Kazakhmys - The Times Of Central Asia

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Kazakhmys

Kazakhmys Announces Shareholder Transition Amid Strategic Industry Shift

Kazakhstan’s Kazakhmys Corporation has announced the signing of a framework agreement initiating the transfer of ownership to a new shareholder, according to a statement from the company’s press service. The agreement was reached jointly by Kazakhmys President Vladimir Kim and Chairman of the Board of Directors Eduard Ogai. It sets in motion the procedures for a share transfer, with a formal purchase and sale agreement to follow once all obligations are fulfilled in accordance with legal requirements. The corporation emphasized that the process will be conducted in strict compliance with the law. In Kazakhstan’s mining and metallurgical sector, such transactions require authorization from the Ministry of Industry and Construction as well as the Agency for the Protection and Development of Competition. Kazakhmys also confirmed that notification procedures for partners, creditors, minority shareholders, and other stakeholders have begun. “According to the signed document, the upcoming change of shareholder will not affect production or operations. All contractual obligations and employee social guarantees will remain intact, and job stability will be fully maintained. Kazakhmys will continue to operate normally, with current and planned projects implemented in line with its strategic roadmap,” the company stated. This announcement follows reports that Kazakh businessmen Shakhmurat Mutalip and Nurlan Artikbayev are in talks to acquire stakes in two of the country’s largest industrial players, KazZinc and Kazakhmys. Mutalip, who owns Integra Construction KZ, has reportedly been offered a 70% stake in KazZinc by Glencore. Artikbayev, majority shareholder of Qazaq Stroy, is negotiating a stake in Kazakhmys. Both entrepreneurs recently met with President Kassym-Jomart Tokayev to discuss the role of private business in infrastructure development. Artikbayev, ranked 44th on the Forbes Kazakhstan 2025 list, met with the president on November 4, followed by Mutalip on November 21. Analysts view the potential transactions as part of a broader effort to consolidate domestic control over Kazakhstan’s strategic industrial assets.

Finance

Kazakh Businessmen in Talks to Acquire Stakes in KazZinc and Kazakhmys

Kazakh entrepreneurs Shakhmurat Mutalip and Nurlan Artikbayev are in negotiations to acquire stakes in two of Kazakhstan’s largest industrial giants, KazZinc and Kazakhmys, according to a report by Bloomberg, citing unnamed sources. Bloomberg reports that Mutalip, the owner of construction firm Integra Construction KZ, has been offered the chance to purchase Glencore’s 70% stake in KazZinc. Meanwhile, Artikbayev, the majority shareholder of Qazaq Stroy, is in discussions over acquiring a stake in Kazakhmys. Sources emphasized that the negotiations are still in early stages. No final agreements have been reached, and key terms such as pricing and payment structures remain unresolved. As of the end of 2024, 99.1% of Kazakhmys shares are held by Kazakhmys Copper, through its parent entity Kazakhmys Holding Limited, which is registered with the Astana International Financial Centre (AIFC). KazZinc is majority-owned by Glencore International AG, which controls 69.74% of the shares. The remaining 29.82% is held by the state-owned enterprise Tau-Ken Samruk, with 0.44% owned by minority shareholders. Both businessmen have recently been received by President Kassym-Jomart Tokayev. Artikbayev, ranked 44th on Forbes Kazakhstan’s 2025 list, met with the president on November 4, while Mutalip met with him on November 21. Both meetings focused on the development of Kazakhstan’s construction sector and the role of private business in infrastructure projects. Financial analyst Rasul Rysmambetov suggested that the potential deals reflect an effort to consolidate domestic control over key strategic assets. “This looks like an unfolding of what I call economic nationalism. Local players are expected to control subsoil assets, as they can invest more intensively in downstream processing. Much like Korea’s chaebols, the goal will be to extend the value chain within the country,” he wrote on his Telegram channel.

Digital Technologies

Kazakhmys Partners with Freedom Cloud to Modernize IT Infrastructure

Kazakhmys, the world’s largest copper producer, has signed a memorandum of cooperation with Kazakh IT company Freedom Cloud to implement advanced digital technologies in its operations. The agreement outlines plans to modernize Kazakhmys’ IT infrastructure, introduce cloud-based solutions, and integrate artificial intelligence (AI) into production processes. Company representatives say that transitioning to a cloud architecture will allow computing and network resources to be consolidated into a unified digital system, enhancing data protection and ensuring uninterrupted operation of critical systems. Nurakhmet Nuriev, Chairman of the Board of Kazakhmys Corporation LLP, emphasized that the company is ready to outsource non-core IT functions to professional service providers without compromising system reliability. A pilot project will be launched from January to June 2026 to test the new cloud infrastructure and digital services. Freedom Cloud will provide Tier III infrastructure with backup systems, cybersecurity safeguards, and 24/7 monitoring. The infrastructure will support AI-driven production management tools and DevOps practices to accelerate the rollout of digital solutions. “We are creating an infrastructure that will enable Kazakhmys not only to increase operational efficiency, but also to set an example for the entire mining and metallurgical industry in the use of AI and cloud platforms,” said Freedom Cloud CEO Temirlan Zinalabdin.

Rare Earth Metals

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...

incident

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...