You are holding a special edition of our magazine. It is the Annual Business Review of Mining & MetalIurgy’2013. Its edition we dated for holding of the IV International Congress of Mining and Metallurgical AMM'2013, which is considered the main dialogue platform for the domestic MMC.
Thanks to the support of the Ministry of Industry and New Technologies, as well as to the Iteca exhibition company, magazine Kazakhstan for the third time has become the official magazine of the Congress. This fact, , imposes on us, its creators, great responsibility. Especially, in view of the ambiguous situation that has developed today in the mining and metallurgical complex in Kazakhstan. On the one hand, approaching the final stage of the first five-year period of accelerated industrialization, the existing is modernized and new initiatives are created. They mastered the production of higher added value products, increasing the proportion of the local Kazakhstan content. On the other hand, the mineral resource depletion in the number of MMC industries acquires critical nature. The personnel issue is still acute. There is a need of status change and filling of the mining laws and regulation system. The immediate response to all these problems has the highest social importance, as they directly affect the development of many Kazakhstan companies-towns, which are now entirely dependent on mining activities. The adequate answer to this challenge can only reached by the united efforts of government and business, which can and should become equal partners on our way to the new industrialization of Kazakhstan. This is the reason we believe that the delegates of AMM'2013 will effectively use the Congress opportunities to develop a common position on all these vital issues.
Vladimir Voloshin, Editor-in-Chief
Investors and the state: Focus on innovations
On May 22, Astana hosted the 26th plenary meeting of the Foreign Investors Council under the President of Kazakhstan, devoted to the prospects of innovative and technological development of the country until 2020. Speaking at the event, the President promised special support to those investors who will be actively introducing innovations into the national economy. In their turn, representatives of multinational corporations shared their views, suggestions and opportunities in this area.
We need a systematic approach for sustainable development of the mining & metallurgy sector
Interview with Albert Rau, First Vice-Minister of Industry and New Technologies
Mineral industry in 2000–2012: Reserves, Production and Investment
The mineral resources sector in Kazakhstan has always been one of the most attractive areas for domestic and foreign investment. In the last thirteen years alone, annual investment in extraction of various minerals has increased more than 5 times. Along with that, mineral resources are facing a lack of replenishment for a number of minerals, and this threatens the stable development of the extractive industries of the national economy.
Kazakhstan Needs New Partners and Investment
In the mid of April, Astana hosted the Forth Mining Forum “Minex Central Asia 2013”, attended by over 500 industry experts from the CIS countries and abroad. Such a broad range of delegates representing their countries at the forum that has been held this year under the motto “The Promotion of Partnership, Diversification and Investment,” made it possible to outline and effectively discuss a number of key issues the mining sector of Kazakhstan faces.
New Life of Ushkatyn-3
Decrease of easily accessible ores is observed in mining sector nowadays. Companies face problems on low quality of raw materials and deterioration of mining and geological conditions. In other words, the time of simple solutions has come to an end. Mines with deeply bedded ore bodies and low content of useful components as well as man-made mineral formations are involved in processing. Moreover, quantity of explored deposits is getting lower. In these conditions companies have to seek new approaches to increase effectiveness of mineral deposits development, create new cost saving technologies, modernize mining equipment. Eurasian Natural Resources Corporation (ENRC) is not an exception. Zhairem GOK of EN RC is an example of introduction of advanced solutions.
Mergers and Acquisitions in the Mining & Metals Sector
Global macro-economic uncertainties took center stage in 2012, creating volatility in the equity and commodity markets. This severely hampered M&A activity as capital became constrained and greater uncertainty found its way into deal valuations. These are the main conclusions of Ernst & Young experts, which prepared an annual global review of mergers & acquisitions in the mining and metals sector.