MINEX Forum

Website: Eurasia.com

  • Hongda Group Plans Major Lead and Zinc Project in Kazakhstan

    Hongda Group Plans Major Lead and Zinc Project in Kazakhstan

    Hongda Group is set to embark on a significant investment project in Kazakhstan, which could potentially surpass Kazcink and emerge as the largest producer of lead and zinc in Central Asia. Following a working visit by the First Deputy Prime Minister of Kazakhstan, Nurlan Naliyev, to the Kyzylorda region, attention has been drawn to this ambitious yet relatively low-profile project in the country’s mining and metallurgy sector. The project, valued at $1.3 billion, aims to establish two underground mines and two processing plants with a combined capacity of 8 million tonnes of ore per year, alongside a full-cycle metallurgical plant, creating over 3,000 jobs in the process.

    The project will focus on the Talap and Burabay-Zhalgyzagash deposits, located just 20 kilometres apart. The Burabay-Zhalgyzagash site will be developed through underground mining to a depth of 500 metres. Both deposits are part of the Akuyuk-Maidantal lead-zinc ore district in the Karatau region, which also houses the largest deposit in the area, Shalkiya. Initial exploration activities took place between 1980 and 1985, with detailed surveys conducted from 2010 to 2012. The reserves are classified under category C2, with forecasted resources rated as P1, showing an average content of 2.01% zinc and 1.62% lead, with geologists noting the potential for resource growth at greater depths.

    Investors have indicated that the metallurgical plant will have the capacity to produce 420,000 tonnes of zinc and 220,000 tonnes of lead annually, totalling 640,000 tonnes of metals. In comparison, Kazcink is projected to produce 251,800 tonnes of zinc and 76,700 tonnes of lead by 2025. Upon reaching its designed capacity, the new complex could produce 66.8% more zinc and 2.87 times more lead than Kazcink. If the project proceeds as planned, it stands to become the largest lead and zinc producer in Central Asia. Notably, the Chinese investors have already invested approximately 9 billion tenge in geological exploration, operating 15 drilling rigs simultaneously. While official reserves have yet to be disclosed, the scale of drilling and the proposed processing capacity suggest a substantial resource base. An official groundbreaking ceremony is expected later this year, reflecting a commendable approach where significant funds are first allocated for geological exploration to confirm resource viability before committing to the construction of a large-scale mining and metallurgical complex.

  • Uzbekistan and KAIST Explore Collaborative Opportunities in Metallurgy and Education

    Uzbekistan and KAIST Explore Collaborative Opportunities in Metallurgy and Education

    On 31 July 2026, F. Khamidova, the First Deputy Minister of Mining Industry and Geology of Uzbekistan, met with a delegation from the Korea Advanced Institute of Science and Technology (KAIST), led by Professor Shin Byungha, the Head of the Department of Materials Science and Engineering. The meeting focused on the potential for expanding scientific, technological, and academic cooperation between Uzbekistan and South Korea, particularly in the metallurgical sector.

    The discussions highlighted the importance of implementing joint projects aimed at enhancing mineral processing technologies and fostering collaborative research initiatives. Both parties recognised the need for innovation in the mining and metallurgy sectors, which are crucial for Uzbekistan’s economic development. The meeting also underscored the significance of academic exchange programmes and the training of highly qualified specialists, which are essential for building a skilled workforce capable of advancing the industry.

    As a result of the meeting, Uzbekistan and KAIST agreed to continue developing joint initiatives and prepare proposals to further strengthen their bilateral cooperation in science, education, and technology. This partnership is expected to contribute significantly to the advancement of Uzbekistan’s mining industry and enhance the capabilities of its educational institutions.

  • Kazakhstan Maintains Position Among Top Copper Producers with 710,000 Tonnes in 2025

    Kazakhstan Maintains Position Among Top Copper Producers with 710,000 Tonnes in 2025

    Kazakhstan’s copper industry has reaffirmed its status as a significant player in the global market, producing 710,000 tonnes of copper in 2025. This output has secured the country a place in the top ten copper-producing nations, ranking ninth alongside Indonesia, which reported similar production figures. The data, sourced from the Energy Institute and the United States Geological Survey, highlights Kazakhstan’s continued relevance in the competitive landscape of copper mining.

    The global copper production landscape is led by Chile, which produced a staggering 5.3 million tonnes in the past year. The Democratic Republic of Congo follows in second place with 3.2 million tonnes, while Peru rounds out the top three with 2.7 million tonnes. China and Russia occupy the fourth and fifth positions, respectively, with outputs of 1.8 million tonnes and 1.3 million tonnes.

    In addition to Kazakhstan and Indonesia, other notable producers include the United States, which achieved a production level of 1 million tonnes, Zambia at 740,000 tonnes, and Australia with 730,000 tonnes. Collectively, the top ten copper-producing countries accounted for a total of 18.39 million tonnes of copper, contributing significantly to the estimated global production of over 23 million tonnes, as reported by the Energy Institute.

    Kazakhstan’s performance in copper production not only underscores its mining capabilities but also reflects the country’s strategic importance in the global supply chain for this essential metal, which is critical for various industries, including electronics and renewable energy. As demand for copper continues to rise, Kazakhstan’s position in the market may further strengthen, providing opportunities for investment and development in its mining sector.

  • Tin One Mining to Construct Major Tin Processing Plant in Kazakhstan

    Tin One Mining to Construct Major Tin Processing Plant in Kazakhstan

    At the Qyzyljar Investment Forum 2026, a significant agreement was reached that paves the way for the industrial development of the largest untapped tin deposit in Central Asia. Tin One Mining, a subsidiary of Solidcore Resources, has signed a memorandum with the relevant administration of the North Kazakhstan region, solidifying plans to build a mining and processing plant at the Sarymbet site.

    According to the memorandum, the investor is committed to investing at least 150 billion tenge (approximately 315.5 million dollars) into the development of the resource, the construction of the facility, and the creation of supporting infrastructure, pending approval from the parent company’s board of directors. Regional authorities will assist the investor in project execution, taking on administrative support and facilitating agreements with government bodies.

    Tin One Mining aims to establish the extraction and processing of raw materials using modern technologies. The company promises to implement advanced global solutions in environmental protection and industrial safety within its operations. Once fully operational, the plant is expected to employ around 800 people, with a preference for hiring qualified specialists from the local community.

    The project’s significance is underscored by the scale of its resource base. The Sarymbet deposit, discovered in 1985, holds over 70% of Kazakhstan’s tin reserves. According to JORC standards, the deposit contains 492.4 thousand tonnes of tin with an average grade of 0.40%, along with by-product copper amounting to 91.4 thousand tonnes at a grade of 0.07%. In total, this equates to approximately 5.9 million ounces of gold equivalent.

  • Esil-Mining to Commence Tungsten Mining in North Kazakhstan by 2028

    Esil-Mining to Commence Tungsten Mining in North Kazakhstan by 2028

    Esil-Mining, a subsidiary of the British company Resources Enterprise Limited, is set to begin tungsten extraction at the Aksoран deposit in the North Kazakhstan region in 2028. This information is detailed in an environmental impact report associated with the revised mining plan, which was reviewed by the Qazba.kz portal.

    According to the project documentation, preparatory and capital mining works are scheduled for 2027, with industrial ore extraction commencing the following year. By this time, a processing plant is also expected to be operational.

    The deposit will be mined using underground methods, which are projected to provide maximum economic efficiency compared to open-pit or combined mining techniques. The mine’s operational lifespan is estimated at 16 years, with 13 years dedicated to extraction. Once at full capacity, the site will produce approximately 1 million tonnes of ore annually.

    The operational reserves of the deposit are reported to be 13.9 million tonnes of ore, with a tungsten trioxide content of 0.45%, equating to around 61.9 thousand tonnes of the metal. Additionally, the ore contains a by-product of molybdenum, estimated at about 3.8 thousand tonnes.

    The site is located within the protective zone of the Kokshetau National Park, where a ban on geological exploration and extraction has been in place since 2021. However, Esil-Mining is exempt from this restriction as it obtained the necessary permits in 2020, prior to the amendments coming into force, allowing the company to operate in compliance with the law.

    Nonetheless, the proximity to a protected natural area imposes certain limitations on the operator. For instance, only electric equipment is to be used in the mining operations. All machinery, except for the watering underground machine and surface transport, will also be electrically powered.

  • Solidcore Resources Secures $600 Million Financing for Gold Processing Plant in Kazakhstan

    Solidcore Resources Secures $600 Million Financing for Gold Processing Plant in Kazakhstan

    Solidcore Resources, a gold producer, has secured $600 million in financing from the European Bank for Reconstruction and Development (EBRD) and a syndicate of commercial banks, including ING, Société Générale, and Abu Dhabi Commercial Bank (ADCB). The EBRD will provide $300 million over a ten-year period, while the commercial banks will contribute an additional $300 million, with each bank committing $100 million. The initial term of the credit line is set for five years, with an option to extend it to seven years. The agreement also allows for an increase in funding by up to $300 million. The Ertis Hydrometallurgical Plant (ЕГМК) will act as a co-borrower alongside Solidcore.

    The financing package includes a three-year grace period, with the repayment of the principal amount commencing after the completion of the plant in 2029. Hussein Ozhan, EBRD’s Managing Director for Central Asia and Mongolia, highlighted that the development of local processing capacities and high-value product manufacturing will enable Kazakhstan to retain a greater share of added value within the country. He emphasized the bank’s commitment to promoting advanced metallurgical technologies, creating new jobs in the Pavlodar region, diversifying Kazakhstan’s mining sector, and enhancing its international competitiveness.

    In addition to the EBRD financing, Solidcore has signed a preliminary agreement with KfW IPEX-Bank for a $100 million credit line over seven years, with documentation currently being prepared.

    The ЕГМК will focus on extracting gold from previously difficult-to-process ores, located within the special economic zone of Pavlodar. Once operational, the plant is expected to process up to 300,000 tonnes of gold-bearing concentrate annually, producing up to 500,000 ounces of doré gold from the Kyzyl deposit and additional feedstock.

    The capital expenditure for the ЕГМК is estimated at approximately $1 billion, with Solidcore planning to finance part of this through loans and the remainder from its own funds. The company anticipates that the project will create around 500 permanent jobs upon completion.

    CEO Vitaly Nesis stated that the establishment of the hydrometallurgical plant in Pavlodar aims to mitigate production, market, and geopolitical risks. Construction has already commenced, with an autoclave installed for processing gold-bearing raw materials. The project has received a positive conclusion from the state expertise for the construction of the ЕГМК and its associated infrastructure, with over a thousand workers currently on-site.

    Solidcore is actively developing several mining projects, including the Bakyrchik deposit in the Abai region and the Varvarinskoye and Komarovskoye deposits in the Kostanay region. The company has reported a remarkable 222% increase in sales volume in the first quarter of 2026, reaching 123,000 ounces in gold equivalent, with revenues soaring 5.5 times to $595 million.

  • Tin One Mining Signs Memorandum for Tin Processing Plant in Kazakhstan

    Tin One Mining Signs Memorandum for Tin Processing Plant in Kazakhstan

    Tin One Mining has entered into a memorandum with the administration of the North Kazakhstan region to implement an investment project for the construction of a mining and processing plant at the Sarymbet tin deposit. The company plans to invest at least 150 billion tenge (approximately $315.5 million) into the development of the deposit, the construction of the processing plant, and associated infrastructure. This investment is subject to approval by the board of directors of Solidcore Resources, which controls the project.

    The Sarymbet deposit is noted as the largest undeveloped tin deposit in Central Asia, with resources estimated at 492.4 thousand tonnes of tin at a grade of 0.40% and 91.4 thousand tonnes of copper at a grade of 0.07%, according to JORC standards. The deposit accounts for over 70% of the total tin reserves in Kazakhstan. Discovered in 1985, the site has significant potential for contributing to the region’s industrial growth.

    Approximately 800 jobs are expected to be created as part of this project, with a focus on hiring local residents who possess the necessary education, qualifications, and professional competencies. Tin One Mining views this initiative as a long-term investment aimed at enhancing the industrial potential of the North Kazakhstan region and the country as a whole.

    The administration has committed to supporting the project’s implementation by facilitating interactions with government bodies and overseeing the investment project throughout its various stages. In November 2024, Solidcore Resources acquired a controlling stake of 55% in the project for $82.5 million from Berkut Mining, which remains involved in the project while Solidcore takes operational control.

    As of August 9, 2026, Tin One Mining is owned by Tin One Holding, which is in turn owned by Solidcore Eurasia LTD and Berkut Mining, both of which are part of the larger Solidcore Resources PLC structure. This investment marks a significant step in the development of Kazakhstan’s mining sector, particularly in the tin industry, which is poised for growth given the increasing global demand for tin and its applications in various industries.

  • Kazakhstan’s Mining Sector: Navigating Investment Challenges Amidst Mineral Wealth

    Kazakhstan’s Mining Sector: Navigating Investment Challenges Amidst Mineral Wealth

    Kazakhstan’s mining sector is at a crossroads, possessing some of the world’s most strategically important mineral reserves yet struggling to attract the necessary capital for exploration and development. Despite holding significant reserves of copper, gold, chromium, and rare earth elements, and being the largest producer of uranium globally, the country faces a paradox where geological potential is overshadowed by investment challenges. Approximately 65% of Kazakhstan’s territory remains geologically underexplored, with around 3,000 exploration licenses issued, but the development of these licenses hinges on attracting investment. A recent report by the Astana International Financial Centre (AIFC) highlights that the mining sector contributed 12.1% to the GDP, amounting to 16.1 trillion tenge (US$34.1 billion) in 2024, and accounted for about 33% of total exports, underscoring its vital role in the economy.

    The report indicates that while foreign direct investment (FDI) in the mining sector has doubled compared to 2019, reaching approximately $3 billion, challenges remain due to the lack of standardized frameworks for reporting mineral reserves. International investors typically rely on systems like the JORC Code for assessing exploration results, but many reserves in Kazakhstan are still classified under outdated systems, creating a structural bottleneck. This lack of alignment with international standards complicates risk assessment and diminishes investor confidence, particularly at the early stages of exploration where junior mining companies, responsible for 60-70% of global mineral discoveries, face significant funding challenges.

    The mining sector’s fragmentation further exacerbates these issues, with many projects operating in isolation and lacking visibility. As Tim Barry, CEO of Arras Minerals Corporation, noted, the industry is experiencing a shortage of new discoveries due to a decade of underinvestment in exploration. The need for increased investment in exploration is critical, especially as global demand for critical minerals continues to rise.

    In response to these challenges, the AIFC has launched a Junior Mining Platform aimed at improving access to capital for early-stage exploration projects. This initiative seeks to create a structured pipeline of projects, enhance transparency, and facilitate connections between investors and junior mining companies. By incorporating financing instruments commonly used in international markets, the platform aims to address the sector’s main challenge: the lack of structured access to capital at the early stages of development.

    Despite these efforts, Kazakhstan’s mining sector must navigate a complex landscape. While the country is well-positioned geographically to become a key player in global critical mineral supply chains, it must also overcome legacy reserve classification issues and enhance regulatory clarity to attract sustained investment. The global capital demand in extractive industries is projected to reach $2.1 trillion by 2050, driven by the energy transition, making Kazakhstan’s ability to meet investor expectations crucial for its mining sector’s future.

  • Regulatory Framework for Mining in Kazakhstan: An Overview

    Regulatory Framework for Mining in Kazakhstan: An Overview

    Kazakhstan’s mining sector is governed by a comprehensive legal framework that ensures state ownership of minerals while facilitating foreign investment. The Republic of Kazakhstan (ROK) retains ownership of subsoil resources, granting licenses for exploration and mining to legal entities. The Code on Subsoil Use 2017 (SSU Code) categorizes mineral resources into solid minerals, hydrocarbons, and uranium, with the Ministry of Industry and Infrastructural Development (MIID) overseeing solid minerals, while the Ministry of Energy (MOE) manages uranium and hydrocarbons due to their significance for energy security.

    The SSU Code is modelled on Australian and Canadian practices and outlines various types of licenses for subsoil rights, including exclusive exploration and mining licenses. Foreign investors can hold mining rights without restrictions, provided they comply with the SSU Code. The licensing process has been digitized to prevent overlaps in mining licenses, and applications can be submitted online. Exploration licenses are essential for obtaining mining licenses, with holders having exclusive rights to apply for mining licenses within their exploration area.

    Kazakhstan’s regulatory environment also includes provisions for environmental protection, requiring permits for activities with potential environmental impacts. The Environmental Code mandates environmental impact assessments (EIA) and public consultations before permits are granted. Furthermore, the ROK has pre-emptive rights over strategic subsoil plots, ensuring that the government retains control over critical resources.

    Foreign lending is generally unrestricted, although lenders must navigate specific regulations related to subsoil rights. Tax legislation in Kazakhstan is subject to frequent changes, impacting corporate income tax, VAT, and other fees associated with mining operations. However, tax incentives may be available for investors engaging in significant development projects.

    Overall, Kazakhstan’s mining sector offers a structured and transparent regulatory framework aimed at attracting foreign investment while safeguarding national interests and environmental standards.

  • Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    In a shift in ownership, Kazakhstan’s Ministry of Finance has transferred its 40% stake in Eurasian Resources Group (ERG) to the sovereign wealth fund, Samruk-Kazyna. This move, which took effect on 4 August 2026, is seen as a strategic decision aimed at bolstering the national budget and streamlining the management of state assets. Experts suggest that the transfer could generate approximately 897 billion tenge (around $1.9 billion) for the government, echoing previous asset sales that have successfully replenished state finances.

    Nurlan Zhumagulov, director of the Energy Monitor public fund, indicated that the need for budgetary support was a driving factor behind this decision. He noted that similar transactions in the past, such as the sale of stakes in KazMunayGas and Kazatomprom, have provided critical funding for the state. The historical context of ERG’s role in supporting governmental initiatives further complicates the narrative, as the company has often acted beyond its commercial obligations to assist the state.

    Financial analyst Rasul Rysmambetov highlighted that discussions regarding the transfer of ERG’s state stake to Samruk-Kazyna had been ongoing for some time. He explained that ERG has historically taken on responsibilities that extended beyond standard business operations, effectively acting as a financial buffer for the government during challenging times. The management of the state’s stake is expected to transition to the Tau-Ken Samruk structure, although this will necessitate organisational changes and an increase in personnel.

    The consolidation of ERG’s management under a single state entity is viewed as a move towards unifying control over significant national assets. However, the implications of this change remain uncertain, with Rysmambetov cautioning against premature conclusions about its potential impact. The Ministry of Finance has historically been cautious about the company’s initiatives, which raises questions about how the new management structure will navigate the complexities of state-business relations.

    The transfer of shares was officially confirmed by Samruk-Kazyna, which stated that the acquisition aligns with its mandate to manage state assets effectively for the benefit of Kazakhstan. The decision to consolidate ERG under Samruk-Kazyna is part of a broader strategy to enhance the efficiency of state asset management, ensuring that the interests of both the government and the public are adequately represented.

    As ERG continues its operations, the company has reassured stakeholders that its strategic development plans remain intact despite the ownership changes. The new management structure is expected to be led by Kudrat Shamiyev, who will oversee the business’s direction in Kazakhstan. The transition marks a pivotal moment for ERG and the Kazakh mining sector, as the government seeks to optimise its control over vital resources and enhance fiscal stability.