JSC “Kazgeology” attracted USD 20 billion into Kazakhstani geological exploration

JSC “National Exploration Company “Kazgeology” summarized the results of the passed year.

One of the main tasks of JSC “Kazgeology” establishment in 2011 was attraction of foreign investments into geological exploration.

Geological exploration is a risk area in terms of investments, which takes years of ssearches and investigations. But due to systematic and extensive work nowadays Kazgeology collaborates successfully with foreign partners.

 As compared with 2017 the total amount of both Kazak and foreign investments increased to KZT 168.8 million and amounted to KZT 3.5 billion.

Projects with foreign investors

Kazgeology has been cooperating with “Rio Tinto” Austro-British concern, Ulmus Fund and “ILUKA Resources Limited” Australian Company (ILUKA) for more than three years.

Besides Euripean and Australian companies Kazgeology cooperates with Turkish and Russian investors – Yildirim Holding A.S. and JSC “Polymetall”.

Exploratation works are being performed at 6 sites today thanks to financial inflows of foreign investors:

Project Investor
Exploration of porphyry copper at Korgantas site in Karaganda regions “Rio Tinto” (Great Britain)
Exploration of porphyry copper in Balkhash- Saryagash area in Karaganda region
Exploration of noble and nonferrous metals inn Besshokinskaya area in Karaganda region “Ulmus Fund” (Germany)
Exploration gold ores at Mailishat site within Bakanas area in East-Kazakhstan region DTK Metals and Mining B.V. (branch of Yildirim Holding A.S., Turkey)
Exploration of platinoid and gold ores at Surovskiy site in East-Kazakhstan region
State geological subsurface examination at Shekara site in Kostanay region JSC “Polymetall” (Russia)

Total area of geological exploration and development under subsurface use projects with these companies amounts to about 20 thousand square km.

The amount of attracted investments at only search stage for all these 6 projects will be about KZT 20 billion. KZT 6 billion of investments were attracted as of the end of 2018.

Moreover in 2019 – 2020 it is planned to commence a geological exploration under additional 15 projects with foreign investors.

Within the nearest years, Kazgeology plans to bring the amount of foreign investments to geological exploration to USD 100 million. For this aim cooperation negotiations with investors from Japan, Iran, Turkey, Singapore, Switzerland, Brazil South Africa, Saudi Arabia, South Korea, Chile, China, Australia Canada and Russia take place nowadays.

Kazgeology successfully cooperates with such enterprises of social importance like Kazzinc and Kazakhmys in order to support city-forming enterprises and replenish mineral raw base.

Projects with Kazzinc

5 projects with LLP “Kazzinc” on gold, copper and complex ores exploration in Ridder and Zyryanovsk areas are in progress. As of today, the subsurface right is transferred to joint ventures established in June 2018.

Amount of investments to geological exploration in 2018 amounted to KZT 144.7 million.

Projects with Kazakhmys

Joint ventures of Kazgeology and LLP “Kazakhmys Corporation” for exploration of copper-bearing ores at 5 objects in Zhezkazgan, Satpayev and Balkhash regions. Kazgeology received a subsurface-use right, which was subsequently transferred to the JV.

Works on complex ores search at Dyussembay site in Karaganda region were carried out.

Kazakhmys`s Satpayev Dressing plant No. 4 is located at Zhezkazgan area, which is out of the commission nowadays.

During the Soviet time technological explorations of Dyussembay minefield zinc-lead ore washability took place at the plant, which demonstrated the possibility of its processing.

Expected result for exploration works – impulse for renewal of plants operation, which will have a social impact on the region.

3 joint projects are in Kostanai region.

In October 2018 Kazgeology got a license to Altynkazgan site (Central).

Amount of investments to geological exploration in 2018 amounted to KZT 460.1 million.

Works with Polymetall

Russian Company JSC “Polymetall” was the first started to  fund exploration works in Kazakhstan. Airborne geophysical measurements at Shekara site in Kostanai region, which perspective for detection of industrial deposits of gold-silver, copper-gold scarn, gold-sulphide ores were performed together with JSC “Kazgeology”.

As a result, perspective areas for planned exploration works to be performed in 2019 were detected.

Such geological explorations refer to advanced technologies.

Amount of investments to geological exploration in 2018 amounted to KZT 192 million.

Junior Projects

To support and develop junior principles, conditions for which were created by new Natural resources and subsurface use Code (based on Australia experience), Kazgeology acts as a strategic partner of Kazakhstani companies.

In 2018 Kazgeology helped 11 companies to enter the geological exploration market.

Total amount of investments into juniors exploration works up to 2025 amounted to about KZT 10.5 billion, area coverage – 2 thousand square meters.

You may find detailed information on JSC “National Exploration Company “Kazgeology” Annual Report for 2018 at – www.qazgeology.kz in “Corporate events” section.