MINEX Forum

Tag: Mineral Resources

  • Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Ministry of Finance is planning to introduce export duties on major types of mineral resources in an effort to reduce the country’s growing budget deficit. According to a report by Bloomberg, the government is expected to make a decision on this initiative by the end of August this year.

    The proposed export taxes would target a range of domestic products, including coal, copper and iron ores, metal concentrates, ferroalloys, sulfur, and others. While the final list of taxable products has yet to be determined, it is expected to include those resources that would generate the most revenue for the state.

    Local media will be provided with the official list only after a consensus is reached between the National Chamber of Entrepreneurs “Atameken” and government bodies. At that point, the government will also finalize the exact rates for the export duties.

    This initiative by the Ministry of Finance is not entirely new. Discussions about imposing such duties began a year ago, with the project initially justified as a means to stimulate the domestic processing of ferrous metals. Currently, only oil and alloy exporters are subject to such payments.

    Kazakhstan’s budget is in urgent need of additional revenue. By the end of the first quarter of 2024, the deficit had reached 1 trillion tenge (a 24.2% increase year-on-year). In June, former Prime Minister Alikhan Smailov described the deficit as chronic and criticized the inefficient use of public funds.

  • Kazakhstan to Boost Investments in Mineral Exploration by 2029

    Kazakhstan to Boost Investments in Mineral Exploration by 2029

    The National Development Plan of Kazakhstan aims to increase investments in geological exploration to $90 per square meter by 2029, a significant rise from the current spending of $63 per square meter. According to LS, this current expenditure is 39.6% below the global average, leading to insufficient reserves ready for development, particularly in critical minerals such as chromium, copper, and iron.

    Kazakhstan possesses valuable resources like nickel, cobalt, and lithium, essential for the green economy, but their potential remains underutilized due to limited exploration investments. The same issue affects the development of rare earth metals.

    To address these challenges, the plan proposes to stimulate investments in junior mining companies by simplifying their access to the stock exchange and revising tax deduction conditions for investors. The taxation for companies involved in extraction will also be reformed, shifting to a system based on the volume of product sales and profits rather than just the amount of raw material extracted. This new system will initially be tested on several pilot projects.

    Additionally, geological exploration data will be digitized, and administrative barriers for obtaining exploration and mining licenses will be reduced.

  • Mongolia’s Mineral Wealth: Balancing Economic Growth and Governance Challenges

    Mongolia’s Mineral Wealth: Balancing Economic Growth and Governance Challenges

    Mongolia is at a pivotal juncture, leveraging its abundant mineral resources to bolster economic growth. The nation boasts some of the world’s largest reserves of copper and rare earth elements, making it a key player in global supply chains. Strategically situated between China and Russia, Mongolia aims to diversify its economic and diplomatic ties through its “third neighbor policy.” Despite its mineral wealth, Mongolia faces significant governance challenges, including corruption and political instability. Recent efforts focus on legal reforms and international cooperation to enhance transparency and attract foreign investment.

    Mongolia’s economic strategy is deeply intertwined with its diplomatic maneuvers, seeking to balance relationships with powerful neighbors and global partners. The country’s mineral sector is a cornerstone of this strategy, driving growth and development. However, governance issues pose risks to stability and investor confidence. Mongolia’s government is actively working on reforms to improve regulatory frameworks, ensuring that its mineral wealth translates into sustainable development for its population.

    The nation’s commitment to international cooperation is evident in its efforts to engage with various global entities and countries. By fostering a transparent and investor-friendly environment, Mongolia hopes to harness its mineral wealth effectively while addressing internal governance issues. This delicate balancing act is crucial for the country’s long-term economic prosperity and geopolitical stability.

  • Anglo Asian Mining Unveils Significant Copper Find in Azerbaijan

    Anglo Asian Mining Unveils Significant Copper Find in Azerbaijan

    Anglo Asian Mining (AAM), renowned for its expertise in gold, silver, and copper extraction in Azerbaijan, announced substantial copper mineralization at the Kharhar site in February 2024. Following Joint Ore Reserve Committee (JORC) standards, the estimated copper mineralization zone at the site stands at 24.9 million tons, boasting an average copper content of 0.48%. From 22 million tons of ore, 106,000 tons of copper have been identified, contributing to the total reserves of minerals at the site, which amount to 119,000 tons. Plans are underway for AAM to kickstart copper production at the Kharhar site by 2026, with an anticipated annual extraction of approximately 9,000 tons over the subsequent seven years. The favorable terrain at the site facilitates open-pit mining operations. Under a contract signed with the British company on August 21, 1997, encompassing the development of six sites, Azerbaijan retains a 51% share, with Anglo Asian Mining holding the remaining 49%. In September 2021, a new agreement expanded the company’s rights to three additional contract blocks, bringing the total to eight areas. Experts highlight that the development of the Kharhar site, alongside other contract areas, promises substantial revenue. The mining sector stands as a pivotal player in Azerbaijan’s non-oil sector development, with the nation actively aligning its industry with global standards, exploring innovative approaches and technologies, and seeking to attract investments. Attention is particularly focused on opportunities in liberated territories, which hold immense potential. The country continues to study and develop its mineral resource base, as outlined in the State Programme for Geological Exploration and Efficient Use of Mineral Resources Base for 2020-2024 and subsequent amendments. Estimates indicate abundant mineral deposits, including gold, mercury, copper, and more, within these territories. Positioned advantageously, Azerbaijan possesses rich reserves of diverse minerals and construction materials, positioning itself as a significant player in the regional mineral resources market.

  • Kyrgyzstan Allocates 1 Billion Som for Geological Industry Development

    Kyrgyzstan Allocates 1 Billion Som for Geological Industry Development

    For the first time in Kyrgyzstan’s history, 1 billion som has been allocated for the development of the geological sector, stated in the president’s congratulatory message on Geologist Day. According to Sadyr Japarov, these funds will be used for the discovery of new deposits, conducting geological research, purchasing specialized equipment, exploration, assessment of mineral resources, and specialist training.

    Today, large deposits of state significance are allocated to enterprises with a hundred percent state share. Licenses have been issued to Kyrgyzaltyn JSC, state enterprises Kyrgyzkomur and Kyrgyzgeology, the president noted.

  • Serbia Initiates Development of Mineral Resource Management Strategy for 2025-2040

    Serbia Initiates Development of Mineral Resource Management Strategy for 2025-2040

    Serbia has commenced the formulation of a comprehensive Strategy spanning from 2025 to 2040 aimed at managing the nation’s mineral and geological resources. Dubravka Djedovic Handanovic, the Minister of Energy, led the inaugural meeting in Belgrade, engaging with representatives from the Geology faculty to kickstart this pivotal initiative, as reported by the “Beta” press agency. Minister Djedovic Handanovic emphasized the necessity for the forthcoming document to conduct a thorough analysis of the current state of all mineral resources, outlining a trajectory from present circumstances towards future aspirations. The objective is to propose measures that enhance control and management of mineral development, ensuring maximal economic benefits while minimizing environmental damage.

    According to the minister, the Strategy is slated for completion “in the next nine months,” signifying a commitment to expedited progress in this critical area. Djedovic Handanovic highlighted Serbia’s historical reliance on mining for development, noting the absence of a coherent contemporary strategy in this domain. To address this gap, the drafting process will engage 50 professors and collaborators from the Faculty of Geology, tasked with integrating global best practices and cutting-edge technological solutions to foster sustainable mining practices.

    Minister Djedovic Handanovic stressed the importance of empowering professionals throughout this process, emphasizing their expertise and pivotal role in shaping the Strategy’s outcomes.

  • Mining Boom in Southeast Europe Sparks Global Interest and Sustainability Initiatives

    Mining Boom in Southeast Europe Sparks Global Interest and Sustainability Initiatives

    The Western Balkans and the broader Southeast Europe region are emerging as hotspots for international mining companies, drawing attention with their abundant mineral resources ranging from copper and gold to lithium and coal. As global demand for minerals intensifies, these regions are not only pivotal for traditional industrial needs but also play a crucial role in the green transition. International mining companies, including those from Canada, China, Russia, and the United Kingdom, are actively involved in exploration, new project development, and the modernization of existing mining operations.

    Market Presence

    Key players, such as Rio Tinto, known for its involvement in Serbia’s Jadar lithium project, and Zijin Mining, investing in the Čukaru Peki copper and gold mine in Serbia, showcase the region’s appeal to major global entities. Lydian International’s engagement in the Amulsar gold project in Armenia and Eldorado Gold’s Canadian investments in Greece further underline the diverse interest in Southeast Europe’s mineral wealth.

    Trends

    The region is witnessing a heightened focus on metals essential for the green transition, including lithium, nickel, and copper. With global shifts towards electrification and renewable energy, the Western Balkans becomes a focal area for exploration and investment. International companies not only explore new projects but also invest in modernizing existing operations to enhance efficiency, reduce environmental impact, and extend mine life. Scrutiny on environmental and social impacts is growing, prompting companies to adopt higher standards for community engagement, environmental protection, and corporate social responsibility.

    Regional Stability and Investment Climate

    The political and economic stability of the Western Balkans and Southeast Europe significantly influences international mining investments. Efforts towards EU integration and improved governance are positive signals for investors looking to establish a lasting presence.

    Perspectives

    The mineral resources of the Western Balkans hold strategic importance for Europe’s ambition to secure critical raw materials. Geopolitically, this aspect continues to drive international interest in the region. While the area presents substantial opportunities, challenges related to regulatory frameworks, environmental and social governance, and infrastructure must be addressed to unlock its full potential. Moreover, there is a unique opportunity for the region to leverage international investment for sustainable development, emphasizing green mining practices, community development, and contributing to the energy transition.

  • 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.

  • The volume of geological exploration work will increase in Kazakhstan

    The volume of geological exploration work will increase in Kazakhstan

    Over the past 6 years, geological exploration has been conducted on 9 sites in the Kostanay region, funded from the budget. The total area of the surveyed territory exceeds 38 thousand square kilometers. In the country, there are plans to increase the volume of work in this direction by at least 1.5 times, as reported by the correspondent of “Khabar 24,” Artem Grapov.

    Artem Grapov, correspondent: “Currently, in the Kostanay region, 35 types of valuable minerals are known and have been studied to varying degrees. About 400 deposits have been explored. The region is a unique iron ore and bauxite base of the republic. By the way, 4% of the world’s iron ore reserves are concentrated in the Kostanay region. Kostanay geologists conduct exploration work continuously. In addition to iron and bauxite, the region also has significant reserves of cobalt, nickel, titanium, and gold. This year, a geological hub was launched in the region. Its main area is a core storage facility – a complex where primary rock samples taken during drilling are analyzed.”

    Darkhan Makatov, Head of Field Research Department: “Materials are sent to the cutting workshop. After that, they undergo sampling. Then certified samples are sent to laboratories located both in Kazakhstan, in the city of Karaganda, and abroad, in Ireland. The analysis results are then entered into the database. The obtained data are then systematized and digitized in accordance with international geological survey standards.”

    Dastan Makat, Project Geologist, PhD: “We enter the field data we’ve obtained into the database. Then, using this data, we create a deposit model. After that, we develop ore body models. You could say this is the final task of our geological exploration. The materials are then handed over to miners, who, in turn, develop a mining plan for the deposit.”

    Continuous geological exploration allows for the identification of promising areas for further development. Maya Ospanova, Head of the Kostanay Regional Inspection of Geology and Subsoil Use: “As a result of the work carried out, estimated resources have been calculated for 12 types of valuable minerals. The main volume is accounted for by coal, which amounts to 14 billion tons. We have also discovered 31 kilograms of gold, as well as molybdenum, lead, zinc, nickel, tungsten, titanium, copper, and other valuable minerals. In 2023, geologists continue to develop 3 objects. The work is funded by the republican treasury. Two sites are for underground waters, and one is for the search for rare earth metals. Geologists will summarize the results of this work next year.”

  • United States – Mongolia Memorandum of Understanding on Mineral Resources

    United States – Mongolia Memorandum of Understanding on Mineral Resources

    On June 27, 2023, in Ulaanbaatar, Mongolia, a significant memorandum was signed between the U.S. Department of State, represented by Under Secretary of State for Economic Growth, Energy, and the Environment, Jose W. Fernandez, and Mongolia’s Ministry of Mining and Heavy Industry, represented by Minister Ganbaatar Jambal. This Memorandum of Understanding (MOU) is dedicated to fostering collaboration on the development and governance of mineral resources.

    This MOU highlights the commitment of both the United States and Mongolia to promote responsible practices within their respective mineral resource sectors and to jointly enhance the resilience and security of critical mineral supply chains in the Indo-Pacific region.

    The United States and Mongolia share a mutual interest in harnessing mineral resources for economic growth, resource security, and overall economic development. Both nations possess valuable technical expertise, operational know-how, and sector management capabilities that can be effectively utilized through this close partnership.

    Under the terms of this MOU, the United States will actively engage with Mongolia to facilitate sustainable exploration and development of its mineral resource potential. Collaboration avenues include joint geoscience fieldwork, educational workshops, knowledge-sharing through peer exchanges, comprehensive training programs, and discussions concerning investment and regulatory frameworks. This collaborative effort may encompass cooperation between government agencies, academic institutions, and private sector entities from both countries.

    For additional information, please reach out to ENR-PD-Clearances@state.gov.