MINEX Forum

Tag: Uzbekistan

  • Uzbekistan’s Tech Metals Plant Joins International Tungsten Industry Association

    Uzbekistan’s Tech Metals Plant Joins International Tungsten Industry Association

    The Uzbek Technological Metals Plant (UKTM) has officially joined the International Tungsten Industry Association (ITIA), according to the Uzbek news agency UzA. The ITIA brings together leading global companies involved in the extraction and processing of tungsten. With this move, Uzbekistan becomes the first Central Asian country to be represented in the association.

    UKTM expects that membership in the ITIA will grant access to vital data and analytics on the global tungsten market and allow the plant to participate in international industry events.

    The plant was established in June 2024 by the Almalyk Mining and Metallurgical Combine under presidential directive. It is tasked with developing and processing Uzbekistan’s reserves of rare and rare-earth metals, including lithium, tungsten, tantalum, niobium, magnesium, and others.

    The enterprise is planning 34 research and geological exploration projects worth a total of $40 million. Farhad Abdullaev, formerly head of the Uchtepa district in Tashkent, has been appointed Chairman of the Board.

    Earlier this year, Uzbekistan announced its intention to launch rare-earth material projects worth $500 million. President Shavkat Mirziyoyev instructed a 10–15% reduction in production costs at Navoi Mining and Metallurgical Combine (NMMC), as well as the expansion of localization and industrial cooperation.

    In March, the President was presented with industrial projects totaling $2.6 billion, aimed at developing minerals critical to Uzbekistan’s economy. Among them was the development of the Ingichka deposit and value-added tungsten concentrate enrichment, expected to double its added value.

    The ITIA, founded in 1988, conducts tungsten market research, monitors regulatory developments, and coordinates scientific research. It currently includes 51 member companies from countries such as the U.S., Canada, the UK, Germany, China, and Japan.

  • Navoi Mining and Metallurgical Works Posts Strong Q1 Results Amid Sustainability and Efficiency Push

    Navoi Mining and Metallurgical Works Posts Strong Q1 Results Amid Sustainability and Efficiency Push

    Navoi Mining and Metallurgical Works (NGMK) reported steady operational performance for Q1 2025, with a production volume of 27.8 trillion UZS, marking a 0.7% year-on-year increase.

    Gold output reached 753,500 ounces, slightly up from 748,100 ounces in the same period of 2024, reinforcing NGMK’s position as a leading gold producer. The company invested $118.4 million under its Investment Program, while 697 new jobs were created in the quarter.

    Cost optimization efforts resulted in a 786 billion UZS reduction in production expenses. Under the Localization Program, products worth 349.8 billion UZS were sold, and inter-industry cooperation purchases exceeded 1.8 trillion UZS.

    NGMK’s flagship Muruntau deposit, the world’s largest gold reserve (101 million ounces), remains its core asset, with total company reserves estimated at 148 million ounces.

    In February, Sustainable Fitch assigned NGMK an ESG rating of “3”, the first public ESG rating in Uzbekistan’s mining sector — highlighting progress in environmental, social, and governance practices.

    Key sustainability initiatives included:

    • Planting 65,850 seedlings along the M-37 highway and at GMZ-1;

    • Over 300,000 trees planted across industrial sites, all tracked via an electronic platform as part of the “Green Space” project;

    • Ongoing “Labor Protection Month” initiative aimed at reducing workplace injuries;

    • Recognition as a national leader in cybersecurity for 2024.

    To expand the company’s resource base, NGMK is actively adopting advanced exploration and development practices.

    Corporate governance remained robust:

    • 3 meetings of the Supervisory Board, covering 11 key issues;

    • 25 meetings of the Board of Directors, resulting in 41 decisions.

    NGMK continues to balance production growth with environmental responsibility and workforce safety, setting benchmarks in Uzbekistan’s mining sector.

  • Navoi Mining and Metallurgical Combine Reports 40% Profit Increase

    Navoi Mining and Metallurgical Combine Reports 40% Profit Increase

    Navoiy Gornometallurgichesky Kombinat (NGMK) has announced a 40% rise in net profit, reaching $2.1 billion, according to the company’s press service.

    Kuvandik Sanakulov, Chairman and CEO, commented: “NMMC achieved record revenue in 2024, increasing gold production by 5.4%. Thanks to the acceleration of investment projects, the company has successfully implemented 24 major investment projects worth $3 billion over the past eight years. This has enabled us to meet the production targets set for 2026 ahead of schedule – two years earlier than planned. At the same time, NGMK continues to maintain its position as one of the most cost-efficient producers in the industry, while investing in the company’s future sustainable growth.”

    Key Highlights:

    • Gold Production: The total gold production for FY 2024 amounted to 3.10 million ounces, representing a 5.4% increase compared to 2.94 million ounces in FY 2023. This growth was driven by the launch of new mining and processing capacities during the period.
    • Revenue: NGMK reported revenue of $7.4 billion for FY 2024, a 29.8% increase from $5.7 billion in FY 2023, marking a record-high for the company.
    • All-in Sustaining Costs (AISC): The total AISC for the period was $979 per ounce, up from $866 per ounce in FY 2023. This increase was primarily driven by higher royalty payments following increased gold sales, fuel costs related to the higher volume of material extraction, and rising labour expenses.
    • Adjusted EBITDA: Adjusted EBITDA for FY 2024 reached $4.6 billion, a 39.4% increase from $3.3 billion in FY 2023. Gold price growth outpaced cost increases, resulting in a rise in the adjusted EBITDA margin to 62% in 2024, up from 58% in 2023.
    • Net Profit: The company posted a net profit of $2.1 billion in FY 2024, compared to $1.5 billion in FY 2023.
    • Cash Flow and Investments: Net cash used in investing activities (capital expenditures) totalled $914 million in FY 2024, an increase of 34.6% from $679 million in FY 2023. This reflects the company’s ongoing investment programme aimed at increasing production at existing mines and exploring new deposits near mining operations.
    • Debt Position: NGMK’s leverage ratio (net debt to adjusted EBITDA) improved to 0.5x by the end of FY 2024, compared to 0.7x at the end of FY 2023, indicating strong financial stability and the company’s ability to service external debt. As of 31 December 2024, the company successfully completed its debut Eurobond issue, raising $1 billion in October 2024, split into two tranches of $500 million each, with maturities of 4 and 7 years.

    Financial Performance Summary:

    Indicator 2024 2023 ∆
    Gold Production (million ounces) 3.10 2.94 +5.4%
    All-in Sustaining Costs (AISC) $979 $866 +13.0%
    Revenue (billion USD) $7.4 $5.7 +29.8%
    Operating Profit (billion USD) $3.9 $2.9 +34.5%
    Adjusted EBITDA (billion USD) $4.6 $3.3 +39.4%
    Adjusted EBITDA Margin (%) 62% 58% +4 ppts.
    Net Profit (billion USD) $2.1 $1.5 +40.0%
    Operating Cash Flow (billion USD) $2.7 $2.0 +35.0%
    Net Cash Used in Investing (million USD) $914 $679 +34.6%
    Net Debt (billion USD) $2.5 $2.2 +13.6%
    Net Debt / Adjusted EBITDA Ratio 0.5x 0.7x -28.6%

    Full IFRS financial results are available online at: NGMK Annual Report 2024

    About the Company

    NGMK is the world’s fourth-largest gold producer, with an annual output of 3.1 million ounces of gold (2024) and a total mineral resource base of 148 million ounces. The company’s operating mines include the Muruntau-Mutenbay gold deposit, the largest in the world with a resource base of over 100 million ounces. NGMK’s business model encompasses exploration, construction of mining operations, mining, and processing, as well as gold refining and the manufacture and repair of mining equipment. The company employs over 47,000 people across 12 major mining and 9 processing plants.

    Further information about NGMK can be found on the company’s website: www.ngmk.uz.

  • Gold Mining Operations Expand at Besapantau Deposit in Uzbekistan

    Gold Mining Operations Expand at Besapantau Deposit in Uzbekistan

    In a significant development for Uzbekistan’s mining sector, the Besapantau deposit in the Tamdyn district is emerging as one of the most promising gold mining sites in the country. The deposit, which is part of the Central Mining Administration, is currently engaged in the extraction of gold-bearing ore, marking a new chapter in the region’s mineral resource exploitation.

    Dilshod Jumaniazov, the head of the Besapantau mine, provided detailed insights into the ongoing operations:

    “Currently, ore extraction is underway at the Besapantau and Balpantau quarries, which are part of the mine complex. These sites present complex geological structures, requiring specialized mining techniques. Particular attention is being paid to drilling and blasting operations to ensure efficient and safe extraction.”

    The scale of operations at Besapantau is impressive, with approximately 60 units of heavy mining equipment deployed across the site. This includes state-of-the-art machinery such as Epiroc drilling rigs, Hitachi, Komatsu, and Liebherr hydraulic excavators, as well as Komatsu and Caterpillar dump trucks. This extensive array of equipment underscores the significant investment and technological advancement in the project.

    The extracted ore is transported via railway to Hydrometallurgical Plant No. 2 for processing, integrating the mine into the broader mineral processing infrastructure of the region. This logistical setup ensures efficient handling and processing of the extracted resources.

    Looking towards the future, the Besapantau project is set for substantial expansion:

    • The Besapantau quarry is projected to reach dimensions of approximately 1,750 meters in length, 1,050 meters in width, and 300 meters in depth.
    • The Balpantau quarry will extend to about 1,370 meters in length, 1,350 meters in width, and 200 meters in depth.

    These expansions signify the long-term potential and commitment to the project. Jumaniazov further revealed that the mine has set an ambitious target of extracting over 12 million tons of ore annually, highlighting the scale of operations and the deposit’s significance to Uzbekistan’s mining sector.

    The development of the Besapantau deposit is expected to play a crucial role in boosting precious metal production at the Navoi Mining and Metallurgical Combine, one of Uzbekistan’s largest industrial enterprises. This increase in production capacity aligns with the country’s broader strategy to leverage its mineral resources for economic growth and development.

    This expansion comes at a time when global gold production is facing challenges. According to recent data, Kazakhstan, a neighboring country and significant gold producer, is expected to see a decline in gold production with a Compound Annual Growth Rate (CAGR) of -3.38% between 2023 and 2027[6]. In this context, Uzbekistan’s investment in expanding its gold mining operations at sites like Besapantau could potentially position the country to fill gaps in the global gold supply.

    The Besapantau project represents a significant step forward in Uzbekistan’s mining industry, showcasing the country’s commitment to modernizing its mineral extraction capabilities and boosting its economic output through responsible resource development.

  • Uzbekistan Signs Critical Minerals Investment Deals with U.S. Companies

    Uzbekistan Signs Critical Minerals Investment Deals with U.S. Companies

    Uzbekistan announced on Wednesday, April 9, 2025, that it has signed a series of agreements with U.S. companies to boost investment in its critical minerals sector. The deals come as global demand for essential minerals like copper, lithium, and cobalt continues to soar due to their key role in electric vehicle batteries, solar panels, and other high-tech industries.

    According to a statement from Uzbekistan’s trade ministry, the agreements—signed during a government delegation’s visit to Washington—cover investments in both the exploration and extraction of mineral resources. They also include plans for building grinding machinery and training Uzbek specialists.

    The move aligns with broader efforts by the United States and the European Union to reduce their dependence on China, which currently dominates the global critical minerals market.

    Uzbekistan, a former Soviet republic, has drawn increasing interest from Western nations looking to diversify their supply chains amid ongoing geopolitical tensions. President Shavkat Mirziyoyev has made liberalizing the economy a central priority of his administration. In March, he unveiled a $2.6 billion investment plan aimed at modernizing and expanding the country’s mineral sector.

  • Uzbekistan Signs Deals with US Firms for Critical Minerals Investment

    Uzbekistan Signs Deals with US Firms for Critical Minerals Investment

    Uzbekistan announced on Wednesday (April 9, 2025) that it has secured investment agreementswith U.S. companies to develop its minerals sector, as global demand for critical minerals continues to surge. These minerals—including copper, lithium, and cobalt—are vital for manufacturing high-tech products such as electric vehicles and solar panels.

    The move comes as both the U.S. and the European Union aim to reduce reliance on China, the world’s leading producer of critical minerals. A delegation from Uzbekistan’s government signed the agreements during meetings in Washington, according to the country’s trade ministry. The deals cover exploration, extraction, the production of grinding machinery, and training programs for Uzbek specialists.

    Central Asia, including former Soviet republics like Uzbekistan, has become a focal point for Western nations looking to diversify supply chains away from Russia and China. Uzbek President Shavkat Mirziyoyev has been pushing for economic liberalization after decades of isolation under his predecessor. In March 2025, he unveiled a $2.6 billion investment plan to boost the country’s mining and processing capabilities.

  • Uzbekistan’s AGMK Unveils Nation’s Largest Industrial Project in Copper Mining Sector

    Uzbekistan’s AGMK Unveils Nation’s Largest Industrial Project in Copper Mining Sector

    Uzbekistan’s Almalyk Mining and Metallurgical Complex (AGMK) recently hosted journalists on an exclusive press tour to showcase progress on the largest investment project in the country’s history, signaling a major leap in industrial development.

    The tour began at AGMK’s Engineering School, which trains specialists in geology, mining, metallurgy, and automation using methodologies from world-leading institutions like Germany’s Freiberg University of Technology. “We’re not just building factories—we’re cultivating the talent to run them,” said Behzod Salimov, the school’s director.

    Reporters then visited the Kalmakyr deposit, one of the world’s largest copper reserves, followed by the Yoshlik I mine, a gold-rich copper deposit spanning 4 km long and 235 meters deep. The site employs 400 heavy machines and has introduced an innovative conveyor system, cutting ore transport costs by 30%.

    A highlight was Copper Processing Plant No. 3, under construction since 2021 on a 200-hectare site. Once operational, it will process 60 million tons of ore annually, producing 894,000 tons of copper concentrate. Plans are also underway for Plant No. 4 and a new metallurgical complex, expected to create thousands of jobs.

    Tashkent Region Governor Zoir Mirzaev emphasized the project’s global significance, noting rising copper demand. AGMK Chairman Abdulla Khursanov added that the $multibillion investment is boosting Uzbekistan’s economic appeal, with several countries expressing interest in partnerships.

    The project is also spurring growth in auxiliary industries, including six new metalworks plants and a lime factory in Jizzakh to supply reagents.

    Sherzodkhon Kudratkhodja, head of Uzbekistan’s National Media Association, remarked: “This proves Uzbekistan can build its industrial future independently.”

  • Uzbekistan at a Crossroads: Balancing Critical Minerals Boom with Environmental Sustainability

    Uzbekistan at a Crossroads: Balancing Critical Minerals Boom with Environmental Sustainability

    Uzbekistan stands on the brink of a transformative opportunity as global demand for critical minerals— essential for clean energy and high-tech manufacturing — surges at an unprecedented rate. With vast reserves of gold, copper, lithium, and rare earth elements, the nation has the potential to become a major global supplier. However, history warns that such resource wealth can be a double-edged sword, bringing both economic growth and environmental risks.

    The global shift toward electric vehicles, renewable energy, and digital technologies has created an insatiable appetite for critical minerals. Already a top 10 gold producer in 2024 and a growing exporter of copper, Uzbekistan is well-positioned to capitalize on its untapped mineral wealth. If managed wisely, this sector could attract billions in investment, create jobs, and elevate the country’s global economic standing.

    Yet, the risks are significant. The so-called ‘resource curse’ — where resource-rich nations experience economic booms followed by environmental degradation, corruption, and instability — looms large. Uzbekistan faces pressing challenges, including transboundary water pollution from Kazakhstan’s industrial waste, which contaminates the Syr Darya River. Heavy metals, arsenic, and other toxins threaten agriculture, food security, and public health. Without strict safeguards, expanding mining operations could turn this golden opportunity into an ecological disaster.

    The Aral Sea crisis, one of Central Asia’s most infamous environmental catastrophes, serves as a stark reminder of the consequences of mismanaged industrial development. Once the world’s fourth-largest lake, the Aral Sea has shrunk to 10% of its former size due to unsustainable water diversions for cotton production. This disaster devastated local economies, destroyed biodiversity, and left behind toxic dust storms that continue to harm public health.

    To avoid a similar fate, Uzbekistan must adopt strategic policies and sustainable practices. Key measures include establishing binding agreements with Kazakhstan to regulate industrial waste, enforcing strict environmental standards for mining projects, and investing in modern, water-efficient technologies. Regional cooperation, scientific research, and public engagement will also be critical to ensuring long-term prosperity.

    The decisions made today will shape Uzbekistan’s economic future and environmental legacy. By prioritizing responsible resource management, innovation, and cooperation, Uzbekistan can lead Central Asia in sustainable mining while becoming a global supplier of critical minerals for the clean energy transition.

  • Uzbekistan and France Strengthen Economic Partnership Through Uranium Mining Initiatives

    Uzbekistan and France Strengthen Economic Partnership Through Uranium Mining Initiatives

    (Paris, France) – Uzbekistan and France are deepening their economic partnership, forging new trade agreements and collaborations that could reshape the energy landscape of Central Asia. French nuclear giant Orano signed a major agreement during President Shavkat Mirziyoyev’s state visit to Paris earlier this month, signifying a significant leap forward in uranium mining cooperation between the two nations.

    The details of the agreement, estimated to be worth billions of euros, remain undisclosed. However, sources indicate it involves Orano increasing its current uranium mining operations in Uzbekistan and potentially expanding into new areas. Uzbekistan, holding significant uranium reserves, is keen to develop its nuclear energy sector and position itself as a key supplier to international markets.

    This multi-million-euro deal builds on a series of agreements signed during President Mirziyoyev’s visit, totaling up to €12 billion in investments across diverse sectors like infrastructure, energy, and water management.

    “Uzbekistan views France as a key strategic partner in its drive to modernize its economy and transition towards cleaner energy sources,” said a senior Uzbek government official, speaking on condition of anonymity. “This partnership opens doors for significant technological transfer and investment in Uzbekistan’s nuclear sector.”

    French companies, including Suez and Orano, are already actively investing in Uzbekistan, contributing to key sectors like utilities and resource development. The France-Uzbekistan Chamber of Commerce, launched last year, further underscores the growing bilateral economic ties.

    Critics, however, raise concerns regarding the environmental and social impacts of expanding uranium mining operations in Uzbekistan. They call for greater transparency and stringent safety regulations to ensure responsible resource development and protect local communities.

  • Orano Launches Uranium Mining Project in Uzbekistan with Nurlikum Mining JV

    Orano Launches Uranium Mining Project in Uzbekistan with Nurlikum Mining JV

    French nuclear fuels company Orano announced on Wednesday that it will begin developing the South Djengeldi uranium mining project in Uzbekistan. This initiative is part of its Nurlikum Mining joint venture with Navoiyuran, Uzbekistan’s state-owned mining company. The project is expected to operate for over a decade, with peak production projected at 700 metric tons of uranium annually, according to Orano’s statement.

    In a significant development, Japan’s ITOCHU Corporation has acquired a minority stake in the joint venture. The partners plan to launch an exploration program aimed at at least doubling the joint venture’s mineral resources. This collaboration underscores the growing international interest in Uzbekistan’s uranium reserves and highlights the country’s strategic importance in the global nuclear energy sector.

    The South Djengeldi project marks a key step in Orano’s expansion efforts and strengthens its partnership with Uzbekistan, a country rich in uranium resources. The involvement of ITOCHU Corporation further enhances the project’s potential, bringing additional expertise and investment to the venture.