MINEX Forum

Website: Eurasia.com

  • Altynalmas received a license to produce and sell explosives

    Altynalmas received a license to produce and sell explosives

    The gold mining company Altynalmas announced that it had received a license for the development, production, acquisition, sale and storage of explosives and pyrotechnic substances and products using them.

    An indefinite first category permit for this work was issued by the Industrial Safety Committee of the Ministry of Emergency Situations on February 8. In addition, Altynalmas received a permit on February 9 to carry out work and provide services in the field of environmental protection. An indefinite permit of the first category was issued by the Committee for Environmental Regulation and Control of the Ministry of Ecology and Natural Resources.

    The Altynalmas press service, in a conversation with Kursiv, clarified that we are talking about updating the license issued in 2011 due to a change in the company’s legal address.

    According to the Kazakhstan Stock Exchange, as of January 1, 2024, the major shareholders of Altynalmas are: Gouden Reserves BV – 60% of shares, Vladimir Jumanbaev – 20%, Diyar Kanashev – 10.5%, Igor Vetiul – 6.5%. The market capitalization of Altynalmas is $623.66 million.

    The ultimate parent and controlling party of the company is Trustee Pte Ltd, acting on behalf of the Family Trust. Jumanbayev, with a net worth of $440 million, was ranked 17th on the Forbes list of the richest Kazakhstanis in 2023.

    According to the audited financial statements for January – September 2023, the group of companies is engaged in geological exploration, mining and processing of gold ore, sales of precious metals, design and construction of industrial facilities. At the end of September last year, Altynalmas had licenses and contracts for the exploration and production of gold deposits: Akbakay (until 2024), Aksakal-Beskempir (2029), Aksu (2029), Baktai (2024), Bestobe (2029), Dolinnoye ( 2031), Zholymbet (2029), Itkuduk (2025), Limestone (2028), Karaul-Tobe (2023), Quarry (2023), Quartzite Hills (2029), Quarry (2026), Kenzhem (2033), Mizek (2026) , Olimpiyskoye (2025), Ortasay (2025), Pustynnoye (2026), Pustynno-Baktaiskoye (2025), Sayak-4 (2029), Svetinskoye (2022. In 2020, Altynalmas decided to terminate the subsoil use contract due to low economic profitability. In 2023, permission was received to begin the procedure for terminating the contract, technogenic mineral formations (TMO) of the Aksu deposit (2024), TMO of the Bestobe deposit (2024), TMO of the Zholymbet deposit (2022). In 2023, a decision was made to begin the procedure for terminating the contract for exploration and extraction of gold from the TMO mine, Ushtogan-Caracas ore cluster (2024).

     Altynalmas has shares in a number of companies: AAEngineering Group (design and construction services, sales of goods, share – 100%), Akbakai Mining and Metallurgical Plant (96.61%), Akbakai Gold Resources (geological exploration, production and ore processing, sale of precious metals, 100%), Aksu Technology (operation of gold extraction factories, production and sale of precious metals, 100%), Aktogay Mys (geological exploration, mining and processing of ore, sale of precious metals, 100%), Altynalmas Reagents ( sales of reagents, 83%), “Altynalmas Technology” (operation of gold extraction factories, production and sale of precious metals, 100%), “Asyl Resources” (geological exploration, mining and sale of ore, 100%), “Hotel Stepnogorsk” (100%), “Kazakhaltyn Service” (repair and maintenance of machinery and equipment, 100%), “Kazakhaltyn Technology” (processing of man-made mineral formations, 100%), “Kazakhaltyn” (geological exploration, mining and sale of goods containing precious metals, 100%), “Trading House Altynalmas” (purchase and sale of goods containing precious metals, 100%).

    In turn, Kazakhaltyn has shares in the following companies: City A invest (investment in real estate, 99%, and 1% belongs to Altynalmas itself), Visart (sales of gold-containing products, 99%, and 1% belongs to ” Altynalmas”), “Kazakhaltyn Logistic” (transport and forwarding services, 99%, and 1% belongs to Altynalmas).

    AAEngineering Group owns: AA Mining (freight transportation, construction and installation works, 100%), AA Property Management (rental and operation of real estate, 100%), AAE ProService (construction and installation works, construction of residential buildings, 90%) , AAE Service” (repair and maintenance of machinery and equipment, 100%), ProMS (sale of goods and equipment, 100%), “Kazakh Santekhproekt” (design of buildings and structures, 50.09%).

    Based on the results of January – September 2023, Altynalmas’ revenue amounted to 341.6 billion tenge compared to 356.1 billion tenge for the three quarters of 2022. In 2023, a fine of 6.7 billion tenge was imposed on the Kazakhaltyn subsidiary based on the results of an audit by the environmental department. The company challenged the inspection and fine in the Supreme Court. At the end of September last year, Altynalmas had 226.6 billion tenge of loans, including 220.5 billion tenge for a loan until 2026 at 6.4% in euros to VTB Banks.

  • Underground gold mining has begun at the Kumtor deposit in Kyrgyzstan

    Underground gold mining has begun at the Kumtor deposit in Kyrgyzstan

    Underground gold mining has begun at the Kumtor deposit, the press service of the Kyrgyz government reported on Thursday.

    “The First Deputy Chairman of the Cabinet of Ministers of Kyrgyzstan Adylbek Kasymaliev launched a project for underground gold mining at the Kumtor deposit,” the press service reported.

    According to preliminary calculations, using the underground mining method it will be possible to obtain 115 tons of gold.

    According to Kasymaliev, this ore mining method will help increase gold production, as well as reduce the negative impact on the environment, including glaciers.

    “We look forward to the successful implementation of this project, given its environmental importance and economic efficiency,” he said.

    Currently, gold mining at Kumtor is carried out by open-pit mining.

    Kumtor is one of the largest gold mines in Central Asia, located in the Issyk-Kul region in northern Kyrgyzstan, 60 km from the border with China at an altitude of more than 4 thousand meters.

    Kumtor was one of the largest foreign investment projects in Kyrgyzstan. The mine was owned by Canadian Centerra Gold Inc., which operated it through its subsidiary Kumtor Gold Company in accordance with a 2009 agreement with the country’s government.

  • Rio Tinto Faces Pressure From Investors Over Water Contamination Claims in Mongolia and Madagascar

    Rio Tinto Faces Pressure From Investors Over Water Contamination Claims in Mongolia and Madagascar

    Rio Tinto (RIO.AX) is facing scrutiny from investors over its water management practices at its mines around the world. The primary concerns stem from the water quality at two of its mines: the Oyu Tolgoi mine in Mongolia and the QMM ilmenite mine in Madagascar. These concerns have been raised by LAPFF, an organization representing UK pension funds, which is urging Rio Tinto to conduct independent audits of its water practices.

    The Oyu Tolgoi mine, located in the South Gobi Desert, is one of the world’s largest copper and gold mines. However, it has been dogged by accusations of water contamination since it began operations in 2013. Local communities have reported that their livestock have fallen ill or died after drinking water from rivers and streams that have been polluted by the mine’s operations. Rio Tinto has denied these allegations, but they have agreed to invest in a new water treatment plant to address the concerns.

    The QMM ilmenite mine, situated in southeastern Madagascar, is another major source of contention. This mine produces ilmenite, a mineral used in the production of titanium dioxide, which is a white pigment used in paints, plastics, and other products. However, the mining process generates wastewater that contains high levels of sulfates and other pollutants. These pollutants can harm aquatic life and contaminate drinking water supplies. Rio Tinto has been accused of not doing enough to mitigate the environmental impact of the QMM mine, and there have been reports of local communities suffering from skin and respiratory problems due to water contamination.

    In response to these concerns, LAPFF has called on Rio Tinto to conduct independent audits of its water practices at all of its mines. The group is also urging the company to adopt stricter water quality standards and to invest in more sustainable water management practices. Rio Tinto has stated that it is committed to water stewardship and transparency and that it is already taking steps to improve its water management practices. However, the company has not yet agreed to conduct the independent audits that LAPFF has requested.

    The issue of water contamination at Rio Tinto’s mines is a complex one, with no easy solutions. The company has a responsibility to ensure that its mining operations do not harm the environment or the health of local communities. However, it must also balance this responsibility with the need to remain profitable. Finding a way to achieve both of these goals will be a challenge for Rio Tinto in the years to come.

  • В РК готовят проект создания цифровой карты предприятий

    В РК готовят проект создания цифровой карты предприятий

    В Казахстане намерены модернизировать систему охраны прав трудящихся благодаря созданию цифровой карты компаний. Этот проект инициирован Министерством труда и социальной защиты населения РК и будет реализован к июлю текущего года, сообщает пресс-служба ведомства.

    По словам главы Минтруда Светланы Жакуповой, несмотря на существующие меры поддержки, в стране всё ещё есть нерадивые работодатели, скрывающие факты травмирования своих сотрудников. Кроме того, систематически нарушаются права работников вредных производств.

    Предполагается, что цифровая платформа сделает госмониторинг предприятий более эффективным. Помимо этого, усовершенствовать планируют и саму систему оценки профессиональных рисков.

    Г-жа Жакупова отметила, что вся информация о компаниях будет автоматически направляться в базы данных Минпрома. Появится возможность оперативно расследовать нарушения, поскольку в настоящее время часть происшествий оценивают постфактум, что, как правило, играет не в пользу пострадавшего работника.

    Модернизация системы контроля предусматривает внедрение цифрового оборудования, которое будет показывать наличие или отсутствие вредных факторов на конкретном предприятии. Эти сведения в режиме реального времени должны поступать в информсистемы ведомства.

    Запланировано также введение онлайн-курсов для допобучения и проверки знаний работников, которые отвечают за безопасность труда на предприятиях, и госинспекторов.

  • Kazakhstan is preparing a project to create a digital map of enterprises

    Kazakhstan is preparing a project to create a digital map of enterprises

    Kazakhstan intends to modernize the system for protecting workers’ rights by creating a digital map of companies. This project was initiated by the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan and will be implemented by July of this year, the department’s press service reports. 

    According to the head of the Ministry of Labor Svetlana Zhakupova, despite the existing support measures, there are still negligent employers in the country who hide the facts of injuries to their employees. In addition, the rights of workers in hazardous industries are systematically violated.

    It is expected that the digital platform will make state monitoring of enterprises more effective. In addition, they plan to improve the occupational risk assessment system itself.

    Ms. Zhakupova noted that all information about companies will be automatically sent to the Ministry of Industry databases. It will be possible to promptly investigate violations, since currently some incidents are assessed after the fact, which, as a rule, does not work in favor of the injured employee.  

    Modernization of the control system involves the introduction of digital equipment that will show the presence or absence of harmful factors at a particular enterprise. This information should be fed into the department’s information systems in real time. 

    It is also planned to introduce online courses for additional training and testing the knowledge of workers who are responsible for labor safety at enterprises and state inspectors.

  • The Kazakhstan Canada Business Council will meet in Toronto to discuss the sustainable future of bileteral relations

    The Kazakhstan Canada Business Council will meet in Toronto to discuss the sustainable future of bileteral relations

    The Kazakhstan-Canada Business Council (KCBC) will be hosting a Plenary Session and Networking Reception on 3 March 2024 in Toronto.

    The session aims to promote collaboration, trade, and investment between leading Canadian and Kazakhstani businesses. The event provides an exclusive platform for companies to elevate their global presence and explore business opportunities in the region.

    The event will be attended by:

    H.E. Dauletbek Kussainov, Ambassador of the Republic of Kazakhstan to Canada

    H.E. Alan Hamson, Ambassador of Canada to Kazakhstan, the Kyrgyz Republic and Tajikistan

    Hon. Kanat Sharlapaev, Minister of Industry and Construction of the Republic of Kazakhstan

    Darren Klinck, President and Director, Arras Minerals and Honorary Consul of the Republic of Kazakhstan to British Columbia

    Tim Gitzel, President and CEO, Cameco; KCBC Co-Chair; Honorary Consul of the Republic of Kazakhstan to Saskatchewan

    Meirzhan Yussupov, CEO, Kazatomprom; KCBC Co-Chair and many others

    For further information and registration please visit the CECC website

    Kazakhstan Canada Business Council (KCBC)

    The primary aim of the KCBC is to fortify collaboration between businesses from both nations. Supported by the governments of both countries, the council convenes biennially, providing a platform for robust discussions on cooperation and trade-related matters, thereby nurturing a flourishing relationship between Canada and Kazakhstan.

    Event organiser: CECC

    The driving force behind the KCBC, the CECC, stands as the premier organization dedicated to fostering bilateral trade and business cooperation between Canada and post-Soviet nations. With a broad office network spanning Canada and emerging markets in Eurasia, the CECC delivers unparalleled services to a diverse membership base across 13 time zones.

  • The production cuts by Kazatomprom have led to a surge in uranium prices

    The production cuts by Kazatomprom have led to a surge in uranium prices

    The uranium market is witnessing a significant shift due to recent developments in production cuts by the world’s top uranium producer, Kazatomprom, and the increasing demand for nuclear power across various nations. These changes are creating a favourable environment for uranium project developers, who are now seeing a stronger outlook for prices and supply agreements.

    Kazatomprom’s Production Cuts

    Kazatomprom, the state-run miner from Kazakhstan, announced a reduction in its 2024 production guidance by up to 14%, signalling a potential shortfall in production targets into 2025. This decision is attributed to difficulties in procuring sufficient levels of sulfuric acid, a key ingredient in the company’s in-situ uranium mining process, and delays in completing construction works at newly developed uranium deposits. The company has been producing only 80% of its permitted maximum uranium output since 2018, a self-imposed limit due to the previously depressed state of the uranium market.

    Impact on Uranium Market and Project Developers

    The production cut by Kazatomprom has led to a surge in uranium prices, with spot prices more than doubling from around $48 per pound at the end of 2022 to $100 per pound by the end of January 2024. This has resulted in increased optimism among uranium project developers, such as Bannerman Energy Ltd. and Deep Yellow Ltd., who are working on projects in Namibia and Australia, respectively. Bannerman Energy’s CEO, Brandon Munro, highlighted the growing interest from utilities in diversifying their supply sources, a trend that is expected to continue. John Borshoff, CEO of Deep Yellow, also expressed a positive outlook, anticipating a sustainable period of high prices for at least a decade.

    Demand for Nuclear Power

    The demand for uranium is further bolstered by the revival and expansion of nuclear power fleets in countries such as China, Japan, South Korea, and France. This resurgence in nuclear power is driven by the global push for decarbonization and the need for reliable, low-emission energy sources to meet climate goals.

  • President Japarov invited Hinduja Group to invest in banking and mining sectors in Kyrgyzstan

    President Japarov invited Hinduja Group to invest in banking and mining sectors in Kyrgyzstan

    President Sadyr Japarov met with the Chairman of the Hinduja Group, Gopichand Hinduja, as part of his working visit to Dubai, the president’s press service reported.

    Hinduja Group is an Indian multinational conglomerate with a presence in eleven key sectors of the economy. The company’s core business areas include automotive, oil refining, banking and finance, IT services, healthcare, trading, infrastructure project development, media and entertainment, energy and real estate. The company has approximately $100 billion in assets worldwide.

    Sadyr Japarov noted that work is currently underway in Kyrgyzstan to create conditions for attracting large investments into the country. In particular, large projects are being launched in the energy sector, transport, and mining industries.

    The President proposed to consider investment projects in banking, mining and tourism industries. He emphasized that Kyrgyzstan is ready to provide mutually beneficial conditions for investors.

    The head of the Hinduja Group, Mr. Gopichand Hinduja, expressed interest in a detailed study of the proposed projects and his intention to use all resources for their implementation.

  • Казахстан предоставит переработчикам твердых полезных ископаемых налоговые льготы

    Казахстан предоставит переработчикам твердых полезных ископаемых налоговые льготы

    Правительство своим постановлением уполномочит министра промышленности и строительства подписывать соглашение о переработке твердых полезных ископаемых, по которому инвестору будут предоставляться налоговые льготы.

    «В соответствии со статьей 243 Кодекса Республики Казахстан «О недрах и недропользовании» правительство Республики Казахстан постановляет: 1. Утвердить прилагаемый проект соглашения о переработке твердых полезных ископаемых согласно приложению к настоящему постановлению. 2. Уполномочить министра промышленности и строительства Республики Казахстан (Каната Шарлапаева. – «Курсив») подписать соглашение о переработке твердых полезных ископаемых», – говорится в проекте постановления правительства, опубликованном для обсуждения.

    Для получения преференций объем инвестиций недропользователя в проект переработки твердых полезных ископаемых должен составлять не менее 70 млн месячных расчетных показателей, или 258,44 млрд тенге на 2024 год.

    Проектом переработки твердых полезных ископаемых будет считаться комплекс мероприятий по созданию новых, расширению или модернизации действующих производств по переработке твердых полезных ископаемых. Инвестициями в проект переработки будут считаться все виды имущества (кроме товаров, предназначенных для личного потребления), включая предметы финансового лизинга со дня договора лизинга, а также права на них, вкладываемые инвестором в уставный капитал инвестора или увеличение фиксированных активов, используемых для предпринимательской деятельности.

    После подписания соглашения о переработке твердых полезных ископаемых инвестору представляются следующие виды преференций: уменьшение корпоративного подоходного налога на 100% по доходам от реализации инвестиционного проекта; применение коэффициента 0 при исчислении земельного налога по земельным участкам, используемым для реализации инвестиционного проекта; применение ставки 0 процента к налоговой базе при исчислении налога на имущество по объектам, используемым для реализации инвестиционного проекта.

    Льгота по КПН и земельному налогу предоставляется на срок до 10 лет, по налогу на имущество – до восьми лет, если уровень внутренней нормы рентабельности по месторождению не превышает 15%. По достижении указанной нормы рентабельности предприятие будет платить налоги в общеустановленном порядке, то есть уже без льгот. Однако при снижении нормы рентабельности ниже 15% налогоплательщик будет вновь иметь право воспользоваться льготами.

    При досрочном прекращении соглашения инвестор должен будет уплатить налоги и таможенные пошлины и/или другие льготы, предоставленные в рамках соглашения. Постановление вводится в действие по истечении 10 календарных дней после дня его первого официального опубликования. Публичное обсуждение документа продлится до 26 февраля.

  • Kazakhstan will provide tax benefits to processors of solid minerals

    Kazakhstan will provide tax benefits to processors of solid minerals

    The government, by its resolution, will authorize the Minister of Industry and Construction to sign an agreement on the processing of solid minerals, under which the investor will be provided with tax benefits.

    “In accordance with Article 243 of the Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use,” the Government of the Republic of Kazakhstan decides: 1. To approve the attached draft agreement on the processing of solid minerals in accordance with the appendix to this resolution. 2. Authorize the Minister of Industry and Construction of the Republic of Kazakhstan (Kanat Sharlapaev – “Italics”) to sign an agreement on the processing of solid minerals,” says the draft government resolution published for discussion.

    To receive preferences, the volume of investments of the subsoil user in the solid minerals processing project must be at least 70 million monthly calculation indicators, or 258.44 billion tenge for 2024.

    A project for processing solid minerals will be considered a set of measures to create new, expand or modernize existing production facilities for processing solid minerals. Investments in the processing project will be considered all types of property (except for goods intended for personal consumption), including items of financial leasing from the date of the leasing agreement, as well as the rights to them invested by the investor in the authorized capital of the investor or an increase in fixed assets used for business activities.

    After signing an agreement on the processing of solid minerals, the investor is presented with the following types of preferences: a reduction in corporate income tax by 100% on income from the implementation of an investment project; application of coefficient 0 when calculating land tax on land plots used for the implementation of an investment project; application of a 0 percent rate to the tax base when calculating property tax on objects used for the implementation of an investment project.

    Benefits for CIT and land tax are provided for a period of up to 10 years, for property tax – up to eight years, if the level of internal rate of return for the field does not exceed 15%. Upon reaching the specified rate of profitability, the enterprise will pay taxes in the generally established manner, that is, without benefits. However, if the rate of return decreases below 15%, the taxpayer will again have the right to take advantage of the benefits.

    Upon early termination of the agreement, the investor will be required to pay taxes and customs duties and/or other benefits provided under the agreement. The resolution comes into force 10 calendar days after the day of its first official publication. Public discussion of the document will last until February 26.