MINEX Forum

Tag: Tau-Ken Samruk

  • Tau-Ken Samruk and U.S. Cove Capital to Jointly Develop Major Tungsten Deposits in Kazakhstan

    Tau-Ken Samruk and U.S. Cove Capital to Jointly Develop Major Tungsten Deposits in Kazakhstan

    Kazakhstan’s state mining holding Tau-Ken Samruk and U.S.-based Cove Capital have signed an agreement to jointly develop the Northern Katpar and Upper Kairakty tungsten deposits in the Karaganda region. The document was signed on the sidelines of the C5+1 Summit in Washington, D.C.

    According to Reuters, the joint venture will be 70% controlled by Cove Capital, with total investments estimated at $1.1 billion, including up to $900 million in financing from the U.S. Export-Import Bank (Exim Bank), kursiv.media reported.

    Specialists are already conducting preparatory work for the feasibility study (FS) for the Northern Katpar project. The investment initiative foresees the use of existing primary processing capacities in Kazakhstan to produce ammonium paratungstate (APT) — a key intermediate product for high-demand materials such as tungsten powders and wear-resistant components used in tools, machinery, and defense applications.

    The Northern Katpar and Upper Kairakty deposits are considered among the largest tungsten reserves in the world, with combined resources of up to 410,000 tonnes of tungsten, according to the JORC classification.

    Tau-Ken Samruk acquired LLP Northern Katpar and the deposit itself in 2015 for 7.7 billion tenge, while the Upper Kairakty exploration license was obtained in 2016.

    Founded in 2015, Cove Capital invests in renewable energy and mining projects. In Kazakhstan, the U.S. company is already engaged in rare and rare-earth metal exploration at the Gremyachinsky site in East Kazakhstan and Akbulak in the Kostanay region.

  • Kazakhstan and US Forge Strategic Alliance in Rare Earth Exploration

    Kazakhstan and US Forge Strategic Alliance in Rare Earth Exploration

    Kazakhstan’s state mining company, Tau-Ken Samruk, and US-based Cove Capital are set to begin geological exploration at the Akbulak site in the Kostanai Region, targeting the discovery of rare earth elements in a significant international venture.

    “This initiative reflects our commitment to modernising industry and infrastructure while building a research base capable of supporting high-technology sectors,” said a spokesperson for the Samruk Kazyna Sovereign Wealth Fund.

    The exploration forms part of a wider strategic partnership between the firms, focusing on advancing high-potential industries. In line with this, Kazakhstan aims to overhaul its production capabilities, introduce advanced processing technologies, and further strengthen its scientific foundation.

    According to the Ministry of Industry and Construction, rare and rare-earth metals contribute 2.4% of the nation’s metallurgy output. Since 2018, the government has allocated 67 billion tenge (£114 million) to support the industry. Large-scale geological surveys are ongoing, with 25 sites across 100,000 square kilometres and 38 promising mineral deposits identified in 2024 alone.

    Currently, Kazakhstan produces a wide array of strategic metals including beryllium, tantalum, niobium, scandium, titanium, rhenium, and osmium, with by-products such as bismuth, antimony, selenium, and tellurium. Technologies for extracting gallium and indium are also in place. Future economic opportunities are seen particularly in the production and recycling of battery materials, heat-resistant alloys, semiconductor materials, and permanent magnets.

  • Tau-Ken Samruk Pays Off EBRD Loan Prior to Project Completion

    Tau-Ken Samruk Pays Off EBRD Loan Prior to Project Completion

    “Tau-Ken Samruk” has fully repaid its loan to the European Bank for Reconstruction and Development (EBRD), which was initially secured for the expansion of the Shalkiya zinc deposit in the Kyzylorda region. This information was disclosed in the mining holding’s consolidated report for 2024.

    The financial document stated, “During 2024, the group received tranches from the EBRD amounting to $8,360 thousand USD, equivalent to 3,786,153 thousand tenge (2023: $35,424 thousand USD or an equivalent of 16,745,062 thousand tenge). On December 18, 2024, the agreement with the EBRD was terminated early, and the loan, including accrued interest, totaling $124,158 thousand USD, or an equivalent of 64,803,815 thousand tenge, was fully repaid. The interest paid for 2024 amounted to 4,549,341 thousand tenge (2023: 2,856,424 thousand tenge).”

    It’s worth recalling that in September 2021, “Tau-Ken Samruk” updated the terms of its credit line with the EBRD for the development of the Shalkiya zinc deposit, reducing the amount to $175 million at a rate of LIBOR plus 2.5% per annum, with a transition to the alternative SOFR 6m + 2.5% rate scheduled for June 30, 2023.

    The loan was guaranteed by “Samruk-Kazyna,” and additionally, a $2.9 million long-term deposit and the rights to funds in all monetary accounts of the mining holding’s subsidiary, “ShalkiyaZinc LTD,” were pledged to the international financial institution. The principal repayment of the credit line was initially planned in equal semi-annual installments from 2025 to 2032, and interest payments in equal six-month installments from December 2021 to December 2032.

    Under the credit line, “Tau-Ken Samruk” received tranches of $35.4 million in 2023, $52.3 million in 2022, and the first transfer from the bank in 2021 amounted to $18.8 million. Throughout 2023, “Tau-Ken Samruk” paid the EBRD 2.9 billion tenge in interest. By the end of that year, the total amount of borrowed funds from the European bank reached 46 billion tenge, exceeding $100 million at the previous year’s exchange rate.

    A year ago, inbusiness.kz reported that the mining holding had failed to meet covenants on the EBRD loan. According to the MFI’s website, the $175 million pre-privatization credit project has been implemented and completed. The European bank reportedly received no complaints regarding the project, as indicated on its project page. Overall, the loan was intended to finance the expansion of mining operations at the existing Shalkiya lead-zinc mine and the construction of a processing plant with a capacity of 4 million tons of ore per year. Incidentally, it was previously reported that Shalkiya might be privatized before the summer.

    In late 2022, inbusiness.kz wrote that the Shalkiya processing plant was expected to be commissioned in November 2025. According to the company’s report on financial and economic activities for the past year, pilot industrial tests were conducted in 2024 to assess the feasibility of obtaining a collective concentrate under the conditions of the processing plant. This year’s plans include the development of technological regulations for this process, pilot industrial tests on the application of X-ray radiometric separation, optimization of capital expenditures for the construction of the processing plant, and a recalculation of reserves according to the KAZRC standard.

    Furthermore, the financial report for 2024 notes that the launch of the Shalkiya plant and reaching its design capacity of 400,000 tons are planned for 2026, with the project expected to continue until 2047.

  • Kazakhstan at the Cutting Edge of Mining Innovation

    Kazakhstan at the Cutting Edge of Mining Innovation

    In a resounding demonstration of its vast geological potential and forward-thinking approach to the mining industry, Kazakhstan recently took centre stage at the “Meet Kazakhstan: The Power of Geology in the Ninth Largest Nation” Forum. Held on March 2, 2025, in Toronto during the PDAC-2025 Convention, the session titled “Mining Innovation in Action: Kazakhstan at the Cutting Edge” showcased breakthrough projects and innovative strategies that are reshaping the global mining landscape.

    A Bold Invitation to Global Collaboration

    Organised by the Ministry of Industry and Construction and the the Ministry of Foreign Affairs of the Republic of Kazakhstan, the forum aimed to present Kazakhstan as a critical player in the global mining and metallurgical sector. The event not only celebrated the nation’s deep-rooted mining heritage but also underscored its commitment to sustainable development, technological advancement, and international economic partnerships. Its overarching goal was to foster dialogue and knowledge exchange, aligning with Kazakhstan’s strategy to modernise its mining industry and attract foreign direct investment.

    A Dynamic Panel of Experts

    Moderated by Mr. Alex Simakov, Special Advisor to the Net Zero Reliability Initiative, the panel brought together leaders from across the mining spectrum. The session featured:

    • Mr. Nariman Absametov – Acting Chairman of the Board of JSC “NK Tau-Ken Samruk,” who detailed projects focused on critical materials, including rare earth elements and lithium.
    • Mr. Alexander Prikhodko – Vice President of Expert Geophysics Limited, who highlighted the deployment of cutting-edge geophysical technologies such as the Mobile MT system for deep subsurface exploration.
    • Ms. Yulia Koryazova – Head of the ERG Data Management Department, who demonstrated how data management and advanced IT solutions are revolutionizing exploration efforts.
    • Mr. Trevor Wright – Partner at Lakeside Minerals LLP, who provided a vivid case study of a junior company leveraging Kazakhstan’s rich resources and robust infrastructure.
    • Ms. Madina Kapenova – CEO of Aurora Minerals Group LLP, who emphasised the country’s investor-friendly policies and the transformative impact of modernizing regulatory frameworks.

    Unveiling Kazakhstan’s Geological Renaissance

    The session was a deep dive into Kazakhstan’s innovation in geological discoveries. Panellists discussed how the nation’s unique geological formations—from ancient mineral-rich terrains to challenging, hard-to-access deposits—are driving the need for innovative extraction and exploration methods. A recurring theme was the integration of state-of-the-art technologies:

    • Advanced Geophysical Surveys: Mr. Prikhodko showcased how the Mobile MT system allows for detailed imaging of subsurface structures, identifying mineralisation zones that traditional methods might miss. This technology, capable of probing depths exceeding one kilometre, underscores the importance of adapting exploration techniques to Kazakhstan’s complex geology.
    • Data-Driven Exploration: Ms. Koryazova’s presentation shed light on how modern data management tools are being used to process historical geological data alongside new survey results. This fusion of old and new data not only refines exploration models but also expedites decision-making processes, enhancing overall project efficiency.
    • Investor-Focused Developments: Mr. Wright and Ms. Kapenova both emphasised the dual narrative of innovation and investment. Their discussions illustrated how Kazakhstan’s stable regulatory environment, improved royalty systems, and robust infrastructure create fertile ground for both exploration companies and seasoned investors. With comprehensive support ranging from license acquisition to due diligence, the country is actively reducing barriers to entry in the mining sector.

    A Historic and Forward-Thinking Mining Tradition

    Kazakhstan’s mining story is one of resilience and transformation. With over 4,000 years of mining history around the Narym river, the nation has evolved from its indigenous Soviet-era practices to a modern, innovation-driven economy. This session clearly articulated that the nation’s resource potential is not only rooted in its past but is dynamically being redefined for a future where sustainability and technology play pivotal roles.

    For those interested in a more detailed look at the session, a full recording is available on YouTube, offering insights into the innovative projects and strategies that are set to redefine the mining industry on a global scale.

  • Shalkiya Polymetallic Deposit to Launch by Late 2026

    Shalkiya Polymetallic Deposit to Launch by Late 2026

    The Shalkiya polymetallic deposit, located in the Kyzylorda region, is set to commence operations by the end of 2026. The site will feature a beneficiation plant capable of processing 4 million tons of ore annually. According to LS, the investor will inject 323 billion tenge into the project. The mining plan is already in place, with extraction scheduled to begin in 2025. Contracts for equipment supply for the beneficiation plant have been signed, and tenders are underway to select a contractor for the construction phase. The deposit is owned by ShalkiyaZinc, a subsidiary of Tau-Ken Samruk. The initial timeline for launching the deposit was set for 2023, but the plans have since been postponed. The Shalkiya deposit is rich in zinc and lead, with the ore containing 4.27% zinc and 1.28% lead. The reserves, categorized as B+C1+C2, are estimated at 127.5 million tons. The extraction of metals from the ore will utilize selective flotation, with zinc undergoing a fine grinding process for flotation concentrate.

  • The Kazakhstan-American joint venture will engage in the exploration of rare and rare earth elements

    The Kazakhstan-American joint venture will engage in the exploration of rare and rare earth elements

    Kazakhstan and the United States have formed a joint venture (JV) to explore rare earth metals at the Akbulak site in the Kostanay region. The agreement to establish a joint venture (JV) was signed today by the acting CEO of JSC ‘Kazgeology’ Dauren Abuov and the CEO of the American investment company Cove Kaz Capital Group LLC, Pini Althaus.

    The JV, comprising KazGeology JSC with a 25% stake and Cove Kaz Capital Group with a 75% stake, will conduct geological exploration at the site, which historically contains reserves of rare earth elements.

    The contract for conducting geological exploration at the ‘Akbulak’ site belongs to JSC Qazgeology (a wholly-owned subsidiary of JSC ‘Tau-Ken Samruk’ National Mining Company and parent company, SAMRUK-KAZYNA). Until the reserves are accounted for, the project will be financed by the American side, after which financing will be distributed proportionally to the shares in the JV. As previously reported, JSC ‘Kazgeology’ will hold a 25% stake in the JV, and Cove Kaz Capital Group will hold 75%.

    Cove Kaz Capital Group will finance the project until reserves are listed on the balance sheet, after which financing will be distributed proportionally to the shares in the JV.

    Cove Kaz Capital Group LLC is part of the international investment group Cove Capital LLC, which has been investing in mining projects from the exploration stage to construction since 2015. Cove Capital offices are located in the USA and Australia. In Kazakhstan, the group also owns ‘KAZ Critical Minerals’ LLP (through KAZ Resources LLC (USA)).

    The portfolio of JSC ‘Kazgeology’ includes more than 30 investment projects for the exploration of copper, gold, polymetals, iron, and chromium with foreign and Kazakhstani partners such as Rio Tinto, Yildirim Holding A.S., Solidcore Resources plc, ‘KazZinc’ LLP, and ‘Kazakhmys’ LLP. The company is also implementing a joint project with ALS Limited – a geochemical laboratory for core analysis – ‘ALS Kazgeochemistry’ LLP.

    In 2023, 100% of the voting shares of JSC ‘Kazgeology’ were transferred to the National Mining Company JSC ‘Tau-Ken Samruk’ National Mining Company.

  • The “Daughter” of “Samruk-Kazyna” to start exploration this year at one of the largest tungsten deposits outside China

    The “Daughter” of “Samruk-Kazyna” to start exploration this year at one of the largest tungsten deposits outside China

    The “Daughter” of “Samruk-Kazyna” will begin an exploration of one of the largest tungsten deposits outside China this year. The National Mining Company “Tau-Ken Samruk” (“daughter” of “Samruk-Kazyna”) will start scientific research on the tungsten project Upper Kayrakty in the Shet district of the Karaganda region, said the chief business development officer of the company Nariman Absametov.

    “The final aspect of the tungsten ore project. Kazakhstan possesses the largest reserves adjacent to China, and we see tremendous potential in this direction… We plan to conduct research in this direction on the Upper Kayrakty project,” he said during the MINEX Kazakhstan -2024 forum.

    The company plans to develop and test heap leaching technology for tungsten ores.

    “To find good heap leaching technologies for tungsten ores directly. No one else is doing this yet, but we have similar technologies for copper, and I think they will be quite suitable conditions. For this, we will also conduct research this year,” Absametov said.

    The first stage in the form of large-scale laboratory research will take place this year already. According to him, in case of a positive outcome of this research, the company plans to move on to the second stage.

    The resource volume for the Upper Kayrakty project according to western JORC standards in the Measured+Indicated+Inferred categories amounts to 683.7 million tons of tungsten ore (712 thousand tons of tungsten trioxide in the ore). Upper Kayrakty is included in the list of deposits of strategic importance.

    In 2018, the chairman of the board of “Tau-Ken Samruk” Kanat Kudaibergen (now this position is held by Bakyt Chirchikbayev) announced that tungsten mining at the deposit was planned to start in 2022. Later, it was reported about the plans of the Chinese Xiamen Tungsten to become a strategic partner in the Kazakh tungsten project, however, in 2020, the key shareholder of the company did not approve the deal, as the State Property Supervision and Management Committee of China refused to approve the deal.

    Chirchikbayev said during the MINEX Kazakhstan -2024 forum that “Tau-Ken Samruk” received a positive conclusion from state expertise on the feasibility study for the tungsten project Northern Katpar and Upper Kayrakty.

    “For the tungsten project Northern Katpar and Upper Kayrakty, we literally at the end of March received a positive conclusion of state expertise on the feasibility study of the project and immediately distributed it to all interested partners through a ‘data room’ with whom confidentiality agreements have been signed. At the moment, this project is under consideration by several partners. Next, we will wait, implementing everything through the rules of project privatization,” Chirchikbayev noted.

    At the same time, Absametov mentioned another project.

    “For the exploration of rare earth metals – our project ‘Akbulak’. Its implementation. This is our license in the Kostanay region. We work here with the American company Cove Capital, which invests in Kazakhstan. Contractual conditions have already been signed, geological exploration work is starting – at least two to three years. we hope to find something significant,” he said.

    In early April, the press service of “Samruk-Kazyna” reported that the American Cove Capital and the national mining company “Tau-Ken Samruk” (“daughter” of “Samruk-Kazyna”) will jointly search for rare and rare-earth metals in the Akbulak area of the Kostanay region, near Arkalyk. The relevant agreement was signed by the parties on April 8.

    For joint work, American investors will create a joint venture together with “Tau-Ken Samruk” and “Kazgeology”. Cove Capital will fully finance geological exploration until reserves are put on the balance sheet.

    “Rare earths are very tricky materials. They can depend on the proportional ratio. Not all of them are very valuable. But everyone wants those rare earth metals where the necessary proportionate ratio already exists, and project costs are also important,” Absametov said.

    According to him, the company will answer these questions together with the American partner in the next three years.

    Earlier it was reported that the company KAZ Critical Minerals, owned by KAZ Resources (USA, a subsidiary of American Cove Capital), will conduct exploration of rare metals in the Gremyachinsky area of the Ulan district of the East Kazakhstan region without partnership with “Tau-Ken Samruk”.

    KAZ Critical Minerals received a six-year license for the exploration of solid minerals on June 5, 2023. In the materials for the public hearings on April 12, the company reported that the goal of geological exploration work on several blocks with a total area of 4.5 square km is to search for rare metal ores.

  • Kazgeologiya Retains Golden Stake in the Tellur Stepok Project

    Kazgeologiya Retains Golden Stake in the Tellur Stepok Project

    National company “Kazgeology” is holding on to the “golden project” of “Tellur-Stepoch” in its portfolio, which recently joined the state holding “Tau-Ken Samruk”. This information is based on a presentation by the head of the mining group Bakyt Chirchikbaev, which was shown during his speech on the topic “Plans for the development of AO “NGK “Tau-Ken Samruk” after the acquisition of assets of AO “Kazgeology” at the XIV mining and geological forum MINEX Kazakhstan 2024. The potential of the gold-bearing area Tellur-Stepoch was previously estimated at 440 thousand ounces or 13.68 tons of gold. However, the average content of precious metal on the Tellur field was calculated to be more than 17 grams per ton of ore. In 2012, the owner of the deposits was TОО “Akмоla Gold”, which later became known due to its participation in the criminal case of the former head of the geology committee Bazarbay Nuraev. The “Kazakhmys” concern considered this asset attractive in 2018. Previously, the rights to the use of subsoil on Tellur-Stepoch belonged to TОО TS Minerals, where 25% of the shares were owned by “Kazgeology”. However, last year, the Ministry of Industry announced that it had terminated the contract for the use of subsoil on this site. The mining department informed in September last year that the right to use subsoil on Tellur-Stepoch was planned to be put up for auction. However, there is also information that a legal process is being conducted on Tellur-Stepoch. This was noted by a representative of the mining industry at the MINEX forum and confirmed by the head of “Tau-Ken Samruk”. Bakyt Chirchikbaev, in a conversation with a correspondent of inbusiness.kz, said that he could not comment on Tellur-Stepoch because, as far as he knew, there were legal proceedings on this issue, and he would not like to interfere in this process. It is also mentioned in the presentation of “Kazgeology” the infamous Shchevchenkovskoye field, which previously belonged to its former subsoil user SP “Kazkobalt”, where “Kazgeology” also owned 25% of the shares. The Shchevchenkovskoye field was returned to the state after the illegal transfer, and it should have been put up for a competitive auction this year. However, there is information that the Shchevchenkovskoye field may be returned to its former subsoil users, but this information has been denied by the Ministry of Industry. Therefore, the question remains whether the Shchevchenkovskoye and Tellur-Stepoch fields will be put up for a real competitive electronic auction for the right to use subsoil this year or not. If they have been returned to the state, then why were they reflected in the presentation of “Kazgeology” projects at the MINEX Forum, or are they listed there only because of their retained 25% shares?

  • Tau-Ken Samruk’s Plans for Lead-Zinc Production at Shalkiya Deposit

    Tau-Ken Samruk’s Plans for Lead-Zinc Production at Shalkiya Deposit

    Tau-Ken Samruk, the national mining company, is set to commence mining operations at the Shalkiya lead-zinc deposit in October 2024, with a target of producing 2.2 million tonnes of ore by the following year. Chairman Bakyt Chirchikbayev unveiled these intentions at the MINEX Kazakhstan 2024 forum, indicating considerations for utilizing third-party facilities for ore processing during the construction phase of their processing plant. Negotiations for ore processing at external facilities are in their final stages, with details to be revealed upon agreement finalization.

    Chirchikbayev provided updates on the construction progress of the mining and processing plant in Shalkiya, emphasizing the procurement of technological equipment. Discussions regarding the potential sale of the mine are ongoing, with Tau-Ken Samruk considering selling a controlling stake. Chirchikbayev mentioned the openness to selling anywhere between 51% to 100%, with negotiations ongoing with potential partners. The Shalkiya lead-zinc deposit, overseen by ShalkiyaZinc LTD JSC, a subsidiary of Tau-Ken Samruk JSC, is one of the largest globally. Construction of a lead-zinc mining and processing plant began in 2018, utilizing the substantial ore resources of the deposit, which holds around 112.9 million tonnes.

    The project aims to fulfill the demand for zinc and lead concentrates both domestically and internationally, with confirmed reserves supporting operations until 2051. The total project cost amounts to $650 million, with $295 million funded by the European Bank for Reconstruction and Development, guaranteed by the Samruk-Kazyna National Welfare Fund. Established in 2009, Tau-Ken Samruk JSC manages the state’s mining assets under the Samruk-Kazyna state fund.

  • Tau-Ken Samruk to Explore Lithium Deposits near the Aral Sea with Funding from EBRD

    Tau-Ken Samruk to Explore Lithium Deposits near the Aral Sea with Funding from EBRD

    Tau-Ken Samruk, the national mining company, is set to conduct exploratory research funded by the European Bank for Reconstruction and Development (EBRD) to assess the presence of lithium in the brines of salt lakes near the Aral Sea. This initiative was announced by the company’s Chief Business Development Officer, Nariman Absametov, during the MINEX Kazakhstan -2024 forum. Absametov highlighted the similarities between Kazakhstan and South American countries, particularly Chile, where lithium is extracted from salt brines. The project, initiated six months ago, aims to demonstrate the presence of sufficient lithium in the region for industrial development. The EBRD has granted 400,000 euros, equivalent to 190.7 million tenge, for a two-year research project in the Aral Sea region.

    Tau-Ken Samruk is actively engaged in over 50 mining projects, with 15 partner companies. Notably, the company recently absorbed another national entity, Kazgeology, promising comprehensive support to partners in negotiations with government bodies. Absametov highlighted gold as the primary metal of interest, citing Tau-Ken Altyn, a refining plant in Astana, which exceeded its initial capacity of 25 tons of gold and 50 tons of silver annually since 2019, refining 55.6 tons of gold in 2022. Additionally, copper and rare earth metals are among the company’s areas of interest.