UK firm to conduct geological studies in Kazakhstan
By Aynur Jafarova
Kazakhstan's Industry and New Technologies Ministry announced that the Kazgeologiya JSC and the UK-based Rio Tinto company have agreed to conduct joint projects in Kazakhstan, which envision geological studies and exploration by Rio Tinto.
Relevant agreements on the basic principles of establishing a joint venture for exploration work in the Balkhash area were undersigned by Kazgeologiya and Rio Tinto mining company on February 1, 2013.
The ministry reports that this was preceded by an agreement on cooperation in the field of geological studies and exploration of subsoil, signed by the Kazakh industry ministry in Britain.
"The parties decided to create two joint ventures, financing of which will be provided by the investments of Rio Tinto until geological fields with reserves are discovered," it said. "Rio Tinto undertakes the application of modern exploration technologies for search, exploration, processing and interpretation during the implementation of these exploratory projects. Furthermore, the transfer of technologies and training of Kazakh specialists will be conducted."
Kazakh Industry Minister Asset Issekeshev said these joint projects mark the beginning of a transition of geology to an innovative course of development. Great challenges face the industry and it is planned to increase funding and to make a number of amendments to the current regulations to resolve these issues, he noted.
As earlier reported, the Kazakh government will start a new industry program to develop the mineral and raw materials complex in the near future. The program that will cover the years 2015-2019 is to focus on researches of the underlying subsoil by using modern technologies and fulfilling tasks to replenish the resource base on priority types of raw materials, in particular, around single-industry cities.
Kazakhstan is next only to Russia among the CIS countries on the volume of mineral production. The country holds huge reserves of a wide range of metallic ores, industrial minerals, and its metallurgy sector is a major producer of a large number of metals from both domestic and imported raw materials.
Kazakhstan possesses 18 percent of the global reserves of uranium, 10 percent of chrome reserves, 9 percent of the world's lead, 8 percent of zinc, 5 percent of silver, 5 percent of manganese and 5 percent of copper reserves.