MINEX Forum

Website: Kazakhstan.com

  • India and Kazakhstan Establish Joint Venture to Strengthen Titanium Production

    India and Kazakhstan Establish Joint Venture to Strengthen Titanium Production

    In a landmark agreement, India and Kazakhstan have collaborated to launch a joint venture named IREUK Titanium Limited, aimed at boosting titanium slag production in India. This venture represents India’s first joint initiative in Central Asia and is a significant move in enhancing the titanium value chain for the country.

    The agreement was finalized between Indian Rare Earths Limited (IREL) and Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP), two renowned players in the titanium industry. This collaboration will focus on converting low-grade ilmenite into high-grade titanium feedstock, fostering titanium production in India and generating local employment.

    IREL, operating under India’s Department of Atomic Energy (DAE), has access to ample ilmenite reserves from its Odisha facilities, while UKTMP, a globally recognized vertically integrated titanium producer, will contribute its specialized knowledge in refining raw materials into valuable titanium products like titanium sponge and ingots.

    The official signing of the agreement was conducted by Deependra Singh, Chairman and Managing Director of IREL (India) Limited, and Assem Mamutova, President of UKTMP. This partnership is expected to solidify India’s stance in the global titanium market and bolster the rare earth and critical minerals sector in the region.

  • Solidcore Resources Acquires 55% Stake in Kazakhstan’s Only Tin Deposit

    Solidcore Resources Acquires 55% Stake in Kazakhstan’s Only Tin Deposit

    Solidcore Resources plc, a gold mining company, has announced the acquisition of a 55% stake in the Syrmbet tin deposit from Lancaster Group, as reported by Ulysmedia.kz. This undeveloped polymetallic deposit is the only one of its kind in Kazakhstan, primarily containing tin. Solidcore’s investment in the deposit will be $82.5 million, marking a notable development in a country with no prior tin production history. Lancaster Group had initially planned to invest $410 million in a concentrating plant, with financing from the Development Bank of Kazakhstan, but construction never commenced.

    Located in northern Kazakhstan, the Syrmbet deposit was discovered in 1985. In 1998, it was incorporated as AO Syrmbet and later rebranded as Tin One Mining in 2017. Currently, Berkut Mining, a subsidiary of Lancaster Group, is the sole shareholder of Tin One Mining.

    Previously known as Polymetal, Solidcore Resources relocated from Jersey to Kazakhstan and registered on the AIX exchange. Following U.S. sanctions on its Russian assets, Solidcore sold these to Russian company Mangazeya Plus for $3.69 billion. In 2024, a consortium of Omani investors, led by Maaden International Investment, acquired a 23.9% stake in Solidcore, formerly owned by Powerboom Investments. Solidcore’s CEO Vitaliy Nesis, a Russian entrepreneur, leads its development of Varvarinskoye and Bakyrchik mines in Kazakhstan.

    Lancaster Group, founded by four business partners in 2003, includes Nurlan Kapparov, Erbolat Dosaev, Berik Kaniev, and Yuri Pak. According to Forbes Kazakhstan, Kaniev and Pak share the 73rd position among Kazakhstan’s wealthiest individuals, each valued at $64 million. Lancaster Group’s portfolio includes Tin One Mining, oilfield services companies, and a stake in the Quantum Stem school network.

  • Kazakhstan: A Strategic Partner for Europe’s Green Transition and Rare Earth Supply Chain

    Kazakhstan: A Strategic Partner for Europe’s Green Transition and Rare Earth Supply Chain

    Kazakhstan’s Minister for Industry and Construction, Kanat Sharlapaev, has highlighted the country’s pivotal role as a supplier of critical raw materials to Europe, positioning Kazakhstan as a strategic partner for the continent’s green transition. Speaking with Euronews on The Big Question, Sharlapaev discussed the growing trend of “friendshoring”, where Europe shifts production to trusted geopolitical allies to secure a reliable supply of essential resources.

    According to the Brookings Institution, China produced around 60% of the world’s rare earth elements as of 2023. The pandemic revealed the risks of dependency on single-region suppliers, and with the shift toward greener technologies, Europe’s need for critical minerals is only increasing. Kazakhstan, which has long supported Europe’s energy stabilityand is Germany’s fourth-largest energy trading partner, could be the solution for Europe to reduce its reliance on China.

    Kazakhstan’s proximity to Europe also lowers shipping costs and emissions compared to sourcing from more distant suppliers in China or South America. The nation is rich in critical minerals, with 17 out of the 30 elements on the EU’s critical raw materials list available within its borders. It holds 20% of the aerospace-grade titanium market, 10% of manganese sulfate, 30% of global beryllium supply, and 17% of rhenium. Additionally, Kazakhstan ranks as the 11th largest copper producer globally.

    Sharlapaev underscored Kazakhstan’s commitment to expanding local processing capabilities to retain more value within the country, fostering job creation and regional economic growth. He explained that Kazakhstan aims to move beyond raw exports by enhancing its value chain. With the mining sector contributing between 12% and 15% of Kazakhstan’s GDP, this strategic focus is expected to further bolster the economy.

    Kazakhstan’s mining workforce is composed of 99% local talent, trained through its own educational institutions, setting it apart from the global trend of expatriate staffing in mining industries. “This strong human capital base enables companies to start operations more efficiently in Kazakhstan,” Sharlapaev noted, reinforcing the country’s appeal as a reliable partner in Europe’s pursuit of green energy goals.

  • Kazakhstan’s Role in Global Metal Markets: A Leading Producer of Copper and Aerospace Titanium

    Kazakhstan’s Role in Global Metal Markets: A Leading Producer of Copper and Aerospace Titanium

    Kazakhstan is reinforcing its position as a global leader in metal production, ranking 11th worldwide for copper production and holding a dominant share in aerospace titanium and other critical metals. Kanat Sharlapayev, Minister of Industry and Construction, highlighted that Kazakhstan accounts for 20% of the aerospace titanium market and 30%of global supplies of metals like beryllium and niobium.

    Sharlapayev emphasized that Kazakhstani enterprises control most of these markets, with significant state ownershipand minimal foreign investment. He clarified that purchases of Kazakh metals strictly adhere to market-based pricing, underscoring the country’s robust role in metallurgical production rather than merely raw material supply.

    Kazakhstan’s high standards in metallurgy—including advanced hydrometallurgy—make it an attractive partner for Western and European companies. Sharlapayev noted that Kazakhstan’s metal production capabilities are of particular interest in sectors like battery manufacturing, positioning the nation as a key player for international partnerships. He highlighted that for many metals, Kazakhstan does not require technology transfer, showcasing a self-sufficient and advanced metallurgical industry.

  • C29 Metals Signs MOU with Volkov Geology to Advance Uranium Exploration in Kazakhstan

    C29 Metals Signs MOU with Volkov Geology to Advance Uranium Exploration in Kazakhstan

    West Perth, Australia – October 28, 2024 – C29 Metals Limited (ASX: C29) has announced the signing of a Memorandum of Understanding (MOU) with Volkov Geology, a wholly-owned subsidiary of Kazatomprom, Kazakhstan’s national uranium producer. This strategic partnership marks a significant milestone for C29 Metals as it aims to become a globally significant uranium development company.

    Key Highlights:

    • Strategic Partnership: Volkov Geology, with its extensive 75-year history in uranium exploration and mining, will provide geological services for C29 Metals’ upcoming drill program, set to commence in November 2024.
    • Expertise and Capabilities: Volkov Geology, the largest driller in Kazakhstan by annual drill meters, will offer its technical expertise and certified laboratory services to ensure compliance with all regulatory requirements during the drilling program.
    • Future Expansion: The scope of Volkov Geology’s work is expected to expand in 2025 to include studies, geological modeling, and resource estimation.

    Project Location and Community Support: The Ulytau Uranium Project, located in the Almaty Region of Southern Kazakhstan, has a rich history of uranium exploration dating back to 1953. The local community of Aksuyek, with a population of approximately 700 people, has shown strong support for the project. C29 Metals has signed a social support agreement with the district government to assist with community development projects.

    Comments from C29 Metals: Shannon Green, Managing Director of C29 Metals, expressed enthusiasm about the partnership, stating, “This is a significant milestone for the company. Having Volkov Geology join us as our geological partner is an incredible step forward as we rapidly advance towards our goal of becoming a globally significant uranium development company.”

    Next Steps: C29 Metals anticipates finalizing a commercial agreement with Volkov Geology in the coming weeks. The initial drill program will be conducted by an independent drilling contractor, with Volkov Geology providing oversight and technical services.

  • Mining Faces an Uncertain Future Against AI, Experts Warn

    Mining Faces an Uncertain Future Against AI, Experts Warn

    The mining industry lags significantly behind in adopting artificial intelligence (AI), creating vulnerabilities as AI advancements rapidly transform industries globally. According to experts, while AI-driven efficiencies could enhance exploration, processing, and predictive maintenance, few mining companies are leveraging these technologies to their full potential. This gap presents an existential threat, as data-driven decision-making and automation in mining could reduce costs, enhance safety, and improve productivity. Without integrating AI, the mining sector risks falling behind in innovation and competitiveness, impacting future profitability and sustainability.

  • Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazakhstan-based Kazatomprom, the world’s largest uranium miner, announced on Tuesday that it has finalized a significant agreement with CNNC Overseas and China National Uranium Corporation for the sale of natural uranium concentrates. The cumulative value of this transaction, combined with previous deals with these Chinese entities, represents over 50% of Kazatomprom’s total asset book value.

    While the company did not disclose the volume of the uranium involved, it stated that the deal will require approval from shareholders at a meeting scheduled for November 15.

  • NMMC Celebrates Historic Eurobond Issuance with London Stock Exchange Closing Bell

    NMMC Celebrates Historic Eurobond Issuance with London Stock Exchange Closing Bell

    October 11, 2024 – Navoi Mining and Metallurgical Company (NMMC) announced the successful pricing of its inaugural US$1 billion dual-tranche Notes offering. The offering comprises US$500 million in 4-year notes at 6.70% and US$500 million in 7-year notes at 6.95%.

    This landmark transaction represents several key achievements:

    • Largest order book for an issuer from Uzbekistan since the sovereign debut in 2019: The offering peaked at US$5.5 billion, representing an oversubscription of more than 5.5 times. This demonstrates strong investor confidence in NMMC and its future prospects.
    • Significant issuance size: This is one of the largest corporate Notes deals from the CIS since July 2020 and the largest ever from Uzbekistan after the sovereign.
    • First in the sector: This marks the first global debt capital markets issuance from a gold mining company since June 2023 and the first for a non-investment grade gold mining company since October 2021.
    • Tightest premium to sovereign: NMMC achieved a premium of only 20bps and 7.5bps on the 4-year and 7-year tranches, respectively, the tightest achieved by a quasi-sovereign from Uzbekistan.

    Prior to the transaction, NMMC obtained its first-ever credit ratings, with its standalone credit profile confirmed at a level above sovereign: bb+ by S&P and bb by Fitch, both capped at the sovereign level of BB-.

    The offering was announced on October 4th, followed by a successful three-day hybrid investor roadshow reaching over 150 investors globally.

    “This Notes issue is a unique transaction, both in terms of volume and coupon rate,” said Eugene Antonov, NMMC First Deputy CEO and Chief Transformation Officer. “Strong investor demand reaffirms NMMC’s leading position in the mining industry and culminates years of transformative changes. We are pursuing ambitious goals to become a truly global mining company and will continue delivering returns for our investors.”

    Jakhongir Khasanov, Deputy General Director and Chief Financial Officer, added, “This milestone signifies the beginning of a long and fruitful relationship with the global investor community. The strong interest in our Notes offering highlights NMMC’s financial stability and resilience. We remain committed to investing in the future and driving sustainable growth.”

    NMMC intends to use the net proceeds for general corporate purposes, including capital expenditure, debt repayment, working capital, and operational expenses. This issuance allows NMMC to refinance existing debt at more attractive rates and longer tenors while establishing benchmarks for future Notes placements.

    About NMMC

    Navoi Mining and Metallurgical Company is a leading mining company in Uzbekistan, engaged in the exploration, extraction, and processing of gold, uranium, and other minerals. NMMC operates the world-renowned Muruntau gold mine, one of the largest gold mines globally.

  • Title: Global Copper Production Costs See Significant Regional Variations in 2023

    Title: Global Copper Production Costs See Significant Regional Variations in 2023

    Copper production costs across the world in 2023 revealed notable disparities, with regions such as Kazakhstan, Peru, Mexico, and the Democratic Republic of the Congo (DRC) proving to be highly cost-efficient. In Kazakhstan, KAZ Minerals’ Bozshakol mine reported the lowest cost at $0.95 per pound, driven by the country’s affordable diesel and electricity prices, combined with a skilled workforce. This efficiency is further enhanced by by-product revenues from metals like zinc, lead, and silver.

    Southern Copper Corporation, operating major mines in Mexico and Peru, achieved production costs of $1.03 per pound through economies of scale at mines such as Buenavista del Cobre and Toquepala, complemented by by-product sales.

    Meanwhile, Chile’s Escondida mine, run by BHP, remains one of the most significant copper producers globally despite rising costs to $1.40 per pound. Its strong mining infrastructure and workforce help maintain its competitiveness.

    In the DRC, Ivanhoe Mines’ Kamoa-Kakula project continues to produce copper at some of the world’s lowest costs, thanks to its high-grade ore and efficient operations.

    While regions like these remain competitive, the global copper industry has faced rising costs in 2023 due to inflation, higher energy prices, and labor shortages. Nevertheless, companies are responding by improving operational efficiency and increasing revenue from by-products.

  • Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    French state-controlled mining company Orano SA announced that its long-awaited uranium project in Mongolia, the Zuuvch Ovoo mine, could begin production by 2030, following five years of construction. The project’s future hinges on the signing of an investment agreement, with a confirmation vote scheduled for the current session of Mongolia’s parliament.

    Orano’s representative in Mongolia, Olivier Thoumyre, revealed that the mine could become the largest in the country since Rio Tinto’s Oyu Tolgoi copper-gold project. Zuuvch Ovoo has been in development for over a decade, initially launched by Orano’s predecessor, Areva SA, in partnership with Mongolia’s state nuclear company, Mon-Atom.

    The global demand for uranium is on the rise as countries such as China continue to build nuclear power plants, and other nations in Europe and Asia focus on nuclear energy as part of their strategies to reduce carbon emissions. This growing demand positions Mongolia to potentially become a key player in the uranium market, according to Thoumyre, who spoke at an industry event in Nalaikh, near Ulaanbaatar.

    The reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has provided a sense of stability, encouraging continued negotiations between the Mongolian government and Orano. Discussions on the project’s terms, which began a year ago, have remained active, Thoumyre added.