President: Kazakhstan intends to conduct active exploration operations through world companies

Photo: President: Kazakhstan intends to conduct active exploration operations through world companies / Politics

Astana, Kazakhstan, Jan. 17

By Daniyar Mukhtarov - Trend:

Kazakhstan is to examine ways of attracting world companies through simplifying the legislation, Kazakh President Nursultan Nazarbayev said in his annual address to the Kazkakh people in Parliament on Jan.17.

"Kazakhstan should enter the world market in the field of geological exploration. Our subsoil has not yet been explored as much as it should. What we have is superficial. Projections show that the total reserves of wealth in the subsoil of Kazakhstan are several times more than we have today," the president said.

The president stressed the need to attract investment in geological exploration. The head of state tasked the government to simplify the legislation in order to bring world exploration companies to the process.

"Investments from foreign engineering companies should be attracted by simplifying our legislation," Nazarbayev said.

He called for greater efficiency of traditional extractive industries highlighting the need for new approaches to management, production, hydrocarbon processing and saving the export potential of the oil, gas and mining sectors. "It is necessary to finally decide on possible scenarios of oil and gas production," the president said.

He went on to say that it is also important to increase the development of rare earth metals given their importance for knowledge-based industries of electronics, laser technology, communications and medical equipment.

The head of state instructed the government to assist foreign companies in establishing advanced production facilities.

"We need to develop joint projects with foreign companies and establish engineering centres," Nazarbayev said.

The head of state emphasised that multinational companies are now working in Kazakhstan's largest oil and gas fields, metallurgical, mining and smelting facilities.

Nazarbayev stressed the need to establish production facilities in the country for maintenance and service to companies.

"To this end the government should help with resources, and capabilities. And I know that many large companies are willing to do so. It is necessary to sit down at the negotiating table immediately and begin working," the president said.

The head of state said there is no need to import equipment for oil and gas production from abroad.

"Those companies can be moved here. Agricultural equipment should be collected here in our country. Metallurgical equipment that we import needs to be created here as well. It is the responsibility of companies that develop our subsoil and earn big money," Nazarbayev stressed.

Translated by M.L.

Edited by S.M.

Follow us on Twitter @TRENDNewsAgency