MINEX Forum

Tag: mining

  • Kazakhstan at the Centre of New Uranium Shortage Amid Rising Demand for Nuclear Energy

    Kazakhstan at the Centre of New Uranium Shortage Amid Rising Demand for Nuclear Energy

    Kazakhstan has emerged as a pivotal player in the global uranium market, currently facing a significant shortage of this critical mineral due to an upsurge in demand driven by renewed interest in nuclear energy. Anna Bryndza, Executive Vice President for International Affairs at the pricing agency UxC, discussed the complexities surrounding uranium extraction during a recent podcast with World Nuclear News (WNN). She highlighted that uranium mining remains one of the most challenging phases of the nuclear fuel cycle, compounded by supply disruptions, geopolitical risks, trade sanctions, construction delays, and rising production costs.

    Kazakhstan is responsible for approximately 40% of the world’s natural uranium oxide production, serving as a stable source of this energy resource for nuclear power plants in countries such as the USA, Russia, France, India, and China. Bryndza noted that the current deficit in uranium supply will not be resolved quickly, as new capacities are required across all sectors of the nuclear fuel market. The industry is responding to clear price signals, indicating a pressing need for timely operationalisation of new capacities to meet forecasted demand.

    Recent announcements from companies engaged in the nuclear fuel cycle, including Orano, Urenco, and Solstice, regarding major production expansion projects, have been viewed positively. However, there is a cautious approach to increasing supply, influenced by past experiences, particularly the long-lasting effects of the Fukushima disaster, which severely disrupted supply chains. Suppliers are now meticulously planning their expansion rates to ensure they align with actual demand rather than mere signals.

    Since the early 2010s, Kazakhstan has been ramping up uranium production, but the market faced a downturn following the Fukushima incident in 2011. Production levels from 2015 to 2024 fluctuated between 19,500 and 24,700 tonnes, with Kazatomprom and its affiliates aiming to produce between 27,500 and 29,000 tonnes this year, up from 25,800 tonnes last year. The peak of low-cost uranium production in Kazakhstan is expected to occur in the early 2030s.

    Bryndza also pointed out that recent geopolitical events have shifted the perception of nuclear energy and uranium supply towards national security concerns. This has led to government policies aimed at ensuring domestic capabilities, particularly regarding high-assay low-enriched uranium (HALEU), which is becoming increasingly important for the next generation of small modular reactors. Currently, there is no established market for HALEU, and significant gaps must be addressed to create a viable supply chain.

    UxC, known for its price information services, has been publishing uranium price indicators for over three decades. The agency’s approach to pricing aims to encompass a broad range of market participants, facilitating collective decision-making and enhancing the effectiveness of price indicators. Despite Kazakhstan’s status as a leading uranium producer, global prices for this critical mineral are set abroad, raising questions about how UxC’s pricing impacts Kazatomprom’s revenues and tax contributions to the state.

  • Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Corporation has embarked on one of the largest investment projects in recent years with the construction of the ‘Air Supply Shaft-2’ at the Nurkazgan deposit in the Karaganda region. The project, which involves an investment exceeding 32.5 billion tenge, aims to enhance the development of the Eastern section of the deposit and marks a significant milestone in the evolution of the Nurkazgan mine.

    The new shaft, projected to reach a depth of 1,283.9 meters, will become the deepest mine shaft in Kazakhstan. Its construction is expected to facilitate the further exploration of ore reserves, improve industrial safety standards, and establish a modern infrastructure that will support the mine’s operations for decades to come. A ceremonial event to mark the commencement of construction was attended by key figures, including Nurmukhamet Abdibekov, Chairman of the Board of Kazakhmys, and other senior executives.

    Abdibekov highlighted the project’s significance, stating that it represents a long-term investment in safety, production development, and the strengthening of the company’s resource base. The primary objective of the project is to uncover the ore reserves in the Eastern section, ensure a fresh air supply to underground workings, and create a safe environment for workers.

    Construction will involve the excavation of over 65,000 cubic meters of rock and the establishment of nine connections with existing mine horizons. The completion of the shaft is anticipated by 2031, after which it will be equipped with advanced technological systems, including a cage lift, main ventilation unit, and a modular heating boiler to warm the air entering the mine.

    Looking ahead, Kazakhmys plans to initiate the construction of the ‘Ventilation Shaft-2′ in 2027, which will complement the newly built shaft and create a unified engineering infrastructure. This infrastructure will ensure effective ventilation and safe operations at the mine, enabling the further exploration of new ore reserves.

    The confirmed reserves at the Nurkazgan deposit, which contain copper, gold, and silver, support the sustainable operation of the mining and processing complex for over 40 years. The project’s implementation is a crucial step in Kazakhmys’ long-term investment programme aimed at enhancing production capacities, improving industrial safety, and reinforcing the company’s resource base.

  • Kazakhstan Government Discusses New Fluorspar Concentrate Plant in Zhambyl Region

    Kazakhstan Government Discusses New Fluorspar Concentrate Plant in Zhambyl Region

    The government of Kazakhstan has recently convened to discuss an investment project aimed at constructing a new plant for the production of acid-grade fluorspar concentrate in the Zhambyl region. The meeting, chaired by First Deputy Prime Minister Nurlan Naliбаев, included representatives from Western Mining Corporation Limited, a consortium of leading Chinese companies spearheading this initiative. The proposed plant is set to produce fluorspar concentrate, which is highly sought after in the chemical industry, new energy sector, and both ferrous and non-ferrous metallurgy.

    During the meeting, Nurlan Naliбаев highlighted the government’s commitment to providing comprehensive support to investors. He underscored the strategic importance of developing the mining and processing industries, attracting foreign investments, and implementing modern environmental production standards to ensure sustainable economic growth in Kazakhstan. The project is expected to create over 200 permanent jobs, contributing to local employment and economic development.

    Following the discussions, relevant government bodies and organizations have been tasked with conducting a comprehensive assessment of the project’s economic and strategic viability. This initiative reflects Kazakhstan’s ongoing efforts to enhance its mining sector and attract international collaboration, particularly in the context of increasing demand for fluorspar in various industrial applications. As the country seeks to bolster its position in the global mining landscape, projects like this one are crucial for fostering innovation and sustainability in the industry.

  • Kazakhstan’s Kazcink Reports Decline in Profit Despite Increased Revenue

    Kazakhstan’s Kazcink Reports Decline in Profit Despite Increased Revenue

    Kazakhstan’s mining giant, Kazcink, has reported a decline in profitability for the first half of 2026, despite an increase in revenue. According to the financial report from Glencore, the Anglo-Swiss commodity group that controls nearly 70% of Kazcink’s shares, the company’s adjusted EBIT fell to $301 million, down from $387 million during the same period last year. Revenue for the first half of 2026 reached $2.458 billion, a slight increase from $2.393 billion in the first half of 2025.

    The increase in revenue can be attributed to higher prices for key metals produced by Kazcink, including zinc and gold, although gold prices have seen a slight decline since early spring. However, the company experienced a reduction in production volumes for both its own and third-party zinc, with a more significant drop in precious metal output. Additionally, a new progressive mineral extraction tax (NDT) on gold, based on price levels, is expected to further impact Kazcink’s profitability this year.

    Kazcink’s adjusted EBITDA for the reporting period was $588 million, significantly lower than the $708 million reported in the same timeframe last year. The company’s depreciation costs also decreased to $287 million from $321 million in the previous year. Furthermore, capital expenditures saw a dramatic reduction of over 50%, falling to $145 million compared to $340 million in the first half of 2025.

    Glencore’s report highlighted a recovery from a $99 million impairment on the Zhairem project, reflecting improved operational performance and more optimistic price forecasts for zinc. In contrast, the Zhairem mining and processing plant reported a loss of $25 million last year, despite generating $307 million in sales.

    Overall, Glencore’s financial performance for the first half of 2026 was robust, with a net profit of $4.4 billion and a nearly twofold increase in adjusted EBITDA to $10.12 billion. The adjusted EBIT surged 3.7 times to $6.65 billion. In 2025, Kazcink reported a net profit of $771 million on revenues of $5.069 billion, indicating a challenging year ahead for the company amidst fluctuating metal prices and production challenges.

  • Kazakhstan’s Samruk-Kazyna Fund Acquires 40% Stake in Eurasian Resources Group

    Kazakhstan’s Samruk-Kazyna Fund Acquires 40% Stake in Eurasian Resources Group

    In a significant development for Kazakhstan’s mining sector, the National Wealth Fund ‘Samruk-Kazyna’ has acquired a controlling 40% stake in Eurasian Resources Group S.à r.l. (ERG), a major player in the mining industry. This transaction, which took effect on August 4, 2026, marks a strategic shift in the ownership structure of ERG, previously held by the State Property and Privatisation Committee of the Ministry of Finance of Kazakhstan.

    The acquisition was confirmed by ERG, which stated that the fund is now the sole owner of the 40% stake, while the heirs of Alidjan Ibragimov, one of the founding shareholders, hold 20.7%, and Shakhmurat Mutalip retains 39.3%. This change in shareholding is part of a broader strategy by the Kazakh government to manage state assets effectively through Samruk-Kazyna, which is tasked with ensuring the sustainable operation of businesses in the country.

    On the same day, Samruk-Kazyna released an official statement regarding the acquisition, highlighting its commitment to managing state assets in the interests of Kazakhstan. The fund’s involvement is expected to enhance the operational stability of ERG, which has assured stakeholders that its enterprises will continue to operate normally and adhere to its development strategy.

    The transaction follows earlier discussions regarding the potential restructuring of ERG, with reports suggesting negotiations between shareholders Mutalip and the Ibragimov heirs about possibly dividing the group into separate Kazakhstan and international entities. However, the Ministry of Finance has stated that it has not received any formal requests regarding such a division.

    Additionally, the acquisition comes amid ongoing negotiations between ERG and Portuguese company Mota-Engil concerning the sale of Bahia Mineração (BAMIN), which holds iron ore assets in Brazil. These talks have reportedly slowed due to the recent changes in ERG’s ownership structure, with a deal initially expected to be finalised by mid-2026 now facing delays.

    As the Ibragimov family ranks among Kazakhstan’s wealthiest, with a net worth of $1.677 billion as of May 2026, the implications of this ownership shift are significant for the future of ERG and its operations both domestically and internationally. The mining sector in Kazakhstan continues to evolve, with state involvement poised to play a crucial role in shaping its trajectory.

  • Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Begins Construction of Kazakhstan’s Deepest Mine Shaft

    Kazakhmys Corporation has commenced the excavation of the ‘Air Supply-Cage-2’ mine shaft at the Nurkazgan deposit in the Karaganda region, which is set to become the deepest mine shaft in Kazakhstan, reaching a projected depth of 1,284 metres. The investment for this construction is estimated at 32.5 billion tenge. This shaft will serve as a crucial hub for the future infrastructure of the Eastern section of the deposit, primarily aimed at accessing ore bodies located at deep levels, ensuring ventilation for the mine, and facilitating the descent and ascent of workers.

    The project entails a significant volume of work, with approximately 65,000 cubic metres of rock mass expected to be extracted during the excavation process. There are plans for nine intersections with existing levels. The excavation is scheduled to continue until 2031, after which modern equipment will be installed in the shaft, including a cage lift, a main ventilation unit, and a modular boiler that will heat the air entering the underground workings.

    In parallel, Kazakhmys is preparing for a new phase of development at the site, with work on the companion shaft ‘Ventilation-2’ set to begin next year. Once all operations are completed, the finished shafts will form a comprehensive infrastructure for the future extraction of copper, gold, and silver. Geologists estimate that the confirmed reserves at Nurkazgan will allow the mining and processing plant to operate for over four decades.

  • Esil-Mining to Commence Tungsten Mining in North Kazakhstan by 2028

    Esil-Mining to Commence Tungsten Mining in North Kazakhstan by 2028

    Esil-Mining, a subsidiary of the British company Resources Enterprise Limited, is set to begin tungsten extraction at the Aksoран deposit in the North Kazakhstan region in 2028. This information is detailed in an environmental impact report associated with the revised mining plan, which was reviewed by the Qazba.kz portal.

    According to the project documentation, preparatory and capital mining works are scheduled for 2027, with industrial ore extraction commencing the following year. By this time, a processing plant is also expected to be operational.

    The deposit will be mined using underground methods, which are projected to provide maximum economic efficiency compared to open-pit or combined mining techniques. The mine’s operational lifespan is estimated at 16 years, with 13 years dedicated to extraction. Once at full capacity, the site will produce approximately 1 million tonnes of ore annually.

    The operational reserves of the deposit are reported to be 13.9 million tonnes of ore, with a tungsten trioxide content of 0.45%, equating to around 61.9 thousand tonnes of the metal. Additionally, the ore contains a by-product of molybdenum, estimated at about 3.8 thousand tonnes.

    The site is located within the protective zone of the Kokshetau National Park, where a ban on geological exploration and extraction has been in place since 2021. However, Esil-Mining is exempt from this restriction as it obtained the necessary permits in 2020, prior to the amendments coming into force, allowing the company to operate in compliance with the law.

    Nonetheless, the proximity to a protected natural area imposes certain limitations on the operator. For instance, only electric equipment is to be used in the mining operations. All machinery, except for the watering underground machine and surface transport, will also be electrically powered.

  • Solidcore Resources Secures $600 Million Financing for Gold Processing Plant in Kazakhstan

    Solidcore Resources Secures $600 Million Financing for Gold Processing Plant in Kazakhstan

    Solidcore Resources, a gold producer, has secured $600 million in financing from the European Bank for Reconstruction and Development (EBRD) and a syndicate of commercial banks, including ING, Société Générale, and Abu Dhabi Commercial Bank (ADCB). The EBRD will provide $300 million over a ten-year period, while the commercial banks will contribute an additional $300 million, with each bank committing $100 million. The initial term of the credit line is set for five years, with an option to extend it to seven years. The agreement also allows for an increase in funding by up to $300 million. The Ertis Hydrometallurgical Plant (ЕГМК) will act as a co-borrower alongside Solidcore.

    The financing package includes a three-year grace period, with the repayment of the principal amount commencing after the completion of the plant in 2029. Hussein Ozhan, EBRD’s Managing Director for Central Asia and Mongolia, highlighted that the development of local processing capacities and high-value product manufacturing will enable Kazakhstan to retain a greater share of added value within the country. He emphasized the bank’s commitment to promoting advanced metallurgical technologies, creating new jobs in the Pavlodar region, diversifying Kazakhstan’s mining sector, and enhancing its international competitiveness.

    In addition to the EBRD financing, Solidcore has signed a preliminary agreement with KfW IPEX-Bank for a $100 million credit line over seven years, with documentation currently being prepared.

    The ЕГМК will focus on extracting gold from previously difficult-to-process ores, located within the special economic zone of Pavlodar. Once operational, the plant is expected to process up to 300,000 tonnes of gold-bearing concentrate annually, producing up to 500,000 ounces of doré gold from the Kyzyl deposit and additional feedstock.

    The capital expenditure for the ЕГМК is estimated at approximately $1 billion, with Solidcore planning to finance part of this through loans and the remainder from its own funds. The company anticipates that the project will create around 500 permanent jobs upon completion.

    CEO Vitaly Nesis stated that the establishment of the hydrometallurgical plant in Pavlodar aims to mitigate production, market, and geopolitical risks. Construction has already commenced, with an autoclave installed for processing gold-bearing raw materials. The project has received a positive conclusion from the state expertise for the construction of the ЕГМК and its associated infrastructure, with over a thousand workers currently on-site.

    Solidcore is actively developing several mining projects, including the Bakyrchik deposit in the Abai region and the Varvarinskoye and Komarovskoye deposits in the Kostanay region. The company has reported a remarkable 222% increase in sales volume in the first quarter of 2026, reaching 123,000 ounces in gold equivalent, with revenues soaring 5.5 times to $595 million.

  • Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    In a shift in ownership, Kazakhstan’s Ministry of Finance has transferred its 40% stake in Eurasian Resources Group (ERG) to the sovereign wealth fund, Samruk-Kazyna. This move, which took effect on 4 August 2026, is seen as a strategic decision aimed at bolstering the national budget and streamlining the management of state assets. Experts suggest that the transfer could generate approximately 897 billion tenge (around $1.9 billion) for the government, echoing previous asset sales that have successfully replenished state finances.

    Nurlan Zhumagulov, director of the Energy Monitor public fund, indicated that the need for budgetary support was a driving factor behind this decision. He noted that similar transactions in the past, such as the sale of stakes in KazMunayGas and Kazatomprom, have provided critical funding for the state. The historical context of ERG’s role in supporting governmental initiatives further complicates the narrative, as the company has often acted beyond its commercial obligations to assist the state.

    Financial analyst Rasul Rysmambetov highlighted that discussions regarding the transfer of ERG’s state stake to Samruk-Kazyna had been ongoing for some time. He explained that ERG has historically taken on responsibilities that extended beyond standard business operations, effectively acting as a financial buffer for the government during challenging times. The management of the state’s stake is expected to transition to the Tau-Ken Samruk structure, although this will necessitate organisational changes and an increase in personnel.

    The consolidation of ERG’s management under a single state entity is viewed as a move towards unifying control over significant national assets. However, the implications of this change remain uncertain, with Rysmambetov cautioning against premature conclusions about its potential impact. The Ministry of Finance has historically been cautious about the company’s initiatives, which raises questions about how the new management structure will navigate the complexities of state-business relations.

    The transfer of shares was officially confirmed by Samruk-Kazyna, which stated that the acquisition aligns with its mandate to manage state assets effectively for the benefit of Kazakhstan. The decision to consolidate ERG under Samruk-Kazyna is part of a broader strategy to enhance the efficiency of state asset management, ensuring that the interests of both the government and the public are adequately represented.

    As ERG continues its operations, the company has reassured stakeholders that its strategic development plans remain intact despite the ownership changes. The new management structure is expected to be led by Kudrat Shamiyev, who will oversee the business’s direction in Kazakhstan. The transition marks a pivotal moment for ERG and the Kazakh mining sector, as the government seeks to optimise its control over vital resources and enhance fiscal stability.

  • Rosatom Proposes Establishment of 3D Printing Centre in Uzbekistan

    Rosatom Proposes Establishment of 3D Printing Centre in Uzbekistan

    In a move towards modernising industrial capabilities in Uzbekistan, Rosatom, the Russian state atomic energy corporation, has proposed the establishment of a dedicated 3D printing centre in the country. This initiative was discussed during a specialised seminar held in Tashkent, which focused on the implementation of additive technologies in various sectors, including mining, automotive, and chemicals. The seminar was organised by the Additive Technologies division of Rosatom’s Fuel Division and saw participation from around 30 representatives from key industries, including the Navoi Mining and Metallurgical Combinat and UzAuto Motors.

    Russian experts showcased innovative solutions in additive manufacturing aimed at enhancing production efficiency and enabling the creation of complex products. Technologies discussed included wire arc additive manufacturing, direct laser deposition, and reverse engineering methods. The proposed Centre for Additive Technologies (CAT) aims to form working groups, conduct audits of production capabilities, identify prospective product lines, and develop state support measures to foster the centre’s growth.

    Ilya Kavelashvili, General Director of the Additive Technologies division, emphasised that the advancement of additive manufacturing in Uzbekistan could expedite the repair and modernisation of industrial equipment, reduce reliance on imports, and broaden the technological capabilities of local enterprises. According to Rosatom, global trends indicate a shift in additive technologies from prototyping to serial production, suggesting a promising future for this sector in Uzbekistan.

    The introduction of 3D printing is expected to lower production costs for Uzbek companies, replace a portion of imported products, and enhance the competitiveness of the local industry. This initiative aligns with Uzbekistan’s broader goals of industrial development and technological advancement, positioning the country as a potential hub for innovative manufacturing solutions in the region.