Mining is a priority sector in Kazakhstan that employs nearly 190,000 professionals. Kazakhstan is among the top leading countries with significant mineral resources, offering numerous opportunities for Canadian mining supply and services (MSS) companies of varied expertise. Kazakhstan's rich and varied geography boasts substantial reserves, producing 29 non-ferrous, 3 ferrous, 2 precious metals, and 84 industrial minerals. The mining industry in Kazakhstan focuses mainly on the extraction and export of raw materials and base metals.
Mining market in Kazakhstan
Key opportunities for Canadian mining companies in Kazakhstan
Cleantech
Cleantech is the fastest growing sub-sector of Kazakhstan mining industry. The Government of Kazakhstan plans to implement the Organization for Economic Co-Operation and Development (OECD) environmental standards for the mining industry. Local mining companies are preparing to implement cleantech technologies and equipment to meet those high standards, as well as in response to global demand for decarbonization of mining operations. The new Environmental Code of Kazakhstan (No 400-VI ЗРК), adopted on January 2, 2021, will motivate subsoil users to replace their outdated technologies and equipment, providing opportunities for Canadian companies offering new technologies.
Exploration
Kazakhstan's 2.3 billion USD geological exploration program, taking place from 2021 to 2027, aims to increase exploration to replenish Kazakhstan's mineral resource base. Canadian companies can capitalize on this program by offering:
- geophysical equipment
- drilling (both services and equipment)
- design of exploration plans
- laboratory and analytical investigations
Industry highlights
19.1 billion USD in national mining revenues (2023)
0.75% global exploration share
11.3% five-year compound annual growth rate of the mining industry
42 — Kazakhstan’s rank in Canadian mining assets abroad, worth CAD 235 million
3 Canadian companies operating in Kazakhstan
Uranium and chrome are Kazakhstan's leading mining sector
Information and communication technology
The Kazakh mining industry's 2018 to 2025 digitization plan includes 192 projects, with 79 already completed. and further growth is anticipated over the next 5 to 6 years. Opportunities exist for Canadian managed security services (MSS) companies offering digitalization and automation solutions for all stages of minerals production process.
Notable challenges for Canadian mining suppliers in Kazakhstan
- Intense competition: The local market is highly competitive, with strong participation from European, Russian and Chinese companies.
- The Eurasian Economic Union (EAEU): As a member of the EAEU, Kazakhstan benefits from tariff-free trade with member countries, making Russian equipment particularly competitive in the market.
- Local content requirements: Regulations mandate a local presence, such as partnering with a local company or establishing an office staffed by local employees, adding complexity to market entry and operations.
Kazakhstan business landscape
- Building and maintaining personal relationships and networks is very important.
- Despite Kazakh being the official language in Kazakhstan, Russian is widely spoken in the mining sector and remains the main technical language used.
- Providing post-sales service and on-time supply of spare parts are critical for local mining company operations.
Summary
Kazakhstan's mining sector is a priority industry with substantial reserves of non-ferrous, ferrous, precious metals, and industrial minerals. Key opportunities for Canadian companies include cleantech adoption driven by new environmental standards, a $2.3 billion geological exploration program (2021–2027), and digitization projects. However, challenges include intense competition from European, Russian, and Chinese firms and local content requirements necessitating a local presence. Success in Kazakhstan's mining sector depends on strong relationships, understanding of local languages and reliable post-sales service and spare parts supply.
To learn more about the mining industry in Kazakhstan, contact Gaziz Shotanov (gaziz.shotanov@international.gc.ca), Trade Commissioner, at the Embassy of Canada to Kazakhstan.