MINEX Forum

Website: Kazakhstan.com

  • Mine tragedy: ArcelorMittal Temirtau promised that it would comply with all rights and obligations

    Mine tragedy: ArcelorMittal Temirtau promised that it would comply with all rights and obligations

    The company assured that every effort will be made to ensure that AMT’s activities are organized with effective planning.

    It became known that AMT will make every effort to ensure that the company’s activities are organized with effective planning and to avoid any inconvenience for its stakeholders, reports inbusiness.kz with reference to the press service of the Ministry of Industry and Construction of the Republic of Kazakhstan.

    “Dear business partner, it is with deep sorrow that we inform you that in the early hours of Saturday, October 28, 2023, a disaster occurred at the Kostenko coal mine of ArcelorMittal Temirtau (AMT), resulting in the death of 46 courageous miners. Every effort is being made to support the families killed miners, and an investigation into the cause of the incident is underway.

    In addition, you are likely aware of the announcements made by the Government of the Republic of Kazakhstan and ArcelorMittal regarding the transfer of ownership of ArcelorMittal Temirtau to the Government of the Republic of Kazakhstan. These negotiations have been ongoing for several months, and recently the Government of the Republic of Kazakhstan and ArcelorMittal reached a preliminary agreement regarding the future direction of the steel and mining operations of AMT, as well as its subsidiaries,” the statement said.

    ArcelorMittal Temirtau is one of the most important steel suppliers in the domestic and regional markets. Over the years, the company has established itself as a strategic partner for steel consumers in all selected markets. Therefore, every effort will be made to ensure that AMT’s activities are organized with effective planning and to avoid any inconvenience to its stakeholders.

    AMT assured all interested parties that:

    1. All rights and obligations associated with ArcelorMittal Temirtau (AMT) (including the Temirtau steel plant, coal division, Orken, subsidiaries, including the Aktau pipe plant and representative offices in the CIS countries) will be respected.
    2. The Government of the Republic of Kazakhstan and AMT will ensure full continuation of business with respect to compliance with all rights and obligations of AMT, including supply agreements with customers, acceptance of goods and services, including contractor services from suppliers, obligations to employees, etc.
    3. AMT’s business processes, including order booking, contracting, dispatch, invoicing and supplier contracts, operate as usual.
    4. AMT will continue to be a trusted partner for its clients and will strive to do so in the future.
  • A metallurgical plant will be built in the Zhetysu region

    A metallurgical plant will be built in the Zhetysu region

    In the Zhetysu region, implementation of a large project has begun for the construction of a metallurgical plant with a capacity of 860 thousand tons of copper concentrate per year. Akim of the region Beibit Isabaev announced this at a briefing at the SCS site, reports the correspondent of the business information center Kapital.kz with reference to the press service of the akimat.  

    The cost of the project is 1.3 trillion tenge, the company plans to create more than 2,000 jobs.

    Currently, the construction of warehouses and other technical premises for storing equipment and goods has been completed. Construction of the plant will begin in 2025 and will be completed in 2027.                                            

    The project is being implemented by Consolidated Construction Mining Company LLP.                                             

    In general, as Beibit Isabaev reported, the region’s investment portfolio until 2030 contains 184 projects worth 2.2 trillion tenge with the creation of more than 9 thousand jobs.                                           

    Earlier, Prime Minister Alikhan Smailov spoke about the work to attract foreign direct investment to Kazakhstan and implement new investment projects. “Last year, our volume of foreign direct investment amounted to a record level over the past 10 years of $28 billion. First of all, these investments went to the mining and metallurgical complex, manufacturing industry, trade, transport and financial sector,” said Alikhan Smailov.

  • Tokayev: Kazakhstan is ready to become the main supplier of rare earth minerals

    Tokayev: Kazakhstan is ready to become the main supplier of rare earth minerals

    At the World Climate Summit, the President of the Republic of Kazakhstan called not to require developing countries to sacrifice national development in the name of climate protection

    Today, almost half of the world’s population lives in regions that are highly dependent on climate change, Kassym-Jomart Tokayev noted in his speech at the Summit of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP 28) in Dubai on December 1.

    “Small island developing states, landlocked developing countries and least developed countries are at greatest risk,” the President of the Republic of Kazakhstan emphasized.

    Kazakhstan became the first country in the region to ratify the Paris Agreement and adopt the Carbon Neutrality Strategy until 2060, the speaker recalled. “Our country has enormous potential for the development of wind and solar energy, as well as for the production of green hydrogen. We will continue to work closely with our partners to unlock this potential. As a leading exporter of uranium, accounting for 43% of the world’s supply, we play a critical role in generating carbon-free electricity on a global scale,” Tokayev said.

    As the world decarbonizes in the coming decades, critical minerals, including rare earths, will become irreplaceable, the president emphasized. “Kazakhstan is ready to become the main supplier of these transition minerals. We also actively support private green initiatives. For example, the Association of Packers of Kazakhstan is working on projects to get rid of plastic waste, contributing to environmental protection. I think it is principled and fair not to demand that countries with developing economies sacrifice national development and modernization in the name of climate protection. On the contrary, these goals should go hand in hand and reinforce each other. “Bold steps are needed,” Kassym-Jomart Tokayev expressed his opinion.

    Reducing methane emissions is the fastest way to slow down the rate of global warming, the speaker recalled and said that Kazakhstan has decided to join the Global Commitment to Reduce Methane Emissions. “At the same time, we strive to solve the large-scale coal problem in the countries of our region by implementing the region’s first Just Energy Transition Partnership (JETP) in Kazakhstan. For both these initiatives to succeed, we call on our friends and partners to provide concrete support,” he said. “More broadly, we hope that the international community will increase its commitment to increasing climate finance. But financing is only the first obstacle. Even if we manage to limit global temperature rise to 1.5 degrees by 2050, Central Asian countries will still face a temperature rise of up to 2.5 degrees. This will lead to water shortages, extreme heat, desertification and extreme hydrological events. Therefore, adaptation is inevitable and necessary.”

    As a concrete measure, Tokayev called for more funds to be allocated to support the International Fund for Saving the Aral Sea, adding that Kazakhstan will take over the chairmanship of the fund next year and hopes to involve all partners in solving this problem.

    “Based on the successful results of COP 28 held this week, I invite participating states to the Astana International Forum in June 2024. The forum can serve as a dialogue platform for continued focused cooperation on pressing climate-related issues until COP 29,” Tokayev addressed the audience and summed up the speech: “To give impetus to climate action in Central Asia, we also decided to convene a Regional Climate Summit in Kazakhstan in 2026 under the auspices of the UN. The climate emergency is a global crisis that requires a global response. We have a shared responsibility to preserve our planet and ensure a sustainable future for everyone. Kazakhstan firmly believes that only collective action and cooperation will help us solve the climate crisis.”

  • Coal mining companies face difficulties when exporting products

    Coal mining companies face difficulties when exporting products

    At the AGMP site, a meeting was held on problematic issues of the coal industry, chaired by the advisor to the executive director of the association, Tulegen Mukhanov.

    At the meeting with the participation of representatives of coal mining companies, issues of supplying municipal coal to the domestic market, selling coal for export, and implementing proposals within the framework of the resolution of the IV Coal Industry Forum were discussed.

    According to operational information from coal mining companies, the domestic market is currently supplied with municipal coal. The current situation regarding the supply of solid fuel to the population is under constant control of the Ministry of Industry and Construction, NPP Atameken, and AGMP.

    Issues of loading coal for export are also discussed weekly at meetings of the operational headquarters established at the Atameken National Chamber of Entrepreneurs with the participation of the Ministries of Transport, Trade and Integration. AGMP takes an active part in the meetings.

    At the meeting, specialists from coal mining companies drew attention to such difficulties in supplying products to non-CIS countries, such as a shortage of cars, non-coordination of transportation plans by KTZ, Russian Railways, and the introduction of conventional bans. Meanwhile, untimely delivery of coal to foreign buyers entails the accrual of significant fines, as a result of which the financial burden on coal mining enterprises will increase. Moreover, export contracts are concluded on strict conditions of continuity of supply. The lack of supply guarantees will certainly affect the choice of coal buyers, which may lead to loss of sales markets and will affect a decrease in coal production volumes.

    According to Ilyas Mazhitov, director of the department of coal industry and energy of ASMP, earlier ASMP sent a letter about problems with coal exports to the Ministries of Transport, Trade and Integration, KTZ. It is planned to contact government agencies with a similar letter in the near future.

    Following the results of the IV Coal Industry Forum, its participants adopted a resolution. The first paragraph of the resolution stipulates that AGMP and NCE RK “Atameken”, together with the Ministry of Industry and Construction, will develop a long-term Program for the Development of the Coal Industry of Kazakhstan in order to formulate a predictable state policy regarding the industry, including encouraging the development of new deposits. AGMP together with the Ministry of Railways have begun to implement this issue. Thus, a Working Group is being created under the Industry Committee of the Ministry of Railways.

    “The program for the development of the coal industry will be a historical document, which will be developed for the first time in our country, so we encourage coal mining enterprises to actively participate in its preparation,” T.M. Mukhanov emphasized.

    Coal mining companies also addressed specific issues to the AGMP to facilitate their resolution.

  • Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    Kazatomprom entered into a contract with Emirates Nuclear Energy Corporation for the supply of natural uranium concentrate

    National Atomic Company Kazatomprom and the UAE energy company Emirates Nuclear Energy Corporation (ENEC) signed the first ever contract for the supply of Kazakh natural uranium concentrate for the energy needs of the UAE Barakah nuclear power plant.

    The signing took place as part of the official visit of the President of the Republic of Kazakhstan Kassym-Jomart Tokayev to the United Arab Emirates, during which the Kazatomprom delegation took part in the United Nations Climate Change Conference COP28.

    “We are proud that the first ever commercial contract between Kazatomprom and ENEC will mark the beginning of an important and promising cooperation between our companies. We are very pleased that our sales geography has expanded to the UAE and highly appreciate the recognition of Kazatomprom’s role in ensuring the UAE’s energy security and achieving zero emissions, which indicates our company’s strong reputation as a reliable supplier in the global nuclear fuel market. We hope that in the future our partnership will only strengthen thanks to the signing of new contracts aimed at ensuring uninterrupted supplies of natural uranium for the Baraka nuclear power plant,” said Meirzhan Yusupov, Chairman of the Board of NAC Kazatomprom JSC.

    “Signing a contract with Kazatomprom, the world’s largest uranium producer, is strategically important for ENEC in terms of further diversification and ensuring the security of nuclear fuel supplies. With many countries making a significant positive shift towards incorporating civil nuclear power into their energy mix, the security of fuel supply is of paramount importance. Kazatomprom is expanding our list of partners to ensure a sustainable supply of fuels to produce clean electricity to decarbonize energy-intensive and heavy industries in the UAE,” said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of ENEC.

    The conclusion of this contract with a large UAE energy company will serve as a new impetus for cooperation between nuclear companies of both countries, and will also open a new country in the sales geography of Kazatomprom.

    The scope and commercial terms of the contract are confidential and commercially sensitive and are not subject to public disclosure.

  • The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    The Ministry of Industry and Construction announced the imminent completion of the deal between the government and ArcelorMittal

    – We inform you that the deal between the Government of the Republic of Kazakhstan and ArcelorMittal is approaching its final stage. In light of the significance of this event, we will organize a briefing immediately after the completion of the transaction. At this meeting we will present all the necessary information and answer all questions,” announced the press service of the Ministry of Industry and Construction.

    Let us remind you that as part of the deal, ArcelorMittal will transfer its Kazakh assets to an investor chosen by the government, who will be ready to invest at least three billion dollars in the next three years. This deal was adopted due to frequent fatal accidents at ArcelorMittal Temirtau mines.

    The government officially announced that a preliminary agreement had been reached on the transfer of the ArcelorMittal Temirtau enterprise on October 28 against the backdrop of the accident at the mine named after. Kostenko, in which 44 miners died. On November 6, ArcelorMittal Temirtau and the Ministry of Industry made a joint statement regarding negotiations on the transfer of property

     

     

  • A metallurgical plant will be built in the Zhetysu region

    A metallurgical plant will be built in the Zhetysu region

    Project cost – 1.3 trillion tenge/

    In the Zhetysu region, implementation of a large project has begun for the construction of a metallurgical plant with a capacity of 860 thousand tons of copper concentrate per year. Akim of the region Beibit Isabaev announced this at a briefing at the SCS site, reports the correspondent of the business information center Kapital.kz with reference to the press service of the akimat.  

    The cost of the project is 1.3 trillion tenge, the company plans to create more than 2,000 jobs.

    Currently, the construction of warehouses and other technical premises for storing equipment and goods has been completed. Construction of the plant will begin in 2025 and will be completed in 2027.                                            

    The project is being implemented by Consolidated Construction Mining Company LLP.                                             

    In general, as Beibit Isabaev reported, the region’s investment portfolio until 2030 contains 184 projects worth 2.2 trillion tenge with the creation of more than 9 thousand jobs.                                           

    Earlier, Prime Minister Alikhan Smailov spoke about the work to attract foreign direct investment to Kazakhstan and implement new investment projects. “Last year, our volume of foreign direct investment amounted to a record level over the past 10 years of $28 billion. First of all, these investments went to the mining and metallurgical complex, manufacturing industry, trade, transport and financial sector,” said Alikhan Smailov.

  • Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    Kazatomprom and Siemens will cooperate in the field of digitalization and automation

    NAC Kazatomprom JSC and its subsidiary KAP Technology LLP entered into a strategic cooperation agreement with Siemens LLP in the field of digitalization and automation of subsidiaries of the nuclear-holding company.

    Since 2019, Siemens has been an official partner of KAP Technology LLP in the provision of process equipment, as well as consulting, engineering and services in the field of industrial automation, which served as the foundation for further expansion of cooperation with the nuclear holding.

    “Kazatomprom is actively working to develop and implement innovative projects in the field of digitalization and automation of production. The use of advanced technologies, equipment, and partner software has already shown results in optimizing production processes and improving the quality of products. I am confident that further cooperation with Siemens will have a positive impact on the development of the entire digital ecosystem of the nuclear holding,” said Mukhit Magazhanov, Chief Director for Procurement and General Issues of Kazatomprom.

    The strategic agreement provides for joint participation in pilot projects to introduce advanced technologies at uranium mining enterprises, as well as the active development of training programs aimed at training highly qualified personnel for the successful implementation of innovative projects.

    The parties plan to significantly increase the level of automation and digitalization of enterprises, which will strengthen Kazatomprom’s status as a leader in the uranium mining industry and ensure competitiveness in the global market.

    This strategic partnership underscores the companies’ shared ethos of innovation and reaffirms their commitment to advancing the industry through cutting-edge technology and educational initiatives.

  • KAZ Minerals increased copper production by 7%

    KAZ Minerals increased copper production by 7%

    The copper mining group KAZ Minerals produced 301.2 thousand tons of copper in January–September, which is 7% more than in the same period in 2022.

    “In the first nine months of 2023, the KAZ Minerals group produced more than 300 thousand tons of copper, which is 7% more than in the same period last year. This was achieved thanks to the expansion of capacity at the second world-class enrichment plant at Aktogay,” the statement said.

    Production of zinc in concentrate increased by 24% to 36.4 thousand tons, thanks to mining in areas with a higher metal content and, as a result, an increased recovery factor. Silver production increased by 11% to 3 million ounces as the group also processed higher-grade ore, while gold production decreased by 7% to 120.3 thousand ounces due to an expected decline in metal grades. ore at Bozshakol and Bozymchak.

    “In the nine months of 2023, KAZ Minerals produced 301 thousand tonnes of copper, up 7% year-on-year, thanks to the global expansion of capacity at its second concentrator at Aktogay. In 2023, the group has already sold its finished product inventories accumulated in the previous year, and copper sales were 43 thousand tons ahead of production in 2023,” said KAZ Minerals Chairman Andrew Southam .

    The Group sold accumulated inventories of finished products created in 2022, while the volume of copper sales for the period up to September 30, 2023 amounted to 344 thousand tons, which is 43 thousand tons more than production volume.

    The volume of copper production at Aktogay in January–September amounted to 192 thousand tons, which is 14% more than a year earlier. Copper production at Bozshakol is 77.5 thousand tons versus 77.9 thousand tons previously. Copper production in the Eastern region and Bozymchak decreased by 12%, to 31.7 thousand tons.

    At the end of the first half of the year, the copper mining group KAZ Minerals produced 200 thousand tons of copper, which is 11% more than in the same period in 2022, and sold 223 thousand tons of metal.

    KAZ Minerals operates the Aktogay copper mine and the Orlovsky mine in the Abay region and the Bozshakol mine in the Pavlodar region, two underground mines and processing plants in the East Kazakhstan region and the Bozymchak copper-gold mine in Kyrgyzstan. Vladimir Kim , who owns 63.5% of KAZ Minerals, ranks first among the richest Kazakhstanis according to Forbes with a fortune of $4.6 billion.  Oleg Novachuk , who owns 36.5% of KAZ Minerals shares, has a fortune of $615 million, ranking 13- e place. 

  • Ministry of Industry: The deal between the government and ArcelorMittal is approaching its final stage

    Ministry of Industry: The deal between the government and ArcelorMittal is approaching its final stage

    The Ministry of Industry said that the deal between the government of Kazakhstan and ArcelorMittal is approaching its final stage, Zakon.kz reports.

    On November 4, 2023, First Deputy Prime Minister of the Republic of Kazakhstan Roman Sklyar said at a government briefing that ArcelorMittal Temirtau would be bought by a Kazakh investor. It also became known what requirements are imposed on a new investor. 

    On October 31, 2023, Head of Government Alikhan Smailov announced the completion of the transaction to transfer AMT in favor of Kazakhstan.

    Earlier it became known that the new investor will have to invest $3 billion in the modernization of ArcelorMittal Temirtau JSC.

    Tragedy at the mine named after. Kostenko of ArcelorMittal Temirtau JSC in the Karaganda region occurred on the night of October 28, 2023 at 02:33. At the time of the accident, there were 252 people in the mine, and 206 miners climbed to the surface . Initially, four victims were reported, but all those who remained underground died – 46 miners.

    After an emergency in the mine named after. Kostenko, head of state Kassym-Jomart Tokayev instructed the government to stop investment cooperation with ArcelorMittal Temirtau. Then the government stated that they had already reached a preliminary agreement with AMT shareholders, and also noted that “the formalization of the transaction to transfer ownership of the enterprise in favor of Kazakhstan is being completed.” Later, ArcelorMittal confirmed the transfer of the company to the ownership of Kazakhstan.