MINEX Forum

Website: Kazakhstan.com

  • The unprofitable “Bast” requested a loan from the Development Bank of Kazakhstan

    The unprofitable “Bast” requested a loan from the Development Bank of Kazakhstan

    The company “Bast,” engaged in the development of the Maxut deposit in the Abay region, has approached the Development Bank of Kazakhstan for debt financing for its project, as reported by inbusiness.kz. This loan was requested for the “expansion of the ore processing plant for the production of copper and nickel concentrates.” Currently, an “indicative analysis” of the project is being conducted, as indicated in the “projects under consideration” section on the BRK website.

    The primary shareholder of “Bast” is the businessman Timur Turlov, who owns 74.18% of the company’s shares, with an additional 8.14% belonging to the affiliated Freedom Finance Global Plc, as stated on the Kazakhstan Stock Exchange website. As of the end of the previous year, Turlov controlled 75.4% of “Bast” shares, while the share held by Freedom Finance Global Plc was minimal, with just 1 share, according to annual reports. Additionally, at the end of 2022, the liquidation commission of Bank Astana retained a noticeable stake in the company, amounting to 5.26%. It’s possible that this share has been reduced at the beginning of this year, as information about it is no longer published in stock summaries.

    The initial public offering of “Bast” shares on the Kazakhstan Stock Exchange took place in 2014, as stated on the company’s website. In 2018, an ore processing plant was put into operation at the Maxut deposit for the production of copper and nickel concentrate. Despite this, “Bast” remained unprofitable over the last two years. According to the financial report for the past year, during that period, the company’s losses exceeded 494 million tenge, despite revenue of 6.3 billion tenge. However, this is half the losses recorded in 2021, which were 1.2 billion tenge.

    Over the past five years, the company attracted small loans from Turlov and other individuals, mainly of a short-term nature. Interestingly, “Bast” also received $2 million as an advance payment from the trader Trafigura for the delivery of copper concentrate, to be repaid by the end of July this year. It’s worth noting that the company had no revenue from the sale of nickel concentrate with a discount last year.

    In 2021, the company was involved in a legal dispute with TO “Service Company “Semey” regarding the recognition, acceptance of work performed, and the recovery of a debt in favor of TO “Service Company “Semey” in the amount of 66,573 thousand tenge. The company had its bank account in AO DB “Sberbank Kazakhstan” frozen in the amount of $156,780 USD (equivalent in tenge as of December 31, 2021 – 67,677 thousand tenge) as part of the execution of a decision by the specialized interdistrict economic court of Almaty. The company filed an appellate complaint for a review of the first-instance decision. In June 2022, the court ruled to uphold the decision of the specialized interdistrict economic court of Almaty and dismissed the company’s appeal. As of December 31, 2022, the company’s obligation has been fully settled through repayment. There were no frozen funds on the company’s account as of December 31, 2022, as noted in the 2022 annual report.

    In total, there were reserves of 112 thousand tons of copper and 79 thousand tons of nickel at Maxut, with the potential for an increase, as mentioned in the financial report. The subsoil use contract for “Bast” was extended last December until May 2042. From 2028, the company will begin using a new metal extraction technology that will reduce operational costs by 25%, as stated in the financial documentation.

    It’s worth noting that the expansion of “Bast” is not the only project involving Timur Turlov that has recently come to the attention of BRK. According to the “projects under consideration” section, the public company AKASHI Data Center PLC has applied for bank financing for the project “Construction of a Tier IV data center with 4,000 racks,” which is currently at the “business proposal” stage.

    Additionally, TO “Production Company “Cement Plant Semey” expressed its desire to attract borrowed funds from BRK for pre-export financing in the amount of 1.2 billion tenge. This application, with Timur Turlov listed as one of the beneficiaries, is currently in the “bank expertise” stage.

  • ERG has entered into a five-year agreement for the supply of cobalt with EVelution Energy.

    ERG has entered into a five-year agreement for the supply of cobalt with EVelution Energy.

    Eurasian Resources Group (ERG), a leading diversified group in the extraction and processing of natural resources, has entered into a preliminary five-year agreement with EVelution Energy (EVelution), an American company specializing in battery material processing for electric vehicles. The agreement entails the supply of cobalt hydroxide produced by ERG to EVelution’s cobalt processing plant in the United States, which the company plans to begin constructing in 2024. ERG’s cobalt will satisfy nearly half of EVelution’s annual raw material requirements.

    The announcement of the agreement was made during the London Metal Week, an annual conference attended by representatives of the global metallurgical industry. The collaboration between ERG and EVelution will provide an impetus for the development of the mineral production industry in the United States. It will also contribute to sustainable development goals by creating new jobs in the manufacturing sector and supporting global climate change mitigation efforts.

    Furthermore, the partnership between the two companies marks a significant milestone in the development of cobalt processing capabilities in the United States. Currently, there are no industrial-scale cobalt processing facilities in the country, while over 70% of global cobalt sulfate production is concentrated in China.

    Benedikt Sobotka, CEO of ERG, emphasized, “We are pleased to reach this agreement for the supply of cobalt hydroxide with EVelution Energy. This collaboration supports the transition to clean energy and will help meet the pressing needs of the American market in developing cobalt processing capacity.”

    Navaid Alam, President and CEO of EVelution Energy, stated, “We are delighted to establish a long-term partnership with ERG for the supply of cobalt hydroxide. This agreement, along with potential partnerships we are exploring with other suppliers, will ensure a sustainable cobalt hydroxide supply to meet the growing demand of our customers in North America for domestically produced zero-carbon cobalt sulfate, in compliance with the Inflation Reduction Act (IRA).” Cobalt sulfate is a material required for the production of electric vehicle batteries.

    The cobalt hydroxide will be supplied from ERG’s flagship facility, Metalkol, located in the Democratic Republic of Congo, which is one of the world’s leading cobalt producers.

    The EVelution plant is scheduled to commence operations by 2026. The company has announced plans to install its own solar battery-based power source at the facility, with surplus clean electricity being supplied to local farmers. Additionally, the plant will reuse approximately 70% of the water it consumes.

  • In the first eight months of 2023, Kyrgyzstan exported gold worth $545 million

    In the first eight months of 2023, Kyrgyzstan exported gold worth $545 million

    In January-August 2023, Kyrgyzstan sold abroad 8.7 metric tons of gold for $545,170,000, or 47.7 billion soms. These statistics are provided by the National Statistical Committee of the Kyrgyz Republic. According to the agency’s information, Switzerland was the largest buyer of precious metal from Kyrgyzstan, purchasing 7.15 metric tons of gold for $448 million. Hong Kong followed, with 983 kilograms of gold sold for $60 million, and the United Arab Emirates, which acquired 582 kilograms of gold from Kyrgyzstan for $36.6 million.

    Earlier, the Ministry of Finance of Kyrgyzstan reported that in 2022, the Kumtor mine produced 17 metric tons and 305 kilograms of gold, with 17 metric tons and 284 kilograms being sold. According to the Ministry of Finance, in the previous year, the Kumtor Gold Company transferred 27 billion 959.4 million soms in taxes, which is 267.3% more compared to 2021.

    The Kumtor mine in the Issyk-Kul region of Kyrgyzstan is the country’s largest gold deposit. In 2021, the Kyrgyzstan government took control of this enterprise, which had been jointly managed with Canada’s Centerra Gold Inc. since 1997.

    In April 2022, Kyrgyzstan authorities reached a consensus with the foreign company, and Kyrgyzstan transferred 26% of Centerra Gold’s shares that it owned, while also dropping ecological and economic claims. Kyrgyzstan then took full ownership of 100% of the Kumtor Gold Company.

  • Polymetal did not find enough gold in the Shekara area

    Polymetal did not find enough gold in the Shekara area

    The mineral exploration activities in the Shekara area of the Kostanay region in Kazakhstan have yielded disappointing results, according to a written response from Polymetal, a gold mining company registered with the Ministry of Finance and Economy of Kazakhstan. The company has determined that the area does not contain economically viable reserves for large-scale development. As a result, the contract territory is being returned to the state, and the accumulated geological data will be transferred to the state geological fund.

    Polymetal had been conducting work in the Shekara area, as mentioned in their earlier press service statements. However, it appears that a decision to halt these activities has been made in recent months. The exploration work in the area began several years ago, with Kazgeology conducting aerogeophysical surveys at the request of Polymetal to assess the potential for gold-silver and copper deposits. A joint venture named “Shekara” was established, with the national geology company holding a 25% stake. Polymetal’s subsidiary, the Kostanay company “Varvarinskoye,” also held shares in the project.

    In March 2021, the national company transferred the mining rights in Shekara to the joint venture. Geological exploration for gold, copper, and polymetallic ores covered an area of 213 square kilometers. The state invested 602 million tenge from 2017 to 2019 for geological exploration, and an additional 21 million tenge was spent from 2018 to 2021, according to Kazgeology’s report.

    It is worth noting that Polymetal is now focusing on assessing reserves in the promising Bakys area in the North Kazakhstan region. The company recently increased its stake to 75% in this gold-copper project, with “Kazgeology” holding the remaining share. Polymetal is evaluating the reserves and plans to consider production in the area after placing them on the state balance sheet. The company’s CEO, Vitaliy Nesis, mentioned the possibility of buying out the junior partner’s stake in the project in a recent interview.

    Active geological exploration in Kazakhstan is crucial for Polymetal, as their Komarovsky gold deposit in the Kostanay region is expected to be depleted by 2028. The ore extracted from Komarovsky is processed at Polymetal’s Varvarinskoye hub, which will continue operating at its current volume. The company is preparing to exploit a new deposit to sustain production as mining operations decline at Komarovsky.

    Furthermore, Polymetal is collaborating with a junior partner in the Northern Balkhash region to search for copper and polymetallic deposits. These projects in Central Kazakhstan aim to establish another processing center and involve exploration in various areas.

    Overall, Polymetal’s exploration efforts in Kazakhstan are focused on identifying new deposits to ensure continuous production and maintain their presence in the region’s mining industry.
    Meanwhile, on the tender page of LLC “TD Polymetal” on the website b2b-center.ru, it is indicated that in 2021, the company solicited proposals for tunnelling works on five licensed areas in Northern Balkhash for the requirements of TOO “Zhana Mys.” It is noteworthy that the latter was among the subsoil users who recently surrendered their license. As per the subsoil users register published in June, this company held nine licenses issued by the Ministry of Industry. Its sole founder is K.M. Dosmukametov, presumably referring to Kanat Dosmukametov, the CEO of “Polymetal Eurasia.”

    As it is known, Polymetal’s primary mining project in Kazakhstan is currently the Kyzyl project in the Abai region, which encompasses the development of the Bakyrchik deposit. It can be considered the largest gold mine in the country in terms of reserves. According to the company’s website, at the time of assessment, its reserves amounted to 9.8 million ounces in gold equivalent, exceeding 304 tons according to inbusiness.kz estimates. In comparison, the once largest Vasilkovskoye deposit in the Akmola region, known as Kaztsink, experienced a decline in reserves and resources from approximately 370 tons to 74-86 tons over the years, as reported by our publication. It is highly likely that with the complete depletion of Vasilkovskoye in the coming years, Polymetal will surpass it as the leading gold miner in the country.

    As previously reported, due to the National Bank’s priority purchase of domestically refined gold, Polymetal refrains from selling the gold it produces abroad, except for a small quantity of refractory gold in high-carbon concentrate from Kyzyl. The low-carbon concentrate from the project is transported to the company’s autoclave plant in Amursk and then returned to Kazakhstan in a processed form. Recently, Polymetal has encountered logistical challenges in delivering gold-bearing raw materials from Kyzyl to the Far Eastern ports.

    “The delivery of concentrate to the Far Eastern ports is currently facing difficulties. Russian railways are not approving applications for transporting concentrate there via covered wagons. There are no transportation issues to Amursk. Hence, we are compelled to transport the concentrate by rail to Amursk and then deliver it to the ports by road for further shipment to China. While we had a one-time experience of shipping concentrate from Kyzyl to the ports by road, it is more efficient to transport it by rail,” confirmed the company.

    Polymetal also provided comments regarding CEO Vitaliy Nesis’s recent statement to Bloomberg regarding the possibility of relisting the gold miner’s shares in London after selling its Russian division. Previously, the company’s CEO stated in a comment to inbusiness.kz that they planned to work closely over the next two years to enhance the liquidity of their shares on the AIX exchange in Astana. This decision came after the re-registration in the Ministry of Finance and Economy of the Republic of Kazakhstan, subsequent to their departure from the Jersey jurisdiction.

    “Unlocking potential on AIX and returning to LSE are not contradictory. AIX will continue to serve as the primary trading platform, while LSE can provide additional liquidity, but only after the sale of Russian assets,” clarified Polymetal.

  • How does the environmental agenda affect Kazakhstan’s industry?

    How does the environmental agenda affect Kazakhstan’s industry?

    The adoption of ESG principles, encompassing environmental, social, and corporate governance aspects, is gaining momentum worldwide, and Kazakhstan is no exception. According to inbusiness.kz, major manufacturing companies in the country are actively modernizing their facilities, implementing measures to reduce emissions, and promoting waste recycling practices.

    By incorporating ESG principles into their operations, companies can not only improve their environmental impact but also enhance their social and managerial aspects, ultimately leading to improved financial and economic performance. Natalya Lim, a partner at PwC, emphasizes the urgent need for a global and unified approach to address critical issues such as climate change, poverty, inequality, and water scarcity.

    Lim believes that the corporate sector plays a decisive role in overcoming these challenges, and organizations in Kazakhstan are demonstrating their readiness to take responsibility and drive positive changes. In the industrial sector, companies like “KazMunaiGaz” are leading the way by adopting their own “Low Carbon Development Program for 2022-2031.” The objective of this program is to reduce greenhouse gas emissions by 15% by 2031 compared to the baseline year of 2019.

    Moreover, “KazMunaiGaz” is actively collaborating with partners to develop renewable energy projects with a total capacity of at least 1 gigawatt, along with an energy storage system of 300/600 megawatts. These efforts reflect the commitment of Kazakhstani companies to sustainable development and their contribution to mitigating environmental challenges while driving economic growth.
    Another industrial giant, Eurasian Resources Group, is actively working on reducing emissions at its facilities and minimizing their environmental impact. For instance, on August 10th, they showcased a unique ore processing plant for handling the tailings of the Donskoy Mining and Processing Plant to the Prime Minister of Kazakhstan, Alihan Smailov. This plant was built by the multinational company “Kazchrome” (a subsidiary of ERG) in the city of Khromtau, Aktobe region.

    Why is this project important? The Donskoy Mining and Processing Plant was founded in 1938 in Khromtau and is the world’s second-largest deposit of confirmed chromium reserves. The ore extracted here is used for the production of ferroalloys in metallurgy, the manufacturing of refractories, and in the chemical industry for producing chromium compounds.

    Every year, in the process of crushing and grinding chromium ore at the plant, around 900,000 tons of tailings waste are generated. Currently, there are already 14.5 million tons of accumulated tailings containing up to 35% chromium oxide. “Kazchrome” decided to address this issue by constructing the ERG Green ore processing plant.

    This plant will enable the extraction of chromium oxide from the tailings through gravity-based enrichment, and the resulting commercial concentrate can be used in metallurgy for further processing.

    The new facility will allow for the processing of approximately 1.7 million tons of tailings annually, both the existing waste and the continuously generated new waste. Consequently, this will not only improve the environmental conditions in the Aktobe region but also enhance the economic efficiency of the plant itself.

    “The most important thing is that after processing, the tailings must be properly reclaimed in accordance with all environmental standards to minimize the impact on the environment and public health,” commented Alihan Smailov during his visit to the factory.

    In parallel with this, by the end of 2024, as part of the program for processing accumulated tailings, three more initiatives are planned to be implemented. As a result, ERG will ensure the production of 200,000 tons of ferrochrome, leading to an additional revenue of approximately 10 billion tenge in tax receipts annually for the state.

    “Following the company’s mission and ESG principles, management must ensure high environmental standards. Therefore, the group has developed an Environmental Strategy as part of our comprehensive ‘Green Metallurgy’ program. Within the environmental strategy until 2030, we plan to invest 228 billion tenge,” noted Shuhrat Ibragimov, Chairman of the Supervisory Board and member of the Board of Directors of ERG, during the project presentation.

    Investors are involved in the process
    Initiatives like these require substantial investments, and modernizing existing facilities or building new ones is difficult without the assistance of investors.

    For example, the total investment in the ERG Green plant project amounted to 96 billion tenge. Part of the funding was provided by the Development Bank of Kazakhstan, which, according to the project list, has actively begun working in the ESG direction.

    “We consider supporting projects that adhere to the principles of sustainable development to be important. This project aligns with the Environmental Code’s principles of sustainable development – the preservation of natural resources for current and future generations, as well as the principle of integration – the balance between environmental tasks and economic development,” commented Marat Yelibaev, Deputy Chairman of the Board of BRK.

    Like other development institutions, the Development Bank of Kazakhstan is focusing on projects that incorporate ESG principles into their operations. For instance, earlier this year, the bank issued its first “green” bonds, and the proceeds from the bond issuance were directed towards a project by the KEGOC company for modernizing the power grids in Western Kazakhstan.

    In the summer, a credit agreement was signed with the “Almaty Power Plants” to convert TEC-2 in Almaty to natural gas. This project will be financed jointly with the European Bank for Reconstruction and Development and the Asian Development Bank.

    From the example of BRK and other financial institutions, a clear trend is emerging: ESG initiatives of businesses are of interest to investors. This signals that in the near future, many more environmental projects will be implemented by industrial and infrastructure companies.

  • The Ministry of Industry of Kazakhstan has published several subsoil use contracts

    The Ministry of Industry of Kazakhstan has published several subsoil use contracts

    The Ministry of Industry and Infrastructure Development of Kazakhstan has published several electronic versions of subsoil use contracts, particularly for solid minerals, for the convenience of subsoil users. This documentation is available on the ministry’s website without detailed appendices, such as work programs, according to inbusiness.kz.

    Since the beginning of June, the relevant ministry has published 12 subsoil use contracts, including those for gold extraction at the Maikain “C” deposit (Pavlodar Region), copper-molybdenum ores at the Shatyrkul deposit (Zhambyl Region), copper and polymetallic ores at the Sokyrkoy deposit (Karaganda Region), gold-copper-polymetallic ores at the Abyz deposit (Karaganda Region), polymetallic ores at the Akbastau deposit (now Abay Region), copper ores at the Konrad, Sayak-1, and Tastau deposits (Karaganda Region), copper-containing ores of the Zhilandy group deposits (now Ulytau Region), polymetallic ores at the Kosmurun deposit (now Abay Region), the development of the Zhezkazgan copper ore deposit (now Ulytau Region), exploration and extraction of copper, gold, and associated metals on the territory of the Zhezkazgan Basin within the Sorukduk-Zhartas, Prisarysuisky, and Zhaman-Aibat sites (now Ulytau Region), exploration and development of the Nurkazgan gold-copper ore deposit (Karaganda Region), as well as exploration of copper, gold, and by-product components in the Spasskoye copper ore zone (Karaganda Region).

    In the press service of the Ministry of Industry, inbusiness.kz explained that the contracts are being published at the request of the Subsoil Use Department to facilitate the use of subsoil resources.

    Earlier in July, echo.kz reported that the former Ministry of Industry and Infrastructure Development had begun publishing subsoil use contracts for solid minerals. These contracts were disclosed with tracking changes but without appendices, according to the public association “Echo.” At the beginning of June, 11 subsoil use contracts for solid minerals were disclosed at that time.

    Civil society in Kazakhstan, particularly those involved in the Extractive Industries Transparency Initiative (EITI), played an important role in the publication of this data. They have engaged in negotiations with representatives of government bodies for a long time, advocating for the publication of contracts in line with the requirements of the EITI and Kazakh legislation, according to a statement from the non-governmental organization.

    Based on publicly available information, Kazakhstan has hundreds of subsoil use contracts for solid minerals, so the Ministry of Industry and Infrastructure Development still has a substantial amount of work ahead to publish them. The correspondent from inbusiness.kz could not find any published contracts for uranium, oil, and gas extraction on the Ministry of Energy’s website.

  • The First Deputy Prime Minister of Kazakhstan, Roman Sklyar, visited the Bestobe deposit

    The First Deputy Prime Minister of Kazakhstan, Roman Sklyar, visited the Bestobe deposit

    A delegation of state authorities, led by First Deputy Prime Minister Roman Sklyar, paid a visit to the Bestobe deposit. The purpose of the visit was to oversee the ongoing efforts to resume underground mining operations, as outlined in the developed roadmap.

    According to the latest reports, the process of pumping water out of the mine has been in progress since August 21 of this year. As of now, a substantial amount of 225,000 cubic meters of water has been successfully removed from the mine. It is estimated that approximately 1.3 million cubic meters of water still remain to be pumped out.

    A dedicated team of 417 individuals has been diligently working on this task. Additionally, every effort is being made to secure alternative employment opportunities for the mine’s employees during this period.

    With the significant progress made thus far, it is expected that the mine’s operations will resume in the near future. The Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan is closely monitoring this matter, ensuring its special supervision.

  • ERG’s subsidiary will engage in geological exploration in the Karaganda Region

    ERG’s subsidiary will engage in geological exploration in the Karaganda Region

    The ERG Exploration Company (a subsidiary of ERG) will be engaged in geological exploration on 2,800 hectares in the Aktogay District of the Karaganda Region.

    “The Akimat (local government) of the Aktogay District resolves: 1. To establish a public servitude (limited right to use someone else’s land) until August 23, 2029, without expropriating the land from the owners and land users of the limited liability company ‘ERG Exploration’ for a land plot with a total area of 2,813.7667 hectares for mineral exploration, as specified in the annex to this resolution,” states the draft resolution of the Aktogay District Akimat in the Karaganda Region, posted for public discussion.

    The majority of the land is part of the district’s land fund – 1,232.5 hectares, while the remaining lands belong to the “Dauletbek” farm – 712.3 hectares and the “Beksultan” farm – 868.9 hectares.

    The General Director of ERG Exploration, Azamat Shalabayev, informed journalists at a geologists’ congress about plans for exploring new areas in the republic.

    “We have a large program for digitizing geological material archives. We have created separate groups for specific directions, which are separately searching for our profile metals – searching for chrome, manganese, and there are groups dealing with other metals, including copper, polymetals, as well as RM (rare metals) and REM (rare earth metals). So, we will be searching in this direction, and the management sets us the task of finding new metals that are not typical for our group,” he said.

    Shalabayev reminded that on August 1, the company won the right to explore a copper area in Northern Pri-Balkhash at an auction, paying more than 420 million tenge. Geological research was carried out there during the Soviet era, and later jointly by Rio Tinto and “Kazgeology.” The area was studied to a depth of 200 meters. The study showed estimated resources of up to 200,000 tons of copper, but with a low metal content in the ore – 0.2-0.3%. ERG plans to study the area to a depth of 700 meters in hopes of finding valuable minerals.

    The British-Australian company Rio Tinto conducted geological exploration, searching for copper in the Korgantas and Balkhash-Saryshagan areas in the Karaganda Region since 2015. However, the geological exploration of Korgantas did not yield significant results, so the subsoil use contract was terminated.

    ERG’s ultimate owners are the Ministry of Finance – 40%, Alexander Machkevitch and the Ibragimov family – 20.7% each, and Patokh Shodiev – 18.6%. Alexander Machkevitch, Patokh Shodiev, and the family of the late Alijan Ibragimov (the spouse of Mukadas Khan Ibragimov and four sons, Dostan, Davron, Shukhrat, and Furkhat) became the first dollar billionaires in Kazakhstan according to Forbes in 2005 with a capital of $1 billion each. Later, Alexander Machkevitch and Patokh Shodiev changed their citizenship from Kazakhstani to Israeli and Belgian, respectively. The Chairman of the Board of Directors and a major shareholder of Eurasian Resources Group, Alexander Machkevitch, was ranked sixth among the richest Israelis with $3.7 billion in Forbes’ rating last year.

  • Kazatomprom to end uranium production cuts in 2025

    Kazatomprom to end uranium production cuts in 2025

    “Kazatomprom remains committed to its market-centric strategy and its disciplined approach to production and sales, and we’re excited to witness the start of a long-awaited historical shift in the uranium market,” Dastan Kosherbayev, chief commercial officer of Kazatomprom, said in a statement.
    “As we are seeing a clear sign that the industry has entered into the new long-term contracting cycle, driven by the recognition of the restocking needs, Kazatomprom, with its best-class and lowest cost mines, is absolutely prepared to respond to these improving market conditions”.

    The spot price of uranium has more than doubled over the past three years, although it is still well down from a peak of $140 a pound touched in 2007.

    For seven years including 2023, the company has produced 20% less than its contracts with the Kazakh government allowed, with this year’s output seen at 20,500-21,500 tonnes.

    In 2024, Kazatomprom said it would stick to its plan to produce 10% below the contract maximum, or 25,000-25,500 tonnes, while with no restrictions in 2025, production is expected to grow to 30,500-31,500 tonnes, the company said.

    “…Our intention to return to a 100% level of Subsoil Use Contracts production volumes in 2025 is primarily driven by our strong contract-book and already growing sales portfolio against conservative 2023-2024 production scenario,” Kosherbayev said.

  • Kazakhstani National Geological Servey will receive assistance in avoiding mistakes

    Kazakhstani National Geological Servey will receive assistance in avoiding mistakes

    The British Geological Survey, with its extensive experience, will share its knowledge with its Kazakhstani counterparts. The collaboration between the British Geological Survey (BGS) and the National Geological Service (NGS) of Kazakhstan is set to be closely coordinated. During his visit to Astana, David Schofield, the director of BGS for international geological research, shed light on this international partnership.

    “The British Geological Survey is the world’s oldest organization of its kind. Our primary focus involves describing the geology of the United Kingdom, generating geological information, and disseminating it to stakeholders interested in natural resources. This includes data on water resources, construction-related information, as well as potential hazards like landslides. Consequently, we collaborate with various industries. Furthermore, we have a strong tradition of sending our geologists abroad to enhance geological services in other countries. The primary motivation behind our international efforts is global development and supporting the implementation of British trade and foreign policy,” shared the geologist.

    During their visit to Kazakhstan, BGS specialists engaged in fruitful discussions with their counterparts from the recently established National Geological Service of Kazakhstan.

    “The organization is relatively young and faces several challenges that need to be addressed. However, they have made a promising start. One area where we can offer assistance is in the digital transformation of a substantial amount of accumulated data. We can help bring this data into the digital realm and make it more accessible to a wider audience. We have accumulated considerable experience in this domain over the past 25 years, learning valuable lessons along the way. By sharing our experience, we hope that the NGS of Kazakhstan can avoid the mistakes we’ve unfortunately made. Additionally, we possess expertise in ore deposit analysis, hydrology, and other challenges, where our knowledge can be of value,” noted the specialist.

    Currently, the collaborating geological organizations are actively discussing potential areas of cooperation. Recognizing their shared objectives, BGS and NGS intend to establish a working plan for the next two to three years.

    According to the minerals.gov.kz website, the British Geological Survey plans to collaborate with “Kazakhstan Garish Sapary,” which operates a geological IT platform, as reported by inbusiness.kz.
    In the course of their conversation, the head of the National Geological Service (NGS) elucidated that this subsidiary of the geological committee acts as the national custodian of the state’s accumulated geological data. However, it does not possess any deposits, assets, or laboratories.

    Concerning the fees for the services provided by the National Geological Service, Erlan Galiev clarified that the pricing methodology is presently under discussion within the organization. He underscored that the calculation will now be based on the number of pages in the report, rather than solely on the report itself.

    “There are various approaches to assessing geological information. For instance, one could commence with historical expenses. Let’s say, back in the 1970s, an expedition was dispatched, wells were drilled, various operations were conducted, money was expended, and this report was created, subsequently submitted to the funds. Now, let’s assume we propose that 1% of the total cost of these activities should be the price of this report. It would not be just a million; considering the inflation that has transpired since then, it would be exorbitantly high, excessively expensive. We will not tread down that path, but merely for your comprehension, the value ascribed to geological information presently is abysmally low, simply catastrophic. The actual expenditure incurred far exceeds what a mining user pays for this report at present, rendering it a rather meager amount, allowing them to utilize the information freely. Therefore, we are currently contemplating and acknowledging that the provision of geological information should be streamlined, transparent, and expedited as much as possible. We are diligently working towards that goal,” expounded the esteemed NGS executive.