DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/5a382a/kazakhstan_mining) has
announced the addition of the "Kazakhstan Mining Report Q1 2009" report to their
offering.
Kazakhstan Mining Report provides industry professionals and strategists,
corporate analysts, mining associations, government departments and regulatory
bodies with independent forecasts and competitive intelligence on Kazakhstan's
mining industry.
The global financial crisis is having a clear impact on the Kazakh mining
industry, with leading miners Eurasian Natural Resources Corporation (ENRC) and
Kazakhmys both scaling back production as global metal demand falls. ENRC said
that it would cut output of iron ore and ferrochrome during Q408, while
Kazakhmys said it has stopped production at three mines and closed its
Zhezkazgan smelter for maintenance. ArcelorMittal's Kazakh subsidiary,
ArcelorMittal Termirtau, has also stated that it sees sales falling by 30%
year-on-year (y-o-y) in 2008 due to falling demand. Kazakh Trade and Industry
Minister Vladimier Shkolnik also said that zinc producer Kazzinc could also halt
production if prices continue to fall, while in December 2008, ShalkiyaZinc
announced that it would suspend zinc and lead concentrate production until
mid-2009 due to plummeting metal prices.
The government said in late January 2009 that it was considering granting mining
companies a tax break if they pledged not to sack workers. The announcement came
after some multinational miners reportedly lobbied the government for a
temporary reduction in mineral extraction taxes. The Finance Ministry put the
value of the cuts at around US$200mn, but at the time of going to press no final
decision had been reported.
Kazakhstan signed an agreement with India on civilian nuclear cooperation in
late January 2009, and is set to become the fourth country to supply India with
uranium for nuclear power plants. In October 2008, the government signed a deal
with China, agreeing to develop uranium resources in Kazakhstan as well as build
power plants in China. The agreements came amid reports that Kazakhstan aims to
become the world's leading supplier of uranium.
Meanwhile, various sources suggest that the Kazakh government will create a new
national holding company, Tau Ken Samruk, to manage its mining assets and give
it greater say in company takeovers. It could also act on behalf of the
government in pursuing its pre-emptive rights to purchase subsurface assets.
Unconfirmed reports suggest that the government approved the decision in late
January 2009. Among the 10 largest countries in the world by area, the Republic
of Kazakhstan spreads across north and central Eurasia and is home to a vibrant
mining industry currently valued at over US$3bn. With large endowments being
mined across the nation, including 29 non-ferrous metals, three ferrous metals,
two precious metals and 84 industrial minerals, it comes of no surprise that
mining activity contributes close to 30% of the country's export earnings and
19% of all industrial production.
An industry that was in disarray due to the break-up of the Soviet Union, Kazakh
mining witnessed widespread technological upgrades and privatisations in the
1990s. This was further fuelled in recent years by spiralling international
metal prices, rapidly expanding demand from China and India, and streamlined
procedures for obtaining permits and foreign investment. The country's current
reserve of copper is estimated at 36mn tonnes. Further, it ranks second globally
in manganese ore reserve, estimated at 600mn tonnes. Kazakhstan also hosts 30%
of the worldwide chromite ore deposits, as well as 95% of the total chromium
reserves within the Commonwealth of Independent States (CIS).
Key Topics Covered:
* Industry Trends And Developments
* Key Projects
* Business Environment
* Political Environment
* Industry Forecast Scenario
* Competitive Landscape
* Company Monitor
* Appendices
Companies Mentioned:
* Kazakhmys
* Eurasian Natural Resources Corporation (ENRC)
* KazakhGold Group
* ShalkiyaZinc
For more information visit
http://www.researchandmarkets.com/research/5a382a/kazakhstan_mining
Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Copyright Business Wire 2009
