MINEX Forum

Tag: mining

  • Kazakhstan’s Critical Minerals in Focus at the BKS webinar

    Kazakhstan’s Critical Minerals in Focus at the BKS webinar

    Kazakhstan’s ambition to transform itself into a linchpin of the global critical minerals supply was in sharp focus at the British-Kazakh Society’s (BKS) latest webinar, “Critical Minerals – A Closer Look at Kazakhstan and the Resource Base.”

    Hosted online on 16 September, the event brought together government representatives, leading analysts, and industry insiders to scrutinise the nation’s mineral endowment, discuss its strategy for long-term sustainability, and evaluate opportunities for international partnership and investment.

    Geological Promise and Policy Drive
    In his welcome address, Yerlan Zeineshev, Economic Counsellor at the Kazakhstan Embassy in the UK, underscored the nation’s geological riches—including rare earths, lithium, copper, uranium, titanium, and vanadium—and signalled Kazakhstan’s determination to become “a key supplier for global critical mineral needs.” The country already produces 17 of the 34 critical minerals on the UK’s essential list, with potential to expand further given the right investment and technology.

    Mr Zeineshev highlighted March 2024’s UK-Kazakhstan critical minerals roadmap, emphasising mutual aims for research, private investment, and technology transfer. He pledged continued reform to ensure an open, investor-friendly environment—citing adoption of international best practice in mining codes, long-term investment agreements, and digitalisation of geological data.

    Supply Chain Resilience and Global Partnerships
    Speakers and panellists closely examined how Kazakhstan’s neutral geopolitical stance and its position on the Trans-Caspian International Transport Route position the country as a reliable partner for nations seeking to diversify supply chains. As Enzo Grazella, Senior Analyst at the Critical Minerals Association, noted, this offers both Europe and the UK an alternative source to mitigate risk and reduce overreliance on a handful of global producers.

    The UK government’s updated critical minerals strategy and increased focus on supply chain security were cited as drivers for stepped-up bilateral engagement, particularly in mining, refining, recycling, and advanced manufacturing. Initiatives backed by UK export finance, the European Bank for Reconstruction and Development (EBRD), and local reforms are fostering a more attractive investment climate.

    Resource Development and Value Addition
    Arkhat Kurmanbekov, Deputy Director General of Kazakhstan’s National Center for Technology Foresight, outlined the scale of Kazakhstan’s geological survey initiatives, with record levels of exploration funding and ambitious targets to increase the area surveyed to over 2.2 million km² by 2026. The nation aims not only to expand extraction but also to move up the value chain through domestic processing, production of battery materials, heat-resistant alloys, semiconductor materials, and recycling technologies. Industry success stories—such as providing titanium to Boeing and Airbus, or pioneering full-cycle beryllium plants—underline local expertise.

    Market Dynamics, Price Volatility, and Sustainability Challenges
    Caroline Messecar, Strategic Markets Editor at Fastmarkets Metals and Mining, discussed acute market vulnerability arising from concentrated global production—particularly for rare earth magnets vital to electric vehicles and wind turbines. China commands up to 89% of global magnet supply, and recent export controls have forced international markets to scramble for alternative sources, underscoring the strategic importance of new suppliers like Kazakhstan.

    The panel noted that establishing downstream industries (such as magnet manufacturing) requires more than raw materials: it needs multidisciplinary technical skills, transparent and sustainable production, and robust ESG standards. Both Kazakh and UK speakers reaffirmed their commitments to high environmental and social standards, clarifying that responsible development can coexist with commercial viability.

    Whatch the webinar recoding
    Video provided for the MINEX Forum readers by the British-Kazakh Society

  • Mongolia Unveils Oyut Copper Deposit with 357 Million Tons of Ore

    Mongolia Unveils Oyut Copper Deposit with 357 Million Tons of Ore

    A newly discovered mineral deposit named Oyut has been identified within the territories of Bayan-Undur and Jargalant districts in Mongolia’s Orkhon province, as reported by Montsame. Preliminary geological exploration indicates that the Oyut deposit contains approximately 357 million tons of ore reserves, positioning it as a potential asset of significant scale, comparable to Mongolia’s largest copper and molybdenum ore mining operation at Erdenet.

    On September 7, Mongolian Prime Minister Zandansahtar Gombojav attended the official opening and preparatory activities for the operational launch of the Oyut deposit. The Prime Minister has authorised a feasibility study for the construction of a concentrator designed to process between 5 to 10 million tons of ore annually. Early estimates suggest that the deposit could sustain operations for 30 to 35 years, marking it as a long-term strategic resource. The initial geological exploration was conducted independently by specialists from the Erdenet Mining Corporation, with senior engineers from the corporation overseeing the project’s design and construction.

    Prime Minister Gombojav emphasised Mongolia’s constitutional commitment to equitable resource distribution, stating that the benefits derived from subsoil resources will be consolidated into the National Sovereign Wealth Fund and fairly allocated to all citizens. The Oyut copper deposit is strategically located approximately 8 kilometres from the Erdenetyn-Ovoo deposit, the foundation of the Erdenet Mining Corporation, and just 3 kilometres from the infrastructure of the Industrial and Technology Park near Erdenet city.

    The launch of operations at the Oyut deposit is anticipated to make a substantial contribution to the Sovereign Wealth Fund. It is also expected to serve as a key driver of socio-economic development in Erdenet city, Orkhon aimag, the Northern region, and Mongolia as a whole. This discovery underscores Mongolia’s potential to leverage its mineral resources for long-term economic growth and development.

  • Mining & Metals Analytical Report Highlights Kazakhstan’s Potential as a Mineral Investment Hub

    Mining & Metals Analytical Report Highlights Kazakhstan’s Potential as a Mineral Investment Hub

    A new analytical report produced by AIFC highlights Kazakhstan’s significant potential to become a leading hub for mineral investment, positioning the country as a crucial player in the global energy transition. The report, which includes what is believed to be the first-ever comparative benchmark of Kazakhstan against major mining jurisdictions like Canada, Chile, Australia, and Indonesia, concludes that while the nation has vast untapped potential, it must take specific steps to fully capitalize on it.

    The report identifies several key actions necessary to support this ambition. These include a strategic focus on active investment in junior mining companies, which are vital for early-stage exploration. The country also needs to provide a stable legal and regulatory framework to attract and retain foreign investment. Finally, Kazakhstan must align its development strategy with its mineral strengths and global trends, focusing on the materials most in demand for clean energy technologies.

    The report’s findings are underpinned by compelling data points that showcase Kazakhstan’s existing role and future prospects in the mining and metals sector. In 2024, the industry attracted $3 billion in gross foreign direct investment, accounting for 17% of the national total. Mining and metals also made up a substantial 12.1% of the country’s GDP last year. Despite its established importance, a staggering 65% of Kazakhstan’s geological area remains unexplored, presenting a monumental opportunity for new discoveries. These domestic figures are set against the backdrop of a global context where an estimated $2.1 trillion in mining investment will be needed by 2050 to meet the demands of a net-zero world.

  • SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    Sokolovsko-Sarbayskoye Mining Production Association (SSGPO), part of the Eurasian Resources Group (ERG), has opened a new syndicated credit line worth up to $400 million with other firms under common control, according to its recently published financial report. The agreement was finalised in February 2025 and is set to run until 2029. The document states that the interest rate on the loans, denominated in US dollars and euros, will be a market rate.

    This latest move follows a similar arrangement made in 2024, when SSGPO signed a syndicated credit line agreement with affiliated companies for up to $300 million, with a repayment deadline of the end of 2028. Furthermore, SSGPO acts as a co-guarantor for ERG’s loans, alongside other subsidiaries within the group. As part of the new credit line, SSGPO provided a loan of $6 million to an unnamed company under common control in June 2025.

    SSGPO’s core business is the extraction and processing of iron ore. The company holds a number of iron ore mining contracts in the Kostanay region, which are due to expire in 2033, 2035, and 2040. In addition, SSGPO is currently constructing a hot-briquetted iron plant in Rudny, which is scheduled to commence operations in late 2027. The company’s financial performance for 2024 showed an increase in revenue to 424.1 billion tenge from 389.6 billion tenge in the previous year, although it recorded a loss of 69.3 billion tenge, a slight improvement on the 71.4 billion tenge loss in 2023. The sole owner of SSGPO is ERG Iron Ore Holding B.V., which is part of the broader ERG group. The Eurasian Resources Group itself is co-owned by the Ministry of Finance of the Republic of Kazakhstan, which holds a 40% stake, with the remaining shares divided between the heirs of Alexander Mashkevich and the Ibragimov family, each with 20.7%, and Patokh Shodiev, who holds 18.6%. The Ibragimov family is listed by Forbes as the seventh wealthiest in Kazakhstan, with a net worth of $2.06 billion.

  • France’s EMILI Project: A Game-Changer for European Lithium Production

    France’s EMILI Project: A Game-Changer for European Lithium Production

    The EMILI project in Beauvoir, France, has taken a major step forward following the visit of Minister of Industry and Energy Marc Ferracci. Recognised as a project of major national interest, EMILI is home to Europe’s largest lithium deposit and the fourth largest globally.

    A recently completed pre-feasibility study revealed a higher-than-expected lithium grade, extending the project’s lifespan from 25 to 50 years. This long-term outlook cements EMILI’s role in bolstering European sovereignty over critical battery materials and supporting the continent’s electric vehicle ambitions.

    “Beneath our feet lies a lithium deposit recognised as a project of major national interest, the fourth largest in the world and the largest in Europe,” said Guillaume Delacroix, Senior Vice President Performance Minerals EMEA & APAC.

    EMILI benefits from France’s new regulatory framework that accelerates mining development, alongside eligibility for €200 million in tax credits once operations commence. With a focus on high environmental and social standards, the project is poised to become a cornerstone of Europe’s clean energy future.

    Learn more here.

  • Avrupa Minerals Regains Full Control of Sesmarias Project in Portugal

    Avrupa Minerals Regains Full Control of Sesmarias Project in Portugal

    Avrupa Minerals is reaffirming its commitment to the Sesmarias project in Portugal, even as it continues to expand its Finnish exploration portfolio. Sesmarias, the company’s flagship discovery since 2014, has seen significant progress through multiple joint ventures and self-funded efforts. Most recently, Sandfire MATSA supported exploration from 2020 to 2025, yielding impressive high-grade intercepts and expanding the project’s geological understanding.

    Despite these advancements, the project did not meet Sandfire MATSA’s internal criteria, leading to Avrupa regaining 100% ownership. With complex geology and promising mineralization—including intercepts like 26.95 meters @ 2.18% Cu and 28.60 meters @ 1.68% Cu—the company is now focused on securing a new strategic partner to advance towards a potential mining decision.

  • Labour Costs Climb in Kazakhstan’s Mining Sector Amid Industry Expansion

    Labour Costs Climb in Kazakhstan’s Mining Sector Amid Industry Expansion

    Kazakhstan’s mining industry is seeing a notable surge in labour costs as companies compete for skilled workers in a tight labour market. Official figures reveal that wages in the sector are outpacing the national average, a trend that is putting upward pressure on operational expenses for mining firms.

    According to data from the Bureau of National Statistics (BNS), the average nominal salary in the mining and quarrying sector reached 888,900 Tenge (approximately $1,650 USD) in the second quarter of 2025. This makes it the second-highest paying industry after the financial sector. This rise is particularly pronounced when compared to the broader economy, with nominal wages in mining increasing by 12.9% in the first half of the year, while the national average grew by 10.7%.

    This overall average, however, is skewed by high salaries in the oil and gas subsector. For example, workers in crude oil and natural gas extraction earn an average nominal salary of 1.4 million Tenge (approximately $2,600 USD). In contrast, those in coal mining and metal ore extraction earn significantly less, at 673,100 Tenge (approximately $1,250 USD) and 698,000 Tenge (approximately $1,290 USD), respectively.

    Mining companies are facing pressure to offer competitive salaries to attract and retain talent, especially in physically demanding and high-risk roles. Vacancies for underground miners on job sites like Enbek.kz and Hh.kz offer salaries ranging from 165,300 to 500,000 Tenge (approximately $300 to $925 USD), with experienced roles like mine foreman and driller commanding salaries between 400,000 and 500,000 Tenge.

    While nominal wages provide a statistical average, they often don’t reflect the reality for most workers. The most common or modal salary is typically much lower, often only 30-50% of the nominal figure. In 2024, the modal salary in the mining sector was 372,600 Tenge (approximately $690 USD), approximately 43% of the nominal average of 866,500 Tenge (approximately $1,600 USD), closely aligning with the current salary offers for entry-level positions.

    Despite the challenges of rising costs, the increase in wages also reflects a growth in purchasing power. Real wages in the mining industry grew by 2.3% in the first half of 2025, significantly higher than the 0.3% growth seen across the wider economy.

  • EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    The EU must prioritize Environmental, Social, and Governance (ESG) principles in its dealings with Central Asia to secure its access to crucial raw materials, commentators warn.

    The bloc arrived in Samarkand this April with a hefty €13.2 billion Global Gateway package, signaling a desire to move beyond merely buying raw materials from the region. A significant portion, €2.5 billion, is earmarked for new mining and processing projects in Kazakhstan, Uzbekistan, and beyond. This drive is born out of necessity: the EU still relies entirely on China for its heavy rare-earth imports and faces the growing risk of vulnerability.

    While geographically late to the game, Europe has a unique advantage: a reputation for robust ESG practices. Local executives cite European partners as “a sign of quality” due to their unwavering adherence to these standards, something often lacking in Chinese or Russian counterparts. However, this edge relies on Brussels consistently embedding ESG into every euro invested. This means robust monitoring and auditing of remediation plans, transparent royalty structures, and genuine upfront consultation with local communities.

    The EU’s Critical Raw Materials Act (CRMA) sets ambitious goals: attaining 10 percent mining, 40 percent processing, and 25 percent recycling of Europe’s annual CRM demand domestically or in trusted partner states by 2030.

    Realising these goals in Central Asia necessitates investment in sustainable technologies. This includes financing water-efficient processing plants, closed-loop waste systems, and solar-powered smelters, rather than simply opening more exploitative mines.

    The EU’s efforts are beginning to take shape, with the spotlight falling on graphite. Kazakhstan’s Sarytogan deposit has been placed on the EU Commission’s list of “strategic projects” eligible for expedited permits and loan guarantees under the CRMA. Meanwhile, the European Bank for Reconstruction and Development has taken a significant stake in the mine operator, marking a direct investment in the region’s CRM sector. The EU is now actively seeking downstream investors to refine indigenous graphite into anode-grade product, capturing added value that historically flowed to Chinese refiners.

    Lithium development is following a similar trajectory. A partnership between HMS Bergbau and Kazakhstan’s Creada Corporation aims to unlock the potential of Kazakh spodumene through extraction, processing, and refining into battery-ready lithium hydroxide. This would be a direct response to the EU’s new battery-passport regulations, which require materials of a certain purity.

    However, Europe faces a formidable competitor: China. The PRC Mineral Resources Law mandates environmental remediation planning before mining commences, setting a new baseline for responsible resource extraction. While welcomed, the application details remain vague, lacking guarantees on local community engagement and enforcement mechanisms, potentially creating loopholes for exploitation.

    Adding to the pressure, Chinese capital is expanding downstream. East Hope Group’s landmark $12 billion investment in Kazakh non-ferrous metals signifies a vertical integration approach—from mining and smelting to fabrication and renewable power generation. This $12 billion vertical integration project in Kazakhstan showcases China’s willingness to build a fully controllable supply chain.

    Europe must act strategically to counter these challenges.

    Firstly, financial aid should be contingent on stringent ESG benchmarks. EU financing must go hand-in-hand with clear, enforceable standards – ISO-compliant tailings dams, methane monitoring, gender-balanced workforce plans, and robust penalties for non-compliance.

    Secondly, the EU should focus on fostering value-adding industries beyond mining. This means investing in processing plants and recycling facilities, not just mines. By creating domestic processing hubs for cathode powders or rare-earth magnets, the CRMA’s 40 percent processing target can be achieved, generating jobs, technology transfer, and increased tax revenue for beneficiary countries.

    Finally, the EU must simplify visa requirements for Central Asian technical personnel. A targeted visa-facilitation agreement could allow them to train in Europe and return, strengthening the region’s skilled workforce.

    Securing a stable and sustainable supply of raw materials is a critical challenge for the EU. While China’s economic clout is undeniable, Europe has the opportunity to win this race by leveraging its commitment to ESG principles and building a truly sustainable, transparent, and trust-based partnership with Central Asia.

    Time is of the essence. The next 18 months, before China’s revised mining law takes full effect and East Hope’s megaproject begins construction, provide a crucial window for the EU to demonstrate its commitment to ESG beyond rhetoric. The stakes are high, as the fate of Europe’s essential raw materials supply hangs in the balance.

  • Investors Flock to Central Asia’s Mining and Resources

    Investors Flock to Central Asia’s Mining and Resources

    The second annual edition of Montfort Eurasia’s Investor Perception Report on Central Asia and the Caucasus is out now!

    For the second consecutive year, Montfort Eurasia has conducted in-depth polling of international investors across the #UK and #US, revealing a surge in investor interest in #CentralAsia and the #Caucasus — with interest in the region tripling since 2023.

    This year’s report sheds light on both rising enthusiasm and persistent challenges, underscoring the importance of investor education and proactive engagement with governments and local markets as the region positions itself as a major emerging economic hub.

    🔑 Key Takeaways:

    • 66.7% of UK investors and 72.9% of US investors report strong interest in global emerging markets — a significant increase from last year.
    • Interest in Central Asia and the Caucasus has surged, with 47% of investors now actively exploring opportunities in the region (up from just 15.5% in 2023).
    • Mining and natural resources continue to draw strong interest, with 49.2% of foreign investors identifying the sector as one of the most attractive.
    • Other leading sectors include industrial and manufacturing (63.5%) and oil and gas (57.9%).
    • Security (76%) and political stability (65%) remain the top investor concerns.
    • International media (80%) and financial analysts (70%) are the most relied-upon sources for emerging market insights.
    • Kazakhstan, Armenia, Azerbaijan, and Uzbekistan emerge as the top investment destinations.

    As regional economies mature and open up, the report highlights a growing appetite for opportunity — but also a clear call for strategic communication and confidence-building measures.

    📘 Read the full Investor Perception Report here

  • Almalyk Mining and Metallurgical Combine Strengthens International Ties with Czech Company Draslovka

    Almalyk Mining and Metallurgical Combine Strengthens International Ties with Czech Company Draslovka

    Almalyk Mining and Metallurgical Complex (AGMK), one of Uzbekistan’s leading industrial enterprises, is not only a cornerstone of the nation’s economy but also a key player in expanding international industrial ties. The complex is actively collaborating with foreign companies, embracing modern technologies, boosting production efficiency, and committing to environmental sustainability.

    On May 29, AGMK hosted a significant meeting with representatives from the Czech company Draslovka to explore mutually beneficial cooperation.

    Draslovka, a family-owned company founded in 1906, specialises in chemical technologies, products, and services that enhance efficiency and sustainability across the mining, agricultural, and processing industries. With business units in seven countries and a presence in over 80 nations, Draslovka is the world’s largest producer of sodium cyanide, a chemical essential for gold extraction.

    However, the company’s most notable contribution to the industry is its patented glycine leaching technology. This innovative method offers a more stable and economical approach to the leaching process. Draslovka also produces other speciality chemicals and reagents, provides leading chemical application services for mining and pest control, and offers AI-powered support services.

    During their visit, the Draslovka representatives presented an overview of their operations to AGMK’s management. Discussions focused on the potential application of glycine leaching technology at AGMK’s facilities, culminating in an agreement to commence cooperation.

    The Czech delegation also had the opportunity to visit the viewing platforms of the Kalmakyr and Yoshlik I mines.