MINEX Forum

Tag: Qarmet

  • Celebrating 80 Years of Kazakhstan’s First Steel Production

    Celebrating 80 Years of Kazakhstan’s First Steel Production

    In 2024, Kazakhstan marked the 80th anniversary of its first steel production—a milestone that symbolized resilience and industrial growth. The Kazakh Metallurgical Plant in Temirtau, commissioned during WWII, became a cornerstone of economic development. This achievement was commemorated with events involving metallurgical veterans, youth, and cultural programs.

    Artworks by prominent Kazakh artists capture the essence of the industry. Paintings like Turysyn Abuov’s “Renowned Steelworkers of Temirtau” showcase the grit and passion of metallurgists, while P. Antonyenko’s portraits immortalize their legacy.

    Qarmet, Kazakhstan’s largest steel company, continues this tradition of innovation, aiming for record production by 2028 and investing in modernization efforts. The company’s acquisition by Andrey Lavrentyev in 2023 has sparked reforms, including community projects like restoring Temirtau’s tram system. Qarmet employs 35,000 people and exports to over 40 countries, embodying the enduring spirit of Kazakhstan’s metallurgical industry.

  • Qarmet Launches Major Production Gasification Project

    Qarmet Launches Major Production Gasification Project

    АО Qarmet has initiated a significant project to gasify its production processes, as reported on the company’s Telegram channel. The company’s leadership believes that utilizing natural gas will significantly reduce harmful atmospheric emissions and enhance the plant’s economic efficiency. The transition to this eco-friendly energy source has already begun, with completion expected next year. The project will connect the plant’s capacities to the Saryarka gas pipeline, located 25 km from the factory. Qarmet Tubular Products Aktau is manufacturing the required 600 tons of various-sized pipes for the new line. These pipes, made from raw materials supplied directly by the plant, are expected to be delivered to the Temirtau plant by the end of the month.

  • Qarmet Implements Pilot Project for Methane Reduction at Tentek Mine

    Qarmet Implements Pilot Project for Methane Reduction at Tentek Mine

    Qarmet, a metallurgical company, has launched a pilot project aimed at the early removal of harmful gases from the coal seams of the Tentek mine, as reported on the company’s Telegram channel. The initiative involves the use of plasma-impulse technology, which is expected to significantly reduce methane levels, thereby enhancing safety during mining operations at Tentek. This method of degasification has already seen success in the Kemerovo region.

    Drilling has commenced on the D-6 seam, which contains an estimated 16 million tons of solid fuel. Projections indicate that over 200 million cubic meters of methane will be extracted. Alexander Polchin, a representative from Qarmet’s coal department, noted that the company’s mines have low gas permeability despite high levels of natural gas content. Previously employed methods did not substantially improve the situation.

    According to the engineer, adopting techniques used by colleagues in Kemerovo, the company aims to halve the gas content, thus mitigating risks for miners. The project includes drilling ten wells, each up to 1000 meters deep. To facilitate methane release, a network of microfractures will be created within the seam. Methane with a concentration above 97% will be processed and utilized.

    A total of 87 wells will be needed for complete gas removal, with the first methane volumes expected to be extracted this autumn. The company plans to extend this degasification method to other mines in the future.

  • Qarmet Unveils Digital Mine Management System (DMMS) for Enhanced Safety and Efficiency in Coal Mines

    Qarmet Unveils Digital Mine Management System (DMMS) for Enhanced Safety and Efficiency in Coal Mines

    In a major advancement for the coal mining industry, Qarmet has announced the launch of its Digital Mine Management System (DMMS), a groundbreaking digital platform designed to enhance safety and efficiency through real-time monitoring. This technological marvel offers unprecedented control over production processes, promising to revolutionize coal mining operations. At the heart of DMMS lies advanced software and hardware components that enable seamless monitoring of various aspects of mining activities. Key features include real-time process control, enhanced safety measures, gas monitoring, seismic detection, and a centralized dispatch centre. Developed in partnership with AG TECH, DMMS has undergone rigorous testing across 800 mines globally, including 30 in Kazakhstan, demonstrating its effectiveness in improving industrial safety. Following successful trials, Qarmet plans to implement DMMS across all its coal mines starting April 15, reflecting its dedication to fostering a culture of innovation and safety. By adopting DMMS, Qarmet aims to establish new benchmarks in industrial safety and productivity, setting the stage for a transformed coal mining landscape. Stakeholders can look forward to improved operational efficiency and risk mitigation as DMMS becomes an integral part of the industry.

  • Minister Clarifies Funding Source for Qarmet Acquisition Amidst Speculation

    Minister Clarifies Funding Source for Qarmet Acquisition Amidst Speculation

    Kanat Sharlapaev, Kazakhstan’s Minister of Industry and Construction, has addressed concerns regarding the acquisition of Qarmet (formerly known as “ArcelorMittal Temirtau,” AMT), stating that government funds were not utilized for purchasing Qarmet shares. Sharlapaev emphasized that the acquisition was financed entirely through private investments, dismissing speculations of state involvement. He underscored the commercial nature of the transaction, highlighting Qarmet’s significance as a major employer with an annual revenue exceeding $2 billion. The minister defended the financing approach, citing it as a standard business practice aimed at enhancing operations and environmental conditions in Temirtau.

  • The Minister of Industry and Construction discussed investments with Linde

    The Minister of Industry and Construction discussed investments with Linde

    The Minister of Industry and Construction of the Republic of Kazakhstan, Kanat Sharlapayev, held a meeting with Matthias Krantz, President of Linde GmbH for the Eastern Europe region, to discuss prospects for expanding cooperation and investments in the economy of Kazakhstan.

    Linde GmbH, a leading global manufacturer of industrial gases and developer of technologies for industry and medicine, confirmed its interest in further investments in Kazakhstan. Matthias Krantz expressed satisfaction with the current level of cooperation and noted that Kazakhstan is a strategically important market for the company. Over the past year, Linde has implemented several significant projects in the country, strengthening its positions in the local market.

    During the meeting, issues of further development of cooperation were discussed, particularly in the context of green energy and environmentally sustainable technologies. The head of the industrial and construction department emphasized that the Government of Kazakhstan attaches great importance to attracting investments in the green energy sector and is ready to support projects aimed at the sustainable development of the economy.

    In addition, a proposal for cooperation between Linde and major Kazakhstani metal producers, including the company “Qarmet,” was discussed, which could open up new opportunities for both sides.

    It is worth noting that in September 2023, during a meeting between the Head of State Kassym-Jomart Tokayev and the Senior Vice President of Linde GmbH Oliver Pfannom, the company expressed readiness to increase its investment activities in the Republic of Kazakhstan with an investment volume of 1 billion US dollars.

    Press service of the Ministry of Industry and Construction of the Republic of Kazakhstan

  • Ministry of Industry Issues Notice to Qarmet Over Significant Contract Failures

    Ministry of Industry Issues Notice to Qarmet Over Significant Contract Failures

    The Ministry of Industry and Infrastructure of Kazakhstan has sent a notice to ArcelorMittal Temirtau (now known as Qarmet) demanding a penalty of 4.6 billion tenge for violating the terms of a contract for the extraction of coal and methane in the Karaganda region.

    The notice states that the company failed to fulfill its financial obligations for 2020-2022, including:

    • 948.9 million tenge in 2020 for financing research and development;
    • 1.017 billion tenge in 2021 for financing research and development;
    • 2.587 billion tenge in 2022, including:
      • 150 million tenge for social and economic development of the region and its infrastructure;
      • 940.6 million tenge for training, upskilling and retraining of Kazakhstani employees;
      • 1.49 billion tenge for financing research and development;
      • 8.8 million tenge for in-country value of works.

    In addition, the company failed to invest in 2022, despite a plan of 157.1 billion tenge.

    The notice also lists other violations committed by the company.

    Qarmet is also required to pay a fine of 20 monthly расчетных показателей (73,84 thousand tenge in 2024) for failing to provide a report on the implementation of license and contract terms for 2022.

    The company is required to eliminate the identified violations of contractual obligations within a month and submit all necessary documents confirming their elimination (copies of payment orders, contracts, acts of completed works); submit documents confirming payment of the penalty.

    In case of non-fulfillment of the requirements of the notice within the established time frame, the Ministry of Industry has the right to take measures in accordance with the terms of the contract and applicable legislation, including termination of the contract in a unilateral order.

    In late December 2023, it was reported that Allur owner Andrey Lavrentiev, who bought the metallurgical companies ArcelorMittal Temirtau and ArcelorMittal Aktau, invested 28.6 billion tenge of private investments in stabilizing the operations of Qarmet (Karmetkombinat). In December, the enterprise also increased production, increased stocks of ferroalloys and coal, and resumed shipment of finished products.

    ArcelorMittal, with the mediation of the Ministry of Industry and Infrastructure, transferred control of Kazakhstani assets to the state development institute Qazaqstan Investment Corporation. QIC, in turn, transferred the enterprise to Qazaqstan Steel Group of Andrey Lavrentiev, known for his projects in mechanical engineering.

    The deal with Arcelor was announced on December 8, 2023 at a press conference in Astana, where the Minister of Industry, former head of the Baiterek holding Kanat Sharlapayev announced the terms of the asset transfer.

    The purchase was financed by the placement of bonds on the Astana stock exchange AIX, specially created for this purpose by Lavrentiev’s company QSG Holding. The volume of the first issue was $355 million, the rate was set at 15% per annum. Redemption is expected in 2027. The program is expected to operate for five years. According to the site, since the placement on November 21, no transactions have been made with the company’s securities on the secondary market.

    The total amount of the deal for the sale of ArcelorMittal assets was $286 million, and another $700 million is the debt of AMT and ArcelorMittal Aktau to the former owner.

    In late November, it became known about the intention of the ENPF to invest 1.5 trillion tenge in large-scale infrastructure projects, including those related to energy. It was expected that 500 billion tenge out of the total volume will be allocated by the end of the year.

    An analytical report by Arcelor for the third quarter of 2023 states that the current carrying value of AMT is $1.8 billion, while the company generated negative EBITDA for 9 months of the year, and the average EBITDA, excluding 2021, was $0.3 billion. Arcelor emphasizes that since 1995 the company has lost $1.3 billion on the exchange rate.

    In addition, ArcelorMittal, which is leaving Kazakhstan, will allocate 16 billion tenge to the Kazakhstan Halkyna Fund for social development of the Karaganda region.

  • Qarmet must return to the status of one of the leaders in metallurgy in the CIS

    Qarmet must return to the status of one of the leaders in metallurgy in the CIS

    President Kassym-Jomart Tokayev ordered the production of high-tech steel grades for the automotive industry and other industries, LS reports.

    The head of state recalled that the Karaganda plant (Qarmet) was transferred to the national investor on the terms of a comprehensive modernization of the enterprise. And to ensure uninterrupted operation of the plant and prevent accidents, it is necessary to restore the mines as soon as possible, strengthen industrial safety, and update the material and technical base. The president also added that large-scale investments are needed in the creation of new industries and the production of goods with high added value.

    “It is necessary to establish the production of high-tech steel grades for the automotive industry and other industries. Over the next five years, the enterprise must significantly increase production and regain the status of one of the leaders in metallurgy in the CIS,” Tokayev instructed.

    During his speech, the head of state also listed a list of promising areas that should be paid attention to: road and construction equipment, equipment for the energy sector, reclamation systems, finished metal products.

    “If such production is not created in Kazakhstan now, then the total import of equipment will become chronic. Therefore, it is important that industrial policy is consistent with plans to modernize infrastructure and develop the mineral resources complex. The domestic automotive industry has made some progress here,” the president noted.

    Tokayev emphasized that now it is necessary to consistently move to a more complex level of car assembly. He noted that it is necessary to strengthen other promising sectors of the manufacturing industry.

    “At the same time, business should be oriented towards the fact that after our market is saturated, it will have to export. This will be an indicator of the high competitiveness of domestic entrepreneurs,” Tokayev added.

    He noted that in general it is necessary to give a new impetus to the industrial development of the country. And for this, the head of state recalled, a separate ministry was created last year.

    “Enough time has passed; it’s time to show concrete results. The ministry should develop guidelines for the industry and investors. Specific measures and approaches that would stimulate investment in new high-tech production have not yet been developed,” the president emphasized.

    According to the head of state, a list of breakthrough projects has been prepared, but requires thorough revision. Tokayev noted that these industries should change the structure of the economy, create a strong industrial framework and points of technological growth. However, the president noted that all this has not yet happened. In particular, funding sources have not been identified for many of the projects.

    At the same time, according to the president, large-scale and innovative projects that lay the foundation for economic growth for many years to come should receive priority state support.

    “We are talking about both the modernization of existing production facilities and the development of completely new industrial sectors for our country. The government will have to intensify a constructive dialogue with international financial institutions, transnational corporations and domestic businesses. In general, there must be answers to the questions of what the industrial appearance of Kazakhstan will be, which enterprises will play an important role tomorrow. We need to act proactively, in accordance with the requirements of the time,” Tokayev emphasized.

    In addition, the president separately focused on the modernization of existing production facilities. According to him, we should start with metallurgical plants, whose condition is at a low level.

    “The reason is known – the lack of investment in modernization and expansion of production. As a result, added value of products and quality jobs are lost. Strict control over maintaining the technical condition of enterprises is also extremely important. We have before our eyes a situation where an investor siphoned off profits, ignoring issues of enterprise modernization, ecology, and labor safety,” the president noted.

    At the same time, Tokayev recalled that he had repeatedly raised the issue of establishing strong medium-sized businesses in the industrial sector. However, he added, a systematic action plan was never developed. The head of state noted that there are no answers yet to questions about what the priorities should be and what support will be provided to entrepreneurs.

    “We have opportunities for the emergence of new advanced production facilities. For example, large oil and gas and mining and metallurgical companies must introduce technological innovations when developing subsoil, changing the structure of the national economy,” the president concluded.

  • In 2025, two coal faces will be launched at the Abayskaya mine

    In 2025, two coal faces will be launched at the Abayskaya mine

    The Qarmet company plans to open two longwalls at the Abayskaya mine. This is how the enterprise wants to partially satisfy its needs for coal, reports the press service of the akimat of the Karaganda region. The total reserves of raw materials at these facilities amount to 1.25 million tons.

    At the moment, miners are extracting coking coal. Drilling was also resumed, says Abayskaya director Andrey Sosunov. Longwall 321k12 is planned to open in early 2025, and the launch of the second one, with smaller reserves, is scheduled for the end of next year. The volumes of raw materials in the mine workings are 650 thousand and 600 thousand tons, respectively.

    Resuming coal mining is one of Qarmet’s priorities. According to the general director of the company, Vadim Basin, maintaining idle facilities is unprofitable for the enterprise. When there is not enough coal, you have to buy it from other enterprises. This is also unprofitable for miners: they cannot receive bonuses for production, since the intensity of work leaves much to be desired. It is important to take into account that the enterprise is large and there are more than 750 people in the miners’ team.

    President of the Republic of Kazakhstan Kassym-Jomart Tokayev gave the management of Qarmet five years to completely restore the plant. According to the president, this time is enough to return him to the status of one of the leaders in metallurgy in Central Asia.

  • Qarmet will pay AMT debts to contractors

    Qarmet will pay AMT debts to contractors

    The accounts payable of ArcelorMittal Temirtau (AMT) to Kazakh entrepreneurs amounts to more than $500 million. The new owner of the plant, Qazaqstan Steel Group Corporation, will repay the debt, Kapital.kz reports.

    Last December, Kazakhstan bought shares of two plants from the international company ArcelorMittal – ArcelorMittal Temirtau JSC and ArcelorMittal Tubular Products Aktau. To date, all shares belong to the non-state company Qazaqstan Steel Group Corporation. 

    AMT has been accumulating debts to contractors of the Republic of Kazakhstan for years. Materials and equipment were delivered to the plant on time, but payment was delayed. Using the status of one of the largest metallurgical enterprises in the country, AMT in fact received a loan with a zero interest rate at the expense of contractors and suppliers. Some creditors faced a real threat of bankruptcy. They fear that they will no longer be able to return the money. The total amount of debt exceeds $500 million.

    According to the Prime Minister of the Republic of Kazakhstan Alikhan Smailov, issues related to the rehabilitation of the metallurgical plant, including those related to debt payments, are under special control of the authorities. The AMT plant, renamed Qarmet after the change of owner, has already begun to gradually pay debts to contractors. 

    ArcelorMittal Temirtau not only left the Republic of Kazakhstan with overdue loans, but also remained in debt to the employees of the enterprise, so the new owner, as Mr. Smailov assures, makes sure that employees receive their salaries on time.