Kazakhstan Chamber of Commerce in the USA

KazCham


Kazakhstan Mining Report Q2 2010

Posted on April 15, 2010 by KazCham

Kazakhstan’s robust mining industry has weathered the global economic storm and should demonstrate strong growth within the next few years. Rising commodity prices helped pull the country out of the recession in 2009.
Rallying copper prices were particularly influential in this achievement, as Kazakhstan is currently the world’s 10th largest producer of copper.

The recovery of prices has been a chief factor in attracting FDI and the government is keen to capitalise on interest in the mining industry. In January 2010, it was reported that the government wanted to offer tax incentives for foreign investors looking to exploit the country’s rich mineral resources.

Businesses willing to produce materials within the country could enjoy concessional financing of projects, required infrastructure funding, and tax incentive measures in addition to exemption from land tax, corporate income tax, value added tax on import of goods and property tax.

As well as attractive tax incentives, Kazakhstan is also taking steps to improve its current legislation. The country recently received EUR500,000 from the European Bank of Reconstruction and Development (ERBD) to analyse the current legislation governing the country’s mining sector.

The CEO of the ERBD stated that the international expertise available would be invaluable to improve the country’s current regulations.
Gold naturally continues to attract investors on the back of positive developments regarding exploration and drilling in Kazakhstan.

In November 2009, Central Asia Resources upgraded its drilling program at the Atlyntas project after more than 500,000 ounces (oz) of near surface gold were discovered in a section covering only around 10% of the entire prospect area. The project will now receive a further US$1.6mn investment to enable additional drill programs in 2010.

Kazakhstan continues to establish itself as a key figure in the uranium mining sector. It finally fulfilled its ambition of overtaking Canada and Australia to become the world’s leading supplier of the material in 2009. Last year, Kazakhstan produced 13,900 tons, a 63% increase in output.

This accounted for 30% of global production. Kazakhstan is now confident it can increase production a further 29% in 2010 to reach 18,000 tons. There was also speculation in December 2009 that Kazakhstan and Iran were in the midst of talks which would see Kazakhstan supplying the country with 1,350 tons of uranium in a US $450 million deal. Both countries’ governments have denied the rumors.

Strong growth is anticipated for Kazakhstan’s mining industry. The country is well positioned to take advantage of expanding demand from nearby China and India for metals and energy resources. Growing interest in cleaner burning fuels like uranium also means that Kazakhstan is going to be a key figure within this sector.
As metal prices continue to improve, more investment into the sector is anticipated, bringing with it new expertise and technology to accelerate growth within the industry, according to OfficialWire.

SOURCE: Kazakhstan Newsline #1005 – April 15, 2010

Print Friendly

Leave a Reply




↑ Top