MINEX Forum

Tag: precious metals

  • China’s Ambitious Plans for a New Gold Hub in Hong Kong

    China’s Ambitious Plans for a New Gold Hub in Hong Kong

    This summer marked a significant shift in the global gold market as Hong Kong initiated trial trading under a new centralized settlement system for precious metals. This development is poised to alter the dynamics of gold trading worldwide, as China continues to establish a sovereign mechanism for trading and settling transactions in physical gold. In January 2026, the Hong Kong government and the Shanghai Gold Exchange signed a cooperation agreement to create a government-owned entity, the Hong Kong Precious Metals Centralized Settlement Company, known as ‘Gondzin Settlements’. This system offers a comprehensive range of gold-related services, from the deposit and withdrawal of physical gold to the settlement of transactions, including over-the-counter deals.

    The Gondzin Settlements system is seamlessly integrated with a network of certified vaults, allowing for efficient management of both cash balances and physical gold operations. A massive certified vault capable of holding 2,000 tonnes of gold is set to be constructed in Hong Kong, significantly surpassing the UK’s gold reserves, which were approximately 310 tonnes this spring. Establishing such a vault is a complex task, requiring robust physical security and risk management systems, but China appears undeterred.

    The urgency of establishing a gold hub in Hong Kong has been amplified by recent geopolitical tensions, particularly the ongoing conflict in the Persian Gulf, which has threatened the stability of existing gold trading hubs in the United Arab Emirates. Experts suggest that the creation of the Hong Kong gold hub is part of a long-term strategy by Beijing to enhance the yuan’s status as a global reserve currency, backed by physical gold, reminiscent of the Bretton Woods system.

    Interestingly, the recent five-year socio-economic development plan for Hong Kong, which extends to 2030, notably omits any mention of the gold hub, raising questions about its future integration into the broader economic strategy. The system also offers clients the option to operate through ‘unallocated’ accounts, allowing for faster transactions without the need to physically move gold bars.

    In partnership with the Shanghai Gold Exchange, the ‘Delivery Connect’ service has been launched to facilitate cross-border transactions and gold movement between Hong Kong and mainland China. The Gondzin Settlements has become an international member of the Shanghai Gold Exchange, enabling market participants to store physical gold in designated warehouses in Hong Kong, ensuring its free movement.

    China is effectively creating its own ecosystem for precious metal trading, attracting participation from major global banks, including JPMorgan, HSBC, and UBS. One potential outcome of this system is the decoupling of gold prices from the traditional London fixing, which has been dominated by the London Bullion Market Association (LBMA) for the past decade. The Hong Kong hub is being positioned as an alternative to London, with the potential to establish its own pricing mechanism if it achieves sufficient trading volumes.

    The status of ‘Good Delivery’, a standard set by the LBMA for gold and silver bars, is also a topic of interest. Currently, only bars from refineries with Good Delivery status are accepted in the new Chinese system, but there is potential for Gondzin Settlements to develop its own standards in the future. This ambitious Chinese initiative increases the demand for gold imports, particularly from Russia, which has seen a significant rise in gold exports to Hong Kong, from under $1 billion in 2022 to $10.8 billion last year. This trend not only reflects rising gold prices but also growing physical volumes.

    The establishment of the Hong Kong gold hub opens up new avenues for Russian companies and banks, particularly in circumventing sanctions through alternative payment methods. Despite Western threats of secondary sanctions, China has not turned away from Russian gold, indicating a complex interplay of geopolitical and economic factors that will shape the future of the global gold market.

  • Kyrgyzaltyn and AzerGold Forge Cooperation in Precious Metal Mining

    Kyrgyzaltyn and AzerGold Forge Cooperation in Precious Metal Mining

    Kyrgyzaltyn OJSC and AzerGold CJSC have entered into a memorandum of mutual cooperation during a state visit to Kyrgyzstan by Azerbaijan’s President Ilham Aliyev. This agreement is designed to enhance collaboration between the two companies in the precious metal mining and processing sectors. The signing of this memorandum is part of a broader set of bilateral agreements that emerged from discussions between Kyrgyzstan’s President Sadyr Zhaparov and President Aliyev.

    The memorandum signifies a commitment to strengthen ties in the mining industry, which is crucial for both nations given their respective natural resource endowments. By pooling resources and expertise, Kyrgyzaltyn and AzerGold aim to improve efficiencies in gold extraction and processing, potentially increasing output and profitability for both entities.

    In addition to the mining agreement, the two countries have ratified a Treaty on Alliance Relations, which aims to foster cooperation across various sectors including transport, energy, investment, digital services, and finance. This multi-faceted approach indicates a strategic partnership that extends beyond mining, reflecting a comprehensive vision for economic collaboration.

    The agreement also encompasses additional areas of cooperation, such as the supply of oil and petroleum products, financial market development, statistics, cyber security, and freight transport. This holistic strategy is expected to bolster regional ties and enhance economic stability between Kyrgyzstan and Azerbaijan, paving the way for future joint ventures and investments in key sectors.

    As both nations look to leverage their natural resources and enhance their economic frameworks, this partnership could serve as a model for other countries in the region seeking to collaborate on resource management and economic development. The focus on precious metals, in particular, highlights the growing importance of this sector in the global economy, especially as demand for gold and other precious metals continues to rise.

  • Zijin RG Gold Team Visits Tau-Ken Altyn Refinery to Enhance Industry Collaboration

    Zijin RG Gold Team Visits Tau-Ken Altyn Refinery to Enhance Industry Collaboration

    The Zijin RG Gold team recently visited the Tau-Ken Altyn refinery, a key player in Kazakhstan’s precious metals refining sector. This visit provided the team with an opportunity to observe the complete production cycle, including the organisation of technological processes, the accounting system for precious metals, and the approaches to quality assurance, industrial safety, and production control. Such professional meetings are crucial for exchanging experiences and fostering a deeper understanding of industry specifics, ultimately strengthening collaboration among enterprises united by the common goal of developing a modern, efficient, and responsible mining and metallurgical industry.

    During the visit, the Zijin RG Gold team expressed gratitude to the Tau-Ken Altyn staff for their openness and the informative tour, which showcased practical experiences in the field. The interaction highlighted the importance of such engagements in enhancing professional competencies and laying the groundwork for future cooperation. The visit underscores the commitment of both companies to advancing the mining sector in Kazakhstan through shared knowledge and best practices.

    As the mining industry continues to evolve, initiatives like this play a pivotal role in ensuring that companies remain competitive and compliant with international standards. The collaboration between Zijin RG Gold and Tau-Ken Altyn reflects a broader trend in the industry towards increased cooperation and knowledge sharing, which is essential for sustainable growth and innovation in the mining sector.

  • Why Artisanal Gold Mining Struggles to Go Legal in Kazakhstan Despite Record Prices

    Why Artisanal Gold Mining Struggles to Go Legal in Kazakhstan Despite Record Prices

    Reports of arrests of so-called illegal gold prospectors have become more frequent as gold prices hover near record highs. Despite legislative changes intended to legalize artisanal mining, many prospectors continue to operate outside the formal system. In an interview with inbusiness.kz, veteran geologist Bolat Kabaziev outlined why legalization has proven far more difficult in practice than on paper.

    According to Kabaziev, the 2018 Subsoil Code was expected to unlock large-scale legal artisanal mining on designated plots approved by regional authorities and the Ministry of Industry. In reality, progress has been slow. He said artisanal gold mining remains constrained by environmental and water protection rules, as well as technical limits on production volumes, mining depth and allowable equipment.

    While the law formally introduced artisanal mining licences, Kabaziev noted that bureaucracy remains a major barrier. Lengthy approvals at regional administrations have made the process complex and time-consuming. “On paper it was legalized, but in practice obtaining a licence has become difficult and slow,” he said.

    Kabaziev also addressed the blurred line between informal prospectors and outright illegal miners. While some prospectors argue that subsoil resources belong to the people, he stressed that unauthorized mining is still a criminal offense under existing laws on subsoil use and precious metals. A deeper issue, he said, is the lack of clear oversight mechanisms once licences are issued. For example, the law caps artisanal gold production at 50 kg per year, but there is no effective system to monitor actual output or the movement of mined gold.

    Additional obstacles include long approval timelines, multiple administrative clearances, technical constraints and, in some cases, resistance from local communities. Environmental and water permits are particularly hard to obtain, especially when gold-bearing placers are located in riverbeds, where approvals are often impossible.

    Kabaziev cautioned that artisanal placer gold mining is also a high-risk business. Even on officially designated plots, prospectors must study historical geological data and consult experts before investing. “Statistics show that only a few actually earn money, but this is rarely discussed,” he said.

    He also raised concerns about weak reporting requirements. Despite dozens of artisanal licences being issued in recent years, little gold is officially surrendered or recorded. Kabaziev believes most gold is sold through informal buyers, forming a shadow market, with uncertain downstream destinations. While estimates suggest illegal artisanal mining could amount to 10–15 tonnes of gold per year, he said much of this gold likely remains within Kazakhstan, entering jewellery production or, in some cases, refineries.

    With gold prices recently exceeding $5,000 per ounce, Kabaziev acknowledged a renewed “gold rush” mentality. However, he said the phenomenon remains poorly studied. He argued that true legalization would require open dialogue between authorities, law enforcement, industry experts and the prospectors themselves to address regulatory gaps, environmental concerns and market transparency.

  • Kazakhstan to Open National Laboratory for Rare Earth and Precious Metal Export Control

    Kazakhstan to Open National Laboratory for Rare Earth and Precious Metal Export Control

    Kazakhstan will establish a new laboratory to strengthen oversight of exported raw materials and detect the presence of rare earth elements (REEs) and precious metals, Vice Minister of Industry and Construction Iran Sharkan announced at a briefing, according to Interfax-Kazakhstan.

    The facility will be created under the National Geological Service and accredited to international standards. Its role will be to analyze the composition of ores and concentrates leaving the country, preventing the uncontrolled export of materials that may contain valuable or scarce metals.

    Sharkan emphasized that unauthorized export of rare earths remains a pressing issue for Kazakhstan, and the government is actively working to address it. The new laboratory will ensure that shipments are properly assessed before crossing borders, closing gaps in current oversight.

    The initiative follows calls made in September by the Ak Zhol party, which proposed that all export shipments of ores and concentrates undergo chemical testing in independent accredited laboratories, alongside the creation of state-run labs. The party argued that existing procedures—where analyses are commissioned directly by subsoil users—leave results unchecked and unverifiable by government authorities.

    By establishing its own laboratory infrastructure, Kazakhstan aims to tighten control, safeguard strategic resources, and ensure transparency in the country’s mineral exports.

  • Switzerland in Talks with US to Avert 39% Gold Export Tariff

    Switzerland in Talks with US to Avert 39% Gold Export Tariff

    Switzerland is pressing ahead with negotiations to reduce steep new US import duties that threaten to halt its multi-billion-dollar gold exports, the government confirmed Friday. The talks, led in Washington by Helene Budliger Artieda, head of the State Secretariat for Economic Affairs (SECO), follow the introduction of a 39% tariff on gold bars — one of the highest duties imposed under former President Donald Trump’s trade policy overhaul.

    A last-minute visit by Swiss President Karin Keller-Sutter earlier this week failed to secure relief. SECO said discussions remain “focused on reducing the additional US tariffs” but declined to provide details. Technical-level negotiations are expected to resume next week.

    The Swiss precious metals industry warned the levy could effectively end gold bar shipments to the US, which last year were worth 7.86 billion Swiss francs ($9.7 billion). Gold bars of 1 kg and 100 oz, previously exempt from tariffs, are now subject to the new duty. “With a tariff of 39%, exports of gold bars will definitely be stopped to the US,” said Christoph Wild, president of the Swiss Association of Manufacturers and Traders in Precious Metals.

    Switzerland, home to five major refineries, processes around 70% of the world’s annual gold supply, resizing bullion for global markets, including the US. Economist Hans Gersbach of ETH Zurich’s KOF Economic Institute estimates 7,500 to 15,000 Swiss jobs could be lost if the tariffs remain, with further losses possible if other sectors — such as pharmaceuticals — are targeted.

    The tariffs also hit other Swiss exports, including watches, machinery, and precision instruments, prompting some companies to consider shifting production to Europe or the UK to benefit from lower US-bound duties.

    Business association economiesuisse said firms were urgently seeking solutions, though the measures had caused confusion and frustration. “We still have difficulties understanding this friendly fire,” said board member Jan Atteslander. “Our companies are always under heavy pressure, so the only way to survive is to innovate.”

  • Kazakh Authorities Shut Down Five Companies Engaged in Illegal Gold Mining

    Kazakh Authorities Shut Down Five Companies Engaged in Illegal Gold Mining

    Kazakhstan’s Ministry of Internal Affairs (MIA) and National Security Committee (KNB), coordinated by the General Prosecutor’s Office, have shut down the operations of five companies involved in illegal mining and processing of gold-bearing materials in the Abai, Zhetysu, East Kazakhstan, and Turkestan regions, according to inbusiness.kz citing Polisia.kz.

    Authorities found that the companies held licenses only for geological exploration but were in fact conducting large-scale illegal extraction of gold-bearing ore using specialized equipment and machinery. During the raids, over 6,700 tons of gold-bearing ore, 300 tons of ore slurry, 120 tons of ammonium nitrate, explosives, and detonators were seized. In addition, 45 pieces of specialized equipment were confiscated on-site.

    A total of 62 individuals, including directors and founders of several limited liability partnerships (LLPs), were detained. Five criminal cases have been registered related to the illegal circulation of precious metals and raw materials containing precious metals. The damage to the state has been assessed as particularly large.

    Kuanlyk Alpis, a representative of the MIA’s Department for Combating Organized Crime, emphasized the importance of the operation in protecting the country’s natural resources and fighting organized crime in the precious metals sector.

  • China Imports Up to 70% of Critical Metals from Central Asia

    China Imports Up to 70% of Critical Metals from Central Asia

    Despite the lack of official data on the export of rare earth metals by Central Asian countries, an analysis of ore, slag, and ash exports reveals interesting trends. These exports often include critical resources highly sought after by leading global powers, particularly metals such as molybdenum, titanium, and vanadium.

    According to Trademap.org data from 2019 to 2023, Central Asian countries exported a wide range of ores and concentrates, including copper, iron, precious metals, zinc, lead, molybdenum, chromium, and niche metals such as niobium and tantalum.

    In recent years, the market has also seen the introduction of products such as tin, tungsten, and titanium ores. For example, copper ore exports showed stable growth—from approximately $1.17 million in 2019 to around $3.15 million in 2023. Iron ore peaked at $1.6 million in 2021 before experiencing a decline in export volumes in subsequent years.

    One notable trend is the significant increase in molybdenum ore exports, which surged from about $4 million in 2019 to approximately $144 million in 2023. This is a clear reflection of increased global demand and investment.

    An analysis of trade with the European Union under the category “26 Ores, Slags, and Ash” shows that molybdenum stands out: its exports increased from around $11 million in 2021 to nearly $60 million in 2023. In this segment, Kazakhstan holds a dominant position, providing nearly the entire cumulative export value, while contributions from other Central Asian countries remain significantly lower.

    Central Asian countries’ export portfolios reveal a trend towards transitioning from traditional raw materials such as copper and iron to more valuable niche ores, especially molybdenum. This trend is evident both in the global market and in trade with the European Union, where Kazakhstan acts as a key supplier.

    Will the European Union be able to position itself as a key importer of critical metals from Central Asia? The future will tell.

  • Kazakhstan’s Extractive Industry in 2024: Results and Challenges

    Kazakhstan’s Extractive Industry in 2024: Results and Challenges

    The extractive sector in Kazakhstan faced numerous hurdles in 2024, with a mix of progress and setbacks across various industries. While many companies are expected to release full production reports in spring 2025, preliminary data offers insight into the performance and challenges encountered by the nation’s resource sectors.

    Mining and Metallurgy

    According to Kazakhstan’s National Statistics Bureau (Qazstat), the industrial production index for the extractive industry stood at 99.8% in 2024 compared to the previous year. The decline was mainly attributed to a drop in coal production, despite positive trends in other areas.

    Coal Mining

    The coal industry in Kazakhstan experienced a decline in production, with a 3.9% decrease in total output, which amounted to 108.46 million tonnes. This was due to reduced extraction of both hard and brown coal. However, despite the drop in volume, the total value of the coal sector increased by 2.9%, reaching 537.79 billion tenge.

    The coal industry continues to face challenges such as logistical issues, with disruptions in transportation to Russia and Europe. These challenges are compounded by the growing global shift toward greener energy solutions, putting further pressure on traditional coal industries. In response, the government is focusing on the development of “clean coal” technologies and strengthening cooperation with international partners.

    Mining of Non-Ferrous Metals

    In terms of non-ferrous metals, Kazakhstan witnessed positive developments, with production of copper and zinc ores growing by 7.4% and 15.9%, respectively. The production of refined copper rose by 11.6%, while zinc output also saw a slight increase. Meanwhile, silver production continued to decline, which is expected to continue due to the diminishing quality of ore.

    The mining of iron ore experienced growth, with a 20.2% increase, bringing the total output to 57.21 million tonnes. Notably, production of iron ore pellets also showed positive trends.

    Precious Metals

    Kazakhstan’s precious metal mining sector remained relatively stable, with gold production seeing a small increase of 0.09% compared to 2023. The country produced 132.32 tonnes of raw and semi-processed gold. Gold extraction is expected to grow in the coming years, with new mining projects in development, including those at Bakhtai, Sarymbet, and Novoleninogorsk.

    Despite this, silver mining saw a sharp decline, falling by 18.5% as companies reported decreasing yields. The primary reasons for this downturn are lower ore content and reduced demand for silver.

    Challenges for the Extractive Sector

    Kazakhstan’s extractive sector faced several key challenges in 2024, many of which stemmed from global trends and domestic issues. While some sectors, such as copper and gold, showed positive growth, others, like coal and silver, faced significant obstacles.

    One of the primary concerns for the coal sector was logistical issues caused by trade disruptions with Russia, as well as fluctuating global prices. Additionally, the push for greener energy alternatives has placed pressure on traditional coal industries, creating an uncertain future.

    Despite these challenges, the extractive industry remains a vital part of Kazakhstan’s economy, accounting for a significant portion of national revenue. Moving into 2025, the sector is expected to focus on innovation and international collaboration to overcome these obstacles and drive growth across the country’s resource industries.

  • Auction for 26 Mineral Deposits in Kazakhstan

    Auction for 26 Mineral Deposits in Kazakhstan

    Online auctions for 26 mineral deposits will take place on January 29, 2025, on the e-qazyna.kz platform in Kazakhstan. Interested investors can bid on 26 mineral deposits, including 10 deposits of precious metals, 2 polymetallic deposits, 2 gemstone deposits, and several coal and black metal ore deposits.

    The Ministry of Industry and Infrastructure Development of Kazakhstan has announced a list of available plots for obtaining mining licenses. The starting bid for most deposits is 1,846 million tenge, with the exception of the Burabay-Zhalgyzagash polymetallic deposit in Kyzylorda region, which has a minimum starting bid of 30,362 million tenge.

    Some of the notable mineral deposits up for auction include:

    • Aktubinskaya Severnaya (4.19 km2) and Dalabaevskoye (3.82 km2) deposits of precious metals in Aktubinskaya and Zhetysu regions, respectively.
    • Aulie-Yuzhnopriishminskaya (2.51 km2) deposit of precious metals in the North-Kazakhstan region.
    • Burabay-Zhalgyzagash and Kysyl-Espe polymetallic deposits.
    • Priozernoye and Kaynar gemstone deposits.
    • Kuletskoye deposit of mica schists, Ushbulak asbestos deposit, and Aurtash deposit of celestine and barite-celestine ores.
    • Kendyrlykskoye, Bogembaevskoye, and Taldykul coal deposits, as well as the 1st Dubovskaya field.
    • East Karazhal, West Kamys, and Yesimzhal manganese ore deposits, and Masalskoye iron ore deposit, which also contains titanium.

    To participate in the auction, interested parties must register on the e-qazyna.kz platform by 15 January .