MINEX Forum

Website: Eurasia.com

  • In the first eight months of 2023, Kyrgyzstan exported gold worth $545 million

    In the first eight months of 2023, Kyrgyzstan exported gold worth $545 million

    In January-August 2023, Kyrgyzstan sold abroad 8.7 metric tons of gold for $545,170,000, or 47.7 billion soms. These statistics are provided by the National Statistical Committee of the Kyrgyz Republic. According to the agency’s information, Switzerland was the largest buyer of precious metal from Kyrgyzstan, purchasing 7.15 metric tons of gold for $448 million. Hong Kong followed, with 983 kilograms of gold sold for $60 million, and the United Arab Emirates, which acquired 582 kilograms of gold from Kyrgyzstan for $36.6 million.

    Earlier, the Ministry of Finance of Kyrgyzstan reported that in 2022, the Kumtor mine produced 17 metric tons and 305 kilograms of gold, with 17 metric tons and 284 kilograms being sold. According to the Ministry of Finance, in the previous year, the Kumtor Gold Company transferred 27 billion 959.4 million soms in taxes, which is 267.3% more compared to 2021.

    The Kumtor mine in the Issyk-Kul region of Kyrgyzstan is the country’s largest gold deposit. In 2021, the Kyrgyzstan government took control of this enterprise, which had been jointly managed with Canada’s Centerra Gold Inc. since 1997.

    In April 2022, Kyrgyzstan authorities reached a consensus with the foreign company, and Kyrgyzstan transferred 26% of Centerra Gold’s shares that it owned, while also dropping ecological and economic claims. Kyrgyzstan then took full ownership of 100% of the Kumtor Gold Company.

  • Construction of Poland’s first offshore wind farm set to begin

    Construction of Poland’s first offshore wind farm set to begin

    Orlen announced yesterday that it has secured all the requisite construction permits, contracted all key components and secured all necessary financing. It has also started the construction of a terminal in the port city of Świnoujście that will speed up the installation of offshore wind turbines.

    “Despite the formidable challenges posed by the pandemic, supply chain disruptions and military conflict across our eastern border, we have adhered to the ambitious timeline we set from the outset,” said Orlen’s CEO, Daniel Obajtek. His firm describes Baltic wind as “Central Europe’s largest green energy project”.

    The foundation laying for the Baltic Power project is scheduled for 2024. The wind farm will comprise of 76 250-metre-high turbines, each with a unit capacity of 15 MW. Total installed capacity will reach 1.2 GW in 2026.

    Last month, Baltic Power signed loan agreements for a total of around €4.4 billion (a figure higher than the €3.6 billion initially reported) with 25 Polish and international financial institutions.

    “This is the largest financing obtained for a single investment in Poland’s history and one of the largest transactions of its kind in the offshore area in Europe,” said Orlen.

    As part of its energy transition strategy, the company also announced last month a $1 billion (4.2 billion zloty) investment in carbon capture and storage on Norway’s continental shelf.

    Poland has one of Europe’s most polluting energy sectors. The country still relies on coal to produce around 70% of its electricity, by far the highest proportion in the EU.

    But the government, which has been friendly towards the politically important coal sector, this year set a new target for Poland to produce three quarters of its energy from renewables and nuclear by 2040. The plans include offshore wind power capacity of 5.9 GW by 2030 and 18 GW in 2040.

     

  • Polymetal did not find enough gold in the Shekara area

    Polymetal did not find enough gold in the Shekara area

    The mineral exploration activities in the Shekara area of the Kostanay region in Kazakhstan have yielded disappointing results, according to a written response from Polymetal, a gold mining company registered with the Ministry of Finance and Economy of Kazakhstan. The company has determined that the area does not contain economically viable reserves for large-scale development. As a result, the contract territory is being returned to the state, and the accumulated geological data will be transferred to the state geological fund.

    Polymetal had been conducting work in the Shekara area, as mentioned in their earlier press service statements. However, it appears that a decision to halt these activities has been made in recent months. The exploration work in the area began several years ago, with Kazgeology conducting aerogeophysical surveys at the request of Polymetal to assess the potential for gold-silver and copper deposits. A joint venture named “Shekara” was established, with the national geology company holding a 25% stake. Polymetal’s subsidiary, the Kostanay company “Varvarinskoye,” also held shares in the project.

    In March 2021, the national company transferred the mining rights in Shekara to the joint venture. Geological exploration for gold, copper, and polymetallic ores covered an area of 213 square kilometers. The state invested 602 million tenge from 2017 to 2019 for geological exploration, and an additional 21 million tenge was spent from 2018 to 2021, according to Kazgeology’s report.

    It is worth noting that Polymetal is now focusing on assessing reserves in the promising Bakys area in the North Kazakhstan region. The company recently increased its stake to 75% in this gold-copper project, with “Kazgeology” holding the remaining share. Polymetal is evaluating the reserves and plans to consider production in the area after placing them on the state balance sheet. The company’s CEO, Vitaliy Nesis, mentioned the possibility of buying out the junior partner’s stake in the project in a recent interview.

    Active geological exploration in Kazakhstan is crucial for Polymetal, as their Komarovsky gold deposit in the Kostanay region is expected to be depleted by 2028. The ore extracted from Komarovsky is processed at Polymetal’s Varvarinskoye hub, which will continue operating at its current volume. The company is preparing to exploit a new deposit to sustain production as mining operations decline at Komarovsky.

    Furthermore, Polymetal is collaborating with a junior partner in the Northern Balkhash region to search for copper and polymetallic deposits. These projects in Central Kazakhstan aim to establish another processing center and involve exploration in various areas.

    Overall, Polymetal’s exploration efforts in Kazakhstan are focused on identifying new deposits to ensure continuous production and maintain their presence in the region’s mining industry.
    Meanwhile, on the tender page of LLC “TD Polymetal” on the website b2b-center.ru, it is indicated that in 2021, the company solicited proposals for tunnelling works on five licensed areas in Northern Balkhash for the requirements of TOO “Zhana Mys.” It is noteworthy that the latter was among the subsoil users who recently surrendered their license. As per the subsoil users register published in June, this company held nine licenses issued by the Ministry of Industry. Its sole founder is K.M. Dosmukametov, presumably referring to Kanat Dosmukametov, the CEO of “Polymetal Eurasia.”

    As it is known, Polymetal’s primary mining project in Kazakhstan is currently the Kyzyl project in the Abai region, which encompasses the development of the Bakyrchik deposit. It can be considered the largest gold mine in the country in terms of reserves. According to the company’s website, at the time of assessment, its reserves amounted to 9.8 million ounces in gold equivalent, exceeding 304 tons according to inbusiness.kz estimates. In comparison, the once largest Vasilkovskoye deposit in the Akmola region, known as Kaztsink, experienced a decline in reserves and resources from approximately 370 tons to 74-86 tons over the years, as reported by our publication. It is highly likely that with the complete depletion of Vasilkovskoye in the coming years, Polymetal will surpass it as the leading gold miner in the country.

    As previously reported, due to the National Bank’s priority purchase of domestically refined gold, Polymetal refrains from selling the gold it produces abroad, except for a small quantity of refractory gold in high-carbon concentrate from Kyzyl. The low-carbon concentrate from the project is transported to the company’s autoclave plant in Amursk and then returned to Kazakhstan in a processed form. Recently, Polymetal has encountered logistical challenges in delivering gold-bearing raw materials from Kyzyl to the Far Eastern ports.

    “The delivery of concentrate to the Far Eastern ports is currently facing difficulties. Russian railways are not approving applications for transporting concentrate there via covered wagons. There are no transportation issues to Amursk. Hence, we are compelled to transport the concentrate by rail to Amursk and then deliver it to the ports by road for further shipment to China. While we had a one-time experience of shipping concentrate from Kyzyl to the ports by road, it is more efficient to transport it by rail,” confirmed the company.

    Polymetal also provided comments regarding CEO Vitaliy Nesis’s recent statement to Bloomberg regarding the possibility of relisting the gold miner’s shares in London after selling its Russian division. Previously, the company’s CEO stated in a comment to inbusiness.kz that they planned to work closely over the next two years to enhance the liquidity of their shares on the AIX exchange in Astana. This decision came after the re-registration in the Ministry of Finance and Economy of the Republic of Kazakhstan, subsequent to their departure from the Jersey jurisdiction.

    “Unlocking potential on AIX and returning to LSE are not contradictory. AIX will continue to serve as the primary trading platform, while LSE can provide additional liquidity, but only after the sale of Russian assets,” clarified Polymetal.

  • How does the environmental agenda affect Kazakhstan’s industry?

    How does the environmental agenda affect Kazakhstan’s industry?

    The adoption of ESG principles, encompassing environmental, social, and corporate governance aspects, is gaining momentum worldwide, and Kazakhstan is no exception. According to inbusiness.kz, major manufacturing companies in the country are actively modernizing their facilities, implementing measures to reduce emissions, and promoting waste recycling practices.

    By incorporating ESG principles into their operations, companies can not only improve their environmental impact but also enhance their social and managerial aspects, ultimately leading to improved financial and economic performance. Natalya Lim, a partner at PwC, emphasizes the urgent need for a global and unified approach to address critical issues such as climate change, poverty, inequality, and water scarcity.

    Lim believes that the corporate sector plays a decisive role in overcoming these challenges, and organizations in Kazakhstan are demonstrating their readiness to take responsibility and drive positive changes. In the industrial sector, companies like “KazMunaiGaz” are leading the way by adopting their own “Low Carbon Development Program for 2022-2031.” The objective of this program is to reduce greenhouse gas emissions by 15% by 2031 compared to the baseline year of 2019.

    Moreover, “KazMunaiGaz” is actively collaborating with partners to develop renewable energy projects with a total capacity of at least 1 gigawatt, along with an energy storage system of 300/600 megawatts. These efforts reflect the commitment of Kazakhstani companies to sustainable development and their contribution to mitigating environmental challenges while driving economic growth.
    Another industrial giant, Eurasian Resources Group, is actively working on reducing emissions at its facilities and minimizing their environmental impact. For instance, on August 10th, they showcased a unique ore processing plant for handling the tailings of the Donskoy Mining and Processing Plant to the Prime Minister of Kazakhstan, Alihan Smailov. This plant was built by the multinational company “Kazchrome” (a subsidiary of ERG) in the city of Khromtau, Aktobe region.

    Why is this project important? The Donskoy Mining and Processing Plant was founded in 1938 in Khromtau and is the world’s second-largest deposit of confirmed chromium reserves. The ore extracted here is used for the production of ferroalloys in metallurgy, the manufacturing of refractories, and in the chemical industry for producing chromium compounds.

    Every year, in the process of crushing and grinding chromium ore at the plant, around 900,000 tons of tailings waste are generated. Currently, there are already 14.5 million tons of accumulated tailings containing up to 35% chromium oxide. “Kazchrome” decided to address this issue by constructing the ERG Green ore processing plant.

    This plant will enable the extraction of chromium oxide from the tailings through gravity-based enrichment, and the resulting commercial concentrate can be used in metallurgy for further processing.

    The new facility will allow for the processing of approximately 1.7 million tons of tailings annually, both the existing waste and the continuously generated new waste. Consequently, this will not only improve the environmental conditions in the Aktobe region but also enhance the economic efficiency of the plant itself.

    “The most important thing is that after processing, the tailings must be properly reclaimed in accordance with all environmental standards to minimize the impact on the environment and public health,” commented Alihan Smailov during his visit to the factory.

    In parallel with this, by the end of 2024, as part of the program for processing accumulated tailings, three more initiatives are planned to be implemented. As a result, ERG will ensure the production of 200,000 tons of ferrochrome, leading to an additional revenue of approximately 10 billion tenge in tax receipts annually for the state.

    “Following the company’s mission and ESG principles, management must ensure high environmental standards. Therefore, the group has developed an Environmental Strategy as part of our comprehensive ‘Green Metallurgy’ program. Within the environmental strategy until 2030, we plan to invest 228 billion tenge,” noted Shuhrat Ibragimov, Chairman of the Supervisory Board and member of the Board of Directors of ERG, during the project presentation.

    Investors are involved in the process
    Initiatives like these require substantial investments, and modernizing existing facilities or building new ones is difficult without the assistance of investors.

    For example, the total investment in the ERG Green plant project amounted to 96 billion tenge. Part of the funding was provided by the Development Bank of Kazakhstan, which, according to the project list, has actively begun working in the ESG direction.

    “We consider supporting projects that adhere to the principles of sustainable development to be important. This project aligns with the Environmental Code’s principles of sustainable development – the preservation of natural resources for current and future generations, as well as the principle of integration – the balance between environmental tasks and economic development,” commented Marat Yelibaev, Deputy Chairman of the Board of BRK.

    Like other development institutions, the Development Bank of Kazakhstan is focusing on projects that incorporate ESG principles into their operations. For instance, earlier this year, the bank issued its first “green” bonds, and the proceeds from the bond issuance were directed towards a project by the KEGOC company for modernizing the power grids in Western Kazakhstan.

    In the summer, a credit agreement was signed with the “Almaty Power Plants” to convert TEC-2 in Almaty to natural gas. This project will be financed jointly with the European Bank for Reconstruction and Development and the Asian Development Bank.

    From the example of BRK and other financial institutions, a clear trend is emerging: ESG initiatives of businesses are of interest to investors. This signals that in the near future, many more environmental projects will be implemented by industrial and infrastructure companies.

  • The Ministry of Industry of Kazakhstan has published several subsoil use contracts

    The Ministry of Industry of Kazakhstan has published several subsoil use contracts

    The Ministry of Industry and Infrastructure Development of Kazakhstan has published several electronic versions of subsoil use contracts, particularly for solid minerals, for the convenience of subsoil users. This documentation is available on the ministry’s website without detailed appendices, such as work programs, according to inbusiness.kz.

    Since the beginning of June, the relevant ministry has published 12 subsoil use contracts, including those for gold extraction at the Maikain “C” deposit (Pavlodar Region), copper-molybdenum ores at the Shatyrkul deposit (Zhambyl Region), copper and polymetallic ores at the Sokyrkoy deposit (Karaganda Region), gold-copper-polymetallic ores at the Abyz deposit (Karaganda Region), polymetallic ores at the Akbastau deposit (now Abay Region), copper ores at the Konrad, Sayak-1, and Tastau deposits (Karaganda Region), copper-containing ores of the Zhilandy group deposits (now Ulytau Region), polymetallic ores at the Kosmurun deposit (now Abay Region), the development of the Zhezkazgan copper ore deposit (now Ulytau Region), exploration and extraction of copper, gold, and associated metals on the territory of the Zhezkazgan Basin within the Sorukduk-Zhartas, Prisarysuisky, and Zhaman-Aibat sites (now Ulytau Region), exploration and development of the Nurkazgan gold-copper ore deposit (Karaganda Region), as well as exploration of copper, gold, and by-product components in the Spasskoye copper ore zone (Karaganda Region).

    In the press service of the Ministry of Industry, inbusiness.kz explained that the contracts are being published at the request of the Subsoil Use Department to facilitate the use of subsoil resources.

    Earlier in July, echo.kz reported that the former Ministry of Industry and Infrastructure Development had begun publishing subsoil use contracts for solid minerals. These contracts were disclosed with tracking changes but without appendices, according to the public association “Echo.” At the beginning of June, 11 subsoil use contracts for solid minerals were disclosed at that time.

    Civil society in Kazakhstan, particularly those involved in the Extractive Industries Transparency Initiative (EITI), played an important role in the publication of this data. They have engaged in negotiations with representatives of government bodies for a long time, advocating for the publication of contracts in line with the requirements of the EITI and Kazakh legislation, according to a statement from the non-governmental organization.

    Based on publicly available information, Kazakhstan has hundreds of subsoil use contracts for solid minerals, so the Ministry of Industry and Infrastructure Development still has a substantial amount of work ahead to publish them. The correspondent from inbusiness.kz could not find any published contracts for uranium, oil, and gas extraction on the Ministry of Energy’s website.

  • Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet aims to start producing lithium in Argentina in the second quarter of next year under the first phase of its joint venture with steel giant Tsingshan, part of Eramet’s shift towards minerals needed for electric vehicle batteries.
    If the partners proceed with a second stage of the project, for which a decision is due by the end of this year, total investment is expected to reach about $1.5 billion, Eramet CEO Christel Bories told Reuters.

    This is lower than a $1.7 billion projection given by Tsingshan. It would double the estimated $735 million cost of the project’s first phase.

    Eramet will share costs with Tsingshan. It will also raise $400 million in a deal with miner Glencore to market lithium from the project’s first stage.

    Bories said Chinese investors are typically keen on mining projects internationally, but European banks are held back by onerous ESG requirements.

    “The worst is Europe. Banks ask thousands of pages of questions on ESG and due diligence,” she said in an interview before the LME Week gathering of the global metals industry.

    “We have no problem providing the evidence … but at the end of the day the whole process can take 18 months.”

    The European Union, which unveiled its Critical Raw Materials Act in March to try to secure supplies of critical raw materials for electric vehicles including lithium, cobalt and nickel, has urged European financiers to provide more funding to mineral suppliers.

    Eramet has previously criticised Europe for being slow to develop supply chains for critical minerals, saying that encouraged it to turn to Tsingshan first as a partner for a nickel mine in Indonesia and then to co-develop its lithium deposit in Argentina.

    The partners plan to reach output of 24,000 metric tons of lithium carbonate equivalent annually under the first phase of their Argentine project, with the potential second stage seeking to raise production to 75,000 tons.

    Eramet is also studying a plan with German chemical group BASF to produce battery-grade nickel and cobalt from ore extracted at Eramet’s Indonesian mine.

    The French group has pushed back a deadline for a decision to next year, with Bories saying it needed more time to find the right approach to meet Western standards.

  • AGMK: results of production activities for the 9 months of 2023

    AGMK: results of production activities for the 9 months of 2023

    I am pleased to announce that the dedicated team of the Almalyk Mining and Metallurgical Combine has achieved remarkable success in meeting all production targets for the first nine months of this year.

    The production of goods, valued at current prices, has reached an impressive sum of 22,908,419,580,000 Uzbekistani soms, surpassing the set target by 103.1%.

    During this period, the “Kalmakyr” ore management division has achieved a mining indicator of 101.3%, with a growth rate of 104.5%. The processing of copper raw materials has been carried out at an impressive rate of 100.5%, with a growth rate of 106.2%.

    In September, the production of cathode copper reached 100.0%, and the growth rate for the production of cathode copper from our own raw materials over the nine months amounted to an impressive 102.2%. Additionally, we have successfully produced metallic zinc from our own raw materials at a rate of 101.6%.

    The extraction and processing of polymetallic ore have also been commendable, with a completion rate of 104.8% (with a growth rate of 103.5%) and 103.9% (with a growth rate of 101.6%), respectively.

    Our gold miners have excelled in fulfilling their obligations, ensuring the achievement of the forecast for the extraction of gold-bearing ore (102.8%) and its processing (103.1%).

    These impressive accomplishments can be attributed to the dedication and expertise of our esteemed structural units, including the “Kalmakyr” ore management, the copper enrichment plant, the copper enrichment plant No. 2, the “Khandiza” ore management, the Angren ore management, the Chadak ore management, the “Kauldy” mine, and the zinc and copper smelters.

    Furthermore, we have successfully completed tasks related to the production of copper vitriol, enamel wire, technical selenium, technical tellurium, palladium powder, molybdenum trioxide, and ammonium perranate.

    I commend the entire team for their hard work and commitment to excellence. We look forward to continued success as we strive to maintain our position as a leader in the mining and metallurgical industry.

  • The Uzbek Almalyk Mining and Metallurgical Complex (AGMK) will attract $2.6 billion for the construction of a new copper smelting complex

    The Uzbek Almalyk Mining and Metallurgical Complex (AGMK) will attract $2.6 billion for the construction of a new copper smelting complex

    Uzbekistan’s Almalyk Mining and Metallurgical Complex (AGMK) has announced its plans to secure a significant investment of $2.6 billion for the purpose of constructing a state-of-the-art copper smelting complex. This ambitious project aims to further enhance the complex’s capabilities and solidify its position as a leading player in the mining and metallurgical industry. The substantial investment will undoubtedly contribute to the growth and development of AGMK, allowing it to leverage advanced technology and modern infrastructure in its copper smelting operations. This significant financial commitment demonstrates the confidence and belief in AGMK’s potential to thrive in the ever-evolving global market.

  • KAZ Minerals reduced copper production in the Eastern region and at Bozymchak

    KAZ Minerals reduced copper production in the Eastern region and at Bozymchak

    In the initial half of the current year, esteemed mining company KAZ Minerals experienced a reduction in copper production, amounting to 1.4 thousand tons, specifically in the Eastern region and at Bozymchak. This noteworthy information has been disclosed in the company’s comprehensive production and sales report.

    As per the provided data, KAZ Minerals extracted approximately 199.5 thousand tons of copper during the first six months of this year. Out of this, roughly 126.6 thousand tons were mined in Aktogai, around 50.2 thousand tons in Bozshakol, and 22.7 thousand tons in the Eastern region and at Bozymchak.

    Furthermore, during the second quarter of this year, the extraction in the Eastern region and at Bozymchak amounted to approximately 13.2 thousand tons. This signifies an increase of 3.7 thousand tons compared to the first quarter of this year. Additionally, KAZ Minerals observed a growth of 1.6 thousand tons in production when compared to the second quarter of 2022.

    However, it is important to note that the overall production in the Eastern region and at Bozymchak for the first half of this year experienced a decline of 1.4 thousand tons in comparison to the corresponding period of the previous year.

    For further context, KAZ Minerals Bozymchak stands as one of the leading industrial enterprises in Kyrgyzstan. The company is engaged in the development of the copper-gold ore deposit of Bozymchak, which boasts proven reserves of approximately 140 thousand tons of copper, nearly 23 tons of gold, and 144 tons of silver. It is worth mentioning that this esteemed entity is wholly owned by the Kazakh open joint-stock company, KAZ Minerals.

  • Uzbekistan is in the process of organizing the construction of a sodium cyanide production plant

    Uzbekistan is in the process of organizing the construction of a sodium cyanide production plant

    The government of Uzbekistan has unveiled its plan to commence operations of a sodium cyanide production plant by the conclusion of 2025. This strategic initiative aims to strengthen the safety measures within the gold mining industry in the southern region of the republic. The Ministry of Industry and Construction made this announcement, emphasizing the significance of this decision.

    The establishment of a sodium cyanide production plant is part of a larger endeavor to ensure the long-term security of the gold mining industry in the Zhambyl region, meet the domestic market’s requirements, and export any surplus to Russia and China. The project holds substantial potential for export, considering the projected increase in demand in neighboring countries such as Uzbekistan, Kyrgyzstan, Tajikistan, and Mongolia within the coming years.

    According to the authorities, the plant is scheduled to commence operations in the fourth quarter of 2025. The Altynalmas Reagents company, situated in the “Chemopark Taraz” special economic zone in the city of Chu, will oversee this project.

    “The production capacity of the plant will be 25 thousand tons of sodium cyanide annually. This chemical reagent is of utmost importance and irreplaceable in the modern gold hydrometallurgical industry. The product will consist of sodium cyanide with an exceptional purity level of no less than 98%,” explained the Ministry.

    To ensure the highest standard of technology, the new plant will employ the licensed technology of Chemours (formerly known as DuPont), a global leader in the chemical industry.

    “The project’s design and construction are being carried out by Glatt GmbH, a renowned German engineering company. This project has been successfully implemented in two similar plants located in different parts of the world. The plant will adopt the finest technologies and practices, while prioritizing environmental protection and compliance with ecological standards. For instance, the project incorporates a closed-cycle water supply system with zero discharge to the environment and employs state-of-the-art equipment to environmentally neutralize emitted gases,” added the press service.

    Through this ambitious undertaking, Uzbekistan seeks to fortify the gold mining industry’s safety measures and establish itself as a reliable supplier of sodium cyanide, both domestically and internationally. The government’s commitment to implementing advanced technologies and sustainable practices ensures a harmonious balance between economic growth and ecological stewardship.