MINEX Forum

Website: Kazakhstan.com

  • In search of lithium: subsoil will be studied in three regions of Kazakhstan

    In search of lithium: subsoil will be studied in three regions of Kazakhstan

    Three regions of Kazakhstan plan to begin studying the potential of lithium in 2025. LS was told about this by the Ministry of Industry and Construction.

    In response to a request from the editors, the department reported that they want to conduct geological surveys on a scale of 1:50,000 in the East Kazakhstan (Kalba-Narym ore zone), Almaty (Bayankol area) and Kyzylorda regions (Aral sedimentary basin).

    As for the amount of funding, the ministry explained that the amount required for research will be known after the development of design estimates in 2024. Source: state budget.

    “The study of the subsoil of the three objects is planned to begin in 2025 after drawing up design estimates and with the allocation of government funding,” the ministry summarized.

    Previously, the department informed LS that there are seven lithium deposits in the East Kazakhstan region. Thus, according to the ministry, the deposits are located in the Ulansky region. These include the Maralushenskoye tailings dump, the Bakennoye deposit, the Yubileinoye deposit, and the Medvedka deposit (reserve).

    Let us recall that in the East Kazakhstan region they want to build a mining and processing plant for the extraction and processing of lithium. The planned investment volume will be $100 million. Presumably, 170 people can get jobs at the enterprise. It is noted that the capacity of the project will be known after geological exploration and approval of reserves.

    According to President Kassym-Jomart Tokayev, up to 100 thousand tons of lithium are stored in the depths of Kazakhstan, which require serious investments.

    Meanwhile, the relevant ministry responded to LS’s request that the country’s state balance sheet lists lithium reserves in seven explored deposits.

  • ArcelorMittal Temirtau in Kazakhstan has been renamed to Qarmet

    ArcelorMittal Temirtau in Kazakhstan has been renamed to Qarmet

    The team was introduced to a new investor who took on production and social obligations

    ArcelorMittal Temirtau, which was sold to state private equity fund Qazaqstan Investment Corporation (QIC) last week, has been renamed Qarmet. This was reported by the press service of the administration of the Karaganda region of the country.

    The head of the region, Ermaganbet Bulekpayev, introduced a new investor to the team: the Qazaqstan Steel Group (QSG) company and its founder Andrey Lavrentiev.

    “The new owner faces important tasks, primarily to ensure and create working conditions, improve the well-being of workers, and will also have to actively participate and help develop the local community through social projects,” he noted.

    Vadim Basin became the CEO of Qarmet . Basin served as executive director of ArcelorMittal Temirtau in 2017-2021, and at the end of October this year, after the death of miners at the mine named after. Kostenko, the President of Kazakhstan instructed him to head the enterprise.

    “QSG, represented by Kazakh businessman Andrey Lavrentyev, has reached an agreement with the Ministry of Industry and Construction of the Republic of Kazakhstan on the acquisition of the assets of ArcelorMittal Temirtau. Under the terms of the agreement, QSG will purchase AMT’s assets for $286 million and will also make guaranteed deferred payments of $450 million, payable in four equal annual installments. In addition, an additional $250 million will be paid at the time of closing as payment of AMT’s outstanding intercompany indebtedness,” the company said in a statement.

    In addition to the acquisition of assets, the Kazakh investor undertakes to invest another $3 billion in modernizing production and protecting the region’s environment, of which $1.3 billion will be invested next year.

    The new investor calls his short-term goals, in particular, a radical improvement in production safety indicators and the environmental situation, modernization and reorganization of production, increasing the size, range and types of products.

    On December 12 , President of Kazakhstan Kasim-Jomart Tokayev commented on the arrival of a new investor – a Kazakh company – at ArcelorMittal Temirtau (Qarmet), writes Zakon.kz.

    “Now the government’s job is to help it, especially in the initial phase of operation, and then the demand from the new owner will be very tough,” he said.

    Let us recall that last week the steel corporation ArcelorMittal sold its assets in Kazakhstan – QIC acquired all shares of the metallurgical enterprises ArcelorMittal Temirtau and ArcelorMittal Tubular Products Aktau. During the negotiations, ArcelorMittal requested $3.5 billion, which did not correspond to the calculations of international consultants. The State reduced the value of assets from this amount to $286 million.

  • No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government

    No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government

    No more than 10% of foreigners can be attracted by Kazgeology under a contract with the government, the Ministry of Industry and Construction reports.

    “When conducting reconnaissance operations, give preference to Kazakh personnel. At the same time, the attraction of Kazakhstani personnel as a percentage of the total number of personnel involved in work, including personnel engaged in contract and subcontract work, should be 90% for management personnel, 90% for specialists with higher and secondary vocational education and 100% for qualified workers” during all six years of exploration,” says the contract concluded for the exploration of non-ferrous and precious metals in the Bezshokinskaya area in the Karaganda region between the authorities and the national geological exploration company “Kazgeology” in 2015, presented by the Ministry of Railways.

    According to the information, the amount of local content under the contract during exploration provides for 16% in relation to goods, 85% for works and 85% for services, also for all six years of exploration.

    “In the absence of information on the prices of minerals used by the subsoil user when making transactions, prices are applied that do not exceed the transaction prices prevailing on world markets for the acquisition of minerals by states,” the contract says.

    The Ministry of Industry and Construction published 13 contracts, including with such enterprises as Kazakhmys and Kazminerals.

  • Issues of implementation of CRIRSCO standards in Kazakhstan were discussed in the Government

    Issues of implementation of CRIRSCO standards in Kazakhstan were discussed in the Government

    Prime Minister of the Republic of Kazakhstan Alikhan Smailov held a meeting on the implementation of international CRIRSCO standards in the field of subsoil use. 

    CRIRSCO is an international committee that unites public reporting codes for solid mineral reserves in countries such as Australia, the USA, Canada, Russia, India, Turkey, New Zealand, as well as some countries in Africa, Europe (23 countries), South America and South America. -East Asia. 

    The Kazakhstan KAZRC code was adopted into the CRIRSCO family in 2016, and international standards in the Republic of Kazakhstan should come into force in 2024. It is expected that this will attract foreign investment in geological exploration and give a significant impetus to the industry as a whole.

    As a result of the discussion, the Prime Minister instructed to ensure the transition to CRIRSCO (KazRC) standards for new deposits within the established period and, in parallel, to maintain the activities of the State Commission for Mineral Reserves of the Republic of Kazakhstan for already developed deposits.

    At the same time, it was also instructed to provide for liability, even criminal, for competent persons drawing up reports according to KazRC standards, and minimum requirements for such reports. This approach will allow taking into account the interests of the state and private business when developing deposits of solid minerals.

  • “PARYZ” Prize: Bakyrchik Mining Enterprise Won The Grand Prix

    “PARYZ” Prize: Bakyrchik Mining Enterprise Won The Grand Prix

    The Bakyrchik mining enterprise was awarded the Grand Prix of the prestigious Paryz award. 161 large businesses competed for the title of best socially responsible company. The award was presented to the laureate by the Head of State, 24KZ reports.

    The Bakyrchik deposit ranks second in the country in terms of gold production. About 10 tons of gold concentrate are mined here annually. The company is located in the Abay region and is part of the Polymetal company, whose production facilities are also located in the Kostanay region. Over the past 3 years, the group has allocated more than 6 billion tenge for social projects in these regions.

    Kanat Dosmukametov, General Director of Polymetal Eurasia: –

    In addition to production, we invest a lot in people. This is the construction of schools, kindergartens, roads.

    Next year we are going to implement, together with the Kazakhstan Halkyn Foundation, a project to build a modular universal sports complex.

    Gold mining company Polymetal, previously registered on the island of Jersey, changed its place of registration this year. The company moved to Kazakhstan to the Astana International Financial Center.

    Kanat Dosmukametov, General Director of Polymetal Eurasia:

    – Now a new era begins in the development of the company, which will now focus on the active development of its projects in Kazakhstan. In the city of Pavlodar we want to build a plant for processing gold concentrates. The total investment value is about 750 million US dollars. This is more than 500 jobs.

    By the way, about the competition. This year, 492 organizations applied to participate in the Paryz Award. The commission determined 2 grand prizes. The 2nd award went to the Kyzylorda region.

  • Teck, Arras partner to explore Kazakh critical minerals

    Teck, Arras partner to explore Kazakh critical minerals

    Teck Resources, a Canadian mining company, has signed an option deal with Arras Minerals for its critical minerals licence package in Kazakhstan.

    The option agreement is limited to the package in Bozshakol-Chingiz Magmatic Arc in Pavlodar.

    It excludes the Beskauga copper-gold project, and regional exploration licences Stepnoe, Ekidos, Aimandai and Elemes.

    As part of the arrangement, Teck will solely fund exploration work through 2025. The initial expenditure will be $5m (C$6.79m) before 31 December 2025 across two packages totalling around 1,736km².

    After the initial exploration phase is completed, Teck will have the option to select up to four designated properties covering 120km² of area each.

    At these properties, it will conduct exploration at a cost of up to $47.5m per project, helping it earn up to 75% interest in each of the four projects.

    The company also agreed to reimburse some project-related expenses to Arras through $1m in cash on signing, and potentially other payments in the future, if Teck selects to go ahead with the future phases.

    Arras will act as the manager for the first year of the two-year programme and Teck will hold the option to assume the role thereafter.

    Arras Minerals CEO Tim Barry said: “As an early-mover into Kazakhstan two and a half years ago, following the substantial reforms to the business environment and mining law, Arras has assembled the third-largest land package in the country next to Rio Tinto and Fortescue and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc.

    “We recently completed our second summer field season across the regional licence package and are now analysing more than 50,000 soil samples we have collected across the approximately 3,300km² licence package. This programme was based on the successful 2022 field programme where more than 16,000 soil samples identified new targets to follow up.”

  • ArcelorMittal closes Kazakh unit sale to state-owned QIC

    ArcelorMittal closes Kazakh unit sale to state-owned QIC

    Steel giant ArcelorMittal has concluded the divestment of its Kazakh steel and mining business to state-run direct investment fund Qazaqstan Investment Corporation (QIC).

    The transaction saw the company selling a 100% interest in ArcelorMittal Temirtau and ArcelorMittal Tubular Products Aktau (together called ArcelorMittal Temirtau).

    The steelmaker secured $286m for the sale and another $250m as repayment of outstanding intra-group dues.

    It will also secure a further $450m in sovereign-fund guaranteed payment as intra-group loan repayment. This will be made in four equal annual tranches.

    ArcelorMittal said that the deal had a negative effect on its equity of nearly $800m.

    As of 30 September 2023, the company had valued the ArcelorMittal Temirtau assets at $1.8bn.

    This sale was executed on an ‘as is’ basis, with QIC taking full control and accountability for ArcelorMittal Temirtau. The acquired operations will be rebranded.

    The company has owned as well as operated the Kazakh steel plant and integrated iron-ore coal mines since 1995.

    It had been in negotiations with the Government of Kazakhstan for some months now.

    This follows a fire incident this October at the company’s Kostenko coal mine in the Karaganda region.

    Triggered by a methane gas explosion, the incident claimed the lives of 45 people.

    Kazakhstan president Kassym-Jomart Tokayev ordered a halt on investment cooperation with the steelmaker after the incident and confirmed a preliminary agreement with the company regarding the nationalisation of the Kazakh business.

    The plans for ownership transfer to the government came after a spate of incidents at ArcelorMittal’s mines, including one in 2006 that led to the deaths of 41 miners.

    The Kazakh Government is now looking to foster a conducive environment for the business’ long-term financial and operational stability and define its sustainable future.

    Besides, the company donated $35m to the Qazaqstan Halqyna charitable foundation to fund healthcare and education projects in the Karagandy region.

    ArcelorMittal executive chairman Lakshmi Mittal and CEO Aditya Mittal said: “We would like to take this opportunity to thank the employees of ArcelorMittal Temirtau for everything they have contributed over the past 28 years.

    “While the business faced some serious challenges, there were also many notable achievements, which should be a source of pride. ArcelorMittal Temirtau was a very valued part of ArcelorMittal, and we leave with respectful memories of Kazakhstan and all those who partnered with us.”

  • “$1.3 billion will be invested in 2024” – the new owner of ArcelorMittal Temirtau

    “$1.3 billion will be invested in 2024” – the new owner of ArcelorMittal Temirtau

    The new investor ArcelorMittal Temirtau announced short-term plans.

    Let us recall that the Kazakh company Qazaqstan Steel Group (QSG) became an investor in the enterprises of the former ArcelorMittal Temirtau.

     

    Under the terms of the deal, QSG will purchase AMT’s assets for $286 million and will also make guaranteed deferred payments of $450 million. In addition, $250 million will be paid at closing as payment of AMT’s outstanding intercompany debt.

    “Subsequently, the investor undertakes to invest more than $3 billion, of which $1.3 billion will be invested next year,” the company said in a statement.

    In the short term, the national investor sets himself the following tasks:

    • maintaining the existing collective agreement and remuneration system for employees of the enterprise;
    • radical improvement of production safety indicators and environmental situation;
    • modernization and reorganization of production;
    • increase in volumes, range and types of products.

    The company said that officials will provide detailed comments after conducting an analysis of the enterprise’s activities.

    Let us recall that on October 28, another tragedy occurred at the Kostenko mine in Karaganda, which claimed the lives of 46 miners . President Kassym-Jomart Tokayev went to the scene of the emergency, expressed condolences over the death of the miners and instructed to stop cooperation with ArcelorMittal Temirtau .

    The government has determined the requirements for a new investor. It also became known that after the change of ownership, Kazakhstan will no longer use the name ArcelorMittal .

  • Kazatomprom will develop digital projects

    Kazatomprom will develop digital projects

    The national nuclear company Kazatomprom and its subsidiary KAP Technology signed a cooperation agreement with Siemens. They intend to implement projects related to the digitalization and automation of Kazatomprom divisions, reports the press service of the Kazakh enterprise.

    Siemens and KAP Technology have been working together for four years. The foreign enterprise supplies the partner with technological equipment, and also provides consulting, engineering and service services in the field of industrial automation.

    Now the nuclear holding has decided to expand cooperation with Siemens. The new strategic agreement included items such as joint pilot projects on the development and use of the latest digital technologies at uranium mining enterprises in Kazakhstan.

    In addition, the parties intend to work on developing training programs to train highly qualified specialists in the field of automation of production processes. Company managers believe that this will increase the number of successfully implemented investment projects.

  • Kazakhmys resumed work at all underground mines after the loss of life

    Kazakhmys resumed work at all underground mines after the loss of life

    On November 30, Kazakhmys Corporation LLP resumed work at underground mines. 

    Earlier, after the death of two miners at the Zhaisan mine, all underground mining and capital construction work was suspended .

    “Work at the underground mines has resumed. At the same time, work continues to eliminate inconsistencies in some areas,” Kazakhmys reports.

    A commission headed by chief engineers has been created to monitor the inspections and resumption of mining operations.

    “Work is also actively underway to ensure the safety, repair and stabilization of mine workings,” the company informed.

    Let us remind you that on November 27, two workers  died at the  Zhaisan mine in the Zhambyl region. During mining operations, the miners received injuries incompatible with life.

    On November 22, a 43-year-old conveyor operator died at the Zhezkazgan processing plant No. 2 of the Kazakhmys corporation   . Woman crushed to death by mechanism 

    On November 5, an accident occurred at the Eastern mine of the Zhezkazgan branch of Kazakhmys, which resulted in  the death of  a mining foreman.