In the mineral sector, the main focus is on bulk commodities that are easily marketed to our neighbors, especially China. Therefore, we receive many client enquiries regarding ferrous minerals, such as iron, manganese, vanadium, and titanium.
One of the concerns that arises when attracting foreign investors to Kazakhstan’s mining sector is the very competitive nature of the business. There are many countries that seek foreign investments in mining, and currently sub-Saharan Africa is enjoying a surge in investments.
MYRIAD OF OPTIONS
I believe that Kazakhstan has the mineral potential that offers plenty of options to larger operators as they meet thresholds of minimum capital, returns, and timelines. However, there are a myriad of smaller deposits for local exploitation, and these resources are open to all players as long as they have the means to exploit the minerals.
SOONER THE BETTER
We have started investing heavily to develop expertise here and to spread knowledge throughout the industry. The sooner we do it, the better. In the future, we want to be able to consult with other companies throughout the world.
We began our company working with gold production. However, we ceased the production of gold and decided to focus on copper. All of our copper deposits are located in Kazakhstan. We are currently capable of producing 7,000 tons of copper per year and we aim to increase our capacity to 20,000 tons in 2012.
We need to increase the number of independent small producers because they are driving the industry, researching the technology, and industrializing the country. We help the country by creating jobs and investing in new technologies.
Sandvik Mining has been in Kazakhstan for 10 years with a fully operational branch. The business in Kazakhstan is quite diverse, and we are involved in the mining and construction sectors, where Sandvik offers specialized tools.
The mining industry in Kazakhstan is one of the best businesses. Kazakhstan is growing consistently and regularly, and we are growing with it. Sandvik enjoys a long partnership with the country, and we feel it’s an excellent place to work.
There are new joint ventures about to begin, and many of these are with both Kazakhstani and Western mining companies. There are many companies seeking to start businesses in Kazakhstan, simply because the country is politically stable, resource rich, and a nice place to live.
© The Business Year