Finland at governmental, business, and expert levels. In this context, the parties highly appreciated the effectiveness of the Kazakh-Finnish Intergovernmental Commission on Trade and Economic Cooperation, the next meeting of which is scheduled to be held in Astana on April 11 this year. (The co-chairs of the Intergovernmental Commission are the Minister of Ecology and Natural Resources of the Republic of Kazakhstan, E. Nysanbayev, and the Minister for Foreign Trade and Development of Finland, V. Tavio). The interlocutors also discussed the prospects for cooperation in the field of judiciary and customs authorities.

    During the meeting with the Swedish Ambassador, diplomats expressed satisfaction with the positive dynamics of trade and investment cooperation. Special attention was paid to expanding the presence of Swedish businesses in Kazakhstan and attracting advanced technologies. The parties welcomed mutual visits and exchange of experience in the fields of medicine, science, and innovation. Prospects for expanding bilateral legal frameworks were also discussed.

    During the meeting with the Latvian Ambassador, the parties summed up the main results of the development of bilateral cooperation in 2023, expressing satisfaction with the high pace of interaction. The interlocutors thoroughly discussed current issues of Kazakh-Latvian relations, paying special attention to building sustainable transport and logistics chains of interaction and increasing trade and investment partnership between the countries.

    As the co-chair of the bilateral Intergovernmental Commission on Trade, Economic, and Scientific-Technical Cooperation with Latvia, R. Vasilenko confirmed the intention to contribute fully to further developing the positive dynamics of trade.

    Overall, the Deputy Minister called for active participation of European countries in the development of the Trans-Caspian International Transport Route and expressed Kazakhstan’s interest in fruitful cooperation in promoting the issue of easing the visa regime of the European Union for citizens of Kazakhstan.

    Following the negotiations, the parties agreed to continue joint efforts aimed at expanding mutually beneficial partnerships.

    Reference: Finland is an important partner of Kazakhstan in the EU. Bilateral trade turnover in 2023 amounted to $208 million (exports – $3.06 million, imports – $205.1 million). The gross inflow of investments from Finland to Kazakhstan since 2005 amounted to $409.5 million.

    Sweden is one of Kazakhstan’s major trade and investment partners in Europe. In 2023, the trade turnover between the countries amounted to $467 million (exports – $60 million, imports – $407 million). Since 2005, the gross inflow of direct investments from Sweden to Kazakhstan has exceeded $622 million.

    Latvia is a significant partner of Kazakhstan in the Baltic region. In 2023, bilateral trade turnover increased by 76% and amounted to $336 million (exports – $279 million, imports – $77 million). In the first three quarters of 2023, the volume of investments attracted from Latvia to Kazakhstan amounted to $12.4 million.

  • The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    – We inform you that the deal between the Government of the Republic of Kazakhstan and ArcelorMittal is approaching its final stage. In light of the significance of this event, we will organize a briefing immediately after the completion of the transaction. At this meeting we will present all the necessary information and answer all questions,” announced the press service of the Ministry of Industry and Construction.

    Let us remind you that as part of the deal, ArcelorMittal will transfer its Kazakh assets to an investor chosen by the government, who will be ready to invest at least three billion dollars in the next three years. This deal was adopted due to frequent fatal accidents at ArcelorMittal Temirtau mines.

    The government officially announced that a preliminary agreement had been reached on the transfer of the ArcelorMittal Temirtau enterprise on October 28 against the backdrop of the accident at the mine named after. Kostenko, in which 44 miners died. On November 6, ArcelorMittal Temirtau and the Ministry of Industry made a joint statement regarding negotiations on the transfer of property

     

     

  • The head of Polymetal commented on ArcelorMittal’s departure from Kazakhstan

    The head of Polymetal commented on ArcelorMittal’s departure from Kazakhstan

    Gold mining company Polymetal has made a firm commitment to sell its Russian assets, which are subject to U.S. sanctions, no later than the first quarter of next year. The CEO of the company, Vitaly Nesis, informed investors about this during a conference call on the production results for the third quarter last week.

    “When we relocated to Kazakhstan in August, we signed an official commitment stating that the company will sell its sanctioned Russian subsidiary, which is listed on the Specially Designated Nationals and Blocked Persons List, within nine months. This document serves as a preliminary condition for changing jurisdiction. While we cannot be excluded from the Moscow Exchange, we believe that this commitment represents a contractual obligation for us. Violating this obligation would have serious consequences for the company,” said Nesis.

    In September, Nesis predicted that the Russian division of Polymetal International would be sold within the next 6-9 months.

    Nesis also highlighted that if the deal is not completed within the required timeframe, there may be significant consequences.

    “If we fail to meet the deadline, we will lose a substantial amount of political capital in Kazakhstan. Political capital is crucial in the mining sector. I don’t want to draw any inappropriate parallels, but it’s worth considering what happened to ArcelorMittal in Kazakhstan after multiple security failures. While we hope to avoid such a scenario, it is evident that managing potential problems arising from the loss of political reputation is of utmost importance,” he noted in response to a question about the potential issues that may arise if the company’s Russian assets are not sold within the promised period.

    According to Nesis, obtaining official approval from Russian authorities for the planned deal is unlikely to be necessary. However, repatriating the proceeds from the sale to Kazakhstan may face challenges due to currency restrictions imposed in Russia. This is particularly relevant as some of the current shareholders of Polymetal, who may benefit from the sale through dividends, are residents of countries considered unfriendly by the Russian government. The decision on dividend payments for this year will depend on the progress of the sale of Russian assets. If the deal with the Russian subsidiary cannot be completed, the company may consider the previously discussed option of establishing a separate entity in Kazakhstan, although this could have tax implications.

    One of the conditions for finalizing the deal, as discussed with potential buyers, is Polymetal’s requirement for strong assurances that toll processing of low-carbon concentrate from the Bakyrchik deposit in Kazakhstan at the Amursk hydrometallurgical plant will continue. The matter of preserving these supplies from the Kazakh mine is still under discussion with the Office for Foreign Assets Control (OFAC) of the U.S. Treasury’s Foreign Assets Control.