MINEX Forum

Website: Asia.com

  • Mongolia Anticipates Increased Returns from Revised Rio Tinto Agreement

    Mongolia Anticipates Increased Returns from Revised Rio Tinto Agreement

    Mongolia has announced that recent changes to the shareholders’ agreement with Rio Tinto regarding the Oyu Tolgoi Copper-Gold Project are expected to significantly enhance its financial returns, projecting an increase of approximately ₮13 trillion (around $5.07 billion). Prime Minister Nyam-Osoryn Uchral detailed these changes, which include reductions in management fees and lower interest rates on shareholder loans, as reported by MNB World, the international service of Mongolia’s national public broadcaster.

    The Mongolian government estimates that total project cost savings could reach around ₮30 trillion. This figure is composed of approximately ₮8 trillion saved from lower management fees and the elimination of overlapping costs, alongside ₮22 trillion from reduced interest on loans. These adjustments are part of a broader strategy to enhance the financial viability of the Oyu Tolgoi project, which is crucial for Mongolia’s economy.

    In a significant development, the parties have agreed to initiate dividend distributions starting in 2027, with ongoing discussions to finalise the arrangements. This update follows Rio Tinto’s announcement in June, which confirmed an agreement to adjust the interest rate on shareholder loans. Additionally, it referenced a preliminary agreement on management fees reached in May, as well as a commitment to expedite shareholder distributions.

    Rio Tinto currently holds a 66% stake in Oyu Tolgoi, while the Mongolian government owns the remaining 34% through the state-owned enterprise Erdenes Oyu Tolgoi. The underground expansion of the mine is progressing, with Rio Tinto aiming for an average copper production of approximately 500,000 tonnes annually from 2028 to 2036 across the entire project. Oyu Tolgoi is a pivotal copper and gold mining operation located in Mongolia’s South Gobi region, and these developments signal a positive trajectory for both the project and the country’s mining sector.

  • Samruk-Kazyna Reveals Valuation of ERG Stake Transfer

    Samruk-Kazyna Reveals Valuation of ERG Stake Transfer

    In a recent report published by Samruk-Kazyna, the state-owned fund of Kazakhstan, the valuation of a 40% stake in Eurasian Resources Group (ERG) has been set at 697.7 billion tenge. This information was disclosed on the Kazakhstan Stock Exchange, following the confirmation of the deal on 6 August 2026, although specific details were not initially available. The report outlines the mechanics of the transaction, indicating that the state, as the sole shareholder of the fund, compensated for the new shares issued by Samruk-Kazyna with the ERG stake instead of cash. This strategic move grants Samruk-Kazyna joint control over ERG, which is one of Kazakhstan’s largest mining companies, and the fund will classify ERG as a joint venture.

    The valuation of ERG’s assets and liabilities is still pending, with a 12-month timeframe allocated for completion. This development comes in the wake of significant changes in ERG’s ownership structure, particularly following the acquisition of 39.3% of ERG shares by Shakhmurat Mutalip from Patokh Shodiyev and the heirs of Alexander Mashkevich in May 2026. Mutalip, who is also the beneficial owner of Integra Construction KZ and a prominent figure in Kazakhstan’s boxing federation, is emerging as a key player in the mining sector, with discussions reportedly underway regarding the purchase of a 70% stake in Kazzink from Swiss company Glencore.

    Additionally, the appointment of Kudrat Shamiev as the new head of ERG’s Kazakhstan perimeter has been noted. Shamiev, who took over on 30 May 2026, has a background in development and infrastructure construction and has been associated with Mutalip’s structures since 2020. His leadership role in managing ERG’s Kazakhstan assets, including Kazchrome and the Kazakhstan Electrolysis Plant, positions him as a significant figure in the industry. This reshuffling of ownership and management within ERG underscores the dynamic nature of Kazakhstan’s mining sector, as influential stakeholders continue to shape its future.

  • Investment in Kyrgyzstan’s Mining Sector Surges to $246 Million

    Investment in Kyrgyzstan’s Mining Sector Surges to $246 Million

    Investment in Kyrgyzstan’s mining sector has seen a remarkable increase, rising 2.2 times to reach $246 million, according to recent reports. This surge was highlighted during a business meeting held on September 14 in Bishkek, where representatives from British engineering, technology, and consulting firms met with Kumtor Gold Company. The event, organised by the British Embassy in the Kyrgyz Republic, aimed to foster collaboration between local and international companies in the mining industry.

    The meeting brought together various firms engaged in geological exploration, mineral processing, tailings management, water resource management, environmental safety, and mining equipment production. British companies showcased their technologies and industry solutions, discussing their potential application in the operations of Kumtor Gold Company and outlining future cooperation opportunities.

    Daniel Maniyazov, an expert from the International Business Council, provided insights into the current investment climate and recent developments in Kyrgyzstan’s mining sector. He presented information regarding the country’s mineral resource base, active deposits, licensing system, and the dynamics of investment in critical minerals. The discussion also focused on the necessary conditions to attract long-term investments and implement new projects.

    Official data indicates that Kyrgyzstan is home to 1,020 deposits containing reserves of 51 types of minerals. As of 28 August 2026, there are 1,975 active licenses registered in the Unified Electronic Register of Subsoil Use. The National Statistical Committee reported a significant increase in investment activity within the mining sector, with direct foreign investments in mineral extraction amounting to $246.3 million in 2025, a substantial rise from $109.7 million in 2024.

    Participants also explored opportunities presented by the Kyrgyzstan Critical Minerals Development Programme, which aims to enhance the sector by 2030. The potential for investors extends beyond extraction to include geological exploration, laboratory research, processing technologies, equipment supply, energy, and logistics.

    During the discussions, it was emphasised that transforming the country’s geological potential into sustainable investment projects requires predictable regulations, transparent licensing procedures, modern infrastructure, and responsible resource management. The meeting concluded with discussions on potential areas of collaboration, the application of modern technological solutions in Kyrgyzstan’s mining sector, and the prospects for new investment projects.

  • Anglo Asian Mining’s Strategic Shift: Transitioning from Gold to Copper in Azerbaijan

    Anglo Asian Mining’s Strategic Shift: Transitioning from Gold to Copper in Azerbaijan

    Anglo Asian Mining (LSE:AAZ) is embarking on a significant transformation as it pivots its production focus from gold to copper concentrate, a move that is both ambitious and fraught with challenges. The company has been operating under production sharing contracts in Azerbaijan, where it has established a foothold in gold mining. However, as its gold operations mature and production grades decline, Anglo Asian is now looking to copper deposits within its expanded licence areas as a foundation for future growth.

    The shift in production strategy is not merely a change in output; it represents a fundamental reorientation of the company’s business model. The new contract areas awarded to Anglo Asian have broadened its operational footprint, with key copper deposits such as Demirli and Gilar at the centre of this transition. To successfully bring these copper assets into production, the company must invest in processing facilities that are tailored to copper extraction rather than gold, marking a significant capital commitment.

    This transition comes at a time when copper prices are reaching record levels in London, driven by increasing demand from sectors such as electrification and data centre construction, which could provide a favourable market environment for Anglo Asian’s new copper concentrate. Additionally, the company’s legacy gold operations continue to contribute positively, allowing for a smoother transition as both gold and copper markets remain robust.

    However, the geopolitical landscape of Azerbaijan presents unique challenges for Anglo Asian. The country is not typically viewed as a mainstream mining jurisdiction, which can lead to a discount on the company’s shares despite operational advancements. Furthermore, as a smaller player on the London market, Anglo Asian faces issues related to liquidity and research coverage, making the execution of its copper transition plan critical for altering market perceptions.

    Investors are closely monitoring Anglo Asian Mining as it navigates this pivotal moment, with project milestones and broader commodity price trends playing a crucial role in shaping the company’s future. The successful execution of its copper strategy could not only enhance production capabilities but also improve investor sentiment and valuation in a competitive mining landscape. As the company continues to update stakeholders on its progress, each development will be scrutinised for its potential impact on the overall investment thesis.

  • UMCC Plans $70 Million Investment to Enhance Operations Amid Regulatory Challenges

    UMCC Plans $70 Million Investment to Enhance Operations Amid Regulatory Challenges

    The United Mining and Chemical Company (UMCC) is set to draw approximately $70 million from NEQSOL Holding B.V. over the next two years, contingent on improvements in the regulatory environment. Since its privatisation in October 2024, UMCC has invested over UAH 2 billion in operational and capital improvements, with plans to reach breakeven by 2028. However, the company faces significant hurdles, particularly export restrictions on rutile and zirconium concentrates, which have hindered its ability to sell approximately 50% of its gross value products on international markets.

    Rishad Aliyev, head of investor relations at NEQSOL Holding and UMCC’s first deputy general director, reported that production levels have surged since privatisation, with output in the first half of 2026 surpassing 84% of the total output for 2025. The company has successfully regained customers in the U.S., Mexico, and EU nations. Nevertheless, Aliyev noted that UMCC has lost around $35 million in foreign currency revenue due to the inability to export its main products, which could have been reinvested into production upgrades and capacity expansion.

    The lifting of export restrictions is crucial not only for UMCC’s revenue but also for NEQSOL Holding’s participation in the upcoming auction for the Demurinsky mining and processing plant, scheduled for October 20. Dmytro Nataluha, head of the State Property Fund, acknowledged that new controls imposed after privatisation have negatively impacted UMCC’s investment appeal, as the conditions under which it was purchased have changed.

    In addition to regulatory challenges, UMCC is grappling with logistical issues in exporting products from its Vilnohirsk mining and metallurgical plant (VMMP) to the U.S. Ongoing shelling and disruptions along the Odesa route have forced the company to explore alternative shipping options via rail to Romania or Poland, incurring significant additional costs. Operations director Valeriy Zakharenko highlighted that these logistical challenges have doubled transportation costs, effectively erasing profit margins.

    Other operational challenges include a shortage of skilled workers, proximity to conflict zones, and rising electricity costs. CEO Dimitri Kalandadze emphasised the need for stabilising production and modernising operations, with a strategic shift from exporting raw materials to producing higher value-added products in Ukraine. The company is also preparing to commence extraction at the “Phase II” section of the Yurske deposit in Zhytomyr region, while continuing operations at three quarries in “Phase I.”

    Despite a 34.8% increase in revenue to UAH 1.1171 billion in the first half of 2026, UMCC’s net loss has grown 2.5-fold year-on-year to UAH 745.4 million. The previous year, the company reported a net loss of UAH 2.1182 billion, a stark contrast to a net profit of UAH 17.1 million in 2024. Aliyev attributed the negative financial results for 2025 to the transition to international financial accounting standards and the write-off of certain liabilities. UMCC, which operates two branches in Dnipropetrovsk and Zhytomyr regions, focuses on open-pit titanium ore mining and the production of titanium ore concentrates.

  • AzerGold and Kyrgyzaltyn Explore Collaborative Opportunities in Mining Sector

    AzerGold and Kyrgyzaltyn Explore Collaborative Opportunities in Mining Sector

    In a significant move towards enhancing bilateral relations in the mining sector, Zakir Ibrahimov, Chairman of the Executive Board of AzerGold CJSC, and Kubat Abdraimov, Chairman of the Board of Kyrgyzaltyn OJSC, convened in Bishkek on September 14, 2026. This meeting was part of a business delegation from AzerGold to the Kyrgyz Republic, aimed at discussing the prospects of cooperation following a Memorandum of Cooperation signed on July 31, 2026, during the third meeting of the Intergovernmental Council between Azerbaijan and Kyrgyzstan.

    The discussions centred around the potential for joint projects and the development of mutually beneficial cooperation in the mining sector. Ibrahimov highlighted the strong ties between Azerbaijan and Kyrgyzstan, which have been reinforced under the leadership of both nations’ heads of state, creating a conducive environment for expanding economic relations, particularly in mining.

    During the meeting, AzerGold shared insights into its expertise in geological exploration, mineral resource assessment, and mining processes. The delegation also provided updates on ongoing geological exploration activities in Azerbaijan’s liberated Karabakh and Eastern Zangazur regions, showcasing the application of advanced exploration techniques, including airborne electromagnetic methods.

    AzerGold’s strategic priority of expanding international operations was underscored, with the company actively seeking opportunities for joint mining and geological exploration projects across Central Asia. Ibrahimov expressed readiness to collaborate on the exploration and development of gold and other mineral deposits, emphasising the use of advanced geological research methods.

    Kubat Abdraimov outlined the recent reforms in Kyrgyzstan’s mining industry, noting that it has emerged as one of the leading sectors of the national economy. He detailed the significant steps taken since 2020 to attract investment and enhance international cooperation, which have bolstered the operational capabilities of Kyrgyzaltyn OJSC.

    The dialogue between the two leaders also included discussions on establishing joint ventures for prospective deposits, exploring investment models, and assessing geological exploration results in line with international standards. Both parties acknowledged the potential for new collaborative projects and agreed to continue discussions on areas of mutual interest to further strengthen their partnership in the mining sector.

  • Kumtor Gold Company Launches Kyrgyzstan’s First Tire Recycling Plant

    Kumtor Gold Company Launches Kyrgyzstan’s First Tire Recycling Plant

    Kumtor Gold Company has officially inaugurated a tire recycling plant in Tokmok, Chuy region, Kyrgyzstan, marking a significant step in the country’s industrial development. The launch ceremony, which took place via video link with President Sadyr Japarov, emphasised the importance of enhancing Kyrgyzstan’s industrial potential and creating new job opportunities in the region. This facility, which began operating in test mode in August 2023, is the only one of its kind in the country, equipped with modern European machinery designed for the recovery and recycling of used automobile tires.

    The plant’s main goal is to mitigate the environmental impact of discarded tires, a growing concern given that nearly 2 million vehicles are registered in Kyrgyzstan, with an average tire lifespan of 4 to 6 years. The facility includes a workshop dedicated to recycling used tires and another for tire retreading, with the capacity to produce up to 6,000 tons of rubber crumb annually when operating at full capacity. This rubber crumb can be repurposed into various products, such as rubber tiles, mats, and impact-absorbing surfaces for sports and playgrounds.

    In addition to recycling, the plant has expanded its operations to include tire retreading, which began in early 2025. Retreaded tires are currently undergoing testing on heavy mining equipment at the Kumtor mine, showcasing the potential for integrating recycled materials into the mining industry. Furthermore, the plant has obtained a license for waste disposal and recycling, allowing it to offer paid tire disposal services, thereby enhancing its role in environmental sustainability.

    The establishment of this tire recycling plant not only addresses the pressing issue of tire waste but also contributes to the local economy by creating jobs and fostering the use of recycled materials in manufacturing. As Kyrgyzstan continues to develop its industrial capabilities, initiatives like this are crucial for promoting sustainable practices and reducing environmental pressures associated with waste management.

  • Tау-Кен Самрук Reports Significant Profit from Sale of Северный Катпар

    Tау-Кен Самрук Reports Significant Profit from Sale of Северный Катпар

    In a remarkable financial performance, Тау-Кен Самрук has reported a profit of 111.4 billion tenge for the first half of 2026, a figure that is double compared to the same period last year. A significant portion of this profit, amounting to 55.2 billion tenge, was generated from the sale of 70% of Северный Катпар, a project focused on the development of tungsten deposits. This transaction highlights the growing importance of tungsten, a strategically vital raw material in various industrial applications.

    The sale was executed at a fixed contractual price of 38.1 billion tenge, with an initial payment of 11.4 billion tenge received immediately. The remaining 40.8 billion tenge is expected to be paid later as part of the deal. Тау-Кен Самрук has retained a 30% stake in Северный Катпар, which has been valued at 16.2 billion tenge. The company also factored in the net asset value of Северный Катпар, which stands at 13.2 billion tenge, excluding any liabilities, to arrive at the reported profit from this transaction.

    The strategic significance of this sale cannot be understated. Tungsten is increasingly sought after in the industrial sector, making the development of such deposits crucial for both Тау-Кен Самрук and the broader mining industry. The successful execution of this deal not only bolsters the financial standing of Тау-Кен Самрук but also reinforces its position in the competitive mining landscape, particularly in the context of resource management and investment in critical minerals.

    As the mining sector continues to evolve, the ability to leverage valuable assets like Северный Катпар will be vital for companies aiming to maximise profitability and ensure sustainable growth. Тау-Кен Самрук’s recent achievements serve as a testament to the potential rewards of strategic asset management in the mining industry.

  • Kazakhmys Invests Over 214 Million Tenge in Modernisation of Karagayly Enrichment Plant

    Kazakhmys Invests Over 214 Million Tenge in Modernisation of Karagayly Enrichment Plant

    Kazakhmys has announced an investment of 214.7 million tenge towards the modernisation of the administrative and living quarters at the Karagayly enrichment plant. This initiative is part of a broader programme aimed at upgrading production infrastructure and enhancing working conditions for employees, as reported by Toppress citing the corporation’s press service.

    The renovation project, which commenced on July 2, 2026, encompasses a total area of 1,326 square metres. It includes comprehensive updates to the facility, covering everything from internal spaces to the facade, roofing, and engineering systems. At this stage, the roofing has been completely replaced, and wooden structures have been treated with fire and biological protective compounds. The facade has been clad with metal siding, and new PVC windows have been installed.

    Internally, the second floor has undergone a reconfiguration, with old wall, floor, and ceiling finishes removed, and new plaster applied to the surfaces. In the sanitary areas and showers, tiling is currently being laid, and bimetallic radiators have been installed. Key external works, including roof repairs and glazing, were completed in August, and facade finishing has now begun. The internal finishing of the first floor and the construction of concrete walkways are ongoing.

    In parallel, the surrounding area has also been improved, with the asphalt covering of the road from the checkpoint to the administrative building being renewed. The entire complex of works is expected to be completed by the end of 2026.

    Kazakhmys has indicated that a total of 2.44 billion tenge has been allocated this year for the renewal of administrative and living infrastructure, which includes renovations of dormitories, health posts, canteens, laboratories, and other facilities. The Karagayly enrichment plant is part of the Qaragayly Tau-ken ondirisi structure and processes polymetallic ores from the Abyz, Akbastau, and Khadzhikonkan deposits, with an annual production capacity of 1.4 million tonnes of ore, primarily producing copper and pyrite concentrates.

  • Azerbaijani Delegation Explores Altynken Gold Mine and Refinery in Kyrgyzstan

    Azerbaijani Delegation Explores Altynken Gold Mine and Refinery in Kyrgyzstan

    Azerbaijan’s mining sector is poised for growth following a recent visit by a delegation led by Zakir Ibrahimov, Chairman of the Executive Board of AzerGold CJSC, to the Altynken gold mine and refinery in Kyrgyzstan. This visit, which took place on September 14, 2026, is part of a broader initiative to strengthen ties and enhance cooperation between the two countries in the mining industry.

    During their tour of the Altynken gold mine, located in the Chuy Region, the Azerbaijani delegation was briefed on the mine’s operations and production infrastructure. The team learned about the critical processes involved in gold mining, including the transportation of ore from the open pit to processing facilities. The mine, which has been operational since 2016, is a joint venture between Kyrgyzaltyn and Zijin Mining, a leading Chinese mining company.

    The delegation’s visit included an in-depth examination of the ore processing technology and industrial safety standards employed at the mine. This exchange of knowledge is crucial for both parties as they seek to implement modern technologies and improve their operational efficiencies. The discussions highlighted the importance of collaboration in the gold production and processing sectors, with both sides eager to share expertise and explore new opportunities for partnership.

    Following the mine tour, the delegation proceeded to the Kyrgyzaltyn gold refinery in Kara-Balta. Here, they were introduced to the refinery’s production infrastructure, technological processes, and quality control systems. The visit provided insights into the rigorous safety standards and environmental requirements that govern the refinery’s operations.

    The delegation observed the gold bullion production area and the various stages of the manufacturing process, ensuring that the products meet stringent quality and safety standards. The discussions at the refinery further reinforced the commitment to advancing production technologies and enhancing cooperation between AzerGold and Kyrgyzaltyn.

    This visit was conducted under the auspices of a Memorandum of Cooperation and Interaction signed between AzerGold CJSC and Kyrgyzaltyn OJSC, signalling a promising future for collaboration in the mining sector between Azerbaijan and Kyrgyzstan.