An anonymous survey was conducted at the 14th MINEX Kazakhstan Mining and Exploration Forum held in Astana on 17-18 April 2024, to gauge the mining industry and mineral exploration activities in Kazakhstan. The survey provided insights into the sector’s current state, strengths, weaknesses, and growth opportunities. Due to the limited number of participants, the results should be considered indicative rather than comprehensive, serving as a starting point for more in-depth evaluation and research in the future. Responses from Russian-speaking participants are presented in a separate report, with some similarities and differences in answers.
Plenary session 1
Summary
Resource Estimates: 43% believe the estimates of $46 trillion in undiscovered deposits are inflated.
Regulatory Barriers: 71% agree that avoiding regulatory barriers is crucial for obtaining exploration and production licenses.
Investment Outlook: 57% predict increased investment activity in the next 12 months.
Sector Growth: Exploration of copper, precious metals, and rare-earth metals is expected to grow, with over 70% of respondents optimistic.
Technological Advancements: Significant adoption of new drilling methods, AI for cloud computing, and autonomous systems, with over 60% indicating increased use.
Takeaway: These insights reflect a positive outlook on investment and technological innovation in Kazakhstan’s mining industry.
Plenary Session 2
Summary
Resource Estimates: 43% believe the estimates of $46 trillion in undiscovered deposits are inflated.
Regulatory Barriers: 71% agree that avoiding regulatory barriers is crucial for obtaining exploration and production licenses.
Investment Outlook: 57% predict increased investment activity in the next 12 months.
Sector Growth: Exploration of copper, precious metals, and rare-earth metals is expected to grow, with over 70% of respondents optimistic.
Technological Advancements: Significant adoption of new drilling methods, AI for cloud computing, and autonomous systems, with over 60% indicating increased use.
Takeaway: The survey reveals a mixed sentiment towards resource estimates, strong emphasis on overcoming regulatory barriers, optimistic investment outlook, growing.
Session 1
Summary
Fraser Institute Ranking: 56% of respondents expect Kazakhstan’s ranking to improve in 2024.
Investment Continuation: 67% believe the trend of record investments will continue.
Sector-Specific Returns:
Uranium Mining: Seen as high returns by all respondents.
Iron Ore Mining: 40% expect average returns, 40% high returns, and 20% low returns.
Non-Ferrous Metals (Copper, Aluminium, etc.): 75% view as ultra-high returns.
Battery Metals (Lithium, Nickel, Cobalt): 67% foresee high returns.
Overall Outlook: Optimism with a focus on uranium and non-ferrous metals, indicating confidence in these sectors’ potential for high returns.
Takeaway: Respondents show optimism about Kazakhstan’s improving Fraser Institute ranking, continued investment trends, and high returns in the uranium and non-ferrous metals sectors, with mixed expectations for iron ore and strong confidence in battery metals.
Session 2
Summary
Industrial Representation: 71% of respondents represent industrial enterprises.
Energy Consumption: The average share of energy consumption in operating costs is 3.5%.
Energy Management Plans: 71% of companies have plans to manage energy costs and switch to alternative sources.
Alternative Energy Mix: Solar, wind, nuclear, and hydropower are among the preferred alternative energy sources.
Carbon Neutrality Goals:
Investment Alignment: 86% see aligning investment plans with climate goals as critical.
Technology Development: 71% prioritize investing in new technologies to reduce emissions.
Competence Centres: Establishing centres for decarbonization is seen as critical by 57%.
Takeaway: The survey highlights a strong industrial focus among respondents, with energy management and the transition to alternative sources like solar, wind, nuclear, and hydropower being key priorities for most companies. There is also a clear emphasis on aligning investments with climate goals and investing in new technologies for decarbonisation.
Session 3
Summary
Organizational Activity: 50% of respondents are active in developing international supply chains.
Investment Attraction: 71% consider attracting investment in deposits and man-made mineral formations as critical.
Technology Introduction: 57% prioritize the introduction of complex processing technologies for hard-to-recover ores.
Lithium Prospects: Viewed as promising, with many likening it to “new oil” within the next 2-3 years.
Investment Justification: Opinions are mixed; 50% are uncertain if investments in rare earth ores and metals are justified.
Takeaway: Respondents prioritise developing international supply chains, attracting investment in mineral deposits, and introducing complex processing technologies, while opinions on rare earth investment justification are mixed, and lithium is seen as highly promising.
Session 4
Summary
Representation: 50% of respondents represent industrial enterprises.
Current Water Management: Opinions are split between efficient and inefficient.
Flood Impact: Respondents rated the impact of the largest flood in 80 years on mining enterprises as moderate to high.
Future Water Consumption: By 2030, water consumption in the industrial sector is expected to rise by 35%. Respondents are uncertain about the increase for their companies.
Takeaway: These insights highlight the critical need for improved water management, adoption of new technologies, and efficient regulatory measures in Kazakhstan’s mining industry.
Session 5
Summary
Industrial Representation: A diverse mix of respondents participated, with a notable segment representing industrial enterprises.
Optimism on Economic Growth: A significant portion of respondents (majority) view Kazakhstan’s goal of maintaining a 6-7% growth rate over the next five years optimistically.
Challenges and Opportunities:
Economic and Infrastructure Barriers: Respondents identified economic instability and infrastructure deficiencies as major challenges.
Workforce Development: There’s a notable need for skilled professionals, particularly in geology, mining engineering, and software engineering, to support industry advancements.
Industrial Support:
Government Policies: Respondents stressed the importance of supportive government policies to enhance the operational environment for enterprises in the manufacturing industry.
Sustainability and Green Technologies: A strong push towards sustainability with an emphasis on adopting green technologies to align with global environmental standards.
Takeaway: The survey underscores the optimism about Kazakhstan’s economic prospects while highlighting key areas for development and challenges. The transition to green technologies, improvement in processing capabilities, and supportive government policies are seen as vital for the growth of the mining and metallurgical sectors. Addressing workforce skill gaps and economic barriers will be crucial to achieving these developmental goals.
Session 7
Summary
Economic Growth: Many respondents are optimistic about maintaining a 6-7% growth rate over the next five years.
Technological Advancements: Focus on green technologies and processing capabilities.
Regulatory and Investment Climate: Need for improved investment attractiveness and regulatory frameworks.
Current Implementation: Many respondents rated the current level of sustainable development implementation as low, indicating room for significant improvement.
Environmental Concerns: Air, water, and soil pollution, along with water resource scarcity, are major concerns.
Corporate Responsibility: Emphasis on companies already implementing or in the process of implementing sustainable practices, including regular training, cooperation with educational organizations, and non-financial reporting.
Takeaway: While significant environmental challenges remain, respondents are optimistic about economic growth and the adoption of green technologies, highlighting the need for improved sustainable development implementation and supportive regulatory frameworks.
Session 8
Summary
Industrial Representation: Diverse respondents, many representing industrial enterprises.
Economic Growth: Optimism about maintaining a 6-7% growth rate over the next five years.
Sustainable Development:
Current Implementation: Many rate the current level of sustainable development implementation as low, indicating significant improvement potential.
Environmental Concerns: Major concerns include air, water, and soil pollution, as well as water resource scarcity.
Corporate Responsibility: Companies are increasingly implementing sustainable practices, including training, cooperation with educational organizations, and non-financial reporting.
Takeaway: While there’s optimism about economic growth, the survey reveals a significant gap between current sustainable development practices and desired outcomes, with environmental concerns and corporate responsibility emerging as key areas for improvement in the industrial sector.
DigiTech'24
Summary
A survey was conducted to gauge the use of technology in Kazakhstan’s mining industry. The survey revealed that the most promising technologies for improving the accuracy and safety of geological exploration are those that apply an integrated approach using various geophysical methods. Additionally, 3D modelling and exploration data analysis using artificial intelligence and machine learning are viewed as valuable tools, with most respondents indicating they use these technologies either constantly or regularly.
Takeaway: These findings suggest that the mining industry is embracing technological advancements to enhance exploration efforts and improve safety.