MINEX Forum

Website: Kazakhstan.com

  • The government is not considering the involvement of foreign investors in AMT after nationalization

    The government is not considering the involvement of foreign investors in AMT after nationalization

    Minister of Industry and Construction Kanat Sharlapayev responded to queries from journalists regarding potential ownership of the coal plant following its transfer from Lakshmi Mittal’s ArcelorMittal.

    He clarified the government is not contemplating any foreign investors after rights transfer to the Republic of Kazakhstan. Additionally, all existing conditions such as union agreements, wages and staffing levels will remain unchanged during transition.

    When asked if businessman Serik Akhmetov could become the new investor, the Minister stated no specific investor has been discussed as they do not plan to attract foreign ownership. ArcelorMittal Temirtau retains operational capability as an ongoing concern generating over $3 million revenue in 2022.

    Sharlapayev explained it would be incorrect to assume budgetary funding is needed as the enterprise sustains itself financially. Negotiations with ArcelorMittal had been ongoing for some time, with preliminary sale documents signed October 22nd preceding the mine tragedy. Therefore, characterising the deal as hastily conducted would be erroneous.

    Legal measures are being taken to safeguard Kazakhstan from further litigation once this investor exits. The plant name may change owing to loss of ArcelorMittal branding rights. Staff opinion will factor in any new name decision.

    Disclosure of acquisition conditions was declined due to the seller’s public listing, though budget funds will not be utilised for the asset purchase. Legally binding contracts remain pending signature with the listed company.

  • Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Tokaev instructed to terminate cooperation with “ArcelorMittal Temirtau”

    Kazakhstani President Kassym-Jomart Tokayev expressed his sincere condolences to the families and loved ones of the miners who lost their lives in the fire at the Kostenko Mine in the Karaganda region. The head of state instructed the Government to provide all necessary assistance to the families of the miners. A government commission has been established to investigate the circumstances of the incident.

    The government has been instructed to terminate investment cooperation with the company “ArcelorMittal Temirtau.”

    The emergency occurred during the night.

    It is worth noting that just two months ago, a tragedy occurred at the “Kazakhstanskaya” mine (also owned by “ArcelorMittal Temirtau”).

    It has recently become known that the management is entirely responsible for the tragedy that led to the deaths of miners following the fire at the “Kazakhstanskaya” mine.

    The staggering statistics of fatal accidents at AMT facilities have caused outrage and angry comments not only from internet users but also from officials, starting with the head of state. The rumors about a possible “divorce” with a foreign investor have gone beyond kitchen table discussions and have taken concrete shape in parliamentary inquiries. To understand what is happening, the correspondent of Ulysmedia.kz analyzed, remembered, and reviewed personal archives.

    On April 23, it became known that Irina Em, a lawyer at “ArcelorMittal Temirtau,” was killed. Her body, showing signs of violent death, was discovered by firefighters from the city of Shakhtinsk who responded to a call. The most significant question actively discussed on social media is whether the woman’s murder is related to her professional activities. The Ulysmedia.kz correspondent investigated why deaths at “AMT” are associated with production.

  • Tragedy at the “Kostenko” Mine: the names of the miners who will be buried on October 31 have become known

    Tragedy at the “Kostenko” Mine: the names of the miners who will be buried on October 31 have become known

    Mourning continues in the Karaganda region for the miners lost in the Kostenko Mine accident. Funerals have commenced, with 14 workers interred on October 30th both in Karaganda city and surrounding towns. Many of the deceased had previously served at other company facilities.

    Further farewells are scheduled over the next two days, with the bulk planned for this coming Tuesday. Through social networks, eight additional memorial services have been noted already set for October 31st honouring Marat Fazlov, Olzhas Kamiev, Askhat Sapargaliev, Vladimir Kataman, Damir Kalimullin, Ivan Menikov, Akynzhan Orakbayev and Yuri Polovinka.

    The local administration and ArcelorMittal Temirtau are aiding the families in funeral arrangements. It remains that an explosion inferred to have resulted from a methane blast transpired on October 28th, with 45 bodies recovered and one miner still searched for. The first names released bring some solace amidst this tragedy which the President strongly condemned. A criminal inquiry has rightly commenced as the ownership transfer process continues.

  • Tulegen Mukhanov: “The future of geological exploration is our national priority”

    Tulegen Mukhanov: “The future of geological exploration is our national priority”

    In the Address to the people of Kazakhstan “The Economic Course of a Fair Kazakhstan,” the Head of State identified the development of geological exploration as one of the key tasks. In the strategic document, the President noted that in 2018, in order to replenish the mineral resource base, new legislation was adopted on the management of the mining sector. However, it did not work fully. As a result, there have been no significant geological discoveries in our resource-rich country for a long time.

  • Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    The death toll from a fire at a coal mine in Kazakhstan owned by ArcelorMittal rose to 45 on Sunday, with emergency teams engaged in an operation to find one remaining miner believed to have been underground, emergency service officials were quoted as saying.

    On Saturday, operator ArcelorMittal Temirtau, the local unit of Luxembourg-based steelmaker ArcelorMittal, said 206 of 252 people at the Kostenko mine had been evacuated after what appeared to be a methane blast.

  • In Kazakhstan, there is a proposal to allow the development of mining waste within populated areas.

    In Kazakhstan, there is a proposal to allow the development of mining waste within populated areas.

    The proposal to allow the extraction of technogenic mineral formations (TMF) located within populated areas and within 1 km of them is stated in an advisory document on regulatory policy for the draft law of the Republic of Kazakhstan “On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on Subsoil Use to Improve the Investment Climate.”

    In Kazakhstan, there is a proposal to allow the development of mining waste within populated areas.”The prohibition established by Article 25 (Subsoil Code, which prohibits subsoil use operations on lands within populated areas and within 1 km of them – italicized) prevents obtaining subsoil use rights for TMF located in populated areas. At the same time, underground extraction of TMF is not possible as the objects are located on the surface of the land. In turn, granting the right to extract solid minerals (TPM) from TMF within populated areas will free up land, improve the environmental situation (through the removal of ore or tailings), and create jobs,” the published document states.

    Developers note that a significant portion of TMF resulting from mining activities is currently located within populated areas or within a 1 km protective zone: terricones in the East Kazakhstan region, Balhash, Kentau tailing ponds, and so on. According to established practice, subsoil users have had to buy land and houses from local residents, compensating for their relocation to other populated areas. Now, this practice is effectively being proposed to be discontinued.

    However, developers believe that the extraction of minerals from such TMF should be aimed at exporting the TPM from the extraction site without processing them on-site, as such activities would exacerbate the environmental situation. Therefore, the document emphasizes that when signing agreements to support the local population and coordinating environmental impact assessments (EIA), requirements for preserving the environmental situation will take precedence.

    In addition, the document proposes to ease the conditions for artisanal miners. According to the code, applicants for an artisanal miner’s license must own a cargo truck with a capacity of no more than 10 tons, drilling equipment, as well as an excavator or bulldozer with a total bucket volume of no more than half a cubic meter. However, for artisanal miners, acquiring an excavator and bulldozer for stripping and reclamation work is costly and impractical expenditure, so the use of equipment on a rental basis is proposed to solve this problem.

    The developers also suggest regulating, following the example of foreign legislation, the amounts to be paid by subsoil users for using land plots for geological exploration within the framework of private or public servitude (limited right to use someone else’s land). When establishing private servitude, a fee for servitude and compensation for damages are provided. However, because the parties cannot reach an agreement on this matter, the subsoil user cannot start geological exploration. The document notes that the absence of regulation on the amount often leads to unjustified overestimation of expectations regarding the amounts from landowners’ side.

  • Kazakhstan and the European Union are expanding opportunities for the development of the critical raw minerals sector

    Kazakhstan and the European Union are expanding opportunities for the development of the critical raw minerals sector

    From October 25 to 26, 2023, Vice Minister of Industry and Construction of the Republic of Kazakhstan Iran Sharkhan and Chairman of the National Geological Survey JSC Erlan Galiyev took part in the Global Gateway forum in Brussels (Belgium).

    The event, which focused on green energy, education and research, critical raw materials, transport corridors, healthcare manufacturing and digital infrastructure, was opened by European Commission President Ursula von der Leyen.

    During the visit, the Kazakh delegation took part in a panel session dedicated to the problem of rare earth metals and discussed issues of joint cooperation with the parties. Also, I. Sharkhan and E. Galiyev held a number of bilateral meetings with the heads of European organizations.

  • Kazakhstan proposes to allow the development of mining waste in populated areas

    Kazakhstan proposes to allow the development of mining waste in populated areas

    It is proposed to allow mining of reserves of technogenic mineral formations (TMF) located on the territory of populated areas and within 1 thousand m from them, as reported in the regulatory policy advisory document of the draft law of the Republic of Kazakhstan “On introducing amendments and additions to certain legislative acts of the Republic of Kazakhstan on issues subsoil use in order to improve the investment climate.”

    “The ban established by Article 25 (of the Subsoil Code, which prohibits subsoil use operations on the lands of populated areas and up to 1 thousand meters from them – “Italics”), does not allow obtaining the right to subsoil use for solid waste located in populated areas. At the same time, the extraction of solid waste by the underground method is impossible, since the objects are located on the surface of the earth. In turn, granting the right to extract solid minerals (solid minerals – “Italics”) from solid waste within a populated area will free up occupied land, improve the environmental situation (by removing ore or tailings), and create jobs,” says the text of the published document. .

  • Tax authorities of Kazakhstan are putting pressure on mining and metallurgical companies and have increased the mineral extraction tax to 30-50% – specialized association

    Tax authorities of Kazakhstan are putting pressure on mining and metallurgical companies and have increased the mineral extraction tax to 30-50% – specialized association

    Tax officials are putting pressure on the mining and metallurgical complex (MMC) and have increased the mineral extraction tax (MET) from the beginning of 2023 to 30-50%, said Maxim Kononov, first deputy executive director of the Republican Association of Mining and Mining and Metallurgical Enterprises.

  • The ban on the export of coal by road transport in Kazakhstan will be extended

    The ban on the export of coal by road transport in Kazakhstan will be extended

    The Ministry of Industry and Construction of the Republic of Kazakhstan plans to extend the current ban on the export of coal by road from the territory of the Republic of Kazakhstan.

    The ban is being extended in order to avoid a shortage of coal for the population during the heating season.

    The ban is extended from November 26 this year. for a period of six months.
    In particular on:

    — hard coal, pulverized or non-pulverized, but not agglomerated (HS code 2701);

    — lignite, or brown coal, agglomerated or non-agglomerated, except jet (HS code 2702).

    The feasibility of establishing a ban on the export of coal by road from the territory of the Republic of Kazakhstan was considered and supported at a meeting of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations (IEC) on September 20, 2023.

    Press service of the Ministry of Industry and Construction of the Republic of Kazakhstan