Tau-Ken Samruk has received a favorable assessment from state experts for its North Katpar and Upper Kairakty project. The company anticipates responses from potential partners interested in participating in the project.
Tag: Tau-Ken Samruk
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Tau-Ken Samruk to Commence Lead-Zinc Mining Operations in Shalkiya Deposit
Tau-Ken Samruk to start production at the Shalkiya lead-zinc deposit in OctoberTau-Ken Samruk plans to start mining at the Shalkiya lead-zinc deposit in October 2024, aiming for 2.2 million tonnes of ore production by the next year. Chairman Bakyt Chirchikbayev revealed these plans at the MINEX Kazakhstan 2024 forum, mentioning plans “of using a third-party facility for ore processing while their processing plant is under construction.”Negotiations and assessments for ore processing at external facilities are in their final stages, with details to be disclosed once agreements are finalized. “I can’t disclose it at this point, but once the agreement is finalized, I’ll reveal the details,” he said. Chirchikbayev provided an update on the construction progress of the mining and processing plant in Shalkiya, emphasizing the procurement of technological equipment. Discussions about the potential sale of the mine are ongoing, with Tau-Ken Samruk open to selling a controlling stake. “Regarding negotiations with potential partners interested in acquiring a controlling stake, we’re open to selling from 51% to 100%. Talks are still ongoing, and it’s premature to disclose our co-founder at this stage,” he said. The Shalkiya lead-zinc deposit is one of the world’s largest. ShalkiyaZinc LTD JSC, a subsidiary of the National Mining Company Tau-Ken Samruk JSC, oversees its development. Construction of a lead-zinc mining and processing plant began in 2018, utilizing the deposit’s resources. It holds around 112.9 million tonnes of ore. The project aims to meet the demand for zinc and lead concentrates in Kazakhstan and globally, with confirmed reserves supporting operations until 2051. The total project cost is $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.
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Kazakhstan’s “Tau-Ken Samruk” Partners with US Investors for Rare Metals Exploration
In a significant development, Kazakhstan’s mining company “Tau-Ken Samruk” has entered into a collaboration agreement with Cove Capital, a US-based organization, aimed at exploring Rare Metals (RM) and Rare Earth Metals (RZM) within the Republic of Kazakhstan (RK). The partnership entails joint geological exploration activities, particularly in the Kostanay region, as disclosed in a Telegram channel of the “Samruk-Kazyna” fund. The exploration focus will center on the Akbulak deposit near Arkalyk, with Cove Capital committed to fully funding the exploration until the resources are officially registered. While detailed project information remains scarce, it’s notable that the foreign entity and Tau-Ken Samruk’s subsidiary, “Kazgeology,” will establish a joint venture for this endeavor. Previously, experts from Kazgeology had hinted at the potential richness of the Akbulak site in RM and RZM, including yttrium, cerium, thulium, zirconium, lutetium, tin, and others. The company’s attempt to attract investors for the development of these reserves dates back to 2019. Forecasts estimate the resources of this area to be around 380,000 tonnes. This collaboration follows the signing of documents between “Samruk-Kazyna” and Cove Capital last September, indicating a broader partnership in critical raw materials.
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Rare and critical metals – global prospects and local opportunities: National mining company Tau-Ken Samruk participates in a large-scale forum in Riyadh
More than 13 thousand delegates from 145 countries around the world gathered in the capital of Saudi Arabia for the FMF Forum to discuss issues related to the prospects of the rare and rare earth elements sector. In particular, this is the definition of a global strategy for critical minerals, the exchange of advanced technologies and experience, the creation of new sustainable production and supply chains, as well as the formation of a hub for “green” metals in Africa, West and Central Asia. The authoritative forum with the support of the government of Saudi Arabia is being held for the third time.
Our country is represented at the Future Minerals Forum by the Minister of Industry and Construction Kanat Sharlapaev, representatives of the Ministry of Foreign Affairs of the Republic of Kazakhstan, the AIFC, NK Kazatomprom JSC, the management of Greywolf Management, the Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Saudi Arabia, as well as the Chief Director for Business Development of JSC NGK “Tau-Ken Samruk” Nariman Absametov.
Today Nariman Absametov is expected to participate in meetings with representatives of the State Investment Fund (PIF). By the way, this is one of the world’s largest sovereign wealth funds with assets of 776 billion US dollars. Since 1971, PIF has financed various projects both in Saudi Arabia and abroad on behalf of the country’s government.
Meetings are also planned with colleagues from the largest mining company in the Middle East, Maaden Group and Manara Minerals. Until 2008, Maaden Group was wholly owned by the government of Saudi Arabia, currently 65% of the shares are owned by PIF. Manara Minerals is a subsidiary of the Maaden Group, specializing in investing in mining assets.
Another meeting in the work schedule – with partners from Cove Capital – in 2023, Samruk-Kazyna JSC and the investment company Cove Capital LLC entered into a Memorandum of Understanding. The document specifically provides for the possibility of cooperation in the field of rare and rare earth elements.
In addition, Nariman Absametov will take part in panel sessions on investment opportunities in Kazakhstan and the development of supply chains, and will hold a number of bilateral meetings with representatives of the business community of Riyadh.
The strategic importance of rare and rare-earth metals is explained by the fact that they are the most sought-after raw materials for high-tech industries of the world economy. RM and REM are widely used in the energy sector, including nuclear and renewable energy sources, aerospace, mechanical engineering, robotics, medicine, chemical industry, metallurgy, etc. Without them, it is impossible to produce a single smartphone, computer, TV or car. It is important that experts predict stable growth of the PM and REM market – by 2032, global consumption may increase to 230,000 tons.
President Kassym-Jomart Tokayev in his Message called rare and rare earth metals “new oil” and noted the importance of developing RM and REM reserves: “Countries that can realize their potential in this area will determine the vector of technological progress of the whole world.”
Kazakhstan is one of the most promising states in the region from the point of view of RM and REM. More than 600 ore occurrences of tantalum, niobium, rare earths of the yttrium and cerium groups have been identified on the territory of the country. There are also significant reserves of tungsten and molybdenum; for example, Tau-Ken Samruk has the right to subsoil use in the Upper Kairakty and Northern Katpar deposits. The total reserves of these two deposits are almost 1.5 billion tons of tungsten trioxide (these are the largest proven reserves outside of China, which today remains the leader in the global tungsten industry).
Subject to successful interaction with investors, Kazakhstan has every chance of becoming a member of the prestigious “club” of countries exporting rare earth metals.
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Tau-Ken Samruk will receive a grant from the EU and EBRD for projects in the field of rare and critical metals
Tau-Ken Samruk NMC JSC, the European Commission and the European Bank for Reconstruction and Development signed a “Statement of Intent on Technical Support for Raw Materials Projects.”
According to a document signed during participation in Raw Materials Week in Brussels, the EU and the EBRD will provide a grant of 400,000 euros for research and development work on two projects: the extraction of lithium from the salt marshes of the Aral Sea and the development of the Upper Kairakty tungsten deposit.
Planned work on lithium includes, but is not limited to, identifying promising areas, collecting soil samples, selecting optimal research methods and analytical interpretation of the samples obtained. Domestic specialists and research centers will be involved in the implementation of the project.
Lithium is a highly sought-after metal in high-tech areas; more than half of all lithium mined in the world is used in the production of batteries and accumulators. Mining lithium from salt marshes could make Kazakhstan a major player in the supply chain for the strategically important resource.
The main objective of large-scale laboratory tests for the tungsten project is to increase the percentage of tungsten extraction from off-balance ores. which will significantly increase the economic attractiveness of the Upper Kairakty field. At the same time, the circulating use of water should be introduced into the technological process of pre-enrichment of off-balance reserves, which is especially important for Kazakhstan, which is experiencing a shortage of water resources.
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Baksy conducts estimations of reserves in the gold-copper area
The company Polymetal, in partnership with “Kazgeology,” is currently in the process of calculating the reserves in the gold-copper area of Baksy in the North Kazakhstan Region. The CEO of Polymetal International plc, Vitaly Nesis, provided this information during a press approach at the “Transfer of the Initial Listing to the AIX Exchange and Redomiciliation to the AIFC” ceremony with inbusiness.kz.
Nesis expressed satisfaction with the partnership with “Kazgeology” and mentioned that discussions regarding future steps will be more meaningful after the reserves are placed on the state balance sheet. Polymetal recently increased its stake in Baksy to 75% and is considering a decision on production at the site for the upcoming year. It’s worth noting that “Kazgeology” is now under the control of the national mining company “Tau-Ken Samruk.”
During discussions with reporters, Nesis also mentioned the planned sale of Polymetal’s Russian division within the next 6-9 months. The company is exploring opportunities not only in Kazakhstan but also in Central Asian countries.
The CEO addressed the topic of a potential increase in the tax burden on businesses in Kazakhstan, emphasizing that the recent increase in the mineral extraction tax (MET) was justified given the favorable external conditions. He expressed hope that the final decisions on tax code amendments would consider the capital-intensive nature of the mining industry and maintain its investment attractiveness.
Furthermore, Polymetal aims to increase the liquidity of its shares on the AIX exchange in Astana over the next two years. The company recently transferred its primary listing from the London Stock Exchange to the AIX exchange, and Nesis emphasized that the domicile in the AIFC is permanent. There are no plans for an additional listing in Abu Dhabi or any other platform at this time.
The relocation of Polymetal to the AIX exchange is expected to enhance liquidity on the platform and attract global investors. Renat Bekturov, the head of the AIFC, highlighted the positive impact on the Kazakh stock market and the increased participation of renowned investment companies.
Regarding the proposed merger of the AIFC trading platform with the Kazakhstan Stock Exchange (KASE), Nesis mentioned ongoing discussions on how to combine liquidity between the two entities, considering their respective minority shareholders.
In conclusion, Polymetal’s collaboration with “Kazgeology” in calculating reserves, its strategic plans for the future, and its involvement in the AIX exchange demonstrate the company’s commitment to growth and development in the mining sector.
Regarding the potential merger between the AIFC trading platform and the Kazakhstan Stock Exchange (KASE), Nesis commented on the consideration of KASE’s Russian shareholders.
“Both KASE and Polymetal have minority shareholders. MOEX, the Moscow Exchange, along with local banks and brokers, are shareholders of KASE. On the other hand, the AIFC exchange has notable shareholders such as the Shanghai Stock Exchange, NASDAQ, and the Silk Road Fund. Currently, no decision has been made, and our discussions primarily revolve around how to combine our liquidity, in what form it will take, whether there will be changes in the legal structure, and if so, what those changes will entail. The next step involves negotiations with the existing shareholders to determine their future involvement, whether they will continue as shareholders, or if a new structure will be established. These matters remain open and under discussion,” Bekturov elaborated.
Furthermore, Bekturov addressed the question of measures planned to enhance the liquidity of Russian issuers like “Rusagro” or Ozon on the AIX.
“These issuers are relatively new, and their global depositary receipts (GDRs) are listed and traded on our exchange. The challenge lies with the global depository, Euroclear, as they are currently working on segregating the accounts of shareholders due to the situation at hand. Once Euroclear resolves this matter and market-making brokers willing to provide liquidity are identified, the issue will be resolved. We are actively working with the issuers to address this matter,” Bekturov affirmed.
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Kazgeology Becomes Subsidiary of Tau-Ken Samruk, 100% Voting Shares Transferred
As per the Government Resolution No. 1128 dated December 30, 2022, the state-owned stake in Kazgeology has been transferred as a form of payment in exchange for newly issued shares of the esteemed Samruk-Kazyna Fund. Kazgeology, in its role, primarily focuses on the exploration and assessment of mineral resources, the identification of promising areas, and the facilitation of foreign and domestic investments to bolster the nation’s mineral resource base.
As the sole shareholder of Kazgeology, Tau-Ken Samruk assumes both the rights and obligations. It is worth highlighting that the conditions for partners and investors in all ongoing projects will remain unaltered. However, we are presented with a remarkable opportunity to broaden the horizons of cooperation. With a shared interest, Tau-Ken Samruk can actively participate in investment projects throughout the construction and operational phases,” expressed Bakytzhan Chirchikbaev, the esteemed Chairman of the Management Board of Tau-Ken Samruk.
At present, Kazgeology is diligently engaged in the implementation of numerous investment projects in collaboration with esteemed partners. Joint ventures and consortia have been established, fostering fruitful associations with esteemed global leaders in the mining industry such as Rio Tinto, KazZinc, Yildirim Holding A.S., Polymetal, Kazakhmys, and Ulmus Fund.
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Changes in the composition of the Board of Directors of Qazgeology JSC
To recall, earlier Samruk-Kazyna JSC and NMC Tau-Ken Samruk JSC signed an agreement on transfer of the state property management in the form of a 100% equity stake of Kazgeology JSC.
The Chief Business Development Officer of Tau-Ken Samruk, Nariman Absametov, has also joined the Board of Directors of Kazgeology JSC. -
Will Swiss Glencore buy Kazakhstan’s Shalkiya mine?
In recent years, the old fields of the global trader’s subsidiary, Kazzinc, have been depleted, and new ones may not provide the required level of reserves for a long time.
In the near future, Kazzinc may buy the Kazakh zinc deposit Shalkiya, developed by the Tau-Ken Samruk mining state holding in the Kyzylorda region. An industry source familiar with the situation told an inbusiness.kz correspondent about this .
Let us remind you that the main shareholder of Kazzinc is almost 70% of the Anglo-Swiss trader Glencore, and the remaining share mostly belongs to the same Tau-Ken Samruk. To be fair, we note that talk that the Kazakh zinc giant will buy Shalkiya has been circulating for several years without any visible consequences.
Therefore, in order to verify the information received, the inbusiness.kz correspondent made information requests to Glencore, Kazzinc and Tau-Ken Samruk. The press service of the global trader responded to the publication’s questions asking to confirm the possibility of purchasing the Shalkiya mine with the phrase “no comment,” while its Kazakh subsidiary did not respond to the request.
“JSC ShalkiyaZinc LTD is included in the list of enterprises proposed for transfer to a competitive environment in accordance with Government Decree of the Republic of Kazakhstan dated December 29, 2020 No. 908. Work is currently underway to implement the Comprehensive Privatization Plan for 2021-2025,” they commented in a letter to Tau-Ken Samruk, an appeal through the e-otinish electronic platform with questions about the possible sale of Shalkiya to Kazzinc.
Thus, none of the parties to the proposed deal has yet denied its potential.
A year ago, inbusiness.kz wrote that public hearings were held in the East Kazakhstan region to eliminate the consequences of subsoil use of the Tishinsky and Ridder-Sokolsky Kazzinc deposits. The Tishinsky mine was going to be closed in 2023, Glencore previously reported. The Maleevsky mine was also close to being completely depleted, according to industry observers. In 2022-2024, it was planned to expand zinc production at the Dolinnoye-Obruchevskoye deposit in Eastern Kazakhstan and the Zhairemsky mine in the Karaganda region. However, the expansion of production at Zhairem has been delayed, and it is not entirely clear how much the reserves there will be able to compensate for the dynamic depletion of the old Kazzinc mines. By the way, earlier this week the government expressedconcerns that the country’s zinc reserves are declining despite mineral resource reform. There are no new geological discoveries, although Glencore has been conducting active geological exploration in Kazakhstan in recent years.
Previously, inbusiness.kz wrote that last year Kazzinc experienced increased complexity in logistics due to the geopolitical situation. Its trade flows began to line up without the use of transit through the territory of the Russian Federation. However, according to some reports, the company continues to depend on third-party zinc raw materials supplied from the territory of its northern neighbor through intermediaries.
“Zinc production from own sources in the amount of 72 thousand tons was comparable to the first half of 2022 (73.9 thousand tons of metal and concentrate – Note), which reflects an increase in volumes at Zhairem, offset by a delay in processing material from its raw materials at metallurgical capacities of Kazzinc in favor of third-party materials,” Glencore said in its report for the first six months of this year.
For gold, during this period, the Kazakh mining and metallurgical giant’s output from its raw materials was 4% higher year-on-year and reached 288 thousand ounces, or almost 9 tons, the document indicates.
At the same time, the total production of zinc, taking into account third-party raw materials, at Kazzinc in the first half of the year decreased by 11%, to 125 thousand tons from 140 thousand tons in the same period last year. In contrast, gold processing, including third-party feedstock, increased sharply by 25% to 531 thousand ounces, or 16.5 tons, compared with 426 thousand ounces, or 13.2 tons, a year earlier in the first six months of 2022.
It should be noted that Kazzinc continues to play the role of a source of funds for Tau-Ken Samruk, as has been the practice for many years.
“In accordance with the decision of the general meeting of participants of Kazzinc LLP (hereinafter referred to as Kazzinc) dated March 31, 2022, the procedure for distributing Kazzinc’s net income received based on the results of 2021 was approved. The total amount of dividends declared and paid to Kazzinc participants during 2022 amounted to 650,000,000 US dollars, of which 193,843,000 US dollars (equivalent to 88,819,162 thousand tenge) were distributed by the group and were paid in cash.In accordance with the decision of the general meeting of Kazzinc participants dated March 31, 2021 the procedure for distributing Kazzinc’s net income received based on the results of 2020 was approved. The total amount of dividends declared and paid to Kazzinc participants during 2021 amounted to 500,000,000 US dollars,of which 149,110,000 US dollars (equivalent to 63,273,551 thousand tenge) were distributed to the group and were paid in cash,” – according to the consolidated financial statements of Tau-Ken Samruk for 2022.
At the same time, according to the financial document, the net loss of the mining state holding over the past year reached 16.3 billion tenge.
Let us recall that in September 2021, Tau-Ken Samruk updated the terms of the credit line from the EBRD in the amount of $175 million at a six-month LIBOR rate plus 2.5% per annum with repayment of principal and interest in equal semi-annual installments. As security for the loan agreement, the national company provided a guarantee for the full amount of the loan from Samruk-Kazyna for the term of its validity until 2032 as collateral for the EBRD. At the end of last year, the volume of borrowed funds received from the EBRD reached 31.2 billion tenge.
In 2021, the subsidiary of Tau-Ken Samruk, ShalkiyaZinc, entered into three contracts under a loan from the European Bank for Reconstruction and Development (EBRD). One of them, with the Chinese JCHX and CCECC, was aimed at constructing a mine, the second, with the Danish FLSmidth, was aimed at the selection and supply of technological equipment for the factory, and the third was signed with Deloitte TSF – Kazakhstan to provide project management services.
According to the annual report of Tau-Ken Samruk for 2022, work was carried out for ShalkiyaZinc to reduce the cost of the contract with FLSmidth. This document also noted that in 2023 it was planned to hold tenders and conclude contracts for the completion of construction and installation work on the processing plant and tailings, and additional delivery of the main technological equipment for crushing, flotation, thickening was also expected.
By the way, it was previously planned that the processing plant at the Shalkiya mine would be launched in November 2025. The design capacity against the backdrop of its expected service life of 29 years was set at 246 thousand tons of zinc concentrate per year with a zinc content of 55%. For comparison, several years ago Kazzinc’s annual production of this metal from its own raw materials exceeded 200 thousand tons.
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Kazakhstan’s national mining company “Tau-Ken Samruk” joines the European Raw Materials Alliance
[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – inbusiness.kz” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.inbusiness.kz%2Fru%2Fnews%2Fv-evropejskij-syrevoj-alyans-voshla-kazahstanskaya-kompaniya|target:_blank”][distance desktop_type=”30″][vc_column_text]The mining state holding “Tau-Ken Samruk” from Kazakhstan has joined the European Raw Materials Alliance. This move comes after Kazakhstan signed a partnership document with the European Commission in November of the previous year, focusing on sustainable raw materials, batteries, and value chains for “green” hydrogen. The technical development of a cooperation roadmap in this area has been completed, awaiting approval at higher levels. The inclusion of a Kazakhstani company in the alliance has generated positive reactions from participants in the mining industry, including Canadian company Arras Minerals. Additionally, countries such as the United States, Great Britain, and China have expressed active interest in collaborating with Kazakhstan in the exploration and production of critical minerals.
A raw materials summit is scheduled to take place in Brussels in mid-May, where the Ministry of Industry of Kazakhstan will present investment opportunities to European businesses interested in solid minerals cooperation. Kazakhstani organizations, in consortium with European partners, can participate in the Horizon Europe innovation and research funding program, which has allocated nearly 500 million euros for raw material projects between 2021 and 2024. The European Commission aims to jointly develop the value chain for obtaining critical and strategic raw materials for the green and digital transition, including rare earth metals. Previously, the European Commission report highlighted the EU’s dependence on the supply of Kazakh phosphorus, and there have been ongoing projects in Kazakhstan in collaboration with Europeans focused on critical minerals.
European companies have shown interest in a project for the exploration and production of lithium in East Kazakhstan, as reported earlier. The European Commission does not focus on specific raw materials but aims to support the development of critical mineral value chains in partnership with Kazakhstan.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]