In a recent development, the geological exploration company C29 Metals Limited has submitted applications for new exploration licenses in Kazakhstan. The areas of interest are situated to the south and north of the company’s current exploration site, according to inbusiness.kz. C29 Metals is looking to secure rights to study two sections of land: one covering 213 km² near the Ulutau Uranium Project and another 39 km² site close to the Botaburum mine. The company considers these zones promising based on historical drilling data and satellite imagery. It is estimated that the subsurface may contain 3,800 tonnes of uranium oxide. Currently, the Australian company holds full ownership of the Ulutau project. However, it remains unclear how they plan to proceed with extraction, as current legislation stipulates that mining of this metal must involve organizations with a majority stake held by Kazatomprom.
Tag: mining
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Kazatomprom Begins Geological Exploration at the Eastern Section of Zhalpak Deposit
Kazatomprom, the leading uranium company in Kazakhstan, has received permission to conduct geological exploration at the Eastern section of the Zhalpak deposit. This authorization will enable the company to investigate and refine the uranium reserves in this area. Previously, exploration funded by Kazatomprom discovered uranium deposits of categories P1 and P2. The potential reserves at the Zhalpak deposit are preliminarily estimated at 30 thousand tons of uranium. The new geological exploration aims to convert these resources into reserves of categories C2 and C1 and to determine more accurate uranium reserves. The exploration project is planned for six years, after which the calculated reserves will be recorded on the state balance sheet. Currently, Kazatomprom is extracting uranium from 26 deposits and accounted for about 20% of the world’s primary uranium production in 2023.
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Anglo American Restructures Trading Operations Post-BHP Bid
Anglo American Plc, a major mining company, is downsizing its trading operations following a restructuring initiative spurred by a takeover attempt from BHP Group Ltd. earlier this year. Approximately 10 employees from Anglo American’s London and Singapore offices have recently departed due to job cuts. Notable departures include Sebastian Castelli, head of metals origination, and Mark Sainsbury, head of structured origination.
As part of the restructuring, Anglo American announced internally that it will cease entering long-term agreements to buy commodities that it does not already produce. This strategic shift comes after BHP’s attempted acquisition, which, if successful, would have established a major commodities conglomerate. Although BHP eventually abandoned the takeover bid, the move prompted Anglo American to expedite its business overhaul, including plans to divest its platinum business and exit from coal, diamonds, and nickel markets.
The company is now concentrating on key commodities and reducing its cost-heavy business units. A spokesperson for Anglo American declined to comment on the recent developments, and neither Castelli nor Sainsbury provided statements regarding their departures.
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Changes in Uranium Mining Tax Rates Announced for 2025
In 2025, the Republic of Kazakhstan will see a change in the mineral extraction tax (MET) rate on radioactive metals, according to the press center of the atomic company Kazatomprom. Starting from the first day of the new year, the tax on the extraction of valuable minerals will be set at 9%. From 2026, a differentiated tax will be introduced, allowing the MET rate to vary between 4% and 18%.
The rate will depend on the actual amount of uranium extracted under each specific contract, as well as the cost of natural uranium concentrate. If the annual extracted volume is up to 500 tons, the enterprise will be taxed at 4%. For annual production levels up to 1,000 tons, the rate will rise to 6%, up to 2,000 tons — 9%, up to 3,000 tons — 12%, and up to 4,000 tons — 15%. If more than 4,000 tons of uranium is mined in a year, the MET will reach 18%.
It is important to note that if a certain weighted average price of uranium is exceeded, the tax rate will increase. For example, if the average cost exceeds $70 per pound of concentrate, the tax rate will increase by 0.5%. If the price surpasses $110 per pound, an additional 2.5% will be added to the existing rate.
Until the end of 2024, uranium companies will continue with the current taxation procedure. Since January 1 of last year, the MET has been 6%. The management of Kazatomprom expects that in 2026, all subsidiaries and joint ventures of the national company will be able to benefit from the differentiated tax calculation approach.
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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.
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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.
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Sweden Joins Sustainable Critical Mineral Alliance to Promote Green and Inclusive Mining
In a significant step towards a sustainable future, Sweden has joined the Sustainable Critical Mineral Alliance (SCMA). This coalition, led by Canada and established in December 2022, includes Australia, France, Germany, Japan, the UK, and the US. The alliance aims to ensure environmentally sustainable and socially responsible mining practices, crucial for achieving net-zero emissions. The SCMA focuses on supporting local and Indigenous communities, reducing greenhouse gas emissions, and promoting a circular economy. Canadian Minister Jonathan Wilkinson and Swedish Minister Ebba Busch emphasized the importance of high environmental, social, and governance (ESG)standards in the mining industry.
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Kazakhstan Proposes New Tax Code Affecting Mining Companies
The Ministry of National Economy has introduced a draft of the new tax code for discussion on the “Open NPA” portal. Several changes in the code will impact the activities of mining companies.
Specifically, oil companies are offered an alternative mineral extraction tax with reciprocal investment obligations instead of benefits under the current mineral extraction tax (MET). This measure aims to stimulate the development of depleting fields. Companies will be required to invest the freed-up funds into intensifying production and the socio-economic development of the region, rather than distributing them as dividends.
Additionally, the new code includes changes for geological exploration. Companies will be allowed to deduct all expenses related to subsurface studies as part of non-contractual activities and other contracts or licenses. This initiative aims to reduce all risks for potential investors in the event of unsuccessful exploration.
The Ministry also seeks to draw more attention to waste processing in mining. Those engaged in the development of man-made mineral formations can now expect reduced MET rates.
Another proposal includes temporary benefits for those developing new sections of existing fields with low profitability.
Overall, the new code aims to reduce the number of taxes and other mandatory payments in the country by more than 20%.
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Kazatomprom Signs New Contract for Mining Operations at Inkai Deposit
Kazatomprom JSC has signed another mining contract. The agreement involves extracting radioactive metal from the subsurface of site No. 3 at the Inkai deposit. The relevant documents were signed following negotiations with the Ministry of Energy of Kazakhstan. This contract is crucial for the national company as it will significantly increase its mineral resource base, according to the operator’s press center.
According to Kazatomprom, obtaining the license will allow the extraction of 701 tons of metal over the next four years. It is noteworthy that Inkai holds significant uranium reserves and is one of the main uranium deposits in the country. Experts estimate the reserves at the site to exceed 83,000 tons. Furthermore, developing these resources will positively impact the Turkestan region.
Additionally, the company believes that in the future, the contract for the right to develop this area will go to Kazatomprom-SaUran LLP, a subsidiary of the current operator.
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Bulgaria’s Industrial Sectors Need Comprehensive Strategy to Overcome Challenges
Bulgaria’s manufacturing and mining sectors are currently facing serious challenges due to global economic shifts and rising competition. High energy consumption and largely outdated equipment make these sectors particularly vulnerable. A comprehensive National Industrial Strategy is necessary, aligning with European Union priorities such as the European Green Deal and the Net-Zero Industry Act, to increase sustainability, competitiveness, and innovation.
According to Petar Murginski, the manufacturing and mining sectors are vital to Bulgaria’s economy, significantly contributing to industrial production and employment. However, high energy consumption, outdated equipment, and a heavy reliance on fossil fuels pose significant challenges. The 2023 European Semester Country Report for Bulgaria shows that 63% of the country’s energy mix comes from fossil fuels, while renewables only account for 15%. Additionally, Bulgaria has one of the lowest circular economy rates in Europe, with only 4.8% material reuse compared to an EU average of 11.5%, according to the 2022 Eurostat Circular Economy Report.
Despite these challenges, Bulgaria holds significant potential in critical raw materials and green technology adoption. The country’s strategic position in the European supply chain is underutilized, and there are substantial regional disparities in productivity and infrastructure. The Sofia Capital region alone generates 41% of the national GDP, according to 2022 National Statistical Institute GDP Data. To address these issues, a comprehensive National Industrial Strategy focusing on reducing carbon emissions, enhancing energy efficiency, and promoting the circular economy is essential.
The strategy’s primary objective should be to facilitate Bulgaria’s transition towards greener, more innovative, and technologically advanced industries. It aims to increase competitiveness by promoting resource efficiency, digitization, and circular economy practices. Aligning Bulgaria’s industrial growth with EU policies, such as the Critical Raw Materials Act, and setting clear policy objectives to empower the Bulgarian Ministry of Economy and Industry are crucial for implementing reforms that enhance productivity, attract investment, and secure strategic autonomy.
Key Findings reveal that both the mining and manufacturing sectors face significant technological gaps and supply chain vulnerabilities. High energy consumption per unit of production and outdated equipment make these industries particularly vulnerable. Modernizing equipment and processes is essential to increase efficiency and reduce carbon emissions. Investment in new technologies and infrastructure is crucial for overcoming these challenges. Supply chain disruptions, especially of critical raw materials, also present significant risks to industrial stability.
Despite these challenges, there is considerable potential for green technology adoption. Bulgaria’s strategic position and rich mineral resources offer opportunities for sustainable development. Enabling zero-emission technologies and promoting the circular economy are critical. Investing in renewable energy sources and improving energy storage solutions can significantly enhance the sustainability of these sectors.
The strategy recommends several measures for modernization and sustainability, including modernizing existing infrastructure, adopting new technologies to improve energy efficiency, and reducing emissions. Implementing circular economy practices, encouraging innovation through investment in research and development, and supporting companies in the green technology sector are vital for sustainable growth.
Policy recommendations include providing incentives for the adoption of zero-emission technologies, supporting projects that contribute to carbon neutrality, encouraging the circular use of critical raw materials, and supporting recycling initiatives. Developing industrial parks as hubs for innovation and sustainable growth is also emphasized, with a focus on upgrading infrastructure, creating favorable conditions for attracting strategic investors, and addressing regional disparities.
The strategy outlines a clear roadmap for implementation, including engaging with key stakeholders, establishing a monitoring and evaluation framework, and maintaining flexibility to adapt based on ongoing feedback and changing conditions.
Expected outcomes include enhanced competitiveness, sustainable growth, increased adoption of sustainable practices, and reduced regional disparities. Linking the strategy to EU funding opportunities, such as the Critical Raw Materials Act, Innovation Fund, and LIFE Programme, is crucial for its successful implementation and achieving sustainable growth.