Ainur Kapparova, Executive Director Business Relations, AIFC (Astana International Financial Centre) a financial expert with 18 years of experience at international companies such as HSBC, State Street Bank, and McKinsey & Company, shares insights on financing opportunities for Kazakhstan’s mining sector. Having worked in the US, Japan, and the UK, Ms Kapparova now focuses on financing solutions for the mining industry in Kazakhstan.
A New Phase for Mining Amid Global Energy Transition
“The Kazakhstan mining sector is entering a new phase of development amid the global energy transition,” states Kapparova. “In this context, access to efficient financing instruments is becoming a key factor.”
Working with leading global financial players, Kapparova and her colleague Temirlan Mukhanbetzhanov have conducted an in-depth analysis of available financing mechanisms at every stage of a mining project’s lifecycle.
“We’ve identified solutions for financing early exploration stages, streaming mechanisms that allow capital attraction without diluting shareholder stake or creating debt burden, as well as instruments for junior companies to access IPOs in Kazakhstan and abroad,” explains Kapparova.
Early-Stage Exploration Financing
When a project is at its earliest stage—with only a land plot and a few test wells—significant investments are needed to develop the deposit to the level of confirmed reserves and obtain an internationally recognized JORC report or equivalent.
“This is the riskiest phase, so private investment and government support play crucial roles,” notes Kapparova. “Currently, four private companies in Kazakhstan are planning to launch specialized funds for financing such projects.”
According to Kapparova, the Astana International Financial Centre (AIFC) offers the most convenient platform for structuring these funds, allowing for flexible LP/GP models adapted for the mining sector. Private junior companies, including foreign players, are also active in the country. Some attract financing from global mining companies, but this requires either preliminary confirmation of reserves or an excellent international reputation.
Financial Solutions for Companies with Confirmed Reserves
For companies that have already invested in deposit studies and can obtain a JORC report or equivalent, more financing options become available.
“One such instrument is an IPO on the Astana International Exchange (AIX), which operates a special listing program for juniors,” Kapparova explains. “Additionally, Kazakhstani companies can access foreign exchanges such as the Toronto Stock Exchange (TSX) through SPACs.”
Kapparova reveals that discussions with several SPACs trading on the TSX have confirmed interest in quality Kazakhstani projects. The Toronto Stock Exchange and its venture platform (TSX Venture Exchange) are leading global venues for capital raising in the mining industry, providing 36% of global equity capital attracted in the mineral extraction sector from 2019 to 2023.
Financial Instruments for Pre-Feasibility, Feasibility, and Production Stages
“At the pre-feasibility, feasibility, and production stages, streaming and royalty instruments become available,” says Kapparova. “These allow financing in exchange for a share of future metal supplies or revenue, without diluting equity or creating debt burden before production begins.”
While this mechanism is currently used on a limited basis in Kazakhstan, Kapparova believes it could become widespread given its flexibility and adaptability to specific projects. Traditional capital raising methods—equity and debt financing—also remain available, with growing interest from both local and foreign investors.
Comprehensive Approach to Mining Project Financing
Kapparova emphasises that financing mining projects requires a comprehensive approach involving government, private, and international investments.
“We’ve identified effective instruments for each stage—from exploration to extraction and processing,” she concludes. “Kazakhstan’s mining sector has enormous growth potential, and the application of modern financial solutions will help companies minimize risks and achieve sustainable development.”
