MINEX Forum

Tag: Kazzinc

  • Kazzinc Raises Employee Salaries Across All Divisions

    Kazzinc Raises Employee Salaries Across All Divisions

    Kazakhstan’s largest mining and metallurgical company Kazzinc has announced salary increases for its employees. After discussions with shareholders, the company’s management approved an average 8.5% wage hike starting from January 2025.

    This follows two salary increases in 2024 – in March and October – which totaled approximately 10%.

    “It’s no secret that inflation doesn’t stand still and the cost of essential goods is rising. The salary level directly affects the well-being of Kazzinc employees. It’s extremely important for us to maintain it, taking into account market changes,” said Zhanat Zhanbotin, CEO of Kazzinc. “We approached shareholders with a proposal to consider raising Kazzinc employees’ wages at the beginning of this year and they supported us. January salaries have been increased by an average of 8.5%.”

    The raise applies to workers across all divisions of Kazzinc, which is the largest company in East Kazakhstan.

    This move aims to help employees keep pace with inflation and rising costs of living. It demonstrates Kazzinc’s commitment to supporting its workforce’s financial well-being amid changing economic conditions.

  • Prosecutor’s Office Investigates “KazZinc” Over Air Pollution in Ust-Kamenogorsk

    Prosecutor’s Office Investigates “KazZinc” Over Air Pollution in Ust-Kamenogorsk

    Authorities in East Kazakhstan have initiated a comprehensive investigation into KazZinc’s operations due to its annual emissions of 23,000 tons of air pollutants in Ust-Kamenogorsk. According to the region’s Akim, Yerzhan Kosherbayev, the prosecutor’s office is collaborating with specialized agencies and experts from across the country. Preliminary findings have been shared with KazZinc’s management to identify solutions for improving the city’s environmental conditions.

    Ust-Kamenogorsk has long struggled with air quality issues, particularly during adverse weather conditions, when heavy smog blankets the city. Residents have consistently voiced concerns and demanded tighter controls on industrial emissions. Following a prolonged smog episode in November, local authorities placed environmental monitoring under heightened scrutiny, forming a dedicated commission to inspect businesses suspected of contributing to the pollution.

    Efforts to address these issues aim to create lasting improvements through cooperation between the government and industry stakeholders.

  • KazZinc Under Investigation Amid Ust-Kamenogorsk’s Worsening Environmental Crisis

    KazZinc Under Investigation Amid Ust-Kamenogorsk’s Worsening Environmental Crisis

    The worsening environmental conditions in Ust-Kamenogorsk have placed metallurgical giant KazZinc under scrutiny, as the General Prosecutor’s Office launches an investigation into the company’s practices. The city, plagued by dense smog in late November, saw over 50,000 schoolchildren shifted to remote learning due to alarming health risks. Environmental experts have tied much of the pollution to KazZinc, responsible for 44% of the city’s industrial emissions.

    While KazZinc operates several plants, including zinc, lead, copper, and sulfuric acid production facilities, its activities have led to multiple ecological violations in recent years. Reports detail incidents of excessive sulfur dioxide emissions, polluted wastewater, and even chemical spills affecting local rivers like Bukhtarma and Ulba. Despite investing billions of tenge in modernization efforts, including advanced filtration systems, the company’s measures have proven insufficient against the escalating crisis.

    Public discontent continues to grow, as many view the government’s response as inadequate. Ecologists argue that systemic reforms are necessary to hold industrial giants accountable. According to Roman Chesnykh, a member of the Public Council on Ecology, KazZinc’s efforts, though commendable, represent a “drop in the ocean” amidst a complex environmental crisis. The expert further suggests that the city’s overall industrial infrastructure, much of it Soviet-era, requires a complete overhaul to address long-term sustainability.

    KazZinc, one of the country’s largest economic contributors, has faced penalties totaling millions of tenge over the years. However, critics claim these fines are insignificant compared to the damage caused, urging stricter regulations and higher penalties. With calls for transparency and greater accountability, the investigation seeks to uncover whether KazZinc has adequately adhered to environmental laws and whether its current policies align with national sustainability goals.

  • General Prosecutor to Audit KazZinc for Environmental Compliance

    General Prosecutor to Audit KazZinc for Environmental Compliance

    The General Prosecutor’s Office will audit KazZinc LLP to assess compliance with environmental laws following significant air pollution in Ust-Kamenogorsk from November 23 to December 1, 2024. The audit will involve experts from the Environmental Regulation and Control Committee.

    The regional roadmap for 2024-2026 includes measures to reduce harmful emissions by 10-20%. Key initiatives include upgrading sulfur gas treatment systems at KazZinc’s metallurgical complex, projected to reduce sulfur dioxide emissions by 2,200 tons by 2026. Despite these plans, air quality in the city remains a critical concern.

  • New Environmental Initiatives in East Kazakhstan to Reduce Harmful Emissions

    New Environmental Initiatives in East Kazakhstan to Reduce Harmful Emissions

    In a significant move to bolster environmental protection in East Kazakhstan, the government has outlined plans to reduce harmful emissions and improve ecological conditions in the region.

    According to the roadmap for East Kazakhstan and the city of Ust-Kamenogorsk for 2024-2026, several key environmental measures are set to be implemented. Two of the most notable initiatives include:

    1. Modernization of Sulfur Dioxide Cleaning Units: At the Ust-Kamenogorsk Metallurgical Complex of Kazzinc LLC, the modernization of sulfur dioxide cleaning units is expected to reduce sulfur dioxide emissions by 2,200 tons by 2026. This project aligns with the indicators of the national project “Green Kazakhstan” and aims to significantly lower air pollution.
    2. Construction of the ‘Hydropolymer’ Facility: A new ‘Hydropolymer’ facility will be built at the Ridder Metallurgical Complex of Kazzinc LLC. This project is anticipated to decrease sulfur dioxide emissions by 714 tons in 2024, contributing to a cleaner environment in the region.

    The Ministry of Ecology and Natural Resources, in collaboration with local akimats, has approved 19 roadmaps aimed at comprehensively addressing environmental issues in each region. These roadmaps include measures to reduce air, water, and soil pollution, implement the best available technologies in enterprises, manage waste, and promote environmental education.

    It is expected that these measures will result in a 10-20% reduction in harmful emissions across East Kazakhstan.

    This initiative follows a request from senators for information on planned measures to combat ecological pollution in the country, highlighting the government’s commitment to environmental protection and sustainability.

  • Environmental Audit for Kazzinc Amid Record Smog in Ust-Kamenogorsk

    Environmental Audit for Kazzinc Amid Record Smog in Ust-Kamenogorsk

    The General Prosecutor’s Office will audit Kazzinc LLP for compliance with environmental regulations. Specialists from the Environmental Regulation and Control Committee will assist in the inspection, Prime Minister Olzhas Bektenov announced in response to a request from senators.

    According to the Prime Minister, the audit is prompted by the adverse environmental situation in Ust-Kamenogorsk observed between 23 November and 1 December 2024.

    He also reminded that the roadmap for East Kazakhstan Region and Ust-Kamenogorsk for 2024–2026 includes a number of environmental measures aimed at reducing harmful emissions in the region by 10-20%.

    The key measure is the modernisation of gas purification units at the Ust-Kamenogorsk metallurgical complex of KazZinc LLP. By 2026, the modernisation is expected to reduce sulphur dioxide emissions by 2,200 tonnes. It will also ensure the enterprise’s operations comply with the indicators of the national project “Zhasyl Kazakhstan.”

    Another important initiative is the construction of the “Hydropolimet” workshop at the Ridder metallurgical complex of KazZinc LLP. This initiative aims to reduce sulphur dioxide emissions by 714 tonnes by 2024.

    At the end of November, Ust-Kamenogorsk was covered by a dense smog. The air showed an excess concentration of pollutants. For the first time, due to poor air quality, schoolchildren were moved to remote learning for several days, and residents were advised to limit outdoor activities and use protective masks.

    Ust-Kamenogorsk faces annual issues with windless conditions and severe air pollution, but this year, according to environmentalists, the level of pollution was record-breaking.

  • Kazakh Company KazZinc Unveils Mining Plan for Novo-Leninogorsk Barite-Polymetallic Deposit

    Kazakh Company KazZinc Unveils Mining Plan for Novo-Leninogorsk Barite-Polymetallic Deposit

    Kazakh company KazZinc has presented its mining plan for the Novo-Leninogorsk Barite-Polymetallic Depositlocated in the Glubokovsky District of the East Kazakhstan Region. The documentation was published on Kazakhstan’s Unified Environmental Portal.

    According to the 2021 KAZRC report, the mineral resource assessment was conducted on the three main deposits of the site: Bogataya, Burovskaya, and Baritovaya, which contain over 95% of the site’s total resources. The ores are polymetallic, with a predominance of lead and zinc over copper. Other accompanying components include gold, silver, cadmium, bismuth, and more.

    At the beginning of 2022, the identified resources were registered: 7.99 million tons of polymetallic ores, 344.5 thousand tons of zinc (average content – 4.31%), 134.3 thousand tons of lead (1.68%), 13.6 thousand tons of copper (0.17%), 15.99 tons of gold (2 g/t), and 303.8 tons of silver (38 g/t). The estimated category totals 22.24 million tons of ore.

    The company is still conducting geological exploration to refine and upgrade the resource category. The determination of the physical and mechanical properties of the rocks was carried out in the VNIITsvetMet laboratory (Ust-Kamenogorsk) during the Soviet era and at the Saint Petersburg Mining University in 2020-2021.

    The mine intends to extract 2.7 million tons of ore annually. The raw material will be processed at the Ridder Mining and Concentrating Complex. The work plan is scheduled for 2024-2047.

  • Glencore Retains 70.2% Stake in Kazakh Mining Business Amid Price Disagreement

    Glencore Retains 70.2% Stake in Kazakh Mining Business Amid Price Disagreement

    Glencore, the global trading company, has decided to retain its 70.2% stake in the Kazakh mining business after failing to agree on a sale price, according to “Kursiv” citing Bloomberg. Glencore has been simplifying its operations by divesting smaller or non-core assets. The decision to sell its Kazakh assets was made in early summer when Chinese buyers showed interest. This included the Vasilkovsky gold mine, managed by KazZinc.

    Potential investors were unable to meet Glencore’s price expectations, which Bloomberg estimates to be several billion dollars. As a result, the company opted not to proceed with the sale. Under existing rules, investors can acquire a part of the enterprise only if the other partner declines the purchase. The co-owner of KazZinc, Tau-Ken Samruk (holding a 29.8% stake), has not commented on the potential deal.

    KazZinc is a major producer of non-ferrous metals. According to Glencore, last year the enterprise produced 173,900 tons of zinc, an increase of 27,500 tons from the previous year. Additionally, in 2023, KazZinc produced 35,600 tons of lead, 14,800 tons of copper, and 598,000 ounces of gold.

  • Glencore Abandons Sale of Kazzinc Stake After Unmet Valuation

    Glencore Abandons Sale of Kazzinc Stake After Unmet Valuation

    Glencore Plc has abandoned plans to sell its stake in the Kazakh mining company Kazzinc after potential buyers failed to meet its valuation, sources familiar with the situation reported. Glencore, holding a 70% stake in Kazzinc, had been contemplating an exit from the business amid interest from Chinese buyers. The company has now issued a termination letter to the bidders, the sources said, requesting anonymity due to the private nature of the discussions. A Glencore spokesperson declined to comment on the matter.

    Kazzinc, established in 1997 through the merger of eastern Kazakhstan’s three main non-ferrous metals companies, comprises a sprawling network of mines, concentrators, and metal finishing plants. This setup allows the company to transition from digging ore to producing finished zinc metal and products.

    Glencore’s Chief Executive Officer, Gary Nagle, has continued the strategy of his predecessor, focusing on simplifying the business by selling off smaller or more challenging assets. The company has previously sold zinc assets in Peru and some of its smaller copper operations.

    While zinc prices have surged this year due to supply constraints, the long-term outlook remains uncertain. The metal’s future is clouded by its heavy reliance on the struggling construction sector and its limited applications in rapidly growing industries like renewable energy and electric vehicles.

  • Glencore Considers Selling Stake in Kazakh Mining Company Kazzinc

    Glencore Considers Selling Stake in Kazakh Mining Company Kazzinc

    Glencore is considering selling its stake in the Kazakh mining company Kazzinc amid interest from potential buyers in China, according to sources familiar with the matter. The deal could value Glencore’s nearly 70% holding in Kazzinc at several billion dollars, the sources said, requesting anonymity due to the private nature of the discussions.

    Glencore is also in the process of selling the Kazzinc-operated Vasilkovskoye gold mine, having scrapped a previous sale over seven years ago. The gold mine and Kazzinc’s core zinc operations could be sold to separate buyers or a single party, depending on the offers received. However, the deliberations are preliminary and may not lead to a transaction. A representative for Glencore declined to comment.

    Kazzinc is composed of an extensive network of mines, concentrators, and metal finishing plants across Kazakhstan, enabling the company to process ore and produce finished zinc metal and products. The company was established in 1997 through the merger of three main non-ferrous metals companies in eastern Kazakhstan, which were mostly government-owned.

    Glencore CEO Gary Nagle has continued his predecessor’s strategy of simplifying the business by selling off smaller or more challenging assets. The company has already sold zinc assets in Peru and some of its smaller copper operations. Zinc prices have rallied this year due to supply constraints, but the long-term outlook remains uncertain because of the metal’s heavy exposure to the struggling construction sector and its limited uses in fast-growing industries like renewable energy and electric vehicles.

    Prices were 1.6% lower at $2,888.00 on Wednesday on the London Metal Exchange, reducing zinc’s yearly gain to 8.6%. Kazzinc’s zinc production rose by 27,500 tons in 2023 to 173,900 tons, while lead production totaled 35,600 tons, copper was 14,800 tons, and gold reached 598,000 ounces, according to Glencore’s annual report.