Kazakhstan Calls for Investigation into Rare Earth Metals Exports

Azat Peruashev, head of the Ak Zhol parliamentary faction, has urged authorities to investigate subsoil users over alleged uncontrolled exports of rare earth metals. Parliamentary Inquiry Peruashev outlined his concerns in a parliamentary request addressed to Kazakhstan’s Anti-Corruption Service chief Askhat Zhumagali and Minister of Industry Ersaiyn Nagaspayev. "Social media posts by former Kazakhmys laboratory assistant Bakyt Adilova allege that the corporation exports ore and copper concentrate without conducting chemical analysis, concealing the presence of valuable and rare earth metals. She claims the company artificially devalues exported resources, harming the national economy to benefit oligarchs," Peruashev stated. He also cited an interview with geologist Bakyt Muratov on Elmedia, in which the expert criticized the absence of laboratory analysis in ore and concentrate exports. Muratov noted that for decades, major mining companies have shipped raw materials abroad for processing, leaving Kazakhstan unaware of the true value of its exports. "We still do not know exactly what we are selling. Complex ores are being exported without proper analysis. No one knows the vast sums of money that have left the country and returned as finished products," Muratov said. The Ak Zhol parliamentary faction is demanding official confirmation or denial of these claims. Lawmakers insist that authorities either prosecute those spreading false information or launch an anti-corruption investigation. Additionally, the party is calling for tighter government oversight of mineral exports. "Kazakhstan holds significant reserves of rare earth metals, including lanthanum, cerium, and yttrium, strategic elements crucial for high-tech industries. Rare earth metals are emerging as the 'new oil' in the global economy, with their availability increasingly influencing global power dynamics. Experts estimate that demand for some of these metals could grow up to 40-fold in the coming years," Peruashev concluded. Response from Kazakhmys In response, Kazakhmys Corporation stated that it does not engage in targeted mining of rare earth metals. However, the company acknowledged that small amounts of rare metals are recovered during acid washing processes. The corporation explained that production waste is processed at Zhezkazganredmet, a state-owned enterprise specializing in the separation and refining of rare metals. Waste from precious metal production is handled by Kazakhmys Progress LLP, which is responsible for refining. “All company operations are strictly regulated by the relevant authorities. We fully support stronger state oversight of mineral exports and are open to dialogue with government agencies. Allegations of concealing rare earth metals or artificially lowering the value of exported raw materials are baseless and do not reflect reality,” Kazakhmys said in a statement. Kazakhmys and the Broader Rare Earth Metals Landscape Kazakhmys was established as a joint stock company in August 1997 and re-registered as a limited liability partnership in January 2005. The company specializes in mining and processing copper ore into cathodes and rods, refining and selling precious metals, and managing by-products from copper production. Kazakhmys ranks as the world’s 20th largest producer of copper in concentrate (271 ktpa) and 12th largest producer of blister and cathode copper (377 ktpa and 365 ktpa, respectively). Its operations include...

Seven Killed in Kazakhstan’s Latest Mining Tragedy

A rock collapse at the Zhomart mine in Kazakhstan’s Ulytau region has claimed the lives of seven miners, the press service of Kazakhmys, the mine’s owner, reported. The workers were trapped under the rubble, with preliminary findings suggesting a natural gas explosion as the cause. The incident occurred on Monday at the Zhomart mine, located 180 kilometers from Zhezkazgan, the administrative center of Ulytau region. The mine extracts copper-sulfide ore at a depth of 700 meters using underground mining methods, with an annual production capacity of 3.6 million tons of ore. Rescue efforts began immediately after the collapse, with more than 20 rescuers, seven units of specialized equipment, and canine teams deployed to the site. However, due to damaged communication cables, there was no contact with the trapped miners. By Tuesday morning, all seven bodies had been recovered and brought to the surface. Kazakhmys stated that while a natural gas explosion is uncharacteristic for its mines, it remains a possible cause of the collapse. “According to preliminary data, there was an explosion of natural gas, which is unusual for Kazakhmys Corporation’s mines. The circumstances and causes of the incident are being investigated,” the company said in a statement. The company has pledged financial support to the victims’ families, offering compensation amounting to ten times the employees’ average annual earnings, along with an additional 2 million tenge to cover funeral expenses. Following the incident, Prime Minister Olzhas Bektenov ordered the creation of a government commission to investigate the causes of the collapse. The commission is led by Deputy Prime Minister Kanat Bozumbayev. President Kassym-Jomart Tokayev expressed his condolences to the families of the deceased and instructed the government to conduct a thorough investigation. He also directed regional authorities and specialized agencies to provide full support to the victims’ families. This marks the second fatal accident at a Kazakhmys facility this year. In January, a worker died at the company’s East Zhezkazgan mine, and in October 2023, a carbon monoxide leak at the Sayak-3 mine resulted in the deaths of two miners who were not evacuated in time. Kazakhstan’s deadliest mining accidents, however, have been linked to ArcelorMittal Temirtau (AMT). The worst industrial disaster in the country’s post-independence history occurred on October 28, 2023, at the Kostenko mine, then owned by AMT. A fire and subsequent explosion at a depth of 700 meters resulted in the deaths of 46 miners. At the time of the accident, between 227 and 252 workers were underground, with 208 successfully evacuated. On Monday, Kazakhstan’s Prosecutor General Berik Asylov announced the completion of the investigation into the Kostenko disaster, with ten individuals facing trial under Article 277 of the Criminal Code for violating mining safety regulations. Investigators determined that the fire and explosion were caused by a mechanical spark igniting methane gas. As The Times of Central Asia previously reported, the Kostenko mine tragedy led to a shift in ownership of key coal and metallurgical assets in the Karaganda region. Indian billionaire Lakshmi Mittal was replaced by...