Website: Asia.com

  • Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    At the annual meeting with his Government on 28 January 2025 Kazakhstan’s President Kasym-Jomart Tokayev has outlined the country’s commitment to strengthening its mining sector, with a particular focus on rare and rare-earth metals, including lithium. The global demand for these resources is on the rise, and Tokayev emphasised that Kazakhstan must seize this opportunity by attracting both foreign investment and advanced technologies.

    “Our country has great potential for the extraction and processing of rare and rare-earth metals,” said Tokayev. “The growing global demand for lithium presents a significant opportunity, and we must position ourselves to capitalise on this trend.”

    Kazakhstan has already seen the arrival of major foreign companies engaged in geological exploration. Additionally, a unified platform has been launched to facilitate the transparent and efficient distribution of subsoil use rights, which will further streamline and modernise the mining industry. President Tokayev stressed that the legal framework for this platform should be fully established by the end of the current parliamentary session.

    “Reforms in the area of subsoil use must continue, no matter the circumstances,” he continued. “This is a fundamental position that the government must steadfastly adhere to.”

    With its vast mineral resources, Kazakhstan is positioning itself as a key player in the global mining market, and these efforts to modernize and open up the industry aim to attract both international and domestic investors. The government’s commitment to these reforms underscores its focus on creating a more efficient, transparent, and competitive mining sector in the years to come.

  • Kazakhstan Turns to Nuclear Energy to Power Future Growth

    Kazakhstan Turns to Nuclear Energy to Power Future Growth

    In a meeting with his Government on 28 January 2025, Kazakhstan’s President Kasym-Jomart Tokayev emphasised the critical need for the country to achieve full self-sufficiency in electricity and establish reserves of 15-20%. To meet this goal, the government plans to introduce at least 3 gigawatts of new power capacity over the next two years, a target nearly 2.5 times higher than previous years.

    President Tokayev reaffirmed the country’s commitment to achieving carbon neutrality, stressing the importance of a rational approach that leverages Kazakhstan’s natural resources and inherent advantages. Innovative coal-fired power stations are set to replace outdated thermal power plants (TPPs), following the successful examples of next-generation coal-fired power stations with minimal emissions in China and South Korea. The President noted the missed opportunity of the unbuilt coal-fired power plant in Balkhash, which would have been a valuable energy source today.

    Amid growing energy shortages, President Tokayev called for the acceleration of the construction of Kazakhstan’s first nuclear power plant and the establishment of a nuclear cluster. He tasked the government and “Samruk-Kazyna” with developing long-term plans for the nuclear industry, including identifying suitable locations for future nuclear power plants and adopting modern, safe technologies.

    President Tokayev expects proposals from the government and Parliament regarding the site for the second nuclear power plant, reiterating the necessity of nuclear energy for Kazakhstan’s continued development. He emphasized that energy is the driving force of the entire economy, and only by ensuring energy supply to all regions can the country achieve prosperity and improve the quality of life for its citizens.

  • Zangezur Copper and Molybdenum Plant Remains Armenia’s Top Taxpayer

    Zangezur Copper and Molybdenum Plant Remains Armenia’s Top Taxpayer

    Yerevan, Armenia – Zangezur Copper and Molybdenum Plant (ZCMC) has solidified its position as Armenia’s largest taxpayer for the third year in a row, according to the latest data released by the State Revenue Committee. The company’s contributions to the state treasury reached an impressive 102 billion AMD in 2024, a significant 44% increase compared to the previous year.

    ZCMC’s tax payments included 2.2 billion AMD in customs duties, 30.2 billion AMD in direct taxes (including profit tax and income tax), and 2.7 billion AMD in indirect taxes (including VAT and excise tax).

    Mobile Center Art climbed to second place in the ranking, with a total tax contribution of 66.7 billion AMD, a 21% year-on-year increase. Grand Tobacco secured the third position with 63.3 billion AMD in tax payments, up 31% from the previous year.

    Gazprom Armenia and Pretty Way LLC (Vesta) rounded out the top five, contributing 46.5 billion AMD and 36.3 billion AMD respectively.

    The top five taxpayers collectively contributed 315.4 billion AMD ($795.3 million) to the state budget in 2024, demonstrating a 24.1% increase compared to 2023.

    Other notable companies in the top ten include CPS Energy Group, Ameriabank, Wildberries, International Masis Tabak, and JTI Armenia.

    Overall, the 1,000 largest taxpayers in Armenia paid a total of 1.772 trillion AMD ($4.4 billion) to the state treasury in 2024, representing a 3.6% rise from the previous year.

    This continued strong performance from major taxpayers, particularly ZCMC, highlights their crucial role in supporting Armenia’s economy and public finances.

  • Kazatomprom Increased Uranium Production in 2024

    Kazatomprom Increased Uranium Production in 2024

    January 27, 2025, 14:51 / Astana, Kazakhstan 

    Kazatomprom, the world’s largest producer of uranium, announced a 10% increase in its production of uranium oxide (U3O8) in 2024, reaching 23,270 tonnes.

    The company attributed this growth to an expansion of its mining plans in accordance with its agreements for exploration and resource use rights. However, despite the rise in production, Kazatomprom’s sales declined by 8% to 16,670 tonnes in 2024, as the company prioritized supplying its subsidiary Uranium Mining & Fuel Company (“Ulbas-TVS”) with uranium for the production of nuclear fuel assemblies (NFAs).

    The average selling price of uranium increased significantly by 27% to $69.72 per pound in 2024 compared to $55.09 per pound in 2023, fueled by higher spot uranium prices. Spot prices averaged $85.24 per pound in 2024, a 36% increase from $62.51 per pound in 2023.

    Ulbas-TVS Expansion:

    Ulbas-TVS, a joint venture between Kazatomprom and Chinese company CGNPC-URC, reached its projected production capacity of 200 tonnes of NFAs per year in early January. The company aims to potentially increase production to 400 tonnes per year with a two-shift operation. All NFAs produced by Ulbas-TVS are destined for use in nuclear power plants in China.

    Mining Stoppage Resumes:

    Kazatomprom also announced the resumption of uranium mining at the Inkai joint venture (60% Kazatomprom, 40% Cameco) after a temporary suspension in January. The suspension was due to a delay in receiving the necessary documentation from relevant authorities to continue mining operations at the Inkai, Block 1.

    2025 Production Expectations:

    For 2025, Kazatomprom expects to produce 25,000 to 26,500 tonnes of uranium, with sales estimated between 17,500 and 18,500 tonnes. The company acknowledges that the production levels of some mining sites may be influenced by revisions to their resource use agreements.

    The company intends to release its financial outlook for 2025 as part of its 2024 financial performance analysis. Kazatomprom produces about 20% of global uranium demand.

    The market has yet to react to Kazatomprom’s production data release. As of the article’s publication, shares of the uranium producer on the Kazakhstan Stock Exchange (KASE) were trading at 19,842.88 tenge, down 0.54%. As of October 1, 62.99% of Kazatomprom’s shares were owned by Samruk-Kazyna, 24.32% by CITINAK, NA.-NY (F/B/O DR HOLDERS, nominee holder), and 12.01% by the Ministry of Finance of the Republic of Kazakhstan.

  • Cameco Resumes Uranium Production at Inkai JV in Kazakhstan

    Cameco Resumes Uranium Production at Inkai JV in Kazakhstan

    Cameco (TSX: CCO; NYSE: CCJ) has resumed uranium production at its Inkai joint venture project in Kazakhstan, following a temporary suspension due to regulatory delays. Kazatomprom, Kazakhstan’s state-owned uranium producer, made the announcement on Monday, confirming that the Inkai LLP operation has successfully resolved the issue that caused the disruption.

    On January 1, production activities at Block No. 1 of the Inkai deposit were halted after the required approvals from state authorities were not received on time. This delay was attributed to the late submission of necessary documentation.

    The Inkai joint venture is a significant player in Kazakhstan’s uranium industry, with Cameco holding a 40% stake and Kazatomprom controlling the remaining 60%. It is the largest uranium operation in the country.

    Kazatomprom has stated that operations at Inkai LLP have now resumed, and the company is currently assessing the impact of the suspension on the joint venture’s 2025 production goals. However, Kazatomprom reassured stakeholders that the company remains committed to meeting its contractual obligations and has sufficient inventory to manage deliveries throughout 2025 without significant disruption.

    The company’s production forecast of 65–68.9 million tonnes of uranium oxide (U3O8) remains intact, according to earlier projections from BMO Research. Inkai’s contribution to Kazakhstan’s total production is expected to reach 9.3 million pounds of uranium this year, accounting for 14% of the country’s total output and 16% of Cameco’s global production.

    Following the news, Cameco’s stock price dropped by 12% to $49.25 per share on Monday morning, bringing its market capitalization to $21.4 billion. Meanwhile, Kazatomprom’s shares declined by 1.7%, closing at $37.20, with a market cap of $10.2 billion.

    Both companies continue to navigate the challenges posed by regulatory delays but remain focused on maintaining steady uranium production moving forward.

  • Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    Kazakhmys Signs New Collective Agreement with Enhanced Social Protection for Workers

    On January 22, 2025, LLP “Kazakhmys Corporation” officially signed a new collective agreement for 2025-2029. This new document not only incorporates proposals from company management and unions, but also directly considers the wishes of the employees. The 2025-2029 collective agreement is aimed at strengthening employee social protection and developing corporate social policy.

    One of the key achievements is the substantial expansion of support measures for workers and their families. Many of the changes were initiated by the company itself, highlighting its commitment to investing in employee welfare. Among the innovations of the collective agreement are a fivefold increase in childbirth benefits compared to the previous agreement. Similar benefits are provided for employees entering into marriage. New support measures have also been introduced for workers, including those raising children with special needs.

    Nurakhmet Nuriev, Chairman of the Board of LLP “Kazakhmys Corporation”, emphasized that this is not just a corporate document, but the result of extensive diligent work and complex discussions based on a deep understanding of the situation and analysis of internal operations. The signing of the new collective agreement will qualitatively elevate employee well-being to a new level, providing additional social protection for employees and their families.

    “We are all one big team, and each of us is interested in ensuring that people work in safe conditions. Safety is our number one priority. The second priority is employee social protection. The third is the productivity of enterprises, which supports the economy and upholds all the good initiatives we are laying out today,” stressed Nurakhmet Nuriev.

    The company also emphasized the importance of cooperation with trade unions, which played a significant role in the development of the new agreement. Their contribution to supporting social stability and increasing employee awareness of labor rights will continue to be strengthened.

    According to the union leaders, this document is one of the best in recent years, as it emphasizes the employer’s increased social responsibility and takes into account the proposals of unions and direct wishes from the employees themselves.

    The new collective agreement reflects Kazakhmys’ commitment to being a socially responsible employer and lays the foundation for the company’s sustainable development in the future.

    In addition to the innovations of the collective agreement itself, Kazakhmys is allocating significant financial resources to implement other social programs. For example, from 2025, employees working under normal conditions will be included in the existing voluntary health insurance. Also, this year, more than 200 service apartments will be donated to employees. Furthermore, specific categories of employees will receive targeted social assistance. Funds are also being allocated for the rehabilitation of children with disabilities.

  • The Dark Price of Coal: Environmental Impact at Kara-Keche

    The Dark Price of Coal: Environmental Impact at Kara-Keche

    Kyrgyzstan’s Kara-Keche coalfield, located in the Naryn region, has become a critical energy resource but at a devastating environmental cost. Once home to clear glacial streams, lush pastures, and thriving pine forests, the area now battles blackened waters, waste-clogged gorges, and shrinking green spaces. Villagers from Baizak and Bash-Kuugandy report that pastures have drastically deteriorated, water sources have become blocked or contaminated, and coal waste is being improperly disposed of in critical areas. Despite raising these issues with authorities for years, local residents have seen little to no action.

    Environmental studies reveal troubling results. A 2022 analysis found toxic substances in the water, and landslides triggered by mining operations have compounded the destruction, burying roads, streams, and infrastructure. In recent years, illegal dumping and neglect of environmental protocols have exacerbated the situation. Villagers allege that the Kara-Keche branch of the state enterprise Kyrgyzkomur, alongside private companies like Sharbon and Akzhol, fail to comply with safety and restoration requirements outlined in Kyrgyzstan’s environmental laws.

    Conflicts between economic development and ecological preservation are starkly visible here. While Kara-Keche contributes significantly to Kyrgyzstan’s coal production—over one million tons annually—the unchecked mining has displaced local communities and threatened their livelihoods. Complaints to the Environmental and Technical Supervision Service have been met with limited responses due to a government decree banning business audits, further weakening oversight.

    The area also grapples with political and social tensions. A history of conflicts includes landslides, armed confrontations, and allegations of corruption. In one instance, a massive landslide in 2020 caused severe disruption, isolating roads and power lines, while other incidents have highlighted the lack of adherence to safety measures. Despite promises of reforms and fines for mining companies, the damage continues unabated.

    As Kara-Keche’s coal reserves—estimated at 400 million tons—are extracted, the toll on the environment and local populations raises urgent questions about sustainability. The residents demand stricter enforcement of regulations and restoration of the damaged ecosystem to ensure the preservation of Kyrgyzstan’s natural resources for future generations.

  • Brother Gold Plans Mineral Exploration at Kerimbek Deposit in Zhetysu Region

    Brother Gold Plans Mineral Exploration at Kerimbek Deposit in Zhetysu Region

    Brother Gold, a company owned by Chinese citizen Huang Ling, has announced plans for geological exploration of solid minerals at the Kerimbek deposit in Kazakhstan’s Zhetysu region. Scheduled from 2025 to 2027, the work will involve cleaning old mine workings and drilling 2,000 meters of wells during the warm season from April to October.

    The exploration area spans 29 square kilometers in the Kerbulak district, with wells targeting depths of 50 to 100 meters to assess ore potential. Power for operations will be supplied by diesel generators, consuming approximately 54.2 tons of fuel.

    Brother Gold, founded in 2023 and based in Almaty, focuses on precious and rare metal mining. The exploration aligns with broader efforts to reduce Europe’s dependence on China for critical materials, as the EU works to diversify its supply chain through partnerships in Central Asia.

    EU programs aim to decrease reliance on China for resources like lithium and cobalt, critical for electric vehicles and dual-use goods. By partnering with Kazakhstan and neighboring countries, the EU seeks to cut China’s share in its material needs to 50% by the coming years.

  • Cargo Handling Company to Prospect for Minerals in Kazakhstan

    Cargo Handling Company to Prospect for Minerals in Kazakhstan

    A transportation and cargo processing company, CTG, is planning to explore solid mineral resources in the Karaganda region. The district akimat (local administration) intends to establish a public servitude (limited land use right) for more than five years. The corresponding draft resolution has been published on the “Open Regulatory Legal Acts” website, with public discussion set to continue until February 3rd.

    The servitude will be established on a 216.0048-hectare plot located in the Zhansary rural district of Osakarov district. CTG will be permitted to conduct mineral exploration operations until September 24, 2030. Notably, no relevant licenses are currently visible on the eLicense.kz portal.

    While the specific minerals CTG plans to explore for remain undisclosed, the Osakarov region is known to have deposits of coal, marble, limestone, and construction materials. The broader Karaganda region is rich in manganese, copper, tungsten, molybdenum, lead, and coal.

    This move by a cargo handling company into mineral exploration has raised some eyebrows. It remains to be seen what resources CTG hopes to uncover and how this venture will impact their existing operations.

  • U.S. Eyes Caucasus, Central Asia, and Ukraine for Critical Minerals

    U.S. Eyes Caucasus, Central Asia, and Ukraine for Critical Minerals

    As the global race for critical minerals heats up, the United States is seeking to shift away from its heavy reliance on China for the resources essential to defense, technology, and energy sectors. China’s dominance in the refining and processing of these minerals—vital for everything from high-tech electronics to renewable energy—has made the U.S. vulnerable to geopolitical risks and supply chain disruptions. But new opportunities are emerging in unexpected regions that could help break the U.S. free from this dependence: the Caucasus, Central Asia, and Ukraine.

    The Trump administration, aware of China’s strategic chokehold over critical minerals, prioritized diversifying the U.S. supply chain—a stance that is likely to continue under the new administration. These regions, rich in untapped reserves of rare earths and other vital minerals, offer not only a wealth of resources but also a unique geopolitical advantage. With countries like Kazakhstan, Ukraine, and Tajikistan actively courting foreign investment and pursuing economic reforms, the door is open for the U.S. to forge new, mutually beneficial partnerships.

    China’s stranglehold over the global mineral market is a critical concern. By controlling 90% of the world’s rare earths and 100% of graphite, Beijing can exert enormous influence on global supply chains, even leveraging these resources as political weapons. The U.S. already imports more than half of its critical mineral needs, and recent export controls imposed by China on key materials like germanium and gallium underscore the dangers of such a concentrated supply chain. Washington’s efforts to reshore mining capabilities and diversify suppliers must now include these promising regions, which offer not only raw materials but also logistical advantages for getting those materials to market.

    Why the Caucasus, Central Asia, and Ukraine? These regions are sitting on vast, largely unexplored reserves of rare earths and other minerals crucial for industries like defense, aerospace, and green energy. Kazakhstan, for instance, is already the world’s largest producer of uranium and has rich deposits of titanium, zinc, and gold. Ukraine boasts one of Europe’s largest titanium reserves, essential for defense and aerospace manufacturing. Countries like Kyrgyzstan and Tajikistan are also rich in resources like antimony, with U.S. companies already involved in extraction projects.

    Geopolitically, these regions hold a unique position at the crossroads of Europe, Asia, and the Middle East, making them ideal transit points for minerals destined for global markets. The rise of the Middle Corridor, a new trade route that bypasses Russia and China, has further solidified the Caucasus and Central Asia as key players in the global mineral supply chain.

    But to capitaliыe on this opportunity, the U.S. must support infrastructure development, technology transfer, and logistical cooperation to make these regions more competitive and sustainable. American firms have the expertise and resources to help modernize outdated mining practices, improve environmental standards, and boost efficiency, while the U.S. government can facilitate partnerships through funding and diplomatic support.

    These partnerships could offer a major strategic advantage, reducing U.S. reliance on Chinese mineral processing and strengthening regional stability through investment. In a world where mineral access is increasingly weaponized, this diversification effort could secure vital resources for the U.S. economy and defense sector, ensuring greater global resilience in the face of geopolitical tension.

    As tensions with China escalate, the U.S. has no choice but to look beyond traditional suppliers. By investing in these resource-rich regions, the U.S. not only reduces its dependency on Beijing but also helps foster stability and economic growth in countries eager to diversify their own economies. The next chapter of the critical minerals race may well be written in the mountains and plains of Central Asia, the Caucasus, and Ukraine—regions once overlooked but now poised to play a key role in the global supply chain.