Kazakhstan, Astana, Feb. 4 / Trend , K.Konirova /
Kazakhstan's deputy energy and mineral resources minister Lazzat Kiinov spoke about measures that Kazakhstan takes in power engineering, coal, oil and gas industry sectors on the backdrop of the world financial crisis in his interview with the Trend reporter.
Trend : It is known from the history that miners have always been first to go on strike during economic recession and crisis. Are miners in Kazakhstan expected to strike because of reductions and delay in salaries?
Lazzat Kiinov: We try to prevent it. Draft Memorandum on Cooperation in Stabilization of Production Processes and Workers' Social Protection has been sent to all coal mining companies. The companies are expected to sign them with the Ministry by the end of the month. The memorandum aims to ensure interests of all parties in labor relations and reduce social expenditures amid economic risks.
Some companies have already made their proposals to the text of the Memorandum. These companies include Aktobe heat and power plant, Zhayikteploenergo SC, Zhambilskiye elektricheskiye seti, Atirauskaya heat and power plant, MAEK Kazatoprom, Shubarkol Komir SC and Maykuben-Vest. Mining and power engineering companies have designed their own anti-crisis program.
Q: Can you speak about it in detail, please?
A: For example, I would mention Bogatir Akses Komir mining company, which explores Bogatir, the largest coal deposit all over the world. The company's anti-crisis program includes the following items: as many as 495 workers will work shorter week and 240 workers will have 12 unpaid leaves per month. The prices of goods and services in food centers will remain unchanged. A special emphasis will be put on training workers in different fields. As a whole, situation in coal mining companies is stabile. There is no ground for concerns. The coal output is expected to decrease by 5 and to 6 million tons which will only slightly impact activities of coal mining companies. The domestic market will be fully supplied with coal. The energy companies will not also decrease energy output this year.
Q: Prices on fuels and lubricants always causes certain anxiety among people as they bring about rise in value of services and foodstuff. What decision does the Ministry has taken in this regard?
A: To prevent price rise, the government imposed a ban on import of petroleum and diesel in from spring of 2008 to Sept. 1 and later to end of 2008.
Last year Energy and Mineral Resources Ministry hold meeting for interested ministries and producers of oil and oil products. The meeting ended with protocol according to which we could supply significant social facilities with fuel oil at fixed prices.
It was decided at the meeting to increase oil refining in three oil refiners in an effort to meet demand of a domestic market. The schedule of companies' stoppage for repairs has been designed.
In autumn 2008, the Ministry held a meeting
with major oil companies and traders, and signed a memorandum. Under the
memorandum the sides agreed to lower the prices on petroleum products.
Now, I can say that the steps taken have given their results. Prices for
gasoline on the domestic market declined to the level that had been prescribed
in the memorandum, and some types of fuel - even lower. For example, the cost
of gasoline brands AI-93 decreased from 87 to 70 tenge per liter, and AI-96 -
from 100 to 91 tenge per liter.
Q: But all of the above mentioned is a series of administrative resources. And how the Ministry plans to bring order to the issue of unjustified price increases on fuel?
A: Now our department is developing a draft law On state regulation of production and turnover of certain types of petroleum related products. It envisages a new scheme of refining and implementation of fuel, which should correct the deficiencies and shortcomings of existing law.
Q: What is the principal novelty of this scheme?
A: First, we
introduce a new legal framework for procurement of crude oil and gas
condensate. This will allow to sell raw materials advantageously not only on
exports, but also on the domestic market.
Secondly, the Bill we propose new rules for investment programs that will
encourage investment in upgrading refineries to ensure the country's economy
and quality of fuel required in the desired volume.
And third, we are tightening the requirements for persons wishing to engage in
wholesale sales of petroleum products. An obligatory condition is the
availability of material resources in the form of base oil and a network of
filling stations. This will help displace the market empty intermediary
structures that are involved that cheat the price of fuel for their services.
Q: The price on gas is not less important issue for Kazakhstan. What will happen to the gas industry in an era of crisis?
A: At the end of last year the Gazprom and KazMunaiGas JSC reached an agreement in Moscow. This document would curb the rise in gas prices and keep them at the level of 2008. With regard to the situation in the gas industry as a whole, it also remains stable. The largest gas company Karachaganak Petroleum Operating, mayor of the West Kazakhstan region, and industry-union employees of the gas industry, transport and construction of a project the Memorandum on mutual cooperation, which is designed to ensure maximum compliance with labor rights and safeguards of the production. We hope that this will contribute to stabilization in the labor market in the regions.
Q: We know that the most sensitive issue during the crisis is the decline of employment. The labor-intensive, like the construction of roads, power plants, hydropower stations and the like are always taken into account in the world's anti-crisis programs.
A: Herewe stake on those projects that we have planned earlier and will be implemented in our country despite of the crisis. For example, the demand in labour resources for construction and repair in the Balkhash thermoelectric power station will average 6,380 people and maximum 7,700 people. The project will be realized from 2009 to 2016. The construction of the third energy block in the Ekibastuz state region electric station -2 will be commenced in 2009, 1,400 workers will be involved into construction work, and the Moinak hydroelectric power station -1,500 workers. Number of jobs created within the framework of an important project on construction of the Beyneu-Bozoy-Akbulak pipeline will be determined after the development of design estimates. The main thing is that today we are trying to work on ahead!
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