Kazakhstan: Bektenov Instructs to Search for and Develop New Deposits

Prime Minister Olzhas Bektenov instructed the government to attract foreign companies more actively to geological exploration in Kazakhstan, Orda.kz reports.

At a government meeting, he recalled that the Head of State had set the task of increasing the area of ​​geological research from 1.5 to 2.2 million square kilometers by 2026.

The area of ​​explored subsoil has now reached two million square kilometers. 

Joint searches for promising mineral resource deposits are being conducted in Eastern Kazakhstan within international cooperation with the geological services of other countries. 

In the sphere of hydrocarbon raw materials, the mechanism of the Improved Model Contract has been introduced. It is aimed at increasing competitiveness and creating conditions for attracting investment in geological exploration of complex deposits. Given the growing demand for rare earth metals, their exploration is being completed at 12 sites using state financing. Of particular relevance is lithium, the exploration for which is being conducted within the Bayankol area, the Aral and Caspian regions, Bektenov said. 

In 2024, an area of about one million square kilometers was opened for the exploration of solid minerals. 

As a result, large international companies Riotinto, Fortescue, Arras Minerals, and others demonstrated interest.

Despite Kazakhstan's leading position in reserves of specific metals, the country is seeing a decline in production.

The Prime Minister noted that the low activity of exploration work to expand reserves of solid minerals and hydrocarbons is evident.

We need to change the existing work approaches. It is necessary to develop and clearly implement a state policy on the rational and efficient use of the existing mineral resource base and the development of new deposits. It is worth understanding that today we are seeing a depletion of extracted minerals, the presence of high impurities. This requires the attraction of significant funds and the development of new technologies for extraction and purification,Bektenov added. 

To this end, he instructed the development of specific measures and preferences for potential investment. 

Meanwhile, the National Geological Service, created per the instructions of the Head of State, must receive the appropriate support and authority, as well as scientific and technological infrastructure. 

For example, the Samruk-Kazyna Fund has such infrastructure and technological equipment.

Coordinating this work is necessary.

It is important to understand that geological exploration is associated with high geological and financial risks. According to global statistics, the success rate of geological exploration projects is only 20-30%. Therefore, the government pays special attention to supporting this area, creating favorable conditions for attracting investment, developing new incentive mechanisms and further improving legislation,  Bektenov emphasized. 

Betkent instructed:

• The Ministries of Industry and Energy will develop specific mechanisms and necessary legislative amendments to attract investment in geological exploration, including providing preferences for developing “deep” horizons and complex deposits.
• The Ministry of Industry, together with the Ministry of Trade and the Samruk-Kazyna Fund, to create a specialized accredited laboratory for analytical research of rocks that will meet international standards.
• The Ministries of Industry and Energy, with the Samruk-Kazyna Fund, to create a scientific ecological and geological cluster based on the National Geological Service.
• At the initial stage, it is necessary to use the existing technological capabilities of the Tau-Ken Samruk company.

In general, Tau-Ken Samruk should be supported and developed. We should first of all transfer our underground national wealth to state-owned companies, explore it, develop it, and then attract investors. Only then will the price increase and the state benefit. We need to use this instrument more broadly, said the Prime Minister.

By the end of the year, the Ministry of Industry, along with the Ministries of Energy, Digitalization, and Finance, must develop an effective mechanism for financing and conducting airborne geophysical surveys in areas of primary importance.

The Ministries of Industry, Finance, Digital Development, and the National Geological Survey should boost the digitalization of historical data.

Appropriate preservation work is also necessary.

Original Author: Ilya Astakhov