MINEX Forum

Website: Eurasia.com

  • Kazakhstan to Shift Junior Exploration Companies from Mineral Extraction Tax to Royalties by 2025

    Kazakhstan to Shift Junior Exploration Companies from Mineral Extraction Tax to Royalties by 2025

    Vice Minister of Industry and Construction Iran Sharkan announced that starting in 2025, junior exploration companiesthat have already discovered and confirmed reserves of solid minerals will be transitioned from the mineral extraction tax (MET) to royalties. Sharkan explained that the MET has become outdated and cumbersome, necessitating a shift to a universally understood international royalties system. The phased transition will begin with junior companies and eventually include all entities.

    At the AMM-2024 forum, Sharkan emphasized that the transition to royalties marks the logical conclusion of the mining reform initiated in 2017. The Ministry, in collaboration with colleagues from the Ministry of National Economy and the Ministry of Finance, aims for a smooth, environmentally friendly transition. Discussions will be held with the industry to define what constitutes a junior company, which Sharkan described as a new player in mining that has confirmed reserves and is moving to the extraction stage.

    Sharkan also mentioned that Kazakhstan will continue adopting modern standards. While old deposits protected by the State Reserves Committee (SRC) standards will remain in force, new projects will adhere to the international reporting system. In October 2023, Maxim Kononov, the first deputy executive director of the Republican Association of Mining and Metallurgical Enterprises (AMME), suggested setting the MET for technogenic mineral formations (TMFs) at 0.1 of the existing rate to encourage investment in TMF processing.

    Kononov advocated for synchronizing sectoral and tax legislation, noting that TMFs not classified as subsoil should not be taxed under the MET. He proposed a reduced coefficient, such as 0.1 of the current MET rates, for TMFs owned by the state. These measures would boost large-scale processing of TMFs in the country. Kononov criticized the current tax regime for making TMF extraction projects unprofitable and called for clearer taxation norms for solid minerals in TMFs.

    Since January 2023, MET rates have increased by 50% for exchange-traded metals and by 30% for others. Kononov warned that any further tax increases would be detrimental to the industry.

  • Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Azerbaijan’s Minister of Economy Mikayil Jabbarov and President of SOCAR Rovshan Najaf met with Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó. According to the Ministry’s report to AZERTAC, it was emphasized that economic ties between the countries are continuously developing due to the special importance placed by the leadership of both countries on fostering relations and effectively utilizing existing potential.

    It was noted that the second strategic partnership document signed in January last year, along with more than 50 documents signed in the areas of investment promotion, economic cooperation, prevention of double taxation, and other fields, have created a solid foundation for expanding cooperation in various directions.

    The discussion included issues arising from the Cooperation Agreement between the Azerbaijan Investment Company OJSC and the Hungarian company Hell Energy, as well as the current situation. The parties exchanged views on joint projects that strengthen mutual economic ties, active cooperation in the fields of energy, transport, pharmaceuticals, activities of Hungarian companies in Azerbaijan, and the development of investment partnerships.

    During the meeting, a document was signed for the purchase of a stake in the Shah Deniz project by the Hungarian company MVM. It was noted that this document will further strengthen the economic and energy partnership between the two countries.

  • Glencore Considers Selling Stake in Kazakh Mining Company Kazzinc

    Glencore Considers Selling Stake in Kazakh Mining Company Kazzinc

    Glencore is considering selling its stake in the Kazakh mining company Kazzinc amid interest from potential buyers in China, according to sources familiar with the matter. The deal could value Glencore’s nearly 70% holding in Kazzinc at several billion dollars, the sources said, requesting anonymity due to the private nature of the discussions.

    Glencore is also in the process of selling the Kazzinc-operated Vasilkovskoye gold mine, having scrapped a previous sale over seven years ago. The gold mine and Kazzinc’s core zinc operations could be sold to separate buyers or a single party, depending on the offers received. However, the deliberations are preliminary and may not lead to a transaction. A representative for Glencore declined to comment.

    Kazzinc is composed of an extensive network of mines, concentrators, and metal finishing plants across Kazakhstan, enabling the company to process ore and produce finished zinc metal and products. The company was established in 1997 through the merger of three main non-ferrous metals companies in eastern Kazakhstan, which were mostly government-owned.

    Glencore CEO Gary Nagle has continued his predecessor’s strategy of simplifying the business by selling off smaller or more challenging assets. The company has already sold zinc assets in Peru and some of its smaller copper operations. Zinc prices have rallied this year due to supply constraints, but the long-term outlook remains uncertain because of the metal’s heavy exposure to the struggling construction sector and its limited uses in fast-growing industries like renewable energy and electric vehicles.

    Prices were 1.6% lower at $2,888.00 on Wednesday on the London Metal Exchange, reducing zinc’s yearly gain to 8.6%. Kazzinc’s zinc production rose by 27,500 tons in 2023 to 173,900 tons, while lead production totaled 35,600 tons, copper was 14,800 tons, and gold reached 598,000 ounces, according to Glencore’s annual report.

  • Казахстан и Китай подписали соглашение о строительстве крупного медеплавильного завода

    Казахстан и Китай подписали соглашение о строительстве крупного медеплавильного завода

    Премьер-министр Республики Казахстан Олжас Бектенов и председатель совета директоров China Nonferrous Metal Mining Co. Ltd. Си Чжэнпин обсудили сотрудничество в медной отрасли, сообщает агентство Kazinform со ссылкой на пресс-службу Кабмина.

    Результатом встречи стало подписание в присутствии премьер-министра РК Олжаса Бектенова соглашения о строительстве медеплавильного завода мощностью 300 тыс. тонн меди в год. Соглашение подписано между ТОО «KAZ Minerals Smelting», которое выступает в роли заказчика, компанией China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd. (NFC) – в качестве поставщика услуг по проектированию и закупу технологического оборудования, и ТОО «NFC Kazakhstan» – подрядчиком строительных и пусконаладочных работ.

    Завод будет построен вблизи поселка Актогай в области Абай. Источником сырья станет медный концентрат Бозшакольского и Актогайского горно-обогатительных комбинатов, обогатительных фабрик ТОО «Востокцветмет». По итогам строительства будет создан кластер, объединяющий один из крупнейших в мире медных рудников и современное медеплавильное производство. Проект, предварительной стоимостью $1,5 млрд, создаст более 1000 новых рабочих мест. Ввод в эксплуатацию планируется до конца 2028 года.

    Это высокотехнологичное предприятие станет крупнейшим в республике, производя продукцию с высокой добавленной стоимостью. Применяемые технологии в области медеплавильного производства будут соответствовать мировым экологическим стандартам. Предприятие обеспечит внутренние потребности рынка в переработке медесодержащего сырья и катодной меди, которая широко используется в электроэнергетике, машиностроении и других промышленных отраслях. Кроме того, на новом заводе планируют выпускать рафинированное золото, серебро и серную кислоту.

    «Глава государства поставил задачу по устойчивому экономическому росту. Строительство нового медеплавильного завода — это крупный индустриальный проект, который позволит увеличить переработку медного сырья, добываемого в стране, и внесет большой вклад в экономику нашей страны. Медная отрасль является одним из приоритетных секторов нашей промышленности, и для нас очень важно его динамичное развитие», — подчеркнул Олжас Бектенов.

    China Nonferrous Metal Industry’s Foreign Engineering and Construction Company Ltd («Non Ferrous China») — это контролируемая государством компания, чьи акции котируются на Шэньчжэньской фондовой бирже. Она участвует в международных проектных подрядах и разработке ресурсов цветных металлов. NFC была первой китайской компанией, инвестировавшей в горнорудные активы по добыче и переработке цветных металлов за пределами Китая, также владеет горнорудными проектами в самой КНР. Ведет деловую деятельность более чем в 20 странах мира и была ведущим подрядчиком на проектах KAZ Minerals – Бозшаколь, Актогай и Бозымчак.

  • Kazakhstan and China Sign Agreement for Major Copper Smelting Plant

    Kazakhstan and China Sign Agreement for Major Copper Smelting Plant

    Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, and Chairman of the Board of Directors of China Nonferrous Metal Mining Co. Ltd., Xi Zhengping, discussed cooperation in the copper industry, according to Kazinform news agency, citing the press service of the Cabinet.

    The meeting culminated in the signing of an agreement, in the presence of Prime Minister Bektenov, to construct a copper smelting plant with an annual capacity of 300,000 tons of copper. The agreement involves KAZ Minerals Smelting as the client, China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd. (NFC) as the provider of design and equipment procurement services, and NFC Kazakhstan as the contractor for construction and commissioning.

    The plant will be built near the village of Aktogay in the Abay region. It will use copper concentrate from the Bozshakol and Aktogay mining and processing plants, operated by Vostoktsvetmet. Upon completion, the project will create a cluster combining one of the world’s largest copper mines with modern copper smelting facilities. The project, with an estimated cost of $1.5 billion, is expected to create over 1,000 new jobs and be operational by the end of 2028.

    This high-tech enterprise will be the largest in the republic, producing high value-added products. The technologies used in the copper smelting process will meet global environmental standards. The plant will satisfy domestic market needs for processing copper-containing raw materials and producing cathode copper, which is extensively used in electric power, mechanical engineering, and other industrial sectors. Additionally, the new plant plans to produce refined gold, silver, and sulfuric acid.

    “The Head of State has set a task for sustainable economic growth. The construction of a new copper smelting plant is a major industrial project that will increase the processing of copper raw materials mined in the country and make a significant contribution to our economy. The copper industry is one of the priority sectors of our industry, and its dynamic development is very important to us,” emphasized Olzhas Bektenov.

    China Nonferrous Metal Industry’s Foreign Engineering and Construction Company Ltd (“Non Ferrous China”) is a state-controlled company listed on the Shenzhen Stock Exchange. It participates in international project contracts and the development of non-ferrous metal resources. NFC was the first Chinese company to invest in mining assets for the extraction and processing of non-ferrous metals outside China and also owns mining projects within the country. It operates in over 20 countries worldwide and has been the leading contractor on KAZ Minerals projects – Bozshakol, Aktogay, and Bozymchak.

  • Казахстан и Южная Корея укрепляют сотрудничество в горнодобывающей и перерабатывающей промышленности

    Казахстан и Южная Корея укрепляют сотрудничество в горнодобывающей и перерабатывающей промышленности

    Канат Шарлапаев, министр промышленности и строительства Республики Казахстан, встретился с Сеокчжуном Ли, президентом Корейского института геологических наук и минеральных ресурсов (KIGAM), и Пайком Хансоном, вице-президентом SK Ecoplant. Также приняли участие председатель правления АО «Тау-кен Самрук» Бакыт Чирчикбаев и исполняющий обязанности генерального директора АО «Казгеология» Даурен Абуов.

    Встреча, прошедшая в онлайн-формате, стала очередным шагом к установлению сотрудничества между Казахстаном и Южной Кореей в области развития горнодобывающей и перерабатывающей промышленности. Министр ознакомился с деятельностью обеих организаций и выслушал предложения о возможном сотрудничестве. Представители KIGAM и SK Ecoplant выразили заинтересованность в проведении совместных геологоразведочных работ и дальнейшей добыче лития. Также KIGAM проявили интерес к строительству фабрики по производству карбоната лития и гидроксида лития в Казахстане. Литий – стратегически важный ресурс, используемый в производстве аккумуляторов для электромобилей, портативных устройств и других технологий.

    Строительство таких предприятий в Казахстане не только способствует развитию отечественной промышленности, но и обеспечит стране доступ к современным технологиям по переработке лития. Это, в свою очередь, может привести к привлечению инвестиций и созданию новых рабочих мест.

    Канат Шарлапаев подчеркнул готовность казахстанской стороны поддержать инициативу представителей KIGAM и SK Ecoplant и предложить необходимые меры поддержки со стороны государства для реализации проекта. Также стороны договорились о проведении расширенного совещания в Астане. Предполагаемое строительство обогатительной фабрики и предприятия по производству карбоната лития и гидроксида лития станет важным вкладом в экономическое развитие обеих стран.

    Стоит отметить, что KIGAM уже сотрудничает с Казахстаном на протяжении года. Совместно с АО «Казгеология» представители корейского института провели геологосъемочные и геофизические работы на месторождениях Бакенное. В настоящее время рассматривается вопрос выдачи KIGAM лицензии на разведку и дальнейшую добычу на месторождении Бакенное.

  • Kazakhstan and South Korea Strengthen Collaboration in Mining and Processing Industries

    Kazakhstan and South Korea Strengthen Collaboration in Mining and Processing Industries

    Kanat Sharlapayev, Minister of Industry and Construction of the Republic of Kazakhstan, met with Seokjoon Lee, President of the Korean Institute of Geoscience and Mineral Resources (KIGAM), and Paik Hanson, Vice President of SK Ecoplant. The Chairman of the Board of Tau-Ken Samruk JSC, Bakyt Chirchikbayev, and Acting General Director of Kazgeology JSC, Dauren Abuov, also participated.

    The meeting, held online, marked another step toward establishing cooperation between Kazakhstan and South Korea in the development of the mining and processing industry. Minister Sharlapayev familiarized himself with the activities of both organizations and listened to their proposals for potential collaboration. Representatives from KIGAM and SK Ecoplant expressed interest in joint geological exploration and lithium mining. KIGAM also showed interest in constructing a plant for the production of lithium carbonate and lithium hydroxide in Kazakhstan. Lithium is a strategically important resource used in the production of batteries for electric vehicles, portable devices, and other technologies.

    The construction of such enterprises in Kazakhstan would not only foster the development of the domestic industry but also provide the country with access to modern lithium processing technologies. This, in turn, could attract investments and create new jobs.

    Kanat Sharlapayev emphasized Kazakhstan’s readiness to support the initiatives of KIGAM and SK Ecoplant, offering necessary state support for the project’s implementation. Both parties agreed to hold an extended meeting in Astana. The proposed construction of the enrichment plant and the production facility for lithium carbonate and lithium hydroxide will be a significant contribution to the economic development of both countries.

    It is worth noting that KIGAM has already been cooperating with Kazakhstan for a year. In collaboration with Kazgeology JSC, Korean institute representatives have conducted geological and geophysical surveys at the Bakennoe deposit. Currently, the issue of granting KIGAM a license for exploration and further mining at the Bakennoe deposit is under consideration.

  • Tailing Dams in Lori Region Unaffected by Debed River Flooding

    Tailing Dams in Lori Region Unaffected by Debed River Flooding

    Sona Harutyunyan, the press secretary of the Ministry of Territorial Administration and Infrastructure, informed that the tailing dams in the Lori region were not affected by the natural disaster – the Debed River flooding. The dams remain undamaged, and no problems have arisen.

    “Continuous monitoring is being conducted. There is no damage or threat from the tailing dams,” emphasized Harutyunyan. Lori is the second region in Armenia with the highest number of tailing dams, following Syunik, with nine dams in total. We inquired about the current state of the tailing dams, which operate alongside metallic mines, from the leaders of the mining companies and the regional administration.

    Teghut CJSC operates the Teghut mine and its associated ore processing plant. The company’s general director, Vladimir Nalayvayko, stated that the disaster had no impact on the tailing dam. However, he mentioned that ore extraction and processing activities have been suspended. During the flood, tailing dam workers undertook urgent measures to prevent water flow towards the dam. The dam is currently reinforced with additional rocky soil, and the strengthening work, which began two years ago, is still ongoing.

    International experts have previously expressed mixed opinions on the strength and reliability of the Teghut tailing dam. Last year, the mine’s operations were halted to ensure its stability and resumed only in July of the previous year.

    Mher Melkonyan, the administrative head of the Teghut community, also assured that the tailing dam is in good condition. Furthermore, he stated that despite the high water levels, the village of Teghut was not affected by the disaster.

    The activities of Multi Group Concern LLC, owned by Prosperous Armenia party leader Gagik Tsarukyan, have been halted. The company, which operates the Mghart gold mine, has three tailing dams. Vrej Kazaryan, the administrative head of the Mghart village in the Alaverdi community, reported after speaking with tailing dam workers that the situation is stable.

    In the village of Armanis in the Stepanavan community, the Sagamar CJSC operates a gold mine, a processing plant, and tailing dams. The mine has been inactive since 2015. Although the tailings near the village have dried up, there have been continuous reports of discolored water flowing from the tailing dam into the Chknakh tributary of the Dzoraget River. Samvel Antonyan, the administrative head of Armanis, personally inspected the area and found no issues with the tailing dams. Despite the proximity of the Armanis tailing dam to the Dzoraget River tributary, it is situated on an elevated area.

  • «Алюминий Казахстана» может получить новые лицензии на геологоразведку

    «Алюминий Казахстана» может получить новые лицензии на геологоразведку

    Компания «Алюминий Казахстана», входящая в состав ERG, может скоро получить лицензии на проведение геологоразведочных работ на двух участках в Костанайской области. Общая площадь этих потенциальных участков для геологоразведки превышает 800 гектаров, сообщает «Курсив».

    Один из участков расположен в пределах города Лисаковск. Согласно изданию, городские власти намерены разрешить «Алюминию Казахстана» искать алюминиевые руды до 23 мая 2027 года. Заместитель главы города будет следить за исполнением обязательств.

    Запасы руды, содержащей алюминий, планируется найти и на другом, меньшем по площади участке. Этот участок охватывает территорию в 271,7 гектара и находится в границах поселка Октябрьский. Районные власти также установили публичный сервитут для компании на разведку недр и возложили ответственность за исполнение решения на главу населенного пункта.

    Окончательное решение по обоим проектам должно быть объявлено до 19 июня. Следует отметить, что компания ежегодно производит около 1,4 миллиона тонн глинозема, сырья для производства алюминия. Кроме того, компания является одним из крупнейших работодателей в Павлодарской области.

  • “Aluminium of Kazakhstan” May Receive New Exploration Licenses

    “Aluminium of Kazakhstan” May Receive New Exploration Licenses

    The company “Aluminium of Kazakhstan”, a part of ERG, may soon receive licenses to conduct geological exploration on two sites in the Kostanay region. The total area of these potential geological exploration sites exceeds 800 hectares, according to “Kursiv”.

    One of the sites is located within the city of Lisakovsk. According to the publication, city authorities intend to allow “Aluminium of Kazakhstan” to search for aluminum ores until May 23, 2027. The deputy mayor will oversee the fulfillment of obligations.

    Reserves of aluminum-containing ore are also expected to be found on another, smaller site. This site covers an area of 271.7 hectares and is located within the boundaries of Oktyabrsky. The district authorities have also granted the company public easement for mineral exploration and assigned responsibility for overseeing the decision to the head of the locality.

    The final verdict on both projects is expected to be announced by June 19. It should be noted that the company annually produces around 1.4 million tons of alumina, the raw material for aluminum. Additionally, the company is one of the largest employers in the Pavlodar region.