Titanium-Zirconium Deposit in Kazakhstan to Get New Owner

Kazakhstan’s Ministry of Industry and Construction says that the Obukhovskoye deposit, which is located in the North Kazakhstan region, has been put up for auction. The sale of the titanium-zirconium deposit will be held electronically on May 15th. All three sections of the deposit will go on the auction block.

The Obukhovskoye deposit may prove to be a very valuable asset due to its high-percentage concentration of minerals in the ore.

Until 2021 the location belonged to a company called Tioline, which ended up losing its license due to violations of its financial and investment obligations. In February this year one of the co-owners of the Obukhovskoye mine, Viktor Dolgalev, was arrested — he is accused of misuse of subsoil resources, tax evasion and illegal receipt of funds in excess of 26bn tenge (~$58m).

These events have led to the current situation, in which the project needs a new investor who can prove their ability to execute a sustainable ore extraction and processing plan at the site. The Ministry of Industry and Construction has already disclosed that the size of the minimum bid for the signing bonus -is 1.85m tenge ($4,132).

The company who submits the winning bid will be obliged to supply raw materials from the deposit to local producers at reduced prices — to restore the project after the substandard work of the past license holder — and to comply with environmental regulations. It will also be obliged to support the Kazakhstani market by using at least 60% locally-sourced goods and services in its work.

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Times of Central Asia

Askar Alimzhanov graduated from the journalism department of the Kazakh State University named after S. Kirov, then worked as a correspondent for the daily republican newspaper Leninskaya Smen. He then moved to the United States to be a reporter for the daily newspaper "Cape Cod Times" in Hayanis, Massachusetts, (USA) under the journalist exchange program between the Union of Journalists of the USSR and the New England Society of News Editors. Since then, he has helped build transparency and understanding of Central Asia region in various executive level positions at esteemed media organizations including "Akbar"(Alma-Ata) international center for journalism, the Khabar News agency, the Television and Radio Corporation "Kazakhstan" JSC, and MIR- Kazakhstan.

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