Kazakhstan terminates 160 contracts for subsoil use

3 July 2014 16:40 (UTC+04:00)

By Aynur Jafarova

Kazakhstan has terminated 160 contracts for subsoil use since 2010.

The news was announced by Kazakh Deputy Prime Minister and Minister of Industry and New Technologies Asset Issekeshev, Trend Agency reported.

"The work is being carried out with subsoil users, not complying with their obligations," he said. "Over 300 new technical projects with binding commitments worth over $27 billion were approved under old contracts, which have been concluded prior to 2010."

The minister went on to say that the projects concluded with major international companies such as Rio Tinto, Iluka and Kores on the transfer of the most advanced technologies in the field of subsoil use to Kazakhstan are being launched this year.

The Kazakh president has instructed the Industry and New Technologies Ministry to bring order to the sphere of subsoil use and to give non-working fields to those who will actually engage in the development of subsoil.

In November 2013, the Ministry started conducting a thorough examination of all previously signed agreements on subsoil use to secure new commitments.