Business Monitor International


Kazakhstan Mining Report

Published 12 February 2014

  • 75 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Kazakhstan Mining Report

We expect Kazakhstan's mining industry value to reach US$31.0bn by 2018, down from our previous forecast in light of our view of an overall decline in commodity prices. Growth will be led almost entirely by the coal, gold and copper sectors, which together account for the majority of the value of Kazakhstan's mining industry. Copper production is also a bright spot in the country, given aggressive expansion plans by Kazakhmys, and Rio Tinto's commitment to invest US$100mn in exploring northern Kazakhstan for copper.

Mining To Remain Out Front
Kazakhstan - Resource Sector Value (US$bn)

Regulatory Environment

The constitution of the Republic of Kazakhstan vests ownership of mineral resources in the state. The constitution states that land may be privately owned, but underground resources are state property. The controlling body for the mining industry is the Ministry of Energy and Mineral Resources. Given the strategic and economic importance of the mining sector, the government is supportive of the industry and institutes a generally positive investment climate, although it has also shown that it will intervene when necessary.

Table of Contents

BMI Industry View
7
SWOT
9
Industry Forecast
10
Coal: Domestic Power Demand To Drive Production Growth
10
Table: Kazakhstan - Coal Production
12
Iron Ore: Challenges Keep Growth Subdued
13
Table: Kazakhstan - Largest Iron Ore Projects
14
Table: Kazakhstan - Iron Ore Production Forecast
15
Copper: Industry Due For Revival
15
Table: Kazakhstan - Largest Copper Projects
17
Table: Kazakhstan - Copper Output
17
Industry Risk Reward Ratings
18
Russia On Top; Kazakhstan Not Far Behind
18
Table: Mining Risk/Reward Ratings
18
Nordics Lagging
19
Reward Paucity In Germany
19
Corruption & Infrastructure To Remain Key Risks In Russia & Ukraine
20
Weak Commodity Prices Weigh On Rewards
21
Market Overview
22
Table: Kazakhstan - Country Reserves Relative To Global Reserves
23
Table: Kazakhstan - Mining Industry Value & Production Forecasts
25
Regulatory Development
26
Table: Kazakhstan - Applicable Mineral Extraction Taxes
27
Table: Kazakhstan - Political Overview
29
Commodities Forecast
30
Commodity Strategy
30
Aluminium: Continued Short-Term Weakness
33
Copper: Recent Strength Doesn't Change Our View
33
Nickel: Recent Strength To Subside
35
Zinc: Price Momentum To Continue
37
Table: Select Commodities - Performance & BMI Forecasts
39
Competitive Landscape
40
Table: Kazakhstan - Country Reserves Relative To Global Reserves
41
Table: Kazakhstan - Comparative Valuation Metrics
42
Company Profile
43
Kazakhmys
43
Table: Kazakhmys - Financial Results
45
ENRC
47
Table: ENRC - Financial Results
49
Regional Overview
51
Europe Overview
51
1
51
2
53
3
55
Table: Europe: Mining Regulatory Outlook
55
4
56
5
57
Global Industry Overview
58
Methodology
70
Industry Forecast Methodology
70
Sources
71
Risk/Reward Rating Methodology
72
Table: Mining Risk/Reward Ratings Indicators
74
Table: Weighting Of Indicators
75

The Kazakhstan Mining Report has been researched at source and features Business Monitor International (BMI)'s mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.

BMI's Kazakhstan Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Kazakhstan.

Key Benefits

  • Use BMI's independent industry forecasts on Kazakhstan to test other views - a key input for successful budgeting and planning in this mining market.
  • Target business opportunities and risks in Kazakhstan's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Kazakhstan.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity), Key Projects Tables and Competitive Landscape Tables.

Coverage

Executive Summary

Summary of BMI's key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.

Business Environment Ratings

BMI's Mining Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (mining companies and support service providers) in the regional mining market. The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.

Key Projects

Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.

BMI Industry Forecasts

Historic data series (2009-2012) and forecasts to end-2017 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast. Indicators include:

  • Mining Industry: Industry size (US$mn), real growth (%), % of GDP, employment ('000), workforce as % of total workforce, average wage (US$).
  • Output:Production volumes ('000 tonnes, carats etc.) for all major metals, minerals, ores and gems mined in each state, including bauxite, copper, gold, coal, lead, silver, tin, titanium, uranium, zinc etc.
  • Exports: Value of exports (US$mn) for all major metals, minerals, ores and gems mined in each state .
  • Commodity Markets: Global demand, supply, stocks and benchmark prices (US$) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.

BMI Macroeconomic Forecasts

BMI forecasts to end-2017 for all headline macroeconomic indicators, including real GDP growth (%), inflation (%), fiscal balance (% of GDP), trade balance (US$bn), current account (US$bn) and external debt (US$bn).

Competitive Landscape Tables & Analysis

Comparative company analyses and tables detailing by US$ sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc