MINEX Forum

Tag: Ministry of Industry

  • Kazakhstan to Auction 50 Mineral Deposits Including Gold, Copper, and Rare Earth Metals

    Kazakhstan to Auction 50 Mineral Deposits Including Gold, Copper, and Rare Earth Metals

    Kazakhstan is set to hold a large-scale electronic auction in June 2025, offering 50 solid mineral deposits, including gold, copper, coal, polymetals, and rare earth elements, according to Almas Kushumov, Director of the Subsoil Use Department at the Ministry of Industry and Construction. He made the announcement during the MINEX Kazakhstan forum.

    The rights will be granted for both exploration and extraction, with deposits containing balance reserves to be auctioned directly for mining. The full list of deposits is expected to be published in the coming days.

    Kushumov noted that 117 deposits were auctioned via e-auctions in 2023–2024, bringing in over 20 billion tenge in signing bonuses for the state. In 2024, 43 new deposits were officially registered, including 22 solid mineral sites. Resource growth figures include:

    • 20 tons of gold

    • 9,000 tons of silver

    • 48,000 tons of copper

    Kazakhstan’s current reserve lifespan is estimated at 33 years for gold and 44 years for copper, based on current production levels.

    Minister of Industry and Construction Kanat Sharlapayev previously stated that companies from the United States, the European Union, and China would be able to participate in the auctions for rare and rare earth metal rights. He emphasized that competition among major players in the global critical materials market—used in dual-use goods, renewable energy tech, electric vehicles, and more—could help maximize Kazakhstan’s revenues.

    Quote:

    “This will be a high-interest auction. The competition between Western countries and China in the rare earth sector gives us the opportunity to attract the best offers,” Sharlapayev said.

  • Kazakh Industry Ministry Denies Role in Potential Qarmet Investment Deal

    Kazakh Industry Ministry Denies Role in Potential Qarmet Investment Deal

    The Ministry of Industry and Construction of Kazakhstan has clarified that it is not involved in preparing a potential investment agreement with Qarmet for the modernization of its steel division, citing limited jurisdiction. The ministry’s response came after an inquiry from inbusiness.kz via the e-Otinish government platform.

    In its statement, the ministry emphasized that its role is to formulate and implement policies for industry and mining, while investment agreements fall outside its scope. It advised directing questions to Qarmet directly.

    Despite reaching out to Qarmet in early March, inbusiness.kz has yet to receive answers regarding the potential deal, including whether the steel and mining company would receive tax incentives or other state benefits.

    The ministry, now led by Yersaiyn Nagaspayev, recently made headlines when Nagaspayev visited Qarmet’s facilities in the Karaganda region, one of his first official trips since his appointment.

    Meanwhile, reports indicate that Qarmet plans to secure up to 3.5billion in financing by 2028 from Chinese, international, and Kazakh banks. The company previously had a 450 million debt to former owner ArcelorMittal, partially repaid last year. In 2024, Qarmet also obtained a $350 million export loan from the Kazakh Development Bank at a 9.17% fixed rate.

    Despite claiming $200 million in monthly revenue, Qarmet has not publicly disclosed its financial statements since 2022, raising transparency concerns. The company produces 3.2M tons of pig iron, 3.5M tons of steel, and 6.1M tons of coal annually, employing 29,117 workers—though reports suggest early retirement layoffs occurred last year.

  • Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s coal industry should remain under the Ministry of Industry and Construction rather than being transferred to the Ministry of Energy, according to the Association of Mining and Metallurgical Enterprises (AMME). The proposal was voiced by AMME representative Tulegen Mukhanov during a ministry meeting.

    Mukhanov emphasized that the Ministry of Industry plays a crucial role in developing the sector, addressing export challenges, railway logistics, and ensuring the timely supply of coal for communal and residential needs during the heating season.

    Additionally, the ministry has worked with mining enterprises, research institutions, and potential investors to develop a national coal chemistry industry program. As part of this initiative, a scientific and technical center for coal chemistry is planned at the Institute of Coal Chemistry and Technology.

    Upon learning of the government’s intention to transfer oversight of the coal sector to the Ministry of Energy, AMME conducted a survey among mining companies. The respondents unanimously opposed the move and expressed their willingness to appeal directly to the Prime Minister and the President.

    Although Kazakhstan’s coal industry was previously under the Ministry of Energy, it was later separated—a structure that coal companies now wish to maintain. They argue that the Energy Ministry already oversees multiple sectors, while the current arrangement under the Ministry of Industry is more effective.

  • Kazakhstan’s Ministry of Industry Reveals Valuable Mining Sites for August Auction

    Kazakhstan’s Ministry of Industry Reveals Valuable Mining Sites for August Auction

    The Ministry of Industry of the Republic of Kazakhstan has announced the locations of valuable mining sites containing solid minerals, available for purchase at the August auction, reports inbusiness.kz. The list includes 23 deposits with precise coordinates, starting prices, and potential extraction methods, both underground and surface.

    The initial price for most sites is set at 1.846 million tenge, with higher prices for precious metal deposits. For example, the Betbastau site, rich in gold and silver, starts at 3.072 million tenge, while the Myshtobe gold ore deposit begins at 2.7 million tenge. The most expensive lot is the Alpys site in Pavlodar region, with a minimum price of 25.2 million tenge, containing copper, barite, zinc, cadmium, and lead along with gold and silver.

    Buyers of Myshtobe, Esymzhal, and Pervomaiskoye must address previous environmental impacts, while new owners of Alpys and Zhalair will need to implement comprehensive water protection measures. If a site is within buffer zones of populated areas, extraction will be limited to underground methods.

  • Coal Production Declines in Kazakhstan Due to Market and Logistics Issues

    Coal Production Declines in Kazakhstan Due to Market and Logistics Issues

    Throughout 2023-2024, coal production at Kazakhstan’s deposits has gradually decreased, reports the press service of the Ministry of Industry of the Republic of Kazakhstan. Over the past year, coal production dropped by 1 million tons year-over-year, totaling 113 million tons. From January to April 2024, extraction decreased by 2.7 million tons compared to the first four months of 2023.

    According to Deputy Minister of Industry and Construction Olzhas Saparbekov, the decline in production was influenced by the reduction in global fuel prices, the development of green energy, and logistics challenges.

    Mr. Saparbekov stated that increasing the share of solid fuel in energy generation can be achieved through the application of clean coal technologies, which are already actively practiced in some European and Asian countries. To implement such methods, the ministry plans to establish cooperation with foreign companies.

    Additionally, the growth of coal production could be supported by the development of the coal chemical industry. The Deputy Minister mentioned that Kazakhstan aims to learn from China’s experience in obtaining high-margin products from solid fuel. Currently, the country is creating conditions to attract Chinese investors and technologies to develop this sector.

    Saparbekov noted that the republic lost a significant portion of its coal exports due to logistical issues. These problems include convection bans related to neighboring countries and a shortage of railway wagons. In his opinion, to improve the situation, the Ministry of Transport, relevant authorities of neighboring countries, and railway operators need to establish a dialogue and resolve contentious issues regarding raw material delivery.

  • Ministry of Industry to Auction Off New Mining Sites This Month

    Ministry of Industry to Auction Off New Mining Sites This Month

    The Ministry of Industry will announce an auction for deposits of solid minerals in the middle of this month, reports inbusiness.kz, citing Almas Kushumov, head of the Subsoil Use Department. The ministry plans to offer subsoil users 23 new sites, all with confirmed reserves. These include deposits of bauxite, coal, polymetals, and gold.

    Mr. Kushumov stated that all necessary information will be available on the official website of the Ministry of Industry, where interested parties can learn which sites are open for exploration licenses. He also mentioned that the state fund holds other valuable sites. Licenses for these sites were annulled due to non-compliance with commitments by previous subsoil users, and information about these sites will be made publicly available later.

  • Representatives of Ministries Hold Meeting with Residents of East Kazakhstan Region

    Representatives of Ministries Hold Meeting with Residents of East Kazakhstan Region

    Representatives of the Ministry of Industry and Infrastructure Development and the Ministry of Ecology, Geology and Natural Resources of Kazakhstan met with residents of several districts in the East Kazakhstan Region to discuss issues related to subsoil use and attracting investments to the region. Several industrial projects are being implemented in the region. In particular, exploration work has been ongoing in the Samar district since 2006, and the company “Cascade-N” plans to build a gold extraction plant here. Deputy Minister of Industry and Infrastructure Development of Kazakhstan, Iran Sharkan, noted that the opening of the plant will create new jobs for local residents and will also provide appropriate social benefits. The Samar project has passed all stages of development and complies with the current legislation on ecology and subsoil use.

  • Ministry of Industry and Infrastructure Development to Auction Over 100 Mineral Deposits

    Ministry of Industry and Infrastructure Development to Auction Over 100 Mineral Deposits

    By the end of the first summer month, the Ministry of Industry and Infrastructure Development will showcase more than 100 mineral deposits at an auction, including 23 returned and 83 reserve sites. This announcement was made by the head of the Ministry’s Committee of Geology, Erlan Akbarov, during a briefing at the SCC. All auctions will enforce commitments to ensure production levels do not fall below the average national output. Prospective bidders are reminded of the obligation to allocate funding for the development of regional social infrastructure. In 2023, the Ministry organized two auctions, offering 74 potentially valuable sites, with total subscription bonuses amounting to around 3.5 billion tenge, as reported by the Ministry’s press center. Mr. Akbarov stated that nearly 10 billion tenge is allocated annually for state geological exploration of mineral resources. Over the past five years, approximately 52 billion tenge has been invested in this sector, equating to 8 per square kilometer. Notably ,mineral rights holders have spent significantly more on geological exploration activities over the five−year period, totaling 357 billion tenge. 

  • Ministry of Industry and Construction Launches Pilot Project

    Ministry of Industry and Construction Launches Pilot Project

    In a significant move towards streamlining reporting processes, the Ministry of Industry and Construction of the Republic of Kazakhstan initiated a pilot project on March 5, 2024. This project aims to facilitate the submission of reports by subsoil users through a unified platform known as “Minerals.gov.kz”. Under this initiative, subsoil users are required to submit reports concerning their exploration and extraction operations in accordance with the Regulations for the Submission of Reports by Subsoil Users During Exploration and Extraction Operations, approved by the Minister for Investments and Development of the Republic of Kazakhstan on May 24, 2018, under Order No. 374.

    The pilot project enables subsoil users engaged in exploration and extraction operations to submit various types of reports electronically. These reports include compliance reports on exploration of solid minerals, as per the format outlined in Appendix 1 of the Regulations, and compliance reports on extraction of solid minerals, as per the format outlined in Appendix 2 of the Regulations. Subsoil users are required to fill out electronic forms available on the “Minerals.gov.kz” e-platform and authenticate them using the electronic digital signature of an authorized representative empowered to provide such information.