MINEX Forum

Website: Eurasia.com

  • North American Uranium Stocks Surge Following Kazatomprom’s Disappointing Production Outlook

    North American Uranium Stocks Surge Following Kazatomprom’s Disappointing Production Outlook

    Uranium-focused investors in North America are rapidly investing in uranium mining companies after the world’s largest producer, Kazatomprom, released production guidance that fell short of market expectations. Shares in North American uranium miners are experiencing a significant rise in premarket trading after Kazakhstan’s state-owned uranium company announced it would produce between 25,000 tons to 26,500 tons of uranium next year. Although this is an increase compared to 2024 levels, analysts note that it falls short of the company’s subsoil use agreements in Kazakhstan.

    Adam Rodman, founder of Segra Capital Management, commented on Friday that this revised outlook brings the entire production curve down for several years, describing it as a “miss.” Rodman indicated that as a result, he would be increasing investments in North American uranium miners, including companies like NexGen Energy Ltd., where Segra Capital already holds shares.

    US-listed uranium stocks have already begun to soar in response. Cameco Corp. shares rose by as much as 7.2% in premarket trading, NexGen Energy’s US shares surged by nearly 13%, and Uranium Energy Corp. approached a 10% increase.

    Rodman also pointed out that Kazatomprom’s low production guidance might require the company to seek regulatory approval to downgrade its production targets for the year at several key sites. Despite Kazatomprom’s guidance suggesting a 7.1 million pound “ramp-up,” BMO Capital Markets analyst Alexander Pearce noted that the uranium market is expected to remain in a deficit.

  • Navoi Mining and Metallurgical Combine Implements Bacterial Leaching Technology to Extract More Uranium

    Navoi Mining and Metallurgical Combine Implements Bacterial Leaching Technology to Extract More Uranium

    The Navoi Mining and Metallurgical Combine (NMMC), in collaboration with scientists, is introducing a new technology to extract additional uranium from previously depleted underground leaching blocks using bacterial solutions. This development was announced by Shavkat Madaminov, the head of NMMC’s Production, Technical, and Innovation Department.

    The combine has a long history of successful scientific research and industrial projects, particularly in the development and application of new technologies to increase uranium production. Madaminov emphasized that the new bacterial leaching technology, developed in partnership with scientists from the Institute of Microbiology of the Academy of Sciences of Uzbekistan, will enhance the extraction coefficient and uranium content in previously exploited wells. This advancement is expected to increase production, extend the lifespan of productive wells and blocks, and reduce the overall cost of production.

    Madaminov further explained that the technology could lead to the extraction of uranium from blocks that were previously 70% depleted, potentially increasing uranium yield by 2.4 times. He also highlighted the growing number of research and innovation projects at NMMC. In 2009, the combine implemented 55 projects worth 4.5 billion sums, while by the end of 2010, more than 90 projects were completed, totaling around 9 billion sums, doubling the achievements of the previous year.

    The key areas of focus include open-pit and underground mining, technology, geotechnology, and engineering. The economic impact of these innovations has, on average, exceeded the cost of the projects by twofold.

  • Coal Production in Kazakhstan Drops by 7.8% in First Seven Months of 2024

    Coal Production in Kazakhstan Drops by 7.8% in First Seven Months of 2024

    Kazakhstan’s coal miners extracted nearly 59.6 million tons of coal from January to July 2024, marking a 7.8% decrease compared to the same period in 2023, according to the Bureau of National Statistics’ monthly report. The majority of this volume was bituminous coal, totaling 57.26 million tons, which saw an 8.6% year-on-year decline.

    The decline in lignite production was even more significant. Brown coal output fell by nearly half, with 1.37 million tonsextracted over seven months. Although July saw a slight production increase compared to June, with 80.4 thousand tonsof lignite produced, this figure remains 68.5% lower than in July 2023.

    Conversely, companies extracting bituminous coal experienced a significant boost in July, increasing production by 23%to 8.73 million tons.

    Additionally, coal enrichment plants in Kazakhstan reported increased activity since the beginning of the year. The country’s processing plants produced 2.33 million tons of coal concentrate, a 14.3% increase compared to the previous year. In July alone, production reached 651 thousand tons, up 3.2% year-on-year.

    On August 20, the Prime Minister’s website published details of a government meeting where the upcoming heating season was discussed. According to the Ministry of Energy, current stockpiles include 3.7 million tons of coal and 90 thousand tons of fuel oil. However, four power stations currently have energy resource reserves below the required level.

  • KazNickel to Begin Cobalt and Nickel Extraction at Gornostayevskoye Deposit

    KazNickel to Begin Cobalt and Nickel Extraction at Gornostayevskoye Deposit

    KazNickel, whose ultimate owner is Kenes Rakishev, has announced plans to commence cobalt and nickel mining at the Gornostayevskoye deposit in the Beskaragay district of the Abay region. According to the company’s latest reports, the sole participant in KazNickel is Battery Metals Technologies LTD, a Singapore-registered entity controlled by Rakishev.

    The Gornostayevskoye deposit, located 100 km west of Semey and 30 km southeast of Kurchatov, has a well-developed infrastructure. The company previously conducted pilot-scale extraction at this site. The new project envisions the development of the left-bank section of the deposit using underground borehole leaching, with an annual production target of 10,000 tons of cobalt and nickel. The left-bank section covers an area of 26.25 square kilometers, and sulfuric acid will be used in the leaching process to extract the valuable ions directly underground without bringing the ore to the surface.

    Between 2026 and 2046, KazNickel plans to drill 32,900 boreholes, each with a depth of 15-40 meters and a diameter of 16.8-24.4 cm. The company will strip the topsoil to a depth of 20 cm before drilling, storing it outside the drilling area.

    In 2022, KazNickel reported plans to begin nickel concentrate production in 2023. The company also noted a significant increase in nickel prices on the global market starting in early 2022. However, the first phase of the project, from 2026 to 2035, is currently the focus. In 2019, KazNickel extended its pilot mining operations until 2022, and the Ministry of Industry and Infrastructure Development began reviewing contract amendments in 2022 to transition to the production phase.

    KazNickel plans to use 19,500 cubic meters of water during the first phase, most of which will be technical water (17,300 cubic meters). The company recorded a loss of 263.3 million tenge in 2022, an improvement from a 1.4 billion tenge loss in 2021, with cumulative losses totaling 3.4 billion tenge by the end of 2022. Its total assets decreased to 3.3 billion tenge at the end of 2022, down from 3.8 billion tenge a year earlier.

    As of December 31, 2022, the Gornostayevskoye deposit’s cobalt-nickel ores had identified mineral resources of 470,300 tons of nickel with an average grade of 0.57% and 32,300 tons of cobalt with an average grade of 0.039%, recognized by the state accounting of Kazakhstan’s subsurface resources.

    To continue the development, KazNickel received loans from related parties — Fincraft Resources and Ertis Ferroalloy Plant. On January 13, 2023, the sole participant decided to admit a new participant, Mining Technologies Company, by redistributing shares. The new participant committed to increasing the company’s charter capital by 4.7 billion tenge, which was 6 billion tenge at the end of 2022, in exchange for a 26% stake. The actual funds were received from Mining Technologies Company in March 2023.

    Kenes Rakishev ranks 19th among Kazakhstan’s wealthiest individuals, according to Forbes, with a net worth of $435 million. He solely owns Fincraft Group, through which he controls 78.85% of Fincraft Resources and BTA Bank.

  • Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Finance Ministry Proposes Export Duties on Key Mineral Resources to Reduce Budget Deficit

    Kazakhstan’s Ministry of Finance is planning to introduce export duties on major types of mineral resources in an effort to reduce the country’s growing budget deficit. According to a report by Bloomberg, the government is expected to make a decision on this initiative by the end of August this year.

    The proposed export taxes would target a range of domestic products, including coal, copper and iron ores, metal concentrates, ferroalloys, sulfur, and others. While the final list of taxable products has yet to be determined, it is expected to include those resources that would generate the most revenue for the state.

    Local media will be provided with the official list only after a consensus is reached between the National Chamber of Entrepreneurs “Atameken” and government bodies. At that point, the government will also finalize the exact rates for the export duties.

    This initiative by the Ministry of Finance is not entirely new. Discussions about imposing such duties began a year ago, with the project initially justified as a means to stimulate the domestic processing of ferrous metals. Currently, only oil and alloy exporters are subject to such payments.

    Kazakhstan’s budget is in urgent need of additional revenue. By the end of the first quarter of 2024, the deficit had reached 1 trillion tenge (a 24.2% increase year-on-year). In June, former Prime Minister Alikhan Smailov described the deficit as chronic and criticized the inefficient use of public funds.

  • EBRD Makes First Direct Investment in Central Asia’s Graphite Sector

    EBRD Makes First Direct Investment in Central Asia’s Graphite Sector

    The European Bank for Reconstruction and Development (EBRD) has made its first direct equity investment in the graphite and critical raw materials sector in Central Asia by acquiring a stake in Sarytogan Graphite Limited. This Australian Securities Exchange-listed company is engaged in the exploration of the Sarytogan graphite depositlocated in the Karaganda region of central Kazakhstan.

    The EBRD’s investment of AUD 5 million (€3 million), representing a 17.36 per cent shareholding in Sarytogan Graphite, will fund the company’s development programme. This includes the preparation of a feasibility study and meeting its working capital needs. Through this investment, the EBRD continues its support for Kazakhstan’s mining sector and its junior mining companies.

    Graphite, classified as a critical raw material (CRM) by the EU, has a wide range of applications, including in the production of electric vehicle batteries, the electric power industry, and metallurgy. The Sarytogan graphite depositis one of the largest known graphite deposits globally, with the potential to become a major supplier of natural graphitein the region and beyond.

    This project aligns with the EBRD’s new mining sector strategy, which emphasizes the importance of the mining industry in fostering greener economies. The strategy supports the exploration, development, production, and processing of metals and minerals essential for the green and digital transition and new technologies.

    Additionally, the project is consistent with the EU-Kazakhstan strategic partnership on raw materials, batteries, and renewable hydrogen. The EBRD’s investment is a continuation of its policy work with Kazakhstan authorities, which has already led to the adoption of the new Subsoil Use Law.

    To date, the EBRD has invested €10.2 billion in 324 projects in Kazakhstan, primarily supporting private entrepreneurship.

  • Zijin Mining Group Discusses Major Mining Projects in Kazakhstan

    Zijin Mining Group Discusses Major Mining Projects in Kazakhstan

    Zijin Mining Group Co., Ltd recently held discussions with Kazakhstan’s Deputy Foreign Minister and representatives from Kazakh Invest regarding potential projects in the mining and metallurgical industry. The foreign investor plans to open a processing plant in the republic, according to a report from the Kazakh Ministry of Foreign Affairs.

    The new facility is expected to produce concentrates of precious and non-ferrous metals. However, this project is likely to be a long-term endeavor, as Zijin Mining is still in the process of identifying a suitable mineral resource basefor the plant.

    The company has expressed its readiness to develop Kazakhstan’s gold, copper, and polymetallic deposits. The specific region for the project has yet to be determined.

    The concentrates produced by the new processing plant are intended to be sent to local metallurgical plants for the extraction of valuable metals. An initial investment of $100 million is planned for the project, which is expected to create at least 1,000 new jobs in the republic.

    Additionally, Zijin Mining plans to engage in geological exploration of new prospective areas. The Kazakh authorities, keen on expanding the country’s mineral resource base, are prepared to offer state-level support to their Chinese partner.

    Zijin Mining is a multinational mining conglomerate that operates over 30 projects in 12 countries. Last year, the company’s assets produced 720,000 tons of copper and 250 tons of refined gold.

  • Quarmet инвестирует $1,48 млрд в проекты по железной руде и углю к 2025 году

    Quarmet инвестирует $1,48 млрд в проекты по железной руде и углю к 2025 году

    В ближайшие годы компания собирается потратить $1,48 млрд на проекты железорудного и угольного департаментов. Из этой суммы $500 млн будет выделено на развитие железорудного подразделения, и $978 млн — на угольное. Об этом стало известно после визита президента Касыма-Жомарта Токаева на металлургический комбинат.

    На официальном сайте главы республики сообщается, что руководство предприятия уже внедрило ряд преобразований в производстве и поделилось планами на будущее. С момента перехода комбината к новому инвестору был реализован ряд крупных проектов общей стоимостью свыше $3,5 млрд.

    Программа реновации завода на 2024 год включает более сотни объектов и замену 50 тыс. квадратных метров кровли. Кроме того, будут отремонтированы санитарно-бытовые объекты.

    Касым-Жомарту Токаеву продемонстрировали работу конверторного цеха №2 и машин непрерывного литья заготовок. В дальнейшем Qarmet планирует модернизировать системы управления и гидравлики на этом участке.

    Компания запустила программу «5-9-5»: 5 млн тонн стали, 9 млн тонн угля и 5 млн тонн железорудного концентрата ежегодно. Таким образом, к 2025 году мощности металлургического завода вырастут на 66% по сравнению с прошлым годом.

    В 2023 году добыча угля велась только на трёх шахтах; сейчас Qarmet управляет восемью шахтами в Казахстане. В следующем году все объекты будут оснащены системами позиционирования.

    Президент Токаев резюмировал, что власти приняли «правильное решение», пригласив казахстанского инвестора управлять компанией. Он поручил «возродить былую славу» металлургического комбината.

  • Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Over the next few years, the company plans to invest $1.48 billion in its iron ore and coal departments. Of this amount, $500 million will be allocated to the development of the iron ore division, and $978 million to the coal division. This was announced following President Kassym-Jomart Tokayev‘s visit to the metallurgical plant.

    The official website of the President of the Republic reported that the plant’s management had already implemented several production upgrades and shared future plans. Since the plant was transferred to a new investor, a series of major projects worth over $3.5 billion have been initiated.

    The 2024 plant renovation program includes more than a hundred facilities and the replacement of 50,000 square meters of roofing. Additionally, sanitary and household facilities will be repaired.

    Kassym-Jomart Tokayev was shown the operation of Converter Shop No. 2 and the Continuous Casting Machines. Qarmet intends to further modernize the control systems and hydraulics in this section.

    The company has launched a “5-9-5” program: 5 million tons of steel, 9 million tons of coal, and 5 million tons of iron ore concentrate annually. As a result, by 2025, the metallurgical plant’s capacity will increase by 66% compared to last year.

    In 2023, coal mining was carried out at only three mines; now, Qarmet operates eight mines in Kazakhstan. Next year, all facilities will be equipped with positioning systems.

    President Tokayev summarized that the authorities made the “right decision” by inviting a Kazakh investor to manage the company. He instructed to “restore the former glory” of the metallurgical plant.

  • АО «Алтыналмас» начинает новый проект по добыче золота на месторождении Бактай в Казахстане

    АО «Алтыналмас» начинает новый проект по добыче золота на месторождении Бактай в Казахстане

    Золотодобывающая компания АО «Алтыналмас» представила план горных работ на месторождении Бактай, расположенном в Актогайском районе Карагандинской области Казахстана. План был опубликован на Едином экологическом портале Казахстана. Согласно проектной документации, месторождение Бактай ранее не разрабатывалось, однако геологоразведка на этом участке велась еще с прошлого века. В период с 2018 по 2021 годы компания пробурила 52 скважины и взяла 30 тыс. проб.

    Месторождение Бактай находится в пределах 100 км от одного из основных активов компании «Алтыналмас» — ГОК «Пустынное», где будет перерабатываться золотосодержащая руда с нового месторождения. Добыча руды планируется открытым способом. Минеральные ресурсы оценены в соответствии с кодексом KAZRC и поставлены на баланс в 2021 году. Выявленные запасы составляют 1,23 млн тонн руды (содержат 2328 кг золота, среднее содержание — 1,89 г/т), предполагаемые запасы — 577 тыс. тонн (содержат 698 кг золота, среднее содержание — 1,21 г/т).

    Компания планирует отрабатывать месторождение в течение двух лет с производительностью 940 тыс. тонн руды в год. После завершения добычи компания займется дальнейшими эксплуатационно-разведочными работами на Бактайском рудном поле.

    Кстати, недавно компания получила сертификат ICMI от Международного института по обращению с цианидами на месторождение Пустынное.