MINEX Forum

Website: Kazakhstan.com

  • KAZ Minerals’ Impressive Production and Sales Performance in H1 and Q2 2023

    KAZ Minerals’ Impressive Production and Sales Performance in H1 and Q2 2023

    In a remarkable display of operational prowess and strategic finesse, KAZ Minerals has unveiled its production and sales report for the first half (H1) and second quarter (Q2) of 2023, showcasing a compelling trajectory of growth and success. This comprehensive report reveals a substantial 11% surge in copper production compared to H1 2022, propelled by enhanced throughput and recoveries emanating from the Aktogay sulphide plants. Notably, this achievement underscores KAZ Minerals’ commitment to excellence and its ability to capitalize on synergies within its operations.

    Copper Production Surges by 11%: A Testament to Operational Excellence

    One of the standout highlights of this report is the remarkable 11% increase in copper production, firmly establishing KAZ Minerals as a trailblazer in the mining industry. This impressive upswing can be attributed to the company’s unwavering focus on operational efficiency, resulting in enhanced throughput and recoveries from the Aktogay sulphide plants. This accomplishment reflects KAZ Minerals’ profound understanding of the intricacies of its operations and its proactive approach to optimizing every facet of its processes.

    Silver Production Soars by 14%: Quality Grades Leading the Way

    The report also reveals a significant 14% upsurge in silver production, a testament to the company’s prowess in leveraging higher grades to achieve exceptional results. KAZ Minerals’ commitment to extracting and utilizing higher-grade resources has paid off, showcasing its ability to adapt and thrive in dynamic market conditions. This achievement bolsters the company’s reputation as a stalwart player in the mining sector.

    Zinc Output Skyrockets by 24%: Leveraging Improved Grades and Recovery Rate

    In yet another display of operational excellence, KAZ Minerals has achieved an impressive 24% rise in zinc concentrate output. This remarkable increase can be attributed to the company’s strategic focus on improving grades and recovery rates. By leveraging these key factors, KAZ Minerals has not only demonstrated its ability to optimize its processes but has also positioned itself as an industry leader in harnessing the full potential of its resources.

    Gold Production Adapts, Despite 8% Decrease

    KAZ Minerals’ adaptability and resilience shine through in its approach to gold production. Despite facing a decrease of 8% in gold output due to lower expected grades, the company’s ability to navigate such challenges while continuing to deliver results underscores its commitment to maintaining a diversified and robust production portfolio.

    Market Performance and Sales Mastery

    The report unveils an extraordinary accomplishment in sales, with KAZ Minerals selling an impressive 223 kt of copper in H1 2023—surpassing production figures by a staggering 23 kt. This resounding success is further amplified by the fact that all by-products’ sales volumes have exceeded production figures, a clear testament to the company’s strategic prowess and market responsiveness.

    Operational Efficiency Mitigates Inflation: Rail Logistics and Chinese Demand Take the Lead

    Amidst the challenges of high cost inflation, KAZ Minerals has deftly navigated these headwinds through a combination of improved rail logistics and robust demand from its Chinese customers. These measures have not only mitigated the impact of inflation but have also aided in the reduction of finished goods inventories. This strategic approach speaks volumes about the company’s ability to adapt, innovate, and proactively manage market dynamics.

    6m
    2023    		 6m
    2022    		 Q2 2023 Q1 2023 Q2 2022
    Copper production1 kt  199.5  179.9  104.4  95.1  90.0
    Aktogay kt  126.6  104.2  64.7  61.9  53.5
    Bozshakol kt  50.2  51.6  26.5  23.7  24.9
    East Region & Bozymchak kt  22.7  24.1  13.2  9.5  11.6
    Gold production2 koz  77.9  84.5  41.4  36.5  41.8
    Silver production2 koz  1,978  1,732  1,141  837  844
    Zinc in concentrate kt  23.9  19.2  14.8  9.1  8.5
    Copper sales3 kt  223.1  187.5  114.8  108.3  96.7
    Gold sales4 koz  92.9  99.5  49.9  43.0  49.1
    Silver sales4 koz  2,033  1,992  1,059  974  990
    Zinc in concentrate sales kt  29.2  24.1  15.6  13.6  9.1

    1. Payable metal in concentrate and copper cathode from Aktogay oxide ore
    2. Payable metal in concentrate
    3. Payable metal in concentrate, toll processed metal and copper cathode from Aktogay oxide ore
    4. Payable metal in concentrate and toll processed metal

    Highlights

    • KAZ Minerals produced 200 kt of copper in H1 2023, an increase of 11% compared with H1 2022 due to the strong performance of the Aktogay sulphide plants which raised ore throughput and copper recoveries.
    • Silver production in H1 2023 increased by 14%, benefiting from higher grades. Zinc in concentrate output increased by 24% due to higher grades and an improvement in the recovery rate, while gold output reduced by 8% due to expected lower grades at Bozshakol and Bozymchak.
    • The Group has continued to make progress in the sale of its accumulated finished goods inventories, with copper sales in H1 2023 of 223 kt, 23kt above production. Sales volumes of all by-products were also in excess of production. The Group has benefited from improved rail logistics compared with the prior year and strong demand for its products from customers.

    Andrew Southam, Chief Executive Officer, said: “KAZ Minerals produced 200 kt of copper in H1 2023, an increase of 11% compared with H1 2022 as Aktogay raised throughput and recoveries, supported by strong operational performances from Bozshakol, East Region and Bozymchak. The Group has progressively reduced its finished goods inventories, benefiting from improved rail logistics and strong demand from customers in China.”

    For further information please contact:

    KAZ Minerals
    Marie Edwards

    Maksut Zhapabayev

    		 Company Secretary, London

    Corporate Communications, Almaty

    		 Tel: +44 20 7901 7832

    Tel: +7 727 244 03 53

    REGISTERED OFFICE

    7th Floor, 83 Victoria Street, London SW1H 0HW, United Kingdom

    PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ATTACHMENT

  • ArcelorMittal Temirtau must leave the country – ex-director of the mine “Kazakhstanskaya” Arman Kalykov

    ArcelorMittal Temirtau must leave the country – ex-director of the mine “Kazakhstanskaya” Arman Kalykov

    ASTANA. KAZINFORM – On August 17, a conveyor belt caught fire in the working of the D6 coal slope at the Kazakhstanskaya mine. There were 227 miners in the mine. 222 workers were brought to the surface. The bodies of three dead have been found, and the search for the two miners is still ongoing. It turned out that over 100 people died at ArcelorMittal Termirtau facilities over 15 years. We decided to find out the reasons for systematic accidents from the ex-director of the Kazakhstanskaya mine, now a deputy of the Mazhilis, Arman Kalykov, who is now at the site of the tragedy.

    – Tell us about the situation, what measures are being taken now?

    – I visited the operational headquarters, then met with the family of the deceased. He got acquainted with the course of conducting rescue operations, extinguishing a fire. All, of course, painfully familiar. These accidents occur one after another endlessly. Each is a pain in the heart for a miner. With many familiar. I personally knew two of the victims. I worked there as chief engineer, deputy director, director of the mine. While I am here in the region. In principle, I was in the region, but far from the mine. The fire is under control now. Two people were not found. Young guys born in 1994, 1996. Now the situation is such that it is difficult to comment on something. The headquarters is working. I got to know the progress of the case.

    Today, unfortunately, I managed to meet only one family. Expressed condolences. They are also indignant: why did the tape catch fire, why is there a series of deaths? They don’t blame anyone. While questions were asked and all. As a standard, the company provides assistance in accordance with the collective agreement: the families of the victims will be paid 10 annual earnings. Housing will be purchased. All support measures are listed there. I said that the state commission is working. In my opinion, this is all due to underfunding by the shareholder. The company (ArcelorMittal Temirtau) saves money on creating safe conditions and staffing. There is a big problem – not enough numbers. The last two years, by joint efforts, convinced the shareholders – they began to accept people. The company accepted about 2.5 thousand people. Reception has been suspended for the time being. They explain this by the fact that the cost is very high. So there are standard costs. Therefore, the recruitment of staff is now suspended.

    – What is the main cause of the accident at the mine “Kazakhstanskaya”?

    – I can’t say, because the state commission is working. When the cause of the fire is clearly established, then it will be possible to draw some conclusions. Until the fire is extinguished. People have not yet been found, two people are being searched. I can’t draw any conclusions right now.

    – The accident at the mine is not the first time. What is it connected with?

    – All mines were acquired in technical, technological terms in normal working condition. But it was a resource created not by them, not by this company. This resource, which was created in Soviet times, is now over. This is the general depreciation of fixed production assets, buildings, structures, a systematic shortage of personnel, and a lack of modernization. We all worked on the old technology. New technologies have not been introduced in 27 years of the company’s operation.

    – Earlier at the President’s reception, ATM Executive Director Lakshmi Mittal promised to ensure that the miners’ work is organized to the highest standards in the field of labor safety and health protection. What do you think about it?

    “They promise but do nothing, and here are the consequences. When a major accident occurs, the state commission works. After that, measures are drawn up: what needs to be done so that these cases do not happen again. Everything is clearly signed, signed and not executed. Because all management decisions and implementation of activities entail funding. Nothing is done for free. All for money.

     

    – You spoke about the wear and tear of equipment, underfunding. That is, the cause of the accident lies in this?

    – Well, of course. I don’t see another. We still have the same level as in the Soviet Union: technologies, buildings, structures. There is nothing new in the mines. Separate equipment is bought, but work is not carried out in the complex. Some injections are being made, but there is no systematic, comprehensive work. All decisions, including financial ones, are made by expat leaders. Local leaders do not have the right to make decisions on financing, hiring people. The director of the mine nominally has the rights as the head of the site. It’s a mine, not a pasta factory. Something can change every minute. All these actions must be promptly responded to. But we can’t respond because there is no stock. Don’t let it be created. There are safety rules, where it is clearly written: there must be a three-day supply of materials on the site. The mine must have a 10-day supply of materials. On a conveyor belt, according to safety regulations, 10 people should work, and 5 are served. Does this improve safety? Of course not. It turns out that 1 person can go to work and serve 500 meters of a conveyor belt. This applies not only to the conveyor, but also to other equipment.

    – Has the company’s safety equipment been checked?

    – There is a moratorium on checking private businesses. Only with the permission of the prosecutor can be checked. The inspector cannot promptly arrive at any time and check. To do this, you need to get permission from the prosecutor. Safety precautions are checked every time. But there is such a thing as moments of hiding minor violations …

    – What measures are the deputies planning to take?

    – It is necessary to review the status of state inspectors in all areas so that they have all the necessary powers. This will give increased control by the state. In the labor law there is no such thing as a headcount standard. It must be tied to the existing number of equipment and the range of equipment. Everything should be clear: the conveyor is of such a brand, it should be served by so many people. It needs to be spelled out clearly. The concept of a population standard should be rigid.

    – You have worked for this company for a long time. How was the security then?

    – I thought when you ask me this question. Yes, I worked. I don’t refuse. But he always defended his position and proved: it should be so. When I worked as a mine director, I had powers. I could lead as a single boss. When he became the director of a coal enterprise, the concept blurred. All leaders were at the same level. The left hand doesn’t know what the right hand is doing. You can take the statistics for the time that I was the director of the mines “Kazakhstan” and the name of Lenin. They worked, there were violations and sudden emissions. I worked according to the safety rules.

    – After the accident at the Kazakhstanskaya mine, deputies of the Mazhilis, members of the AMANAT party demanded that the management of JSC ArcelorMittal Temirtau be held criminally liable. Do you support the appeal of the deputies who call on the company to leave the country?

    – Certainly. They only promise. But how much can you? Sorry, every year five, six people (die). They promised $3 billion in investment. In fact, there was nothing. It was two years ago. They promised to build a large metallurgical plant that would produce 6 million tons of steel. But in fact there is nothing.

    Recall that on August 17, in the development of the coal slope D6 (horizon – 170 m), a conveyor belt caught fire. Then there were 227 people in the mine, people were taken out through the flank shaft from the mine to the surface.

    An accident elimination plan was immediately put in place. By 14:00, 222 workers were brought to the surface. There were five people left in the mine.

    In the evening, the body of one miner was raised to the surface. His identity has been established. The next day, the body of another miner was found at the Kazakhstan mine.

    Also on August 18, the body of a third miner was found.

    The fate of the two miners is still unknown. The search is being conducted by employees of the RTSSH PVASS and the Department of Emergency Situations. The cause of the fire will be investigated.

    There are 11 workers in medical institutions, of which 9 people are in Karaganda, and two people are in Shakhtinsk.

    A criminal case has been initiated on the fact of a fire at a coal mine – a pre-trial investigation has been launched under article 277 of part 3 of the Criminal Code of the Republic of Kazakhstan. The case is under the control of the prosecutor’s office of the Karaganda region. Those responsible for the mine accident could face up to 7 years in prison.

    The Prime Minister of the Republic of Kazakhstan, Alikhan Smailov, demanded that the Ministry of Emergency Situations and the Ministry of Ecology promptly complete the industrial and environmental audits conducted at ArcelorMittal Temirtau JSC in order to make an appropriate decision.

    Murat Mashkenov, Secretary General of the Kazakhstan Confederation of Labor, commenting on the accident at the Kazakhstanskaya mine, said that after the investigation of the incident was completed, a decision should be made in favor of a complete revision of the agreements between the Government of the Republic of Kazakhstan and Arcelor Mittal, up to and including breaking off relations.

    On August 19, Alikhan Smailov arrived in the Karaganda region. He met with family members of the miners who died in the accident at the Kazakhstan mine and said that all those responsible would be punished.

  • Shagarshinskoye iron ore deposit to be developed in Aktobe region

    Shagarshinskoye iron ore deposit to be developed in Aktobe region

    Qazaqstan Mining Company plans to start mining iron ore at the Shagarshinskoye deposit, located in the Aitekebi district of the Aktobe region of the Republic of Kazakhstan. The company published the project on the Unified Ecological Portal of Kazakhstan.

    The subsoil user carried out exploration work at the site in 2019–2021. The reserves of Shagarshinsky were put on the state balance sheet in February 2023. The project documentation of the company states that 1,642 thousand tons of iron ore (742 thousand tons of iron with an average metal content in the ore of 45.2%) were classified as probable reserves, 118 thousand tons of ore (52 thousand tons iron with an average metal content of 44.07%).

    Qazaqstan Mining Company has calculated a mining plan for 2024-2031. The quarry area at the end of mining will be 7.79 hectares, depth – 77 m, bottom horizon – +180 m. The manufacturer is going to process raw materials at his own crushing and screening complex.

    In the first two years of operation of the enterprise, it is planned to build an evaporation pond on the site for the accumulation of quarry waters and their technological maintenance.

  • Eurasian Resources Group welcomes China’s $72 billion investment in EV sector

    Eurasian Resources Group welcomes China’s $72 billion investment in EV sector

    Eurasian Resources Group welcomes China’s $72 billion investment in EV sector

    27.06.2023

    Eurasian Resources Group (“ERG” or “The Group”), a leading diversified natural resources producer, welcomes the Chinese Government’s announcement of a groundbreaking $72.3 billion investment in the EV sector. The investment will make electric vehicles cheaper for consumers, with EVs sold in 2024 and 2025 to be exempt from purchase tax, and the exemption to be halved in 2026 and 2027.

    The investment is China’s biggest package of tax breaks for EVs yet, and is set to boost growth in the Chinese EV sector as well as extending China’s status as the driving force behind the electrification of the global mobility industry.  

    ERG is steadfastly committed to supporting the proliferation of EV sales in China, including through its long-standing supply agreements in the country and its role as a major global supplier of the key metals and minerals required for the global energy transition. EVs require around four times the amount of copper as a conventional engine, and more than 70% of cobalt production globally now goes to the battery sector. Therefore, it is crucial that the demand for these battery materials is met in a sustainable, responsible manner.

    Benedikt Sobotka, CEO of Eurasian Resources Group and Co-Chair of the Global Battery Alliance, said: “At ERG, we are excited by the growing regulatory support for the EV market. In view of China’s historic investment pledge, we would like to express our support for this package of measures in the country, which has a 60% share of the global EV market and is the driving force in the transition towards electric mobility.”

    Outside of China, the growing regulatory support for regional EV markets is also anticipated to bolster global sales. ERG expects this to gather pace across the world, as governments strive to decarbonise, whilst safeguarding their technological and economic competitiveness.

    ERG is one of the largest suppliers of many minerals and metals used in China. The Group has productive and long-standing relationships with Chinese partners, including cooperating on joint business development ventures in Central Asia and Africa, and China is ERG’s largest strategic sales market. ERG co-founded the Global Battery Alliance, the largest multi-stakeholder consortium in the energy storage space, which brings together over 140 members, including leading Chinese companies and organisations such as CATL, CCCMC, China EV100. This year, at the World Economic Forum in Davos, the GBA partners launched the world’s first ‘Battery Passport’ pilots, which include data from major EV producers Tesla and Audi.

  • Embracing the Green Economy: How Kazakhstan’s Mining Industry Can Benefit from Renewable Energy

    Embracing the Green Economy: How Kazakhstan’s Mining Industry Can Benefit from Renewable Energy

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – el.kz” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fel.kz%2Fru%2Fkak-kazahstan-zarabotaet-na-zelenoy-ekonomike_72031%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]Kazakhstan ranks 108th out of 139 countries in terms of energy intensity of GDP, with its most energy-intensive sector being the mining industry. As the demand for solid minerals grows worldwide, experts predict a further increase in the energy intensity of metal production. This presents an opportunity for the country to capitalize on renewable energy sources (RES), as the mining industry turns to greener energy solutions.

    During the 13th MINEX Kazakhstan Mining and Exploration Forum, environmentalist Elena Borovikova highlighted the potential for alternative energy development in the mining industry. The use of wind, solar, and biomass energy is on the rise, along with emerging green hydrogen projects. The mining industry, being one of the most energy-intensive sectors, can greatly benefit from adopting renewable energy sources.

    Gold production is the most energy-intensive industry, with the highest greenhouse gas emissions per million tons produced. In 2017, over 3.5 tons of gold were produced globally, requiring approximately 250 terawatts of energy and resulting in about 75 million tons of carbon dioxide equivalent emissions. Switching to renewable energy sources can significantly reduce direct and energy emissions from production.

    There are already successful examples of alternative energy development in the global mining industry. Centamin’s Egyptian Sukari mine reduced its direct emissions by commissioning a 26-megawatt solar power plant with a battery system in 2022, saving 70,000 litres of diesel fuel per day. Similarly, Polyus Gold International managed to reduce its energy emissions by almost 100% by switching to hydroelectric power supplied by Russian companies.

    Renewable energy use in mining projects has grown significantly since 2015, with most of the projects launched in 2018-2019 being hybrid, combining solar and wind energy with batteries. Kazakhstan has substantial potential for renewable energy development, with 130 alternative energy facilities already operating in the country by the end of 2022, boasting an installed capacity of 2,400 megawatts.

    The renewable energy sector’s growth will lead to increased demand for metals such as copper, lithium, nickel, and neodymium, which are essential for creating solar and storage batteries and wind turbines. This provides additional opportunities for Kazakhstan, a country rich in mineral resources.

    In 2022, Kazakhstan generated 112.8 billion kWh of electricity, with 4.5 billion kWh coming from renewable energy facilities. The country’s government aims to increase the share of renewable energy in total electricity generation to 5% in 2023. As part of its commitment to achieving carbon neutrality by 2060, Kazakhstan is also considering building a nuclear power plant.

    Kazakhstan has all the prerequisites for developing nuclear power plants, such as significant uranium reserves, processing products, and a strong scientific base. The country is also focusing on cooperation with Total, Masdar, and ACWA Power for implementing joint investment projects in renewable energy.

    By embracing the green economy and focusing on renewable energy, Kazakhstan’s mining industry can greatly benefit from reduced emissions, cost savings, and sustainable growth. This shift will also contribute to the country’s commitment to achieving carbon neutrality by 2060, ensuring a cleaner and more prosperous future for all.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Kazakhstan’s national mining company “Tau-Ken Samruk” joines the European Raw Materials Alliance

    Kazakhstan’s national mining company “Tau-Ken Samruk” joines the European Raw Materials Alliance

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – inbusiness.kz” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.inbusiness.kz%2Fru%2Fnews%2Fv-evropejskij-syrevoj-alyans-voshla-kazahstanskaya-kompaniya|target:_blank”][distance desktop_type=”30″][vc_column_text]The mining state holding “Tau-Ken Samruk” from Kazakhstan has joined the European Raw Materials Alliance. This move comes after Kazakhstan signed a partnership document with the European Commission in November of the previous year, focusing on sustainable raw materials, batteries, and value chains for “green” hydrogen. The technical development of a cooperation roadmap in this area has been completed, awaiting approval at higher levels. The inclusion of a Kazakhstani company in the alliance has generated positive reactions from participants in the mining industry, including Canadian company Arras Minerals. Additionally, countries such as the United States, Great Britain, and China have expressed active interest in collaborating with Kazakhstan in the exploration and production of critical minerals.

    A raw materials summit is scheduled to take place in Brussels in mid-May, where the Ministry of Industry of Kazakhstan will present investment opportunities to European businesses interested in solid minerals cooperation. Kazakhstani organizations, in consortium with European partners, can participate in the Horizon Europe innovation and research funding program, which has allocated nearly 500 million euros for raw material projects between 2021 and 2024. The European Commission aims to jointly develop the value chain for obtaining critical and strategic raw materials for the green and digital transition, including rare earth metals. Previously, the European Commission report highlighted the EU’s dependence on the supply of Kazakh phosphorus, and there have been ongoing projects in Kazakhstan in collaboration with Europeans focused on critical minerals.

    European companies have shown interest in a project for the exploration and production of lithium in East Kazakhstan, as reported earlier. The European Commission does not focus on specific raw materials but aims to support the development of critical mineral value chains in partnership with Kazakhstan.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Kazakhstan and Central Asia’s economic outlook in the new geopolitical context

    Kazakhstan and Central Asia’s economic outlook in the new geopolitical context

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – lsm.kz” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Flsm.kz%2Fpodushka-bezopasnosti-kz|target:_blank”][distance desktop_type=”30″][vc_column_text]Despite a significant increase in inflation, Kazakhstan has managed to increase its international reserves, according to Eric Livni, a leading regional economist at the EBRD. Uzbekistan leads Central Asian countries in terms of reserves, with enough to cover 16 months of imports, while Kazakhstan has enough to cover more than 10 months. Kazakhstan’s reserves increased by 3% last year. The country has also reduced its public debt due to GDP growth.

    Livni mentioned that although inflation in Kazakhstan remains high, it has slowed down in recent months. He also highlighted the growth of exports to Russia from Central Asian countries, such as Kyrgyzstan, Uzbekistan, and Kazakhstan. The World Bank predicts that inflation in Kazakhstan will remain above the target range of 4-6% in 2023 but will return to this range the following year.

    Kazakhstan is heavily dependent on Russia’s economic infrastructure, and the potential escalation of sanctions against Russia could lead to supply chain disruptions. This situation may prevent Kazakh entrepreneurs from doing business, and Western investors may fear that domestic companies will circumvent sanctions.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • Non-Tax Payments should be abolished according to Kazakhstan’s Major Mining & Metals Association

    Non-Tax Payments should be abolished according to Kazakhstan’s Major Mining & Metals Association

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – kz.kursiv.media” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fkz.kursiv.media%2F2023-04-20%2Fzhnb-notaxeskz%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]Presenting at MINEX Kazakhstan Forum in Astana on 19 April 2023,  Nikolay Radostovets, the Executive Director of the Republican Association of Mining and Metallurgical Enterprises (AGMP) in Kazakhstan, has proposed abandoning the practice of non-tax payments in the country’s mining and metallurgical sector. He argued that many companies in Kazakhstan make extra-budgetary payments for various purposes, such as building schools and planting trees, which are not considered taxes. Radostovets believes that the tax burden coefficient for the mining and metallurgical complex in Kazakhstan is relatively low compared to international standards.

    He suggested adopting an international system for assessing the tax burden, known as the CNN (tax burden factor), which considers all payments made by companies. Radostovets emphasized the need for a stable taxation system and expressed concern about frequent changes to taxes in recent years. He proposed gradually phasing out all non-tax payments and transitioning to internationally recognized tax mechanisms, such as the MET (tax on the extraction of minerals) and royalties. He also advocated for removing value-added tax (VAT) from geological exploration, as it was before.

    In addition to tax reforms, Radostovets identified two other key issues to address. The first is the creation of a “single window” system within the Geology Committee of the Ministry of Industry and Infrastructure Development. This system would allow investors to interact with all relevant government agencies through a centralized platform. Radostovets highlighted the challenge of dealing with independent legislation within different ministries, which complicates the process of increasing investment attractiveness in the industry.

    The second key issue relates to unresolved matters concerning environmental permits, land, and water for subsoil users. Radostovets emphasized the need to establish the Ministry of Industry and Infrastructure Development as the key ministry responsible for creating a comprehensive legislative framework for subsoil users. He suggested forming a special interdepartmental commission led by the vice minister of the ministry to expedite the approval process for project documents.

    Lastly, Radostovets mentioned the importance of amending the Code on Subsoil and Subsoil Use, which requires immediate attention. He emphasized the need to address issues related to losses, auctions, and other pertinent matters. He called for the harmonization of various codes, including the Environmental, Water, Land, and Tax Codes, to ensure a cohesive system.

    Radostovets believes that addressing these three key issues—tax reforms, the establishment of a centralized system, and amendments to relevant codes—will enhance Kazakhstan’s investment attractiveness, particularly in the field of geology.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • The Ministry of Foreign Affairs of Kazakhstan expects the signing of investment contracts with a number of large mining companies

    The Ministry of Foreign Affairs of Kazakhstan expects the signing of investment contracts with a number of large mining companies

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – kursiv.media” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fkz.kursiv.media%2F2023-04-20%2Fzhnb-midnedra%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]The Ministry of Foreign Affairs of the Republic of Kazakhstan expects to sign investment contracts with several large mining companies. The contracts will guarantee tax stability for a period of ten years in exchange for investments of over $500 million. The Vice Foreign Minister, Almas Aidarov, stated that companies such as Kazakhmys, ERG (Eurasian Resources Group), and KazMinerals are among the first expected to sign these contracts. The initiative for such contracts came from mining companies themselves, who expressed concerns about frequent changes in the regulatory environment.

    Under the investment contracts, tax rates for the subsoil users will be fixed for ten years, providing stability in both directions. If there is an increase in tax rates, the subsoil users will remain at the same level, and if there is a decrease, the agreed rates will still apply. The fixed rates will include mineral extraction tax, excises, and environmental fees.

    Presenting at MINEX Kazakhstan Forum on 19 April Mr. Almas Aidarov, Vice Foreign Minister, noted that about 20% of foreign investment in Kazakhstan is in the mining sector, and the ministry wants to maintain conditions that attract new investors. The ministry aims to provide more predictability in tax legislation by announcing changes three to five years in advance. This will allow businesses to plan their income and expenses accordingly.

    Additionally, the Ministry of Foreign Affairs proposes developing separate agreements for companies planning to extract minerals from unprofitable deposits with poor ores or large volumes of stripping. Currently, the state provides benefits primarily to companies in the manufacturing industry and other sectors, while mining projects face restrictions. The ministry suggests offering tax breaks and additional infrastructure support to such mining companies.

    It is worth mentioning that three companies within the Eurasian Resources Group, including Aluminium of Kazakhstan, Kazchrome, and Shubarkol Komir, have expressed their interest in signing investment contracts. Each company is expected to invest around 260 billion tenge in their production development over ten years, and the state will ensure tax stability during this period.

    The Eurasian Resources Group is chaired by Alexander Mashkevich, who is also a major shareholder. Other key figures within the group include Patokh Chodiev and the Ibragimov family. They were among the first billionaires in Kazakhstan due to the rising prices o[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]

  • The EU Supports Kazakhstan’s development and processing of rare earth and other critical metals

    The EU Supports Kazakhstan’s development and processing of rare earth and other critical metals

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – kursiv.media” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fkz.kursiv.media%2F2023-04-20%2Fzhnb-titaniumetceu%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]The European Union (EU) has promised to support Kazakhstan in the development and processing of rare earth and other critical metals. The commitment was made during the MINEX Qazaqstan mining forum, where the EU’s strategic partnership with Kazakhstan for the sustainable production of raw materials, batteries, and hydrogen chains was discussed. The European Commission spokesperson, Robert Thomas, mentioned the EU’s strategic partnership with Kazakhstan for the sustainable production of raw materials, batteries, and hydrogen chains.

    The strategic partnership agreement between Kazakhstan and the EU was signed on 7 November 2022, focusing on the sustainable production of raw materials, batteries, and hydrogen chains. The countries are required to develop a partnership roadmap within six months.

    Europe continues to work towards establishing a sustainable supply of critical raw materials, including rare earth metals, for its industries. The European Commission recently introduced a package of legislative amendments to stimulate the supply of such materials. The demand for these materials is driven by various sectors, including renewable energy, aerospace, defence, and the military-industrial complex. The article mentions Europe’s support for Ukraine in terms of weapons and ammunition supply, highlighting the importance of raw material supply for defence purposes.

    To reduce dependence on a single country, particularly China, Europe aims to diversify its sources of raw materials. The European Commission aims to ensure that by 2030, no more than 60% of strategically important raw materials come from a single country. Europe’s increasing demand for new fuels and related materials, driven by its commitment to carbon neutrality by 2050, further intensifies the competition for these resources.

    Kazakhstan plays a significant role in supplying certain critical metals to Europe. For example, it covers 71% of Europe’s phosphorus needs, which is used in the production of lithium-ion batteries, explosives, and incendiary compositions. Additionally, Kazakhstan supplies 36% of Europe’s titanium needs, which is used in the production of civil and military aircraft and tanks.

    The Vice Minister of Foreign Affairs of Kazakhstan, Almas Aidarov, mentioned that the country will consider greater state participation in the exploration of rare earth metals. He emphasized the importance of having a comprehensive understanding of these deposits to attract foreign investors. Aidarov also proposed expediting the return of licenses for unused deposits and ensuring that they are operated by companies committed to exploration and development.[/vc_column_text][distance desktop_type=”30″][vc_btn title=”Subscribe to news digest” color=”danger” i_type=”openiconic” i_icon_openiconic=”vc-oi vc-oi-heart-empty” add_icon=”true” link=”url:https%3A%2F%2Fminexforum.com%2Fuser-subscriber-registration%2F|target:_blank”][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]