The Kyrgyz government, under the leadership of Prime Minister Akylbek Japarov, has signed a resolution (No. 117, dated March 15, 2024) approving a revised contract for the sale of gold and silver between Kumtor Gold Company, Kyrgyzaltyn, and the government. The decision aims to ensure the uninterrupted and efficient operation of the Kumtor mine following Centerra Gold Inc.’s exit from the Kumtor project. The approved resolution includes provisions for the revised contract, rendering previous agreements obsolete. Additionally, the resolution advises relevant entities such as Kumtor Gold Company, Kumtor Operating Company, Kyrgyzaltyn, and the National Bank of the Kyrgyz Republic to take necessary actions as per the resolution. Ministries and administrative bodies are instructed to organize and execute tasks in line with the resolution. The administration of the Kyrgyz President will oversee the implementation of the resolution, which comes into effect immediately upon signing and will be officially published.
Tag: Mining industry
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Kazakhstan Senate Committee Discusses Geological Exploration Challenges
Members of the Senate Parliament’s Committee on Economic Policy, Innovative Development, and Entrepreneurship convened for an off-site session in Eastern Kazakhstan to address pressing issues in geological exploration. Prominent heads of geological companies and representatives from authorized bodies participated in the session.
Senator Shakarym Bukutgutov highlighted the historical significance of mining activities in the eastern region of the country, historically focused on tin, copper, lead, and other metals. However, reserves from previously explored deposits are dwindling. President Kassym-Jomart Tokayev has set a directive to expand geological surveys to 2.2 million square kilometers by 2026.
Notably, the export value of minerals in 2023 was six times higher than the industry’s investments, reflecting concerning statistics. Currently, Kazakhstan allocates a mere eight dollars per square kilometer for geological exploration, significantly lower than comparable countries like Russia, Uzbekistan, and the UK.
The industry requires substantial funding for modernization and development. Efforts are underway to digitize processes, with online portals facilitating licensing and reporting. Additionally, modern research methods such as remote sensing and spectral analysis are being employed to enhance exploration efficiency.
However, the sector grapples with severe staffing shortages, necessitating investment in training programs to equip the workforce with advanced skills. Collaboration with German universities aims to address these challenges and foster innovation in the field.
While the need for foreign investment is acknowledged, there is a call to increase state funding and restore the profession’s attractiveness through social incentives and recognition.
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Kazakhmys Faces Ministry Notice Over Contract Violations
Kazakhmys has been notified by the Ministry of Industry and Infrastructure Development regarding breaches of obligations under multiple contracts for exploration and extraction of copper and other metals, reports Exclusive.kz citing “Kursiv.”
The ministry directed a notification to the company, signed by Deputy Minister of Industry and Infrastructure Development Iran Sharkhan, concerning violations of obligations under the contract for the extraction of copper-containing ores from the Zhilandy group deposits in the Karaganda region. The breaches include failure to meet investment plans, taxes, financing for research and development, and extraction.
The penalty for 2020 amounted to 71.2 million tenge, and for 2021, it was 27.3 million tenge.
In addition to the non-payment of research and development investments, the ministry identified serious violations under contracts for gold-copper-poly-metallic ore exploration, copper exploration, and extraction in various regions, including the Karaganda region.
Another company, Kazakhmys Coal, created in 2018 by spinning off coal companies “Razrez Molodezhny” and “Razrez Kuu-Chekinsky” from Kazakhmys, was also subject to inspection. It was found to have violated its contract for coal mining at the Borly deposit in the Karaganda region.
In total, violations totaling over 260 million tenge for 2020-2022 were identified, along with non-compliance with investments totaling over 300 million tenge. All violations were found in the Karaganda region. The company is required to rectify the violations within a month, otherwise, the ministry may take measures, including unilaterally terminating the contract.
The Ministry and the company have not commented on the information at this time. However, two weeks ago, the Ministry officially threatened to terminate a coal mining contract due to investment breaches by Shubarkol Premium, owned by Timur Kulibaev, the son-in-law of Nazarbayev, and Shubarkol Komir, owned by Alexander Mashkevich.
99.1% of Kazakhmys Corporation is owned by Kazakhmys Copper. The ultimate parent company is Kazakhmys Holding Limited, registered in the Astana International Financial Centre. Vladimir Kim, who owns 70% of the group, is Kazakhstan’s wealthiest businessman, with a fortune of $4.6 billion according to Forbes 2023. Eduard Ogay holds the 11th position among the richest Kazakhstani citizens, with a fortune of $750 million.
Exclusive.kz previously reported on the problem of underpayment by subsoil users for research and development in January 2023.
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Adriatic Metals BiH successfully produces first ore concentrate in Bosnia and Herzegovina’s Vares project
Adriatic Metals BiH proudly announced on February 27th, 2024, the successful production of the inaugural ore concentrate within the Vares project in Bosnia and Herzegovina. The Vares ore processing facility is poised to incrementally enhance its capacity in the following months, with a target processing capacity of around 65,000 tons per month expected by the fourth quarter of 2024.
Paul Cronin, the general manager of Adriatic Metals BiH, expressed his satisfaction with the achievement, stating, “I am delighted to announce another significant milestone in the production of the first concentrate within the Vares Project.” He emphasized the utilization of advanced technology in designing and constructing the ore processing plant, with a strong commitment to adhering to the highest health and safety standards. Cronin extended his appreciation to the dedicated team for their diligent efforts.
This milestone signifies a notable success for Adriatic Metals BiH and holds significance for the local community in Vares and the wider state of Bosnia and Herzegovina. The Vares project emerges as one of the most substantial post-war investments in the country, offering considerable economic and social benefits.
Throughout the project, Adriatic Metals BiH has prioritized local employment, collaboration with regional suppliers, engagement with authorities at all levels, and the adoption of state-of-the-art mining technology. This holistic approach not only drives economic growth but also ensures enduring advantages for the Vares community well beyond the mine’s operational lifespan.
Looking to the future, the company aims to further optimize the processing plant and expand underground operations in the ensuing months to achieve the targeted nominal production capacity by the fourth quarter of 2024.
Excerpt: Adriatic Metals BiH celebrates the successful production of the inaugural ore concentrate at the Vares project, marking a significant milestone in Bosnia and Herzegovina’s mining industry.
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Kumtor Gold Company Exceeds Gold Production Targets in 2023, Boosting Revenue and Profit
Kumtor Gold Company, based in Kyrgyzstan, achieved remarkable milestones in 2023, surpassing its gold production targets and recording significant revenue and profit growth. The company’s production output totaled 15.567 tons of gold, slightly higher than the amount sold, which stood at 15.577 tons, reflecting robust operational efficiency and market demand. With revenue from production activities soaring to $849 million, Kumtor Gold exceeded its planned revenue of $734.2 million, driving a net profit of $302.4 million, well beyond the projected $194 million. Tax contributions to the republican budget further underscored the company’s substantial economic impact, amounting to 17.241 billion soms ($192.787 million).
In a strategic move to optimize workflow and modernize equipment, Kumtor Gold implemented measures resulting in savings exceeding $30 million, demonstrating its commitment to operational excellence. Despite a reduction in capital investment volume to $111.5 million compared to the previous year, the company’s focus on efficiency enhancements yielded impressive financial outcomes.
Moreover, Kumtor Gold reaffirmed its commitment to regional development by allocating significant funds to various initiatives. Notably, $8.389 million was directed towards the development of the Issyk-Kul region, while $5.033 million was allocated to the Naryn region development fund. Additionally, contributions to the Regional Development Partnership Fund and the Nature Development Fund further underscored the company’s dedication to environmental sustainability and community welfare.
Kumtor Gold Company remains a cornerstone of the mining industry in Kyrgyzstan, spearheading the operation of the Kumtor project, the country’s largest gold mining enterprise. With a commitment to excellence, responsible production practices, and community engagement, Kumtor Gold continues to drive economic growth and social development in the region.
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Poland Emerges as Silver Giant: Implications and Challenges
Recent weeks have witnessed a surge of headlines in Poland, revealing a stunning revelation: the country harbors vast silver resources estimated at half a trillion zloty. This development has catapulted Poland into the spotlight as a global leader in silver reserves, a distinction confirmed by the latest report from the U.S. Geological Survey (USGS) titled “Mineral Commodity Summaries 2024.”
According to the USGS report, Poland boasts an impressive silver reserve of 170,000 tons, surpassing other silver-rich nations by a significant margin. Peru, the second-largest holder, lags behind by 60,000 tons. Despite its recent emergence, Poland has swiftly risen to become the fifth-largest global producer, generating 1,300 tons of silver in 2023.
This substantial update in reserves, from the previously reported 65,000 tons to the current 170,000 tons, is based on data from Poland’s Geological Service. Earlier indications of this wealth were hinted at in a 2023 report, which highlighted substantial copper and silver deposits across regions like the Fore-Sudetic Monocline and the North Sudetic Basin, particularly in areas surrounding Lubin, Polkowice, and Głogów.
At current market prices, Poland’s silver reserves are valued at approximately $127 billion, exceeding half a trillion PLN, a sum capable of potentially covering the country’s budget deficit twice over.
However, despite the economic promise, challenges loom in the realm of silver mining. Adam Stroniawski from the Mint of Poland underscores the importance of these reserves while acknowledging the time-consuming process of accessing, mining, and refining them. He emphasizes the necessity for advanced technology, robust infrastructure, and the scattered distribution of silver deposits.
Moreover, silver’s significance in various industrial sectors cannot be overlooked, from medicine to electronics and renewable energy. Yet, Stroniawski cautions that while silver remains undervalued and accessible, its exploitation demands careful consideration of environmental impacts and sustainable mining practices.
The environmental implications of silver mining in Poland are significant, requiring stringent environmental protections and substantial investments in infrastructure, technology, and skills. Developing these resources sustainably is vital for meeting the growing demand for silver in critical sectors such as renewable energy.
Poland’s ascent as a silver giant signals a pivotal moment in the global market, with potential implications for prices and industrial applications. Nonetheless, navigating the challenges inherent in silver mining demands innovative solutions and international cooperation to ensure that Poland’s newfound wealth benefits both the nation and the global community.
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Adriatic Metals Launches $250 Million Investment in Vares Project, Bosnia and Herzegovina
Adriatic Metals, a UK-based company, announced on Wednesday the official launch of the Vares Project in Bosnia and Herzegovina, marking a significant investment valued at $250 million (230.2 million euros).
The inauguration comes shortly after the successful production of the first silver/lead concentrate and zinc concentrate at the newly established Vares Processing Plant on February 27, as stated in a press release by Adriatic Metals.
The Vares Project encompasses the Rupice Mine, which commenced mining operations in July 2023, and the Veovaca polymetallic deposit. This venture underscores Adriatic Metals’ commitment to tapping into Bosnia’s rich mineral resources.
With a keen focus on plant optimization and production scaling, Adriatic Metals aims to achieve a consistent output, targeting a nameplate capacity of 800,000 tonnes per annum by the fourth quarter of 2024.
Adriatic Metals, serving as a base metals developer, has bolstered its workforce in Bosnia, employing 255 individuals as of January 2024. Furthermore, the company is concurrently advancing its Raska Zinc-Silver Project located in Serbia, demonstrating its multifaceted approach to mineral exploration and development.
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Kazakhstan Explores Geology-AI Integration with Key MoUs Signed at PDAC-2024 Conference in Canada
Kanat Sharlapaev, the Minister of Industry and Construction of Kazakhstan, spearheaded a delegation from Kazakhstan during the recent PDAC-2024 conference in Canada, where they inked Memorandums of Understanding (MoUs) focusing on geology, as reported by the Ministry of Industry and Construction.
These MoUs included partnerships between the National Geological Survey of Kazakhstan (NGS) and Koan Analytics Inc., as well as between NGS and the Geological Survey of Finland (GTK), marking a significant advancement towards integrating artificial intelligence (AI) into geological practices.
The primary objective of these agreements is to explore the establishment of a Center of Excellence in AI within the NGS framework, aimed at enhancing the precision and efficacy of mineral exploration processes through advanced technologies such as data transformation techniques, predictive models, and algorithms.
Canadian firm Koan Analytics Inc., known for its expertise in providing industrial solutions, will be pivotal in this venture, leveraging its proficiency in data transformation and machine learning to support NGS in leveraging AI for geology.
Furthermore, the MoU with GTK underscores the global interest in Kazakhstan’s geological resources, with GTK’s extensive experience enriching collaborative efforts in advancing the field of geology in Kazakhstan.
Yerlan Galiyev, Chairman of the Board of NGS, emphasized the significance of these agreements in strengthening international cooperation in the geology sector and enhancing investment opportunities.
The PDAC Convention, where these agreements were signed, serves as a crucial platform for the mining industry, fostering strategic partnerships and driving innovation amidst a diverse array of stakeholders from around the globe.
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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.
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Teako Minerals announces strategic pivot with Norway as key focus
TEAKO MINERALS CORP. (the “Company” or “Teako“) announces that following a recent Norwegian parliament meeting and the various developments in mineral exploration in Fennoscandia in recent years, the Company has decided to pause exploration efforts in British Columbia, to primarily concentrate on Norway, while also maintaining a minor focus on Finland. The majority of the Company’s projects in British Columbia are in good standing for 2-3 years, allowing the Company the strategic flexibility to explore various alternatives, including the potential of partnering with other parties or selling the projects, as part of its ongoing commitment to maximizing shareholder value. Investors will be regularly informed of developments, ensuring transparency and continuous engagement with our valued stakeholders.
The primary targeted metals in Norway will be copper, cobalt, and base metals, as well as gold and rare earth minerals (or “REE”), while in Finland, the focus will be on gold.
The Rationale Behind the Pivot
Access to critical and battery metals is crucial to establishing a robust value chain in Europe and carrying out the green shift. Today, most of the battery metals, such as nickel, cobalt, and lithium, are produced outside Europe, often in countries with low ESG standards. The EU has introduced a goal that 10% of all critical minerals consumed in the EU in 2030 will need to be produced in the EU by 2030. This means that the production of battery metals within the EU must be dramatically increased to attain this goal.
Oil and gas have been the primary contributors to Norway’s recent sovereign wealth. However, in alignment with the green shift and rising commodity prices, the mineral exploration industry and Government are keen on reviving the mining and exploration sector, which became dormant in the 1970s due to low commodity prices and the discovery of oil and gas.
The bedrock in Norway is promising for discoveries of new occurrences of battery and critical metals with its rich history of mining copper, nickel, and cobalt. Only a handful of exploration companies have carried out systematic exploration since the late 1980s; however, multiple major mines are about to open/reopen very shortly, namely the REE mines of Engebø and Fensfelt, as well as the copper mine in Finnmark by Nussir.
Norway is currently also a world leader in renewable energy production, with an estimated 92% of the country’s energy supply being derived from hydroelectric plants and a further 6% from wind energy and other renewable sources.
More recently, the Company was invited to attend and contribute to an event at the Norwegian Parliament held on January 16, 2024. The event focussed on sustainable exploration and extraction of critical metals, bringing together a diverse group of experts and industry leaders to discuss establishing Norway’s pivotal role in the European battery and critical minerals supply chain.
The event surrounded a cross-political specialist seminar with representatives and advisors in the energy and environment committee, the finance committee, the industry committee, mining companies, politicians, and various organizations. The event was followed by a networking gathering where Teako and another Service Alliance partner, Kuniko Limited, and Norsk Bergindustri, met.
The Company would like to express its profound gratitude to the Norwegian Parliament for the opportunity to contribute to the discussions on the development of Norway’s critical mineral infrastructure. We also sincerely thank Norsk Bergindustri and our Service Alliance partner, Kuniko Limited, for hosting the networking gathering.