Kazakhstan Chamber of Commerce in the USA

KazCham



ENRC’s woes British fraud investigation 0

Posted on May 01, 2013 by KazCham
ENRC’s woes British fraud investigators opened an investigation into Kazakh miner ENRC after several senior executivesresigned following allegations of corruption, media reported (April 26). ENRC is listed on the London stock exchange but its three main Kazakh shareholders have said they are looking into taking the business private.
The Conway Bulletin
April 30

Kazakhstan’s Not Just About Oil: Deputy Prime Minister 0

Posted on October 23, 2012 by KazCham

Liza Jansen, CNBC, Oct 19, 2012

Energy markets may be eagerly waiting for production at a key new Kazakh oilfield to kick off, but Kazakhstan’s deputy prime minister Kairat Kelimbetov told CNBC that there is more to Kazakhstan than just oil production.

“We want to create a new economy. Our economic strategy is to diversify the economy and create non-oil sectors,” Kelimbetov said.

Its economy, heavily reliant on natural resources including oil, gas, uranium and zinc, suffered in the wake of the financial crisis as commodities prices fell. The country’s four largest banks received at least $3.47 billion in capital injections from the government in 2008. The country’s GDP growth slowed in 2012 to 5.6 percent, down from 7 percent in 2011, according to World Bank data.

There have also been much-publicized criticisms of Kazakh state-backed companies which have listed outside the country, particularly London-listed ENRC [ENRC-LN  345.50     -3.40  (-0.97%)].

Kelimbetov said he sees opportunities to expand Kazakhstan’s mining, chemicals, food processing and agricultural industries.

The Deputy Prime Minister added investment appetite in Kazakhstan is “huge” and that the government is thinking of launching a privatization program because they would like to sell assets in the energy sector and the banking sector.

Production at the much-anticipated Kashagan oilfield, at man-made islands off the coast of the former Soviet Union country, is expected to start in 2013 — 8 years behind schedule.  Once production is on stream, the country could turn into one of the world’s top ten oil producing countries, according to analysts.

Kazakhstan holds up to 3 percent of the world’s recoverable oil reserves and plans to increase crude output by more than 20 percent to 100 million tonnes by 2015, according to Reuters data.

Kazakhstan Daily News Roundup – November 8, 2011 0

Posted on November 08, 2011 by Alex

Kazakhstan Daily News Roundup – November 7, 2011 0

Posted on November 07, 2011 by Alex

ENERGY:

Areva, Kazatomprom sign deal to produce nuclear fuel for Asia (Dow Jones)

China pipes home 16.9 bcm of Central Asian gas – CNPC (Reuters)

Max Petroleum spuds ‘high impact’ well on Emba B prospect in Kazakhstan (Proactive Investors)

BUSINESS AND ECONOMY:

New beginnings in Central Asia
(bne) – Recent deals by local private equity funds indicate that the combination of the global crisis and the subsequent recovery is finally opening up new opportunities for private equity in Kazakhstan and the wider Central Asian region.

Kazakh grain harvest more than doubles to 29.5 million tonnes (Bloomberg)

Indicators – November 4, 2011 (Reuters)

METALS AND MINING:

Volatile markets force ENRC to delay Shubarkol deal (Reuters)

Hambledon Mining expects to restart operations at mineral process plant November 7(Proactive Investors)

POLITICS AND SECURITY:

Kazakh lawmakers seek to punish terror financiers (Central Asia Online)

Kazakhstani officials, law enfircement not ready for terrorist war – expert (Interfax)

SOCIETY:

Kazakhstan climbs one step up in 2011 Human Development Index (Interfax)

Cyanide pollutes Kazakh river (Central Asia Online)

SOURCE: http://silkroadintelligencer.com/2011/11/07/kazakhstan-daily-news-roundup-november-7-2011/

Kazakhstan’s most influential businessmen 1

Posted on October 17, 2011 by Alex

Timur Kulibayev, head of the state-owned holding Samruk-Kazyna and son-in-law of Kazakhstan’s President Nursultan Nazarbayev, was named the most influential Kazakh businessman in a ranking published  this month by Forbes Kazakhstan, a local edition of the business magazine.  Kulibayev, together with his wife Dinara Kulibayeva, owns Almex, a conglomerate with interest in banking, construction, mining, and other  sectors.  Kulibayev also heads the Kazenergy Association, an influential oil and gas lobbying group, and is said to hold significant interests in Kazakh energy sector.

Bulat Utemuratov, an influential advisor  to Nazarbayev, was second on Forbes’ ranking.  Utemuratov sold his stake in ATF Bank, Kazakhstan’s fifth largest bank, to the Italian banking group Unicredit at the top of the market in 2007 for $2.2 billion.

Through various investment vehicles he is involved in banking, metals and mining, real estate and telecommunications. Third on the list is Patokh Khodiev, one of the three founders and largest shareholders in the Eurasian Natural Resources Corporation (ENRC), the world’s largest ferroalloys producer.  Khodiev, who holds  Belgian citizenship, controls various other mining and financial services assets, together with his two partners – Alexander Mashkevich and Adilzhan Ibragimov.

Mashkevich, an Israeli citizen and the most well-known of the trio of ENRC founders, ranks fourth, according to Forbes. Vladimir Kim, the chairman of Kazakhmys, Kazakhstan’s biggest copper miner, took fifth place in the ranking.  Earlier this year, the U.S. edition of the Forbes magazine estimated Kim’s net worth at $4.7 billion, making him Kazakhstan’s richest man.

Indian steel tycoon Lakshmi Mittal, who owns Kazakhstan’s largest steel mill, ArcelorMittal Temirtau, was sixth on the list, followed by the last of the ENRC trio,  Ibragimov.  Chairman of Bank CenterCredit Bakhytbek Baiseitov was ranked eighth while Nurzhan Subkhanberdin, the controlling shareholder of Kazakhstan’s largest bank Kazkommertsbank, was ninth.  Nurlan Smagulov, head of the industrial conglomerate Astana Group, rounded out the top ten.

SOURCE: SRI, Kazakhstan Daily news Brief, October 17, 2011

ENRC announces new deal amid governance storm 0

Posted on October 13, 2011 by Alex

Eurasian National Resources Corporation (ENRC), a Kazakhstan-focused miner, plans to buy a 75% stake in Kazakh coal producer Shubarkol Komir  from ENRC’s founders for up to $650 million, the company said on Tuesday.  The acquisition would give ENRC access to low-cost coal for its existing operations and expansion plans, it said.

ENRC already owns about 25% of shares in Shubarkol, and would exercise an option to purchase the remaining shares for about $600 million plus the assumption of  the company’s  $50-million debt.

The deal would value the coal producer at about $850 million.  The purchase is expected to be  broadly  earnings-neutral  in the first financial year after closing and would  increase profitability thereafter, the company said.

ENRC currently uses about 1.0 million tonnes of Shubarkol’s high calorific coal to produce aluminum, iron ore, and ferrochrome.

Another 3-3.5 million tonnes are sold to customers in Kazakhstan, while  the remainder is exported.  Shubarkol produced 6 million tonnes of coal in 2010.

While the acquisition makes strategic sense for the company, the announcement comes less than two weeks after the company concluded a review of its  corporate  governance, which  focused primarily on the role of ENRC’s three founders in the company’s operations.  ENRC trades at a discount to its mining peers on the London  Stock  Exchange, which  analysts  attribute  primarily to concerns over corporate governance at the company.

“On face value, it looks like a reasonably good deal for ENRC but people will always be suspicious of related-party transactions and quite rightly so, because you can’t be sure why the deal is being done, so it’s difficult to read if it’s a good deal for shareholders or not,” Cailey Barker, an analyst at Numis Securities, said on Tuesday.

The transaction requires approval from independent ENRC shareholders at a meeting due to be held on November 7, and, if approved, could be completed by the end of next month.

SOURCE: SRI, Kazakhstan Daily News Brief, Issue dated October 12, 2011

Kazakhstan Daily News Roundup – September 30, 2011 0

Posted on September 30, 2011 by Alex

Kazakhstan Daily News Roundup – September 27, 2011 0

Posted on September 27, 2011 by Alex

ENERGY:

Kazakhstan considering processing crude oil in China – Minister (SRI)

Roxi Petroleum hopeful of new farm-out for BNG oil block in Kazakhstan this year (Proactive Investors)

Tethys reports positive initial results from AKDO6 Doris well in Kazakhstan (Proactive Investors)

BUSINESS AND ECONOMY:

BTA’s capital gap widened 83% last month – central bank
(Bloomberg) – BTA Bank’s capital shortfall widened 83 percent last month after assets dropped, the Kazakh central bank said.

Kazakhstan, China to double bilateral trade by 2015 (SRI)

Talgo passenger train plant in Kazakhstan nearing completion (SRI)

Thunderbird business school expands to Kazakhstan (BusinessWeek)

Kazakhstan completes WTO talks with U.S. on access to markets (Interfax)

Indicators – September 26, 2011 (Reuters)

METALS AND MINING:

Kazakhstan to enter race for rare earth elements
(SRI) – Kazakhstan plans to produce 1,500 tonnes of rare earths next year, aiming to fill the void created by China, as the world’s largest producer of rare earth elements seeks to curb exports, Dow Jones Newswires reported on Tuesday.

ENRC to pick Mashkevich, helping resolve dispute – analysts
(Bloomberg) – Eurasian Natural Resources Corp. (ENRC) will probably select billionaire founder Alexander Mashkevich as chairman, helping resolve a dispute over board appointments and bringing clarity to decision-making, according to analysts.

SOCIETY:

Kazakhs dance themselves dizzy (EurasiaNet)

REGIONAL:

Twenty candidates to vie for Kyrgyz presidency

(Reuters)

Mongolia wants to speed up raising its stake in copper (Reuters)

SOURCE: http://silkroadintelligencer.com/2011/09/27/kazakhstan-daily-news-roundup-september-27-2011/

Kazakhstan Daily News Roundup – September 20, 2011 0

Posted on September 20, 2011 by Alex

ENERGY:

Kashagan first oil production on track for 2012 – Nazarbayev
(SRI) – Kazakh President Nursultan Nazarbayev said on Friday that first oil from the Kashagan oil field will be produced by 2012 as planned.

BMB Munai completes sale of its production subsidiary to MIE Holdings
(SRI) – Kazakhstan-focused oil junior MBM Munai said on Monday it had completed the sale of its subsidiary Emir Oil LLP to China’s MIE Holdings Corporation after it secured all necessary regulatory approvals.

Kazakhstan raises export duty on petroleum products (SRI)

KAZENERGY Forum to be held in Astana on October 4-5 (SRI)

BUSINESS AND ECONOMY:

Kazakhstan to move ahead with IPO program despite global market turmoil
(SRI) – Kazakhstan will move ahead with its plans to sell shares in some of its largest companies to the public as part of the so-called people’s IPO, despite the current global market turmoil, Minister of Economic Development and Trade Kairat Kelimbetov said.

SH loses ?20-million Ablyazov account to Addleshaws (The Lawyer)

Indicators – September 19, 2011 (Reuters)

METALS AND MINING:

First Quantum says court upholds $2 billion Congo claim over ENRC (Reuters)

REGIONAL:

Customs Union paves way to rebuild old economic ties (The Moscow Times)

SOURCE: http://silkroadintelligencer.com/2011/09/20/kazakhstan-daily-news-roundup-september-20-2011/

Kazakhstan Daily News Roundup – September 19, 2011 0

Posted on September 19, 2011 by Alex

ENERGY:

Lukoil not interested in Kashagan – Alekperov (SRI)

KMG EP to buy back up to $300 million worth of shares (SRI)

Kazatomprom net income rises 77% in first half (SRI)

Max Petroleum to drill ‘deep salt’ Emba B target next month (Proactive Investors)

Fitch raises rating of Kaztransgas to BB+ (SRI)

BUSINESS AND ECONOMY:

BTA Bank seeks Ablyazov arrest amid claims of Kazakh strike support (SRI)

Polish company to buy Kazakhstan’s largest pharmaceutical producer (SRI)

Kazakhstan intends to become an important transit country for China-Europe trade – Issekeshev (SRI)

Grain harvest may reach record levels in 2011 (SRI)

Nurbank reports positive income in H1 (SRI)

Indicators – September 16, 2011 (Reuters)

METALS AND MINING:

Mashkevich stresses he has no plans to sell ENRC stake (SRI)

Hambledon Mining acquires two new Kazakh gold projects to boost future production (Proactive Investors)

ENRC to invest $6 billion in Kazakhstani assets development (Interfax)

Kazakhstan to create metallurgical free economic zone (Interfax)

SOCIETY:

‘We don’t have anything to eat’ – Desperation and poverty growing as Kazakh strikes drag on(RFE/RL)

Kazakhstan ready to re-open access to LiveJournal after banned content is removed (Interfax)

U.S.-Russian space trio lands safely in Kazakhstan (Reuters)

REGIONAL:

EU trio takes 50% stake in Russia’s South Stream (AFP)

Uzbek leader’s daughter hits fashion controversy (AFP)

Kazakh PM says Kyrgyzstan should join CIS Customs Union (RFE/RL)

SOURCE: http://silkroadintelligencer.com/2011/09/19/kazakhstan-daily-news-roundup-september-19-2011/



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