Kazakhstan reveals foreign direct investment in its mining industry

Business Materials 29 April 2019 14:09 (UTC +04:00)

Baku, Azerbaijan, April 29


The total funding of KazGeology by foreign and Kazakh investors increased by 168.8 million tenge in 2018, reaching 3.5 billion tenge, Trend reports referring to the Ministry of Industry and Infrastructural Development of Kazakhstan.

Reportedly, KazGeology has been successfully cooperating with Anglo-Australian multinational corporation Rio Tinto, Fund for Direct Investments Ulmus Fund, as well as with Australian company ILUKA Resources company (ILUKA) for more than three years.

"KazGeology is also cooperating with Turkish and Russian investors Yildirim Holding A.S. and Polymetal," reads the message.

Currently, due to foreign finance investments geological, prospecting work is taking place on such sites as:

- Porphyry copper deposit investigation in Karaganda’s Korgantas area financed by Rio Tinto (UK)

- Noble and non-ferrous metals investigation in Karaganda’s Besshokinsk site financed by Ulmus Fund (Germany)

- Gold ores investigation in Maylishat area in East Kazakhstan Region financed by Metals and Mining B.V (subsidiary company of Yildirim Holding A.S., Turkey)

- Governmental geological mining exploration in Shekara area in Kostanay Region financed by Polymetal (Russia)

Reportedly, the total area of mining exploration and investigation for projects on subsoil use amounts to 20,000 square kilometers.

"The sum of investments to raise on the exploratory stage of the projects is around 20 billion tenge. By the end of 2018 6 billion tenge worth of investments have been attracted," said in the statement.

"Furthermore, in 2019-2020 in cooperation with foreign investors the mining exploration on 15 more projects is to begin."

"KazGeology plans to attract up to $100 million worth of foreign investments in mining exploration in the following years."

Reportedly, in order to reach this goal KazGeology is negotiating with investors from Japan, Iran, Turkey, Singapore, Switzerland, Brazil, South Africa, Canada, South Korea, China, Australia, Russia, Chile and Saudi Arabia.