State companies should first of all explore our subsoil to increase revenues, Kazakh PM

The Government session chaired by Prime Minister Olzhas Bektenov considered the issue of development of the geological industry, El.kz cites primeminister.kz.

The Minister of Industry and Construction Kanat Sharlapayev, Deputy Minister of Energy Yerlan Akkenzhenov and the head of the National Geological Service Yerlan Galiyev reported on the current situation and work carried out.

In pursuance of the President's instruction to increase the area of geological research from 1.5 to 2.2 million m2 from 2026, the Government is working to improve the investment climate, improve legislation on subsoil use and the introduction of AI technologies for data processing. To date, the area of subsoil studied has been brought to 2 million m2. As part of international cooperation with geological services of foreign countries, joint searches for prospective mineral deposits in East Kazakhstan are being conducted. All received information is uploaded to the Unified platform of subsoil use. In total, more than 66 thousand geological reports are placed on minerals.e-qazyna.kz.

Minister of Industry and Construction Kanat Sharlapayev reported on the ongoing work on digitisation of primary geological information. To date, 2.5 million data have been digitised. This work will be strengthened through the introduction of AI technologies. It is planned to digitise another 1.5 million data by the end of next year. It is planned to complete the entire process by the end of 2026.

In the hydrocarbon sector, the Enhanced Model Contract mechanism has been introduced, aimed at improving competitiveness and creating conditions for attracting investment in geological exploration of complex fields. Taking into account the growing demand for rare earth metals, their prospecting at 12 sites is being finalised at the expense of state funding. At the same time, lithium is of particular relevance, searches for which are conducted within the Bayankol area, Aral and Caspian regions. In addition, this year an area for exploration of solid minerals was opened on the territory of about 1 million km2. This allowed attracting large international companies such as Riotinto, Fortescue, Arras Minerals, etc. to the country.

At the same time, despite the country's leading position in terms of reserves of certain types of metals, Kazakhstan is experiencing a decline in production. In particular, there is low activity of prospecting works on expansion of reserves of solid minerals and hydrocarbons.

Prime Minister emphasised that it is necessary to change the existing approaches to work. It is necessary to develop and ensure clear implementation of the state policy on rational and effective use of the existing mineral resource base and development of new deposits. Today there is an impoverishment of mined minerals and the presence of high impurities, which requires the attraction of significant funds and the development of new technologies of extraction and purification. For this purpose, specific measures and preferences should be developed to attract investment.

In addition, the National Geological Service, established on the instructions of the Head of State, should receive appropriate support and authority, as well as scientific and technological infrastructure. In this direction, the importance of co-ordination of joint work with the SK Fund has been emphasised.

Attention is also paid to the use of modern technologies, including aerogeophysical survey, allowing to reduce the cost of ground surveys. In this regard, it is necessary to digitise geological information obtained 30 and more years ago and stored in paper format or on tapes. In addition, there is a need for certified laboratory confirmation for international financial organisations.

"The government is paying special attention to supporting geological exploration, creating favourable conditions for attracting investment, developing new incentive mechanisms and further improving legislation. We must first of all hand over our underground national wealth to state companies, explore it, develop it, develop it, and then attract investors. Only then will the price rise and the state will benefit. It is necessary to use this tool more widely," Olzhas Bektenov emphasised.

As a result of consideration of the issue Prime Minister gave a number of instructions:

• To develop specific mechanisms and necessary legislative amendments to attract investment in geological exploration, including by providing preferences in the development of ‘deep’ horizons and complex fields (to the ministries of industry and construction, energy).
• Create a specialised accredited laboratory for analytical studies of rocks that will meet international standards (Ministries of Industry and Construction, Trade and Integration together with the Samruk-Kazyna Fund).
• Work on the creation of a scientific ecological-geological cluster on the basis of the National Geological Service. At the initial stage, the existing technological capabilities of Tau-Ken Samruk should be utilised. In general, the national mining company is instructed to support and develop (the Ministries of Industry and Construction, Energy together with the Samruk-Kazyna Fund).
• To develop by the end of the year an effective mechanism for financing and conducting aerogeophysical survey on areas of primary importance (Ministry of Industry and Construction together with the Ministries of Energy, Digital Development and Finance).
• To intensify digitalisation of historical data and ensure appropriate work on its preservation (Ministry of Industry and Construction together with the Ministries of Finance, Digital Development and National Geological Service).

Subscribe to our Telegram channel and be the first to know the news!