MINEX Forum

Website: Kazakhstan.com

  • Tau-Ken Samruk and Rwanda’s Ngali Holdings Sign Agreement to Develop Rare Earth Deposits

    Tau-Ken Samruk and Rwanda’s Ngali Holdings Sign Agreement to Develop Rare Earth Deposits

    Kazakhstan’s national mining company Tau-Ken Samruk, a subsidiary of the sovereign wealth fund Samruk-Kazyna, has signed an agreement to jointly develop rare and rare-earth metal deposits in Rwanda in partnership with local investment group Ngali Holdings.

    The agreement was formalised during meetings in Kigali between Samruk-Kazyna chief executive Nurlan Zhakupov and representatives of Rwanda’s mining authorities and investment institutions. Participants included Jean-Guy Afrika, CEO of the Rwanda Development Board, Alice Uwase, CEO of the Rwanda Mines, Petroleum and Gas Board, and Joseph Butera, CEO of Ngali Holdings.

    According to Samruk-Kazyna, the parties signed a Term Sheet outlining plans for joint exploration and development of rare and rare-earth metal deposits in Rwanda. The cooperation will focus on geological exploration and potential mining projects aimed at unlocking the country’s mineral resources.

    Officials from both countries also discussed broader opportunities for collaboration in the mining sector, including the expansion of geological exploration activities and technology exchange.

    Zhakupov noted that relations between Kazakhstan and Rwanda have strengthened following the visit of Rwandan President Paul Kagame to Kazakhstan in 2025, which helped open new avenues for economic cooperation.

    The planned projects highlight growing international interest in rare-earth minerals, which are critical for modern technologies including electronics, renewable energy systems and defence applications. Through the partnership, Tau-Ken Samruk aims to expand its international mining footprint while contributing technical expertise to the development of Rwanda’s mineral sector.

  • Kazzinc Loses Tajik Raw Material Supply Contract Amid Customs Controls

    Kazzinc Loses Tajik Raw Material Supply Contract Amid Customs Controls

    Kazakhstan’s largest gold producer Kazzinc, in which Swiss commodities group Glencore holds a 70.2 percent stake, has reportedly lost a key raw material import contract from Tajikistan following stricter customs controls imposed by Kazakhstan’s State Revenue Committee.

    According to Kazakhstan’s Ministry of Industry and Construction report for 2025, the contract was affected by the application of the “red corridor” customs inspection regime on imported raw materials. Kazzinc relies on imported feedstock for roughly 40 percent of its production needs, and the lost contract involved approximately 40,000 tonnes of raw materials — representing about 20 percent of the company’s imports.

    The material had been supplied from Tajikistan by a company linked to Chinese mining group Zijin Mining. The loss of the contract highlights supply chain challenges facing Kazakhstan’s mining and metallurgical sector.

    Industry data in the report indicate that production of metallic ores, excluding iron ore, declined by 0.7 percent in 2025. The drop was partly attributed to operational changes at the Vasilkovskoye deposit in Akmola region, the country’s largest gold mine operated by Kazzinc, which is transitioning from open-pit to underground mining.

    Resource depletion at several zinc and lead deposits in East Kazakhstan — including the Maleevsky, Tishinsky and Dolinny mines — has also contributed to declining output. As a result, forecasts for 2026 suggest growth in most major metals such as steel, pig iron, rolled products and copper, while production of refined gold and metallic zinc is expected to fall.

    Gold output is projected to decline from 29.45 tonnes to 21.27 tonnes due to depletion at the Vasilkovskoye mine. Zinc production is also expected to drop from 259,600 tonnes to 239,000 tonnes because of declining ore grades and uncertainty surrounding planned zinc concentrate supplies from Russia.

    Overall, production in 2025 declined across several refined metals. Output of metallic zinc fell by 6.6 percent, refined silver by 10.4 percent, refined gold by 1.1 percent and refined lead by 29.6 percent.

    These developments come as Glencore reportedly considers selling its majority stake in Kazzinc as part of a broader portfolio restructuring. Market analysts estimate the value of the asset at around $5 billion.

    Media reports have suggested that Kazakh businessman Shakhmurat Mutalip is in discussions to acquire the stake for approximately $4–4.5 billion. In early 2026, Mutalip registered two new mining companies at the Astana International Financial Centre — KazZinc Group Ltd. and Central Asia Resources Holding Ltd. — both focused on copper, lead and zinc mining and processing.

  • Proposed ERG Ownership Restructuring Raises Geopolitical and Sanctions Concerns

    Proposed ERG Ownership Restructuring Raises Geopolitical and Sanctions Concerns

    A reported restructuring of ownership at Eurasian Resources Group (ERG) is drawing attention from analysts and policymakers due to potential geopolitical implications involving sanctions enforcement, Russian financial influence and the control of critical mineral assets.

    ERG is one of the largest mining groups operating across Eurasia and Africa, with major copper and cobalt operations in the Democratic Republic of Congo. These minerals are essential for battery production, defence technologies and advanced manufacturing, placing the company within supply chains considered strategically important by Western governments.

    According to media reports and industry sources, Kazakh businessman Shakhmurat Mutalip is expected to acquire a significant stake in ERG in a transaction estimated at around $1.4 billion. The move has been interpreted by some observers as part of a broader effort by Kazakhstan’s leadership to reshape ownership structures among major domestic industrial assets.

    However, questions have emerged regarding the potential sources of financing and the broader network of business relationships connected to the proposed transaction. Some reports have suggested possible links between Mutalip and Russian banking institutions including VTB and Sberbank, both of which are subject to Western sanctions. If confirmed, such connections could raise concerns among regulators about exposure to secondary sanctions risks.

    Additional scrutiny has focused on ERG’s chief executive, Shukhrat Ibragimov. Ukrainian authorities have imposed a travel ban on Ibragimov on national security grounds, citing alleged concerns about possible involvement in facilitating sanctions circumvention by individuals connected to Russia. He has not been publicly included in Ukraine’s formal sanctions list.

    Observers have also highlighted business ties between Ibragimov and Kazakh investor Kenes Rakishev, a prominent figure in Kazakhstan’s financial sector. Rakishev is known for longstanding relationships within Kazakhstan’s political and business circles and has previously been associated with networks linked to Chechen leader Ramzan Kadyrov.

    Some reports have further drawn attention to allegations involving Kazakhstan Paramount Engineering, a defence manufacturing company reportedly linked to Rakishev through leaked communications referenced by the Kazakhstani Initiative on Asset Recovery. According to those claims, vehicles produced by the company were later observed in areas of Ukraine during the conflict. These allegations remain a subject of debate and scrutiny.

    The broader concern for policymakers lies in the strategic significance of ERG’s mineral assets. Copper and cobalt resources controlled by the group are central to global supply chains for energy transition technologies, defence systems and advanced industrial production.

    Analysts note that any ownership restructuring that increases exposure to sanctioned financial networks could potentially attract attention from regulators in the United States and the European Union. Western authorities have previously taken enforcement actions where indirect ownership structures were used to bypass sanctions.

    The situation also reflects wider dynamics within Kazakhstan’s political and economic landscape. In recent years, President Kassym-Jomart Tokayev has pursued efforts to reshape elite ownership structures that emerged during the Nazarbayev era. However, analysts note that shifts in corporate control do not necessarily eliminate the influence of longstanding financial and political networks operating across the region.

  • Kazakhstan’s Sovereign Fund Model Prioritises Stability Over Direct Resource Payments

    Kazakhstan’s Sovereign Fund Model Prioritises Stability Over Direct Resource Payments

    Recent discussions about Mongolia’s decision to allocate 60 percent of mining revenues to its National Wealth Fund, with part of the funds distributed directly to citizens through personal accounts, have sparked debate in Kazakhstan about alternative resource revenue models.

    According to Saidа Tleulenova, a financial expert from Qazaq Expert Club, Mongolia’s system represents a relatively rare model where citizens receive a direct share of national resource income. Such approaches are more common in countries with smaller populations and highly concentrated mining sectors.

    A frequently cited example is the US state of Alaska, where residents receive annual payments from the Permanent Fund Dividend financed by oil revenues. In contrast, Norway’s sovereign wealth fund focuses on long-term capital accumulation and investment returns rather than direct cash transfers to citizens.

    Kazakhstan has adopted a different approach. The National Fund of the Republic of Kazakhstan accumulates revenues from oil and other natural resources, but payments to citizens are distributed only through investment income rather than direct resource revenues.

    This principle underpins the “National Fund for Children” programme launched on January 1, 2024. Under the scheme, 50 percent of the National Fund’s annual investment income is allocated to accounts for children. Once citizens reach the age of 18, they can use the accumulated funds for housing purchases or educational expenses.

    Tleulenova noted that the model reflects a deliberate policy choice. Direct distribution of the fund’s principal revenues could place pressure on public finances, increase inflation and weaken the national currency. The National Fund also serves broader economic functions, including financing strategic projects, supporting the state budget and maintaining long-term financial stability.

    While it would be technically possible to increase direct payments to citizens, the expert warned that allocating a share of extraction revenues directly to households could reduce the government’s ability to manage economic policy, affect the foreign exchange market and limit funding for infrastructure and industrial development.

    In her view, Kazakhstan, Mongolia and Alaska have simply adopted different resource management strategies. Direct payments can increase public trust and citizens’ sense of participation in national wealth, but they may also reduce fiscal stability. Conversely, accumulation-based models provide macroeconomic resilience but deliver benefits to citizens more indirectly through public spending and social programmes.

    Tleulenova suggested that any expansion of direct payments should be approached cautiously, potentially through pilot initiatives or limited revenue allocations, while carefully modelling impacts on inflation, the state budget and the tenge exchange rate.

    The debate comes as Kazakhstan’s National Fund approaches a total value of nearly KZT 40 trillion.

  • Kazakhstan to Begin Partial Development of Sarykum Anthracite Coal Deposit Near Balkhash

    Kazakhstan to Begin Partial Development of Sarykum Anthracite Coal Deposit Near Balkhash

    Kazakhstan is preparing to partially develop the Sarykum anthracite coal deposit located near the city of Balkhash in the Karaganda region, according to a mine closure and rehabilitation plan related to operations at the site.

    The project documentation indicates that high-quality anthracite from the deposit is expected to be supplied primarily to ferrous and non-ferrous metallurgy industries. Additional industrial applications may include the production of absorbents, electrodes, electrocorundum and carbon powders. Lower-grade coal that does not meet anthracite specifications is planned to be used for municipal heating and domestic consumption in Balkhash and nearby settlements in the Aktogay district.

    Anthracite is relatively rare in Kazakhstan and is valued for its high calorific value and heat output. Although it has a high energy content, the fuel is more difficult to ignite compared with other coal types. Historically, limited anthracite production in Kazakhstan occurred at the Zhamantuz deposit in Pavlodar region, where reserves were small.

    Globally, the largest anthracite reserves are concentrated in Russia and China. Russia accounted for nearly all of China’s anthracite imports in 2025, reflecting strong demand and high margins for this coal type.

    Unlike many anthracite deposits that are mined underground due to their depth, extraction at Sarykum is planned through open-pit mining, likely due to the geological structure of the deposit.

    According to project documentation prepared for Alfa Plast LLP, average ash content in Sarykum coal exceeds 42 percent, though the material may be beneficiated and processed into concentrate.

    The mine development plan covering the period until 2050 предусматривает extraction of approximately 20.01 million tonnes of coal from total reserves estimated at 170.63 million tonnes as of January 1, 2025. Following this period of production, the project foresees conservation of the open pit.

    Production capacity at the mine is expected to gradually increase from about 10,000 tonnes per year in the early stage to 1 million tonnes annually by 2035. Output at this level is planned to continue until 2048, after which production will decline to around 500,000 tonnes by 2050.

    The Sarykum deposit was previously the subject of a legal dispute between Kazakhstan’s Ministry of Industry and Sarykum Group LLP over alleged violations of subsoil use obligations, with authorities at one point considering placing the asset up for auction.

  • Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Solidcore’s Ertis Hydrometallurgical Plant to Invest KZT 900m in Social Projects in Pavlodar Region

    Authorities in Kazakhstan’s Pavlodar region have signed a social memorandum with Ertis Hydrometallurgical Plant LLP, a flagship project of Solidcore Resources, outlining new investments in social and environmental initiatives.

    Under the agreement, the company will allocate approximately KZT 900 million toward socially significant projects in the city of Pavlodar. The funding will support capital repairs at three schools and two kindergartens, as well as broader improvements to the city’s social infrastructure.

    The memorandum also includes environmental commitments. As part of conservation measures, the project will finance the purchase of 65 units of specialised equipment for regional forestry and wildlife protection institutions.

    Vladimir Dudin, General Director of Ertis Hydrometallurgical Plant LLP, said the company aims to ensure that industrial development directly contributes to improving living standards in the region.

    “For us it is important to build a model of cooperation where industrial growth directly contributes to improving the quality of life for people. Social investment is not a one-time initiative but part of the company’s long-term strategy,” he said.

    Pavlodar regional governor Asain Baikhanov highlighted the importance of cooperation between government and business in achieving sustainable regional development.

    The Ertis Hydrometallurgical Plant is planned to become Kazakhstan’s first full-cycle facility for processing gold-bearing concentrates. The plant is scheduled to begin operations in 2028 and is expected to strengthen the country’s downstream processing capacity in the mining sector.

  • Kazakhstan Highlights Exploration Drive and $500m Investment Plan at PDAC 2026

    Kazakhstan Highlights Exploration Drive and $500m Investment Plan at PDAC 2026

    A Kazakh delegation led by Vice Minister of Industry and Construction Iran Sharkhan took part in PDAC 2026, the world’s leading mining and exploration conference hosted by the Prospectors & Developers Association of Canada in Toronto.

    During the event, the Ministry of Industry and Construction, in partnership with the Kazakhstan Chamber of Mines and Aurora Minerals Group Limited, and with support from the Embassy of Kazakhstan in Canada, organised the international forum “Kazakhstan Day.” The session focused on the country’s geological potential and exploration opportunities.

    The forum drew representatives from major international and Canadian mining companies, including Zijin Mining Group, B2Gold, First Quantum Minerals, Hatch, Arras Minerals and Xcalibur Smart Mapping.

    In his address, Iran Sharkhan stressed that the government places strategic importance on improving the geological knowledge base of Kazakhstan’s territory. Over the next three years, approximately $500 million is expected to be allocated to geological exploration, exceeding the total state investment in exploration over the previous three decades.

    According to the Vice Minister, systematic expansion of exploration activities and the opening of new territories for prospecting will create improved conditions for foreign investment and deeper international cooperation in the mining and metallurgical sector.

    Participants were also presented with an overview of key geological discoveries made in 2024–2025, along with successful examples of joint projects implemented with foreign partners.

    On the sidelines of PDAC, the head of the delegation held a series of bilateral meetings with Canadian and international mining executives interested in launching new projects in Kazakhstan. Discussions focused on cooperation in critical minerals, the application of advanced exploration and mining technologies, and potential joint ventures in downstream processing of Kazakh raw materials.

    Officials said Kazakhstan’s participation at PDAC 2026 underscored sustained international interest in the country’s resource base and demonstrated its readiness to expand partnerships with Canadian and global investors across the mining value chain.

  • Kazakhstan Targets Coal Output Growth as New Generation Plan Forecasts Rising Demand

    Kazakhstan Targets Coal Output Growth as New Generation Plan Forecasts Rising Demand

    Kazakhstan’s Ministry of Energy has held talks with the country’s largest coal producers to discuss implementation of presidential directives issued at the Fifth National Kurultai, alongside a newly adopted national plan for coal-fired power generation.

    The plan reaffirms coal’s role as a strategic asset for Kazakhstan, which holds reserves exceeding 33 billion tonnes. According to ministry forecasts, new industrial projects are expected to require an additional 19 million tonnes of thermal coal annually by 2032, placing pressure on producers to expand output capacity in the coming years.

    Major domestic mining companies have indicated readiness to meet the anticipated increase in demand. Bogatyr Komir, one of Kazakhstan’s largest coal producers, said it plans to raise production from 42.7 million tonnes to 45.2 million tonnes this year, with a longer-term target of 56.5 million tonnes annually by 2032.

    To achieve this expansion, the company intends to invest approximately KZT 360 billion in the launch of new cyclic-flow technology (CFT) complexes and the modernisation of its mining equipment fleet. The investment programme also includes the implementation of digital systems such as MES solutions for CFT operations and advanced haulage optimisation tools.

    Shubarkol Komir likewise confirmed plans to increase output to 16.1 million tonnes this year. Over the next six years, the company will invest KZT 95.5 billion in the second phase of its CFT infrastructure development, alongside nearly KZT 50 billion earmarked for new machinery and equipment purchases, including robotic systems.

    The ministry emphasised that coordinated industry efforts will be essential to maintain energy security and support industrial growth as Kazakhstan balances its resource base with evolving economic priorities.

  • US EXIM Signals Up to $240m Financing for QazMoly’s Drozhi­lovskoye Tungsten-Molybdenum Project in Kazakhstan

    US EXIM Signals Up to $240m Financing for QazMoly’s Drozhi­lovskoye Tungsten-Molybdenum Project in Kazakhstan

    QazMoly Limited, part of Kazakhstan-based mining and energy group AltynGroup controlled by the Asaubayev family, said it has received indicative interest from the Export-Import Bank of the United States (US EXIM) for financing of up to $240 million to advance the Drozhi­lovskoye tungsten-molybdenum deposit in the Denisov district of Kostanay region.

    According to the company, the Drozhi­lovskoye deposit contains significant resources of critical minerals including tungsten, beryllium and molybdenum, metals widely used in high-technology manufacturing and applications across engineering, aerospace and defence industries. The announcement positions the project within broader US and European efforts to diversify critical mineral supply chains away from China, which remains a dominant supplier of many strategic raw materials.

    Under the proposed structure, the financing would be conditional on 100% of Kazakhstan’s tungsten concentrate output from the project being supplied to the US market, reflecting Washington’s classification of tungsten as a strategic material. QazMoly said Fosbury Capital is expected to act as the exclusive buyer and financial partner for the project.

    The potential EXIM support remains subject to completion of QazMoly’s feasibility studies and the lender’s full legal, commercial and technical due diligence. QazMoly said the project benefits from competitive production costs, government support, and macro tailwinds from expected growth in global tungsten demand, which market estimates suggest could rise by an average of around 8% per year and push the sector toward a value of $10 billion by the mid-2030s.

    Aidar Asaubayev, chairman of QazMoly’s board, said the indicative backing could help move the Drozhi­lovskoye development forward, supporting job creation and strengthening critical mineral supply chains. The company expects the financing, if finalised, to cover a significant share of capital expenditure and could become one of the largest examples of US export credit participation in Kazakhstan’s mining industry.

    Earlier plans disclosed in the early 2020s by Qaz Mining Company envisaged development of the 5.86 km² Drozhi­lovskoye licence area over 2022–2034, with a reported resource base of 125.2 million tonnes of ore and a targeted mining and processing capacity of 11 million tonnes per year. However, public sources have not confirmed the start of full-scale operations.

    QazMoly’s 2024 financial reporting cited estimated tungsten trioxide mineral resources at Drozhi­lovskoye of 126,400 tonnes at a grade of 0.116%, with the licence valid until 2034. The company previously indicated plans to build a concentrator designed to process molybdenum-tungsten ores at a capacity of 200,000 tonnes per year by 2025.

    The company also disclosed it holds an exploration contract for the Smirnovskoye molybdenum project in Kostanay region. QazMoly reported a loss of £213,000 for the 2024 reporting period.

  • Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan is set to accelerate development of its metallurgical sector, with seven new metallurgical enterprises scheduled to begin operations in 2026, according to the Ministry of Industry.

    The total investment in the first phase of projects is estimated at KZT 154 billion. By the end of the year, the country expects to commission new production facilities manufacturing ferrosilicon, longitudinal welded and galvanised pipes, as well as reinforcing steel products of various diameters. The projects are expected to create more than 1,100 jobs across several regions.

    A further seven metallurgical plants are planned for launch within the following two years, supported by investments exceeding KZT 2 trillion. These facilities will focus on the production of ferroalloys, profile and strip steel, steel billets, large-diameter pipes and industrial wire products.

    The Ministry projects that expansion in the ferrous metallurgy sector will generate approximately 3,500 additional jobs between 2027 and 2028, including around 1,200 positions in rural areas.

    In parallel, another 16 industrial projects are currently at the design and approval stage. Planned developments include production of high-purity manganese, hot-briquetted and sponge iron, premium-grade steel, grinding balls and other materials required by Kazakhstan’s mining and metallurgical complex.

    Potential investment in these longer-term initiatives could reach KZT 2.8 trillion and is expected to create up to 5,500 additional jobs nationwide.

    Despite strong investment momentum, early-year production indicators in the sector showed mixed performance. Steel output declined by 5.7 percent to 339,500 tonnes, while rolled steel production increased by 11.1 percent to 292,400 tonnes, reflecting shifting demand dynamics within domestic and export markets.