Mining - The Times Of Central Asia

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Kazakhstan: Alexander Mashkevich, Business and Jewish Community Leader, Dies

Alexander Mashkevich was a prominent figure in Central Asian business for many years: a founder of Eurasian Resources Group, a major mining company that is partly owned by Kazakhstan’s government and has operations in Africa and Brazil, and chairman of the board of directors of the Almaty-based Eurasian Bank. He also founded the Jewish Congress of Kazakhstan and became its first president. Mashkevich, who moved from Kyrgyzstan to Kazakhstan in the 1990s and later obtained Israeli citizenship, died on March 22 after an illness. He was 71 years old and leaves a wife, Larissa, and two daughters, Anna and Alla. Mashkevich “made an enormous contribution to the development of Kazakhstan’s metals and mining sector and the country’s economy,” said Eurasian Resources Group, or ERG. Between 2014 and 2024, Mashkeviich was chairman of the board of directors of Luxembourg-based ERG, which says it is one of the world’s largest producers of ferrochrome, an alloy that can be used to make stainless steel, and cobalt, which is used in batteries and other technologies. The company also says it is also a major producer of copper, the only producer of high-grade aluminum in Kazakhstan, and a big supplier of alumina and iron ore in the Eurasia region. It provides electricity and is a major railway operator in the region. Mashkevich received awards from the Kazakh state for contributions to the country’s development. His operations also came under scrutiny from Britain’s Serious Fraud Office, which for many years investigated suspected bribes that were paid to access mining contracts in Africa. In 2023, the office closed its case without bringing charges. The Eurasian Natural Resources Corporation, a subsidiary of ERG, had meanwhile sued the fraud office for alleged wrongdoing. The two sides settled last year. Separately, Belgian prosecutors alleged that Mashkevich and two partners were involved in a money-laundering scheme. In 2011, the matter was dropped after the three businessmen paid a fine without admitting guilt. Mashkevich, who had a Lithuanian Jewish background, built a reputation as a philanthropist. He was active in the Jewish community in Central Asia, leading the Euro-Asian Jewish Congress, or EAJC, for more than a decade after it was founded in 2002. He supported Jewish schools and other institutions, and one of his last projects was the establishment of a museum about Albanian citizens who saved Jews during World War II, according to the EAJC. In addition to synagogues, he also provided funds for the construction of mosques and churches in Kazakhstan. Mashkevich’s parents met in Kyrgyzstan after being evacuated during World War II. At a conference in Israel in 2011, Mashkevich said Jews had to excel in order to survive. “We have to find – every day – new, creative ways to respond to challenges, which we get every, every, every day the last few thousand years,” Mashkevich said in English. “And I suppose we will get these challenges another few thousand years.”

Uzbekistan Mining

Opportunities and Challenges in Uzbekistan’s Mining Industry

Uzbekistan is well-positioned to become a key global supplier of critical minerals, but the stakes are high. If not managed prudently, the country risks falling victim to the very challenges that have historically plagued resource-rich nations. According to Nodir Ruzmatov, founder of One Nexus Group and a Master’s candidate in Public Policy at UC Berkeley, Uzbekistan faces a pivotal moment. In his article, “Striking Gold or Courting Disaster in Uzbekistan’s Mining Boom,” Ruzmatov writes: “Uzbekistan stands at a crossroads. Global demand for critical minerals, key to clean energy and high-tech manufacturing, is growing at an unprecedented rate. With gold, copper, lithium, and rare earth elements in abundance, Uzbekistan has an opportunity to become a major global supplier. But as history has shown, such riches can be a double-edged sword.” Rising Demand, Rising Stakes Global demand for critical minerals has surged due to the rapid expansion of electric vehicles, renewable energy systems, and digital infrastructure. Uzbekistan, already a top gold producer and an emerging copper exporter, holds significant reserves of the minerals needed to power the global energy transition. Properly harnessed, this sector could attract billions in investment, create thousands of jobs, and elevate Uzbekistan’s standing in the global economy. Yet, the path forward is fraught with risks. Ruzmatov warns of the “resource curse”, a paradox where natural wealth leads to economic mismanagement, environmental degradation, and political instability. The Syr Darya River serves as a cautionary example: already burdened by industrial waste from neighboring Kazakhstan, it now faces growing contamination from heavy metals, arsenic, and other toxins. These pollutants threaten agriculture, food security, and public health across the region. Learning from Global Experience Ruzmatov draws parallels between Uzbekistan’s situation and water management conflicts in other parts of the world. Disputes over the Colorado River between the United States and Mexico, and environmental challenges in Southeast Asia’s Mekong River basin, show that resource tensions can be addressed through strong legal frameworks and cross-border cooperation. For Uzbekistan, this means not only protecting its rivers but also developing a governance model that prioritizes environmental integrity, transparency, and regional collaboration. A Sustainable Path Forward To avoid repeating past mistakes, Ruzmatov advocates for: Strict environmental regulations to guide mining operations Investment in cleaner, more efficient technologies Enhanced regional partnerships to manage shared natural resources equitably Greater public involvement and scientific research to inform decision-making As he concludes, “The question is no longer whether Uzbekistan should develop its critical minerals sector but rather how it will do so. The Syr Darya crisis and the Aral Sea disaster serve as stark warnings. If Uzbekistan fails to address its water pollution issues now, the consequences will be irreversible.” Uzbekistan has the potential to lead Central Asia in responsible, sustainable mining. Realizing this potential will depend on careful planning, international engagement, and a long-term commitment to environmental and social resilience.

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After Deadly Mining Accident, Kazakhstan to Inspect Hazardous Industries

Kazakh President Kassym-Jomart Tokayev has ordered an audit of industrial facilities to assess their compliance with safety standards following a deadly accident at a Kazakhmys Corporation mine in the Ulytau region. Tokayev described the state of workplace safety in Kazakhstan as “unacceptable”, citing gross violations of safety regulations. He criticized companies for failing to invest adequately in worker protection, leading to industrial accidents, fatalities, and injuries. Government Mandates Safety Overhaul “The President instructed the government to take the following measures to ensure the safety of citizens involved in hazardous production facilities: conduct an audit of facilities for compliance with industrial safety standards, develop and implement modern safety systems, including gas alarms, seismic sensors, and positioning systems,” reads an official statement. Tokayev also directed authorities to digitize industrial safety systems, introducing automated forecasting and warning mechanisms. Based on the audit’s findings, companies will be required to increase investment in modern safety technologies by adjusting their operational programs. Additionally, the Cabinet of Ministers has been tasked with tightening supervision and regulatory controls in the industrial sector. “These instructions have been placed under special control by the presidential administration,” the statement emphasized. Investigation Into the Mining Tragedy As The Times of Central Asia previously reported, on February 17, an explosion at the Zhomart mine in Zhanaarka district, Ulytau region, killed seven employees of Kazakhmys Corporation LLP. A government commission was established to investigate the incident, with preliminary findings attributing the accident to a natural gas explosion. Mining operations at the site have been suspended pending the results of the investigation. Two specialized subcommissions have been created: One to determine the cause of the accident. Another to identify possible safety violations. These subcommissions are expected to complete their work by March 1. Calls for Stronger Oversight Kazakhstan’s parliament is pushing for stricter workplace safety measures, particularly in the mining sector. Mazhilis deputy Arman Kalykov has proposed the creation of a separate state body dedicated to industrial safety, which would report directly to the prime minister.

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Ivanhoe Mines Begins Exploration of World’s Third-Largest Sedimentary Copper Basin in Kazakhstan

Canadian mining company Ivanhoe Mines has announced a joint venture with UK-based Pallas Resources to explore the Chu-Sarysu Copper Basin in Kazakhstan - the world’s third-largest sediment-hosted copper basin, containing 27 million tons of known copper. Exploration Plans and Investment Ivanhoe Mines has acquired an initial 20% equity stake in the joint venture and has committed $18.7 million in exploration expenditure over the next two years. License applications, submitted in Q4 2024, cover an area of approximately 16,000 km². Pallas Resources has digitized extensive Soviet-era geological data covering the license area. Initial analysis has identified multiple potential copper targets, which will be further explored following an airborne geophysics survey later this year. After the initial two-year phase, Ivanhoe has the option to increase its stake by investing up to $115 million over the next four years, depending on how much of the license area it retains. If a major copper deposit is discovered, Ivanhoe can secure up to an 80% equity stake by financing and completing a pre-feasibility study. Significance of the Chu-Sarysu Basin Ivanhoe Founder and Executive Co-Chairman Robert Friedland emphasized Kazakhstan’s importance as a key mining jurisdiction and home to one of the world’s most significant copper basins. “The Ivanhoe Group has a long history in Kazakhstan... and we look forward to returning to this tremendous country to further unlock the significant geological potential of the Chu-Sarysu Basin,” Friedland said. According to the United States Geological Survey (USGS), the Chu-Sarysu Basin contains an estimated 25 million tons of undiscovered copper, further underscoring its untapped potential. The basin is also known to contain lead, zinc, silver, barium, and strontium deposits. Kazakhstan’s Mining Industry Kazakhstan is already a global leader in mineral production: World’s largest uranium producer. Second-largest chromite producer. Major producer of copper, zinc, iron ore, and coal. Mining and quarrying contribute approximately 14% of Kazakhstan’s GDP and 17.5% of its total exports, valued at around $10.5 billion.

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Rosatom Exits Key Uranium Ventures in Kazakhstan Amid Strategic Shifts

Uranium One Group, a subsidiary of State Atomic Energy Corporation Rosatom. has announced its withdrawal from uranium projects in Kazakhstan. This decision coincides with Kazakhstan’s ongoing selection of operators for a consortium tasked with constructing the country’s first nuclear power plant. According to Kazatomprom (KAP), Uranium One Group has sold its 49.979% stake in the Zarechnoye joint venture to SNURDC Astana Mining Company Limited. The ultimate beneficiary of the acquiring party is China’s State Nuclear Uranium Resources Development Co., Ltd. Kazatomprom retains its 49.979% stake in the venture. The Zarechnoye joint venture, operational since its discovery in 1977, extracts uranium from the Zarechnoye deposit in Kazakhstan’s Turkestan region. As of early 2024, the deposit holds approximately 3,500 tons of uranium ore, with mining operations expected to conclude by 2028. In addition, Uranium One Group is set to divest its 30% stakes in the Khorasan-U and Kyzylkum joint ventures to China Uranium Development Company Limited, a subsidiary of China General Nuclear Power Corporation (CGN). The transaction awaits the completion of closing procedures. Kazatomprom’s share in these ventures remains unchanged, with 50% ownership in Khorasan-U and a 50% indirect interest in Kyzylkum. Khorasan-U operates in the Zhanakorgan district of the Kyzylorda region, mining uranium from the Khorasan-1 section of the North Khorasan deposit. This deposit contains reserves of approximately 33,000 tons of uranium as of 2024, with mining projected to continue until 2038. Meanwhile, Kyzylkum focuses on processing uranium from Khorasan-U but does not hold subsoil usage rights, restricting its activities to processing. Kazatomprom has prioritized replenishing its mineral resource base, recently securing four new licenses for uranium exploration. These areas are estimated to contain over 180,000 tons of uranium, which Kazatomprom plans to develop independently. In November 2023, Kazakhstan’s Ministry of Ecology and Natural Resources reported environmental violations at the Zarechnoye joint venture. Soil samples revealed excessive concentrations of sulfuric acid, prompting authorities to issue directives for remediation. Kazakh political analyst Daniyar Ashimbayev highlighted that Kazatomprom oversees 14 subsidiaries, including joint ventures with Japan, France, Russia, Kyrgyzstan, and China. These partnerships underscore Kazakhstan’s significant role in the global uranium market. China and Russia remain the largest importers of Kazakh uranium. From January to October 2023, Kazakhstan exported $2.46 billion worth of uranium, with $922.7 million going to China and $1.2 billion to Russia. Several nations are vying for inclusion in the consortium that will construct Kazakhstan’s first nuclear power plant. During a state visit to Kazakhstan, Russian President Vladimir Putin emphasized Rosatom’s advanced nuclear technologies. Valentina Matvienko, Speaker of Russia’s Federation Council, underscored Kazakhstan’s interest in Rosatom’s involvement. However, President Kassym-Jomart Tokayev has yet to finalize the decision. Kazakhstan’s Energy Minister, Almasadam Satkaliyev, has recently visited South Korea, France, and China to explore nuclear energy partnerships. Political analyst Gaziz Abishev affirmed this diplomatic outreach as a strategic effort to secure the most advantageous terms for Kazakhstan, ensuring that competing nations present their best proposals.

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UK Supports €12.6M Deal to Boost Exports to Uzbekistan’s Copper Producer

UK Export Finance (UKEF) has guaranteed a €12.6 million ($13.25 million) loan to the Almalyk Mining and Metallurgical Complex (AMMC) in Uzbekistan. The loan will refinance the purchase of fully automated vehicles from the Scottish multinational company Weir and marks UKEF’s first agreement in Uzbekistan. The loan, provided by the International Bank, aims to support Weir’s exports to AMMC, one of Central Asia’s largest copper production facilities. “UK businesses are increasingly keen to bring their goods and services to this dynamic market - and UKEF is here to help buyers in Uzbekistan seize this opportunity,” said Tim Reid, CEO of UKEF. Strategic Importance of Copper The UK Department of Business and Trade reports that nearly 90% of UK imports from Uzbekistan consist of non-ferrous metals, metal ores, and slag. Copper, a vital material for construction and green technologies such as solar panels and electric vehicles, is in increasing demand. Global copper requirements are projected to grow by an additional one million tons annually until 2035. The UKEF-backed deal reflects the UK’s commitment to enhancing machinery exports and supporting the global supply chain. In 2023, total trade between the UK and Uzbekistan reached £381 million, with specialized machinery ranking as the fourth most-traded category. Sustaining Production at Almalyk UKEF’s financial backing is crucial for sustaining production at AMMC by ensuring access to capital from a trusted supplier. The partnership highlights UKEF’s broader role in facilitating growth opportunities for UK businesses in Central Asia’s dynamic market.