Recent amendments to Kazakhstan’s Code on Subsoil and Subsoil Use have raised concerns among investors, particularly over changes to the application of priority rights in subsoil use, according to industry representatives. The package of amendments was reviewed by the Mazhilis in the autumn and approved by the Senate earlier this month.
In an interview with inbusiness.kz, Ruslan Baymishev, head of the Kazakhstan Mining Chamber, said the reforms include both positive measures and provisions that risk undermining investor confidence. He noted that since the introduction of the Subsoil Code in 2018, Kazakhstan has seen a sharp increase in private investment in geological exploration, driven by transparent rules and equal access to subsoil resources. This, he said, allowed junior and international companies to invest heavily in exploration at their own risk, generating valuable geological data for the state without budgetary spending.
Among the positive changes, Baymishev highlighted the formal establishment of a unified digital subsoil use platform, simplification of access to exploration areas, and the introduction of electronic auctions for subsoil rights after licences are revoked or terminated. He also welcomed stricter measures against illegal mining, including the possibility of revoking exploration licences for violations, which he said protects bona fide investors.
However, the amendments have also triggered serious concerns. Baymishev warned that the return of priority rights and the expansion of state and national company privileges, particularly in uranium and potentially rare earth elements, could signal a move toward greater state monopolization. According to him, such measures weaken the principle of open and equal access to subsoil resources that previously attracted major global investors and significantly increased exploration spending.
Another source of concern is the application of priority rights outside auction mechanisms, which Baymishev described as a “side entry” dependent on discretionary decisions. He said this raises questions about fairness and predictability for investors. Industry representatives are also wary of potential spillover effects from hydrocarbons regulation into the solid minerals sector, which could distort competition and create unequal conditions.
Baymishev stressed that while the state’s goal of increasing geological knowledge through private investment is understandable, regulatory conditions must remain transparent and uniform for all market participants. He emphasized the need for a clear medium-term strategy to ensure investment returns and avoid deterring international capital.
Despite the concerns, the Mining Chamber said it continues to engage in dialogue with government bodies and lawmakers, aiming to preserve the core principles of the 2018 reform while refining specific mechanisms. Baymishev warned that a shift back toward manual regulation could redirect exploration investment flows to other jurisdictions at a time when global demand for new mineral discoveries is growing.
