The mining and metallurgy sector is one of the most competitive and dynamically developing industries of Kazakhstan. It employs over 164.5 thousand people. The share of metallurgy occupies over 35 percent of the processing industry volume. Kazakhstan owns 30% of the world’s chrome ore deposits, 25% of manganese ores, 10% of iron ores. The reserves of copper, lead and zinc represent 10 and 13% respectively of the world’s reserves. Kazakhstan currently ranks third in the world among titanium producers; zinc – 7th rank, lead – 8th rank, iron ore – 13th rank, copper – 15th rank, and steel - 35th rank. The total geological reserves and estimated coal resources of Kazakhstan are estimated at 150 billion tons.
Illustrated description of the Kazakhstan’s mineral resources.
Mineral map of Kazakhstan
At present the Mining and Metallurgy Complex of Kazakhstan is oriented at exporting raw materials and primary metals. In the coming years the main goal of developing the industry shall include phased establishment of new processing enterprises in the metallurgy industry, production of goods with high added value, providing both growth of production of technology-intensive goods and expansion of exports to external markets, as well as meeting the demand of the local market.
Within the State Program of Accelerated Industrial and Innovative Development of the Republic of Kazakhstan in the area of MMC near 30 projects are implemented in the sector of building innovative enterprises with the potential of creating over 12 thousand jobs. By 2013 this market of the MMC of Kazakhstan will be valued at $31.5 billion compared to $ 18.5 billion in the year 2009.
Due to expansion of active enterprises and launch of new production enterprises, in 2010 the country reached growth in the volume of produce of iron ores by 8%, copper deposits - 3%, chrome ores - 8%, aluminum - 7%, lead - 27%, and ferroalloys by 18% (respective of the volumes in 2009). In 2010 the volume of production in metallurgy exceeded $ 10 billion.
The volume of investments in fixed capital of mining industry (in bln. of tenge)
Kazakhstan created a very attractive environment for foreign investors, which include tax preferences and other stimulating benefits for realization of investment projects.
The progress achieved by Kazakhstan in this direction is reflected by international community. For instance, during the last year the Republic increased its rank by 15 percent in the rating of ease of doing business (Doing business) of the World Bank (from 74th to 59th rank), while in April of this year the Moody’s International Ratings Agency increased the outlook of Kazakhstan’s sovereign rating to “Stable”.
The coming years will be devoted in Kazakhstan to the Program of Accelerated Industrial and Innovative Development. In particular, the mining industry on its own will implement over 40 major projects within the period of 2010 through 2014.
The major enterprises in the Kazakhstan’s MMC include:
ENRC - leading diversified natural resources Group performing integrated mining, processing, energy, logistics and marketing operations.
Kazakhmys - one of the largest copper producers in the world. Copper extracting division also produces large amounts of other metals as by-products, such as zinc, silver and gold. Kazakhmys is a fully integrated company, with operations in all stages from mining to production of commodity metal.
KazZinc - major fully integrated zinc producer with considerable copper, precious metals and lead credits. The company’s core operations are in Kazakhstan, mainly in East-Kazakhstan Region. It employs over 22'000 people in mining, ore dressing, metallurgy, power generation and mechanical production.
ArcelorMittal Temirtau JSC is the largest enterprise of the mining and metallurgical sector in the Republic of Kazakhstan, representing an integrated mining and metallurgical complex with own coal, iron ore and energy base.
Kazatomprom is the national operator of Kazakhstan's exports of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special equipment, technologies and dual-use materials.
Other large metallurgical enterprises of the Republic include the Ust-Kamenogorsk Titanium and Magnesium Combine, the Temirtau Electric Metallurgy Combine LLP, the Taraz Metallurgical Plant LLP, and others.
