Precious Metals Mining in Kazakhstan to 2020

Kazakhstan’s gold production was estimated at 1.6 million ounces (Moz) in 2013, up by around 15% on 2012. This is due to an increase in production from Kazzinc Ltd’s Vasilkovskoje mine – a satellite of the Altyntau Kokshetau mine – which produces the bulk of the country’s gold.

Scope

The report contains an overview of the Kazakh precious metal (gold and silver) mining industry, together with key growth factors and restraints affecting the industry. It also provides information about reserves, production, prices and the competitive landscape; major active, exploration and development projects; and the country's mining fiscal regime.

Key Highlights

• Kazakhstan’s mining and metal industry plays a vital role in the country’s economy, contributing around 19% to the country’s GDP in 2012, and 16% to its total exports.

• In 2012, Kazakhstan was the 12th-largest global producer of silver, and the second-largest in the Commonwealth of Independent States (CIS) after Russia, contributing 19.2Moz.

• The country currently has 61 mining and smelting projects, with a total investment of KZT1.5 trillion (US$10 billion).

• In 2011, 11 projects resulted in investments worth KZT52.7 billion (US$351.9 million), as well as 2,700 new jobs.

Reasons to buy

Gain an understanding of the Kazakh precious metals mining industry; relevant drivers and restraining factors; reserves, historical and forecast production; and the fiscal regime.

Companies mentioned

Kazzinc Ltd

Kazakhmys Plc

Table of Contents

1 Executive Summary 1

2 Precious Metals Mining in Kazakhstan 6

2.1 Country Overview 6

2.2 Mining Overview 6

2.3 Precious Metals Mining in Kazakhstan– Drivers` 7

2.4 Precious Metals Mining in Kazakhstan – Restraints 8

3 Gold Mining In Kazakhstan – Reserves and Production 9

3.1 Reserves by Grades and Geographic Regions 9

3.2 Historical and Forecast Production 11

3.2.1 Total production by region/province 12

3.3 Gold Prices 13

3.4 Total Production by Major Mines 14

3.5 Total Production by Mining Method 14

3.6 Major Exploration and Development Projects 15

4 Silver Mining in Kazakhstan – Reserves and Production 16

4.1 Reserves by Grades and Geographic Regions 16

4.2 Historical and Forecast Production 16

4.2.1 Total production, by region 18

4.3 Silver Prices 18

4.4 Total Production by Major Mines 20

5 Global Gold Mine Production 21

6 Competitive Landscape 22

6.1 Kazzinc Ltd 22

6.2 Kazakhmys PLC 23

7 Fiscal Regime 25

7.1 THE KAZAKH MINING INDUSTRY – GOVERNING BODIES 25

7.1.1 Ministry of Industry and New Technology 25

7.1.2 Ministry of Economic Development and Trade 25

7.1.3 Ministry of Environment Protection 25

7.1.4 Kazakhstan Atomic Energy Committee (KAEC) 25

7.2 The Kazakh Mining Industry – Governing Laws 25

7.2.1 Law of Subsoil and Subsoil Use 25

7.2.2 Law on Atomic Energy Use 26

7.2.3 Law on Radiation Safety of Population 26

7.3 The Kazakh Mining Industry– Mining Ownership and Licensing Methods 26

7.3.1 Mining Ownership 26

7.3.2 Licensing Type 26

7.3.3 Duration and Area 27

7.4 The Kazakh Mining Industry – Mining Rights and Obligations 27

7.4.1 Rights 27

7.4.2 Obligations 27

7.5 The Kazakh Mining Industry – Key Fiscal Terms 27

7.5.1 Upfront Payments and Taxes on Subsurface Usage 27

7.5.2 Corporate Income Tax (CIT) 29

7.5.3 Capital Gains Tax 29

7.5.4 Land Tax 30

7.5.5 Social (Payroll) Tax 30

7.5.6 Vehicle Tax 30

7.5.7 Deductions 30

7.5.8 Depreciation 30

7.5.9 Loss Carry Forward 30

7.5.10 Withholding Taxes 31

7.5.11 Value Added Tax (VAT) 31

8 Appendix 32

8.1 What is This Report About? 32

8.2 Methodology 32

8.3 Secondary Research 32

8.4 Primary Research 32

8.5 Contact GlobalData 33

8.6 About GlobalData 33

8.7 GlobalData’s Services 33

8.8 Disclaimer 35

List of Tables

Table 1: Gold Mining in Kazakhstan – Kazzinc's Total Gold Reserves and Resources (Million Metric Tons), 2012 10

Table 2: Gold Mining in Kazakhstan – Gold Mine Production (Thousand Ounces), 2000–2020 12

Table 3: Gold Mining in Kazakhstan – Major Active Mines, 2014 14

Table 4: Gold Mining in Kazakhstan – Major Exploration Projects, 2014 15

Table 5: Gold Mining in Kazakhstan – Major Development Projects, 2014 15

Table 6: Silver Mining in Kazakhstan – Kazzinc's Total Silver Reserves and Resources (Million Metric Tons), 2012 16

Table 7: Silver Mining in Kazakhstan – Total Silver Mine Production (Thousand Ounces), 2003–2020 18

Table 8: Silver Mining in Kazakhstan – Major Active Mines, 2014 20

Table 9: Precious Metals Mining in Kazakhstan – Kazzinc Ltd, Major Projects, 2014 22

Table 10: Precious Metals Mining in Kazakhstan – Kazakhmys PLC, Major Projects, 2014 24

Table 11: The Mining Industry in Kazakhstan – Tax on Production of Useful Minerals (%), 2014 29

Table 12: The Mining Industry in Kazakhstan – Excess Profit Tax Rates (%), 2014 29

Table 13: The Mining Industry in Kazakhstan – Transportation Tax Rates (%), 2014 30

Table 14: The Mining Industry in Kazakhstan – Depreciation Groups and Rates (%), 2014 30

Table 15: The Mining Industry in Kazakhstan – Withholding Tax Rates (%), 2014 31

List of Figures

Figure 1: Gold Mining in Kazakhstan – Location of Developed and Explored Gold Deposits in Kazakhstan 9

Figure 2: Gold Mining in Kazakhstan – Gold Mine Production (Thousand Ounces), 2000–2020 11

Figure 3: Gold Mining in Kazakhstan – Global Gold Prices (US$/oz), 2013–2014 13

Figure 4: Silver Mining in Kazakhstan – Total Silver Mine Production (Thousand Ounces), 2003–2020 17

Figure 5: Silver Mining in Kazakhstan – Global Silver Prices (US$/oz), 2013–2014 19

Figure 6: Global Gold Mine Production (%), 2013 21

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