MINEX Forum

Website: Kazakhstan.com

  • Investments totaling $169 million USD flowed into Kyrgyzstan’s mining sector during the year 2023

    Investments totaling $169 million USD flowed into Kyrgyzstan’s mining sector during the year 2023

    In 2023, the inflow of foreign direct investment in Kyrgyzstan decreased to 798 million, which is 393 million or 33% less than the previous year.

    The top 5 countries by the volume of investments in Kyrgyzstan are:

    1. China with 221 million
    2. Russia with approximately 148 million
    3. Kazakhstan with 67 million
    4. The Netherlands with 63 million
    5. Turkey with 43 million.

    During this period, foreign investments were most actively made in processing enterprises at 227 million, mining enterprises at 169 million, the financial sector at 157 million, and car trading at $120 million.

    Source: National Statistical Committee of Kyrgyzstan.

  • The Republic of Kazakhstan intends to exclude machinery and metallurgy industry goods from the national procurement

    The Republic of Kazakhstan intends to exclude machinery and metallurgy industry goods from the national procurement

    The Republic of Kazakhstan intends to exclude machinery industry goods from the national procurement regime. Prime Minister Olzhas Bektenov signed a Government resolution to this effect on March 16. According to the document, foreign companies will be barred from participating in Kazakhstan’s procurement of machinery, metallurgical products, and several other sectors for a period of two years. The Ministry of Industry and Construction of the Republic of Kazakhstan, in coordination with the National Chamber of Entrepreneurs of the Republic of Kazakhstan “Atameken,” is expected to approve a list of goods, works, and services outlined in paragraph 1 of this resolution within 10 working days. This list will include codes corresponding to the unified classification of goods, works, and services, and will be submitted to the authorized body for state procurement.

    The impact of implementing these measures in Kazakhstan includes:

    1. Promotion of Domestic Industry: By restricting foreign participation in state procurement of machinery goods, Kazakhstan aims to bolster its domestic manufacturing sector.
    2. Support for Local Businesses: These measures provide opportunities for local businesses to thrive by ensuring their involvement in government procurement processes.
    3. Increased Self-Reliance: Kazakhstan’s move toward self-sufficiency in key industries like machinery and metallurgy may enhance its economic independence and reduce reliance on imports.

    The exclusion of machinery industry goods from Kazakhstan’s national procurement regime could have several implications for the investment climate in the country.

    Let’s explore these impacts:

    The new measure taken by the Kazakhstan government to exclude machinery industry goods from the national procurement regime can have mixed impacts on the investment climate in the country.

    On one hand, this move might encourage domestic production and boost the growth of local industries, which could potentially attract more local and foreign investments in the manufacturing sector. However, on the other hand, this decision might discourage foreign companies from entering or expanding their presence in the Kazakhstani market due to restrictions on participating in public procurement processes for machinery and related sectors.

    This exclusionary policy could lead to reduced competition and innovation, as well as potential supply chain disruptions for existing investors who rely on imported machinery components or technology.

    Additionally, the ongoing geopolitical tensions between Russia and Western countries might indirectly influence the investment climate in Kazakhstan due to its proximity and economic ties with Russia. Depending on the severity of sanctions and countermeasures, some investors might perceive increased risks associated with doing business in Kazakhstan, leading them to either delay or avoid making new investments altogether.

    Nevertheless, there are opportunities for Kazakhstan to position itself as an attractive alternative for investors looking to circumvent the negative effects of the Ukrainian conflict on the Russian market. Despite the recent political instability and social unrest witnessed in early 2022, the Kazakhstani government has been working to address the underlying issues and promote a stable investment climate. Efforts to streamline trade procedures, improve transparency, and enhance the overall ease of doing business in the country can contribute positively to the investment climate.

    Furthermore, the government’s commitment to comply with international sanctions against Russia, coupled with promised economic and political reforms, could help restore investor confidence over time.

    However, several persistent challenges remain, such as corruption, excessive bureaucracy, arbitrary law enforcement, and limited access to a skilled workforce in certain regions. Additionally, the government’s increasing regulatory role, preference for import substitution policies, limitations on foreign labour usage, and intervention in company operations continue to raise concerns among foreign investors.

    Improving the rule of law, enhancing human capital development, upgrading transportation and logistics infrastructure, adopting a more open and flexible trade policy, easing work permit regulations, and refining tax administration practices are key areas where improvements would significantly benefit the investment climate in Kazakhstan.

  • Kazakhstan discloses volume of manufacturing production

    Kazakhstan discloses volume of manufacturing production

    In 2023, Kazakhstan’s manufacturing production surged to 21.6 trillion tenge (approximately $48 billion). These figures were unveiled during a session of the Ministry of Industry and Construction’s board in Kazakhstan. This marked a notable uptick of 4.1 percent compared to the preceding year, which saw manufacturing output at 20.7 trillion tenge, or around $46 billion. The boost was primarily fueled by significant growth in sectors such as mechanical engineering (up by 25.4 percent), woodworking (up by 38 percent), light industry (up by 12.2 percent), and construction (up by 6.1 percent).

    Concurrently, investments surged by 11.2 percent, reaching 1.7 trillion tenge (approximately $3.77 billion). This growth stemmed from robust investments across various sectors, including a sevenfold increase in other vehicle production, a 5.6-fold increase in clothing manufacturing, a quadruple increase in furniture production, and a 3.5-fold surge in the automotive industry. Furthermore, by the close of 2023, the launch of 170 investment projects, valued at 928 billion tenge (about $2 billion), led to the creation of over 12,000 jobs.

    Exports of manufactured goods totaled $25.3 billion, underlining the sector’s significant contribution to the economy. Looking ahead, approximately 180 projects, valued at around 1.3 trillion tenge (roughly $2.9 billion), are slated for implementation in the manufacturing industry this year, with an anticipated creation of about 17,800 new job opportunities.

  • Для поиска металлов в ВКО и на Балхаше будут проводить аэрогеофизическое картирование

    Для поиска металлов в ВКО и на Балхаше будут проводить аэрогеофизическое картирование

    В Казахстане будут находить месторождения металлов при помощи технологии аэрогеофизического картирования. Запланировано изучение территорий в ВКО, Абайской области и на Северном Балхаше.

    Известно, что суммарная площадь потенциально ценных участков, выбранных для исследования, составляет 250 тыс. км². Такую информацию передаёт портал inbusiness.kz, ссылаясь на слова Андрес Бланко, гендиректора компании Xcalibur Multiphysics, которая специализируется на проведении аэрогеофизических съёмок.

    Предполагается, что инвесторы будут охотнее вкладывать средства в геологоразведку РК, имея на руках полученные благодаря аэрогеофизике геологические сведения.

    По словам г-на Бланко, первый этап картирования будет выполнен преимущественно в текущем году, а некоторые задачи намечены на 2025-й. На этой стадии для поиска металлов будут применять технологию магнитной гравитации.

    После интерпретации геологических данных, вероятнее всего, приступят ко второму этапу работ, предполагающему использование электромагнитного и гравитационного методов разведки.

  • Balhash and Eastern Regions to Undergo Aerogeophysical Mapping for Metal Exploration

    Balhash and Eastern Regions to Undergo Aerogeophysical Mapping for Metal Exploration

    In Kazakhstan, the exploration of metal deposits will utilize aerogeophysical mapping technology provided by Xcalibur Multiphysics. The areas to be studied include EKO, Abai Region, and North Balkhash.

    The company’s CEO Andres Blanco outlined a phased plan in collaboration with the geological service and the Ministry of Industry and Construction. This plan aims to execute regional mapping of Northern Balhash and parts of the Abai and East Kazakhstan regions, covering a total area of approximately 250,000 square kilometres. The objective is to elevate the regional mapping to a level of detail comparable to that found in Australia or possibly Canada. The plan targets completion by 2024-2025, with the data expected to be of world-class quality, integrating various technologies.

    The initial stage of regional mapping will primarily focus on magnetic gravimetry, one of the aerogeophysical survey systems. Subsequently, after interpreting geological structures with high potential, the second stage will involve a more detailed analysis utilizing electromagnetic and gravitational geology, along with data completion.

    Investors are expected to be more inclined to invest in Kazakhstan’s geological exploration, armed with geological data obtained through aero-geophysics. Overall, Xcalibur Multiphysics has invested around $2.5 million in establishing its Central Asian representation in Kazakhstan and plans to invest an additional $5-6 million over the next two years. Currently, the Kazakhstan office employs seven staff members, with an additional 30-35 expected to be hired. The company is also importing foreign aircraft adapted to local conditions for registration in the country, to be piloted by domestic pilots.

  • East Star Resources PLC Secures Second Copper Porphyry Exploration License in Kazakhstan

    East Star Resources PLC Secures Second Copper Porphyry Exploration License in Kazakhstan

    East Star Resources PLC, a company focused on copper exploration and resource development in Kazakhstan, has unveiled the acquisition of its second copper porphyry exploration license as part of its new copper porphyry exploration strategy. This initiative, initially funded through a US$500,000 grant from the BHP Xplor program, marks a significant advancement in the company’s expansion efforts.

    The newly acquired 121 square kilometer tenement displays historical soil anomalies, indicating promising potential for hosting a copper porphyry deposit. Situated approximately 150 kilometers north of the sizable Kounrad open pit copper mine and smelter, with reserves estimated at around 800 million tons at 0.62% Cu and up to 0.76 g/t Au, the area encompasses a 6-kilometer-long and 3-kilometer-wide silica lithocap.

    Under the partnership with BHP Xplor, East Star is engaged in regional target generation for copper porphyry deposits, primarily focusing on the Balkash-Ili magmatic arc, which hosts significant deposits like Kounrad and Aktogai-Aidarly. By leveraging modern mineral systems concepts and advanced analytical techniques, East Star aims to secure additional exploration licenses within the targeted area for future fieldwork.

    The BHP Xplor grant covers all license fees and initial work programs, including field activities, desktop evaluations, and administrative costs. The program will be overseen by East Star with input from BHP and a team of experts.

    Chris van Wijk, Technical Director at East Star, expressed enthusiasm about the progress, stating, “We are thrilled to have secured our second copper porphyry license under the BHP Xplor program. This underscores our ability to swiftly formulate compliant applications and highlights the efficiency of the Kazakh ministerial process in granting new licenses.”

  • Казахстан обсуждает проблемы финансирования геологоразведочных работ

    Казахстан обсуждает проблемы финансирования геологоразведочных работ

    На недавнем заочном заседании в Казахстане депутаты, геологи и представители уполномоченных органов собрались для обсуждения проблем, связанных с геологоразведкой, и возможных путей их решения. Стоит отметить, что прошлой осенью президент Казахстана Касым-Жомарт Токаев поручил увеличить число перспективных территорий для геологоразведки до 2,2 миллиона квадратных километров к 2026 году.

    В ходе обсуждения представители индустрии выразили обеспокоенность недостаточным финансированием поисковой деятельности, как сообщает пресс-служба АГМП. Последние данные свидетельствуют о снижении инвестиций в геологоразведочные работы в Казахстане. Например, стоимость минеральных ресурсов, вывезенных из страны в 2023 году, превысила годовые инвестиции в разведку в шесть раз.

    Известно, что вложения Казахстана в геологические исследования составляют всего лишь 8 долларов за квадратный километр, в то время как Россия тратит на подобные исследовательские работы 28 долларов, а Узбекистан и Великобритания выделяют 97 и 267 долларов соответственно.

    В свете этого глава Комитета по геологии РК, Ерлан Акбаров, признал, что в случае отсутствия средств на усиление работ по поиску ценных недр, возможно, придется перераспределять финансирование, предназначенное на другие цели. По мнению г-на Акбарова, часть бюджета, выделенного на научные исследования и опытно-конструкторские работы, можно направить на геологоразведку.

    На сегодняшний день недропользователи тратят около 73 миллиардов тенге на научно-исследовательские работы.

  • Kazakhstan Addresses Concerns Over Geological Exploration Funding

    Kazakhstan Addresses Concerns Over Geological Exploration Funding

    In a recent off-site meeting in Kazakhstan, deputies, geologists, and representatives of authorized bodies convened to discuss issues pertaining to geological exploration and potential solutions. It’s worth noting that last autumn, Kazakhstan’s President Kassym-Jomart Tokayev instructed to increase the number of prospective territories for geological exploration to 2.2 million square kilometers by 2026.

    During the discussion, industry experts expressed concerns over insufficient funding for exploration activities, as reported by the AGMP press service. Recent records indicate a decline in investments in geological exploration in Kazakhstan. For instance, the value of minerals exported from the country in 2023 exceeded annual investments in exploration by six times.

    It is known that Kazakhstan’s investment in geological surveys amounts to only $8 per square kilometer, whereas Russia spends $28 on similar research areas, and Uzbekistan and the United Kingdom allocate $97 and $267 respectively.

    In light of this, Erlan Akbarov, the head of the RK Geological Committee, acknowledged that in the absence of funds to bolster efforts in exploring valuable subsoil resources, it might be necessary to reallocate finances earmarked for other purposes. According to Mr. Akbarov, a portion of the budget allocated for scientific research and experimental design work could be invested in geological exploration.

    As of today, subsoil users spend around 73 billion tenge on research and development.

  • Казахстан воспользуется аэрогеофизической технологией для разведки месторождений металлов

    Казахстан воспользуется аэрогеофизической технологией для разведки месторождений металлов

    С целью улучшения разведки металлических месторождений Казахстан намерен использовать аэрогеофизическую технологию картирования. Регионы, запланированные для изучения, включают Восточно-Казахстанскую область (ВКО), область Абая и Северный Балхаш. Инициатива, охватывающая общую площадь 250 000 квадратных километров, сообщается порталом inbusiness.kz, ссылаясь на заявления Андреса Бланко, генерального директора компании Xcalibur Multiphysics, специализирующейся на аэрогеофизических обследованиях.

    Ожидается, что инвесторы проявят повышенный интерес к геологической разведке в Казахстане, вооружившись геологическими данными, полученными благодаря аэрогеофизике, по словам г-на Бланко. Первая фаза картирования предполагается завершить в основном в текущем году, а некоторые задачи запланированы на 2025 год. На этом этапе для обнаружения металлов будет применяться технология магнитной гравитации.

    После интерпретации геологических данных вторая фаза, вероятно, начнется, включающая использование электромагнитных и гравитационных методов разведки.

  • Kazakhstan to Utilize Aerogeophysical Mapping Technology for Metal Deposits Exploration

    Kazakhstan to Utilize Aerogeophysical Mapping Technology for Metal Deposits Exploration

    In a bid to enhance metal deposits exploration, Kazakhstan is set to employ aerogeophysical mapping technology. The regions slated for study include the East Kazakhstan Region (VKO), Abai Region, and the Northern Balkhash. The initiative, covering a cumulative area of 250,000 square kilometers, is reported by inbusiness.kz, citing statements from Andres Blanco, the CEO of Xcalibur Multiphysics, a company specializing in aerogeophysical surveys.

    Investors are anticipated to show increased interest in Kazakhstan’s geological exploration armed with geological data obtained through aerogeophysics, according to Mr. Blanco. The initial mapping phase is expected to be predominantly completed within the current year, with some tasks earmarked for 2025. At this stage, magnetic gravity technology will be employed for metal detection.

    Following the interpretation of geological data, the second phase, likely to commence thereafter, will involve the utilization of electromagnetic and gravitational reconnaissance methods.