Growth will be led almost entirely by the coal, gold and copper sectors, which together account for the majority of the value of Kazakhstan's mining industry.
(PRWEB UK) 9 September 2013
Business Monitor has just released its latest findings on Kazakhstan’s mining sector in its newly-published Kazakhstan Mining Report.
Business Monitor predicts that Kazakhstan's mining industry value is set to reach US$29.5bn by 2017, down from the previous forecast in light of the view of an overall decline in commodity prices. Growth will be led almost entirely by the coal, gold and copper sectors, which together account for the majority of the value of Kazakhstan's mining industry. Copper production is also a bright spot in the country, given aggressive expansion plans by Kazakhmys and Rio Tinto's commitment to invest US$100mn in exploring northern Kazakhstan for copper.
The constitution of the Republic of Kazakhstan vets ownership of mineral resources in the state. The constitution declares that land may be privately owned but underground resources are state property. The controlling body for the mining industry is the Ministry of Energy and Mineral Resources. Given the strategic and economic importance of the mining sector, Business Monitor remarks that the government is supportive of the industry and institutes a generally positive investment climate, although it has also shown that it will intervene when necessary.
Business Monitor notes that Kazakhstan's mining sector is dominated by state-owned entities Kazakhmys and Eurasian National Resources Corporation (ENRC), zinc-focused Kazzinc and gold producer KazakhGold. In the coming years, it expects the sector to become more competitive and increasingly fragmented, with the influx of foreign companies such as Rio Tinto encouraged by the vast potential of the country's mining sector.
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