Research and Markets: Kazakhstan Mining Report Q1 2009 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:
Companies Mentioned:
For more information visit http://www.researchandmarkets.com/research/5a382a/kazakhstan_mining Contact: Research and Markets Laura Wood, Senior Manager, press@researchandmarkets.com U.S. Fax: 646-607-1907 Fax (outside U.S.): +353-1-481-1716 Source: Research and Markets
|  |
