MINEX Forum

Tag: state support

  • Kazakhstan’s jewellery industry posts strong growth backed by state support

    Kazakhstan’s jewellery industry posts strong growth backed by state support

    Kazakhstan’s jewellery industry is expanding rapidly, supported by a package of state measures aimed at strengthening domestic production and reducing costs for manufacturers.

    According to official data, jewellery production in the country increased by 41.3% year on year in the first ten months of 2025, reaching $4.1 million. Imports rose by 39.6% to $174.7 million, while exports jumped 7.3 times to $54.5 million. Domestic consumption also grew, up 3.2% to $124.3 million.

    Growth in the sector is closely linked to long-standing government support mechanisms. Since 2016, jewellery manufacturers have been entitled to annual quotas allowing them to purchase up to 300 kg of gold. Refined gold is sold primarily to the National Bank of Kazakhstan, which acquired about 74 tonnes in 2025. The same mechanism is applied through sales of granulated refined gold by Tau-Ken Altyn.

    Additional support was introduced in January 2023 with the abolition of VAT on the purchase of quota gold by jewellery producers operating in Kazakhstan. In 2025, manufacturers purchased 38 kg of gold under this exemption, compared with 34.3 kg a year earlier.

    The sector has also benefited from the inclusion of jewellery manufacturing in the list of priority activities within the Astana Special Economic Zone, as well as the removal of mandatory assay hallmarking for domestically produced silver jewellery.

    In total, Kazakhstan has 4,542 registered participants in the jewellery trade, including 445 manufacturers. The industry operates under the national law regulating precious metals and gemstones.

  • Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Eastern German lignite mining and power plant company Leag has received approval for up to 1.75 billion euros in state support to facilitate the “early” phase-out of coal-fired power production in eastern Germany. This follows an agreement between the European Commission and the German government, confirming that the compensation payment aligns with EU subsidy regulations. The funds will help Leag transition from fossil fuels and create new jobs in the Lusatia region ahead of the coal exit’s final deadline in 2038.

    The Commission’s decision came after a review that started in 2021, prompted by local policymakers and the German government. “This is an important step for the people in this region,” said Germany’s economy minister Robert Habeck. The compensation will fund social support programs for coal workers and the restoration of former mining areas.

    Habeck emphasized that the payments to Leag are part of broader government measures to support the region’s shift to climate-neutral energy generation and industrial production. With targeted support for innovative transformation technologies, the government aims to foster a thriving economy in Lusatia. Leag CEO Thorsten Kramer welcomed the agreement, calling it “an essential element for our further successful transformation to being a green powerhouse.”

    The deal with the Commission and the initial plan from Germany’s previous government includes a gradual release of the funds. The estimated cost of phasing out coal is around 1.2 billion euros, which Leag will receive as a minimum. Additional funds of up to 550 million euros depend on the potential profitability of closed coal plants and the foregone profits due to the phase-out. The economy ministry stated that this process ensures Leag is not “overcompensated” for its role in the coal phase-out.

    Assessing Leag’s compensation was more complex than for its western counterpart RWE, which agreed to close its plants well before the 2038 deadline. The Commission will continue to review the scheme and release a formal decision in the coming months.

    Christian Ehler, from the conservative Christian Democrats (CDU) representing the region in the European Parliament, said the agreement brings clarity after three years of negotiations. “Leag can continue on its path of renewable power, hydrogen-ready power plants, and energy storage,” Ehler said. He added that the decision shows “the EU isn’t abandoning East Germany,” marking a milestone in Lusatia’s ambition to become Europe’s first Net Zero Valley.

    The agreement did not specify an end date for coal before 2038. However, Bernhard Herrmann, a member of the government committee for climate and energy from the Green Party, noted that the expansion of renewables will naturally phase out coal plants as they become less profitable. He argued that the deal would reduce taxpayers’ costs for the phase-out, with coal companies likely to take their plants offline voluntarily due to decreasing profitability.