16.09.2024, 13:25 88911

Olzhas Bektenov and Deputy Managing Director of the IMF Bo Li discuss financial and economic cooperation issues

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The Prime Minister of Kazakhstan Olzhas Bektenov met with the Deputy Managing Director of the International Monetary Fund Bo Li, primeminister.kz reports.

The meeting focused on cooperating in the financial and economic areas.

Kazakhstan has been a member of the IMF since 1992. Long-term partnership with the Fund is important to ensure economic stability of the country and quality sustainable growth of the national economy.

The participants of the meeting emphasized the strategic nature of cooperation between Kazakhstan and the IMF.

Positive results of joint work on structural reforms, development of fiscal policy and financial market of Kazakhstan testify to the high importance of cooperation.

The opening of the IMF's Regional Capacity Development Center for the Caucasus, Central Asia, and Mongolia in Almaty last year gave new impetus to bilateral and regional dialogue on maintaining international financial stability.

It was noted that as a result of the systematic policy of the head of state on comprehensive modernization of the economy on September 9 this year Moody's rating agency upgraded Kazakhstan's sovereign rating to Baa1 with stable outlook.

The assigned rating is the highest for all years of the country's independence, and confirms the continued improvement of the institutional environment and the sustainability of the pace of economic diversification.

Olzhas Bektenov emphasized that the Government of Kazakhstan, together with the National Bank and the Agency for Development and Regulation of the Financial Market, intends to pursue a consistent policy aimed at achieving high-quality economic growth.

Ongoing reforms aim to further improve the effectiveness of fiscal policy, financial accountability and tax administration.

In turn, IMF Deputy Managing Director Bo Li noted that the Fund is committed to continuing the strong and constructive partnership with Kazakhstan aimed at growing Kazakhstan's economy and enhancing the welfare of its people.

To this end, regular policy advice on priority reforms and technical assistance provided by the IMF to the government agencies contribute to strengthening the institutional frameworks and private sector development.

At the end of the meeting, the parties confirmed their intention to strengthen the partnership across the entire spectrum of cooperation.

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03.12.2024, 17:14 4651

15 oil and gas blocks sold at electronic auctions this year - Ministry of Energy

At the Government session chaired by Prime Minister Olzhas Bektenov Deputy Minister of Energy Yerlan Akkenzhenov spoke about the work on the development of the geological industry in the field of hydrocarbons, primeminister.kz reports.

He noted that Kazakhstan has significant potential resources that remain unexplored or understudied. In order to improve the investment climate is systematic work to improve legislation in the field of subsoil use.

As part of the amendments adopted in 2023, norms were introduced in terms of: increasing the exploration period in exchange for additional investment in exploration; incentives for the development of depleted (mature) fields; refusal of a subsoil user from drilling based on the results of seismic exploration.

Admprocedures for subsoil use operations and expert examination of basic project documents were also optimised: a notification procedure was introduced for exploration projects at the prospecting stage, as well as environmental expertise after the sectoral expert examination of project documents.

In addition, the amendments to the legislation provide for the reduction of financial and administrative costs for subsoil users and the reduction of the time required to review documents.

In 2024, amendments to legislation on subsoil use are also planned. In particular, it is planned to provide a priority right to subsoil use to investors who carry out geological exploration in poorly explored areas at their own expense; to implement and develop areas in which there is no interest of national companies in the field of hydrocarbons.

The amendments are also aimed at limiting national companies to a 3-year period for submitting an application for direct negotiations from the date of inclusion of the relevant subsoil area in the programme of management of the state subsoil fund. In the absence of applications from national companies within the specified period, the site will be put up for auction.

In order to exclude speculative actions it is proposed to prohibit the alienation of subsoil use rights (share in the subsoil use right) during the first 3 years from the date of conclusion of the contract for exploration and production, since one of the conditions accepted at the auction is the obligation to perform geological exploration (drilling of wells) by the winner. At the moment the draft law is under consideration of the Government Apparatus.

In order to accelerate the involvement of fields in development, the transition from exploration to evaluation under one contract and from exploration to production under ten contracts was carried out.

Two electronic auctions were held this year, at which 15 sites were realised. The final size of the signature bonus was - 32.7 billion tenge, of which to date 9.1 billion tenge has been received by the budget. Investments in geological exploration totalled $82.5 million," Yerlan Akkenzhenov said.

Also, 56 prospecting projects approved by the subsoil user themselves have been submitted in a notification procedure. Thus, each subsoil user saved about two months to pass the state expertise of project documents. This allowed subsoil users to start performing field works faster. For 9 months of the current year subsoil users invested in geological exploration - 125.9 billion tenge.

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03.12.2024, 16:12 4821

Large international companies investments in geological exploration amounted to about 41 billion tenge

Minister of Industry and Construction Kanat Sharlapayev at the Government session spoke about the development of the geological industry of the republic, primeminister.kz reports.

He said that over the past 30 years, Kazakhstan has seen an increase in reserves of iron, manganese, gold, uranium, oil and gas. Kazakhstan's mineral resource base includes 987 deposits of solid minerals and the dynamics of their exploration remains positive.

The gold replenishment ratio is 1.2. This indicates that the volume of explored reserves for gold is greater than the volume of its production. For copper, the coefficient is 0.7. At the same time, subsoil users are actively exploring subsoil areas promising for copper," Kanat Sharlapayev said.

The Minister also reported that in Kazakhstan discovered promising areas of rare earth metals. Within the framework of the state geological study of subsoil, aimed at the development of the rare earth metals industry, prospecting work continues at 12 sites.

To date, there is already data on the prospectivity of the Kuirektykol site, the reserves of which are estimated at about 800 thousand tonnes of rare earth metals," Kanat Sharlapayev said.

According to the ministry, exploration of rare earth metals (REM) is carried out by private companies such as Cove Capital and HMS Bergbau. To ensure transparency and competitive access to the subsoil, legislative reform was carried out, the Code "On Subsoil and Subsoil Use" was adopted, and all available territory of Kazakhstan was opened for geological exploration. The general procedure for issuing licences based on the "First in, first out" principle has made it possible to attract private investment in geological exploration. Since 2018, 2,906 exploration licences and 111 production licences have been issued. Since 1991, with the introduction of the Subsoil Code, the granting of subsoil use rights has increased sixfold. Over the past five years, $1bn of private investment has been attracted in geology.

In order to increase investment potential, on 1 January this year transition to KAZRC standards on TPI was carried out, the international system of reporting standards on resources and reserves of solid minerals - CRIRSCO - was introduced. For 11 months of the current year, as a result of geological exploration work accepted reports on 58 deposits of TPI, prepared in accordance with the KAZRC Code.

The Minister of Industry and Construction also noted that Kazakhstan is actively introducing advanced methods of geological exploration. One of them is aerogeophysical surveys, which provide high-quality modern information on the structure of the subsoil and are essential data for attracting investment in subsoil exploration. The pilot project covers promising regions of Kazakhstan, including the Northern Pribalkhash and the Kalba-Narym zone. Further work on the digitalisation of geological data is planned as part of a separate project involving the use of innovative methods of information processing using artificial intelligence technologies. The application of artificial intelligence makes it possible to quickly and efficiently use the accumulated information on the country's geology and analyse the data to identify the country's prospects.

Also in May this year, a cooperation was concluded between Tau-Ken Samruk and Ivanhoe for joint geological exploration. The joint work will use Typhoon technology in Kazakhstan, which can identify copper, gold, silver deposits at depths of up to 1.5 kilometres," Kanat Sharlapayev said.

The reform and measures taken by the ministry have attracted major international companies to the country's geological exploration. The total investment of 10 companies totalled about 41bn tenge, which provided for exploration of more than 25,000km².

Fortescue, for example, is exploring 32 sites in the Aktobe, Karaganda, Abay and Zhambyl regions. Its investment in exploration totalled about 4bn tenge. RioTinto is exploring more than 10 licences in the Aktobe region. Over the period of the licences, the company has invested about 2.2 billion tenge in exploration. The Korean institute KIGAM together with Tauken Samruk has started studying lithium content in the Aral region. Also Barrick, BHP, Teck, First Quantum are actively carrying out subsoil exploration works to identify a deposit of international scale.

For the purpose of automation of subsoil use and geology spheres the work on creation of the Unified platform of subsoil use minerals.e-qazyna.kz is underway. International experience was studied and business process re-engineering was carried out. The model of the Finnish geoportal was taken as a basis.

Also an interactive map was developed, more than 66 thousand geological reports were placed and 6 functions were automated, including submission of subsoil users' reports in electronic form.

Work is actively carried out to popularise the profession of a geologist. The status of the departmental award "Yenbek sinirgen geologist" is deservedly raised to the status of a state award. There is an increase in the number of graduates of geological universities. In 2024, more than 3 thousand specialists graduated in the field of mining and geology. Moreover, in order to attract schoolchildren to geology, the Zhas Geologist Corporate Fund operates.

According to the recommendations of the World Bank, to increase the number of investors in the mining industry, the issue of introducing royalties is being studied within the framework of the draft of the new Tax Code.

Globally, the most popular taxation model for MMCs is to calculate payments based on the volume of products sold or profit. At the same time, Kazakhstan still uses the mineral extraction tax.

The introduction of royalties based on the sales value of minerals will be more transparent and familiar to players in the international mining industry. The transition to the new model will improve the clarity of the regulatory regime for potential investors. Under the new taxation, it is proposed to levy a lower tax on minerals processed domestically. I ask to instruct the Ministries of Economy and Finance to include royalty norms in the draft of the new Tax Code for subsoil users who received mining licences from 1 January 2026," Kanat Sharlapayev concluded.

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26.11.2024, 19:33 15311

1.2 thousand passenger cars planned to be purchased by year-end 2029 in Kazakhstan

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Minister of Transport of Kazakhstan Marat Karabayev at the Government session reported on the work being done to develop the railway industry and increase the transit potential of the Republic, primeminister.kz reports.

He noted that Kazakhstan is forming a network of effective transit transcontinental routes. On the territory of the country are 5 major international railway corridors that connect Chinese markets with Europe and Central Asia. Over the past 10 years, the volume of container transit along these corridors has grown almost 5 times. The volume of cargo traffic for 10 months increased by 3.5% to 263,400 thousand tonnes. Domestic traffic grew by 10.8%. The volume of transit freight traffic remained at the level of last year and amounted to 22.4 million tonnes. At the same time, container transit increased by 7.5%.

In order to further develop the industry, the Concept for the Development of the Railway Industry until 2029 was adopted. Within the framework of this document it is planned to work in the following 5 directions: renewal of rolling stock; development of junction points; development of mainline railway networks; improvement of tariff policy; development of passenger traffic.

The Minister added that work is now actively underway to increase the capacity of the TMTM and North-South transit corridors.

Due to the changes in the world of traditional logistics routes, the importance of the North-South corridor is growing day by day. The throughput capacity of the corridor is 10 million tonnes per year. The volume of cargo actually transported this year was 1.8 million tonnes. Given the potential of the corridor, it is planned to increase its capacity to 20 million tonnes," Marat Karabayev said.

For this purpose, as the Minister noted, in July this year the Road Map on synchronous development of the corridor with Iran, Turkmenistan and Russia was signed. In order to attract cargo traffic along this corridor Kazakhstan has provided special tariff discounts of 50% for transit transportations. In addition, work is underway to create a single logistics operator on the eastern route "North-South" similar to the United Transport and Logistics Company (UTLC).

It was noted that in the first 10 months of this year the volume of transportations along the TMTM corridor increased by 68% and amounted to 3.8 million tonnes.

The Minister also said that currently the total number of locomotive fleet is about 1.8 thousand units. The level of wear and tear is 61 per cent.

In order to provide rolling stock and reduce the level of wear of the fleet, 185 locomotives have been purchased this year. Next year it is planned to purchase 187 units, in the next three years it is expected to supply another 257 locomotives. This will completely eliminate their deficit," Marat Karabayev assured.

According to the Ministry of Transport, the total fleet of freight wagons is 139,000 cars. More than 300 private operators work in the market. Of these, Kazakhstan Temir Joly accounts for 38,000 wagons, which are involved in socially important transportations, i.e. in the energy sector of the country and the transport of coal supplied to the population.

Until 2026, the national operator additionally plans to supply 3 thousand gondola cars, of which 800 units have already been put into operation this year.

Special attention is paid to the passenger car fleet. Last year 118 new wagons were purchased, this year - 143 units. Next year it is planned to purchase 226 carriages. By 2029 it is planned to purchase about 1.2 thousand units of passenger cars. This will make it possible to increase the passenger car fleet to over 3 thousand units and reduce the level of wear and tear to 38%. To fulfil these tasks, it is proposed to create a united leasing company with the possibility of providing passenger cars of domestic manufacturers for lease with subsequent purchase," Marat Karabayev reported.

According to the Ministry, today there are 27 railway border points with five neighbouring countries. Of these, Dostyk, Altynkol and Saryagash stations in the directions of China and Central Asia fully use their capacity. To increase their capacity, work is underway to build additional tracks and parks, expand inspection points and terminal facilities. These measures will increase the throughput capacity of Dostyk and Altynkol stations by 2 times.

In addition, in order to further develop the transport and transit potential of the country, work is underway on the construction of 4 railway projects with a total length of 1,300 kilometres. Construction of the second tracks of the Dostyk-Moyinty railway section and the Almaty bypass line continues, and construction of the Darbaza-Maktaaral and Bakhty-Ayagoz railway lines has begun.

Implementation of these projects will increase the throughput capacity of Dostyk station up to 35 million tonnes and reduce the time of cargo transportation through Almaty station, unload Saryagash station, increase the throughput capacity up to 20 million tonnes in the direction of Central Asia and China.

In addition to the implementation of infrastructure projects, work is underway to develop the mainline railway network. By 2029, it is planned to repair 11,000 kilometres of railway sections, of which 2,800 kilometres have been repaired to date. It is also planned to build about 5,000 km of new and second tracks, to introduce autoblocking on 2,600 km, and to modernise 184 stations.

The tariff policy will be further improved for the timely implementation of projects aimed at the development of railway infrastructure. The interests of domestic producers will be fully taken into account.

The head of the Transport Ministry also said that 17.6 million passengers were transported in the first 10 months of 2024, which is 6 per cent more than in the same period last year. It is planned to transport 21 million passengers by the end of this year.

In order to create favourable conditions for transporting the population, modernisation of railway stations is required. Out of 59 main railway stations, 54 stations are in need of repair. To date, the stations in Kyzylorda, Shymkent, Pavlodar and Turkestan have been overhauled. For the rest of the stations the relevant technical documents are being developed, sources and mechanisms of financing are being worked out.

In general, the implementation of these measures will make it possible to increase exports by rail transport to 130 million tonnes by 2029, transit traffic to 45 million tonnes. Exports and imports by road transport are expected to grow by 2 times, transit by 6 times," Marat Karabayev summarised.

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08.11.2024, 13:22 33411

Olzhas Bektenov: Business needs to feel confident and able to expand and invest in tomorrow

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Prime Minister Olzhas Bektenov took part in the forum of small and medium-sized businesses, where the issues of current development of entrepreneurship were raised, measures taken to improve state support for domestic producers were noted, as well as ideas for further improvement of the business climate in the country were voiced, primeminister.kz reports.

More than 450 SME representatives from all regions of Kazakhstan took part in the forum. Attention was paid to the development of micro, small and medium-sized enterprises, increasing the share of in-country value, simplification of administrative procedures through digitalisation of services, implementation of investment projects, expansion of export potential of TNA, etc.

Olzhas Bektenov noted that within the framework of implementation of the tasks set by the Head of State in the Address "Fair Kazakhstan: law and order, economic growth, public optimism", the Government carries out comprehensive work to increase business activity and create favourable conditions for doing business.

Thus, in accordance with the introduced principle of regulation ‘from scratch’, since last year more than 10 thousand requirements preventing businesses from developing have been cancelled. Financial assistance measures are being implemented to support priority sectors of small and medium-sized enterprises. Within the framework of subsidies and partial guaranteeing on loans from second-tier banks, the coverage has increased 5 times since 2019 to over 150 thousand projects. At the same time, the amount of subsidies paid to them increased 8 times.

Overall, as a result of the comprehensive measures taken, the share of SMEs in the country's economy has increased to 37 per cent. More than 4 million people are currently employed in business. Over the past six months, SMEs produced 34 trillion tenge worth of products, an increase of about 20% compared to the same period last year.

The President has clearly stated that opening the way for domestic businesses and investors is one of the priority tasks of the Government and all state bodies. Our goal is to create an economy in which business will feel confident and will have the opportunity to realise their ideas, expand and invest in the future. For this purpose, it is important that every entrepreneur can count on open and prompt interaction with government agencies. In the context of global challenges and rapid technological progress, it is necessary not only to develop mechanisms to support entrepreneurs, but also to actively diversify the economy. And here the role of business is paramount," Olzhas Bektenov emphasised.

The effectiveness of support measures on the part of the state was noted on the example of agro-industrial complex. This year concessional lending for spring field and harvesting works has been increased 2.5 times and totalled 580 billion tenge, which allowed to obtain high yields for all types of crops. Prime Minister noted the prospects of achieving similar indicators in the SME sector. In this case, state support should be accompanied by counter obligations of business in the form of providing the domestic market with high-quality and inexpensive products, deep processing, creation of permanent jobs and gradual enlargement with a view to export.

A serious potential for the development of an SME belt around large businesses has been identified. Large enterprises should actively enter into long-term contracts with local companies. This will become an obligatory condition for receiving state support. Relevant instructions have been given to all development institutions.

This year, the Government has taken a number of decisions in terms of priority support for domestic producers. Today, the list of goods purchased by the state procurement in priority order from Kazakhstani commodity producers has been expanded 3 times to 4.5 thousand types. The amount of concluded contracts increased by 31% and amounted to 167 billion tenge. Changes have also been introduced in procurement procedures by large customers (Samruk-Kazyna Fund, subsoil users): this year more than 100 long-term contracts for the amount of 470 billion tenge and more than 260 off-take contracts for 134 billion tenge have been concluded with domestic commodity producers, which is 14 times more than in the same period last year.

Within the framework of the Year of Working Professions announced by the President, special attention is paid to the development of human capital, integration of science and production. Olzhas Bektenov urged businesses to focus on improving human resources, providing an effective base for student internships and employment of graduates through job quotas.

During the forum, the chairman of the Presidium of the Atameken NCE Raimbek Batalov reported on the development of the ecosystem of small and medium-sized businesses in the Republic of Kazakhstan. Social entrepreneur Zhanagul Zhaparova told about participation in the project "One Village - One Product", aimed at the development of the village through the production of the whole chain from raw materials to finished product. The heads of Kazelectromash LLP Vitaly Raspopin and Kubley LLP Zaure Berekesheva shared their experience in mastering high conversion and development of meat processing through the cluster approach.

On the margins of the forum Prime Minister got acquainted with the line of domestic products. Of particular importance for the economy are the projects implemented by Kazakh entrepreneurs throughout the production chain. On the example of the textile industry the Head of the Government was presented a number of enterprises, which are engaged in growing cotton, production of yarns and fabrics, as well as production of finished products, which are in demand both in the country and abroad. In this context Olzhas Bektenov emphasised the importance of the new approach to support projects according to the principle of creating clusters based on the direction of the region. Together with the business community were discussed issues, the solution of which will give an additional impetus to the development of SMEs. The Prime Minister gave a number of instructions to relevant ministries and organisations.

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04.11.2024, 12:37 33671

Olzhas Bektenov meets leading Chinese companies in Shanghai: $2.5bn agreements signed

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Prime Minister of the Republic of Kazakhstan Olzhas Bektenov as part of a working visit to the People's Republic of China took part in the Kazakh-Chinese investment roundtable with business representatives. In the city of Shanghai will hold talks with the Premier of the State Council of the PRC Li Qiang, scheduled to participate in the VII China International Import Exhibition, primeminister.kz reports.

The main purpose of the working visit is to implement the agreements reached between the President of Kazakhstan Kassym-Jomart Tokayev and the President of the People's Republic of China Xi Jinping on doubling the volume of bilateral trade turnover from the historical record of last year at the level of $41 billion.

The round table was attended by representatives of companies that are leaders in metallurgy, energy, machine building and automotive industry, carbon chemistry, agribusiness, pharmaceuticals and others. The Kazakhstan delegation was represented by the heads of relevant ministries and large domestic enterprises.

Prospects for the development of joint projects in priority sectors of the economy were considered. The participants of the meeting noted that trade and economic partnership between Kazakhstan and China is on the rise. Today about 5 thousand joint ventures are successfully operating in Kazakhstan.

Among the major joint Kazakh-Chinese projects are the construction of a plant for the production of soda ash together with Camc Engineering, the Sastobe chemical complex with Tianjin Cement Industry Design and Research Institute and a plant for the production of explosives with Yunnan Industrial Explosive Group. The construction of the CHANGAN, HAVAL, CHERY automobile production plant with a 90,000-unit capacity based on small-unit assembly is nearing completion. An Investment Agreement for the production of Geely, Exeed, KAIYI passenger cars for $150 million with the creation of 1,000 jobs has also been signed. The projects make it possible to create technological enterprises capable of producing high-quality domestic products. These indicators, according to the business communities of the two countries, confirm the sustainability and productivity of bilateral partnership.

The head of the Government of the Republic of Kazakhstan noted that joint work in this direction continues, and the existing potential of trade relations demonstrates the prospects for further diversification of trade turnover and expansion of investment cooperation.

Today the cooperation between our countries is developing on an upward path. In accordance with the task set at the highest level, we intend to double our mutual trade indicators in the near future. Kazakhstan and China have huge potential for the realisation of joint investment projects. Together we can open new horizons for interaction and increase the effectiveness of cooperation. To this end, we should actively work to expand transit opportunities, strengthen industrial cooperation and build ties between our business communities. The Government of Kazakhstan is ready to expand partnerships and build strong bridges between our nations. We will provide support to investors, creating favourable conditions for business and contributing to the success of each project. I am convinced that thanks to our joint efforts, new investment initiatives will give a powerful impetus to the development of the real sector of the economy, its diversification and improvement of the quality of life of our citizens," Olzhas Bektenov said.

Prime Minister stressed that an important priority for the country is the development of industry and urged Chinese companies to closer partnership with the Kazakhstani business community.

In turn, during the dialogue, representatives of leading Chinese companies showed interest in Kazakhstan as a reliable partner for the implementation of strategic projects.

Executive member of the Board of Directors of China Huadian Corporation Zu Bin in his speech reported on the expansion of cooperation with Kazakhstan in the field of energy, including emissions reduction; acting CEO of CHN Energy Investment Yan Guochun informed about plans to launch the first coal-chemical complex in Kazakhstan; Chairman of the Board of Directors of Beijing Jianlong Heavy Industry Group Zhang Zhixiang about the development of cooperation in the steel industry; Chairman of the Board of Directors of Zijin Mining Group Chen Jinghe reported on plans for the implementation of projects in the region of Kazakhstan.

Vice President of CP Pharmeceutical Group Xie Lei on investment in the creation of a cluster in the field of medicine; General Director of Beiqi Foton Motor Wu Xibin on localisation of production in the automotive industry in the Republic of Korea; Chairman of the Board of Directors of ACRE Engineering Consulting Company Yang Zhuni informed on cooperation in the field of technology transfer; General Director of Sinotruk International Zhao Hua informed on plans to localise production of high-quality automotive trucks in the Republic of Korea.

Chairman of the Board of Directors of Darwin Biotech Co., Ltd. Chen Jianheui shared his intentions to expand cooperation with Kazakh partners in the field of crop production; Chairman of the Board of Fujian Hengwang Investment (metallurgy) Zeng Zhaojiang reported on plans to implement an industrial project in Zhambyl region.

During the visit to the office of SenseTime, the Kazakh delegation was presented with new solutions and equipment used in smart and safe city projects.

As a result of the meeting, 8 commercial agreements totalling $2.5bn were signed.

Agreement on cooperation between Samruk-Kazyna Invest LLP, QAZAQGAZ AIMAQ JSC and Goldcard Smart Group Co., Ltd. in the field of implementation of smart systems for the amount of $8 million. The project involves small-node assembly of gas meters on the territory of FEZ PIT ‘Alatau’ in Almaty from components supplied by GoldCard, taking into account the localisation of components;
Agreement between Qarmet JSC and Zhengzhou Coal Mining Machinery Group in the field of production of equipment for coal industry on purchase of mechanised complexes for mines of the coal department of Qarmet JSC for the amount of $70 mln;
Memorandum of Understanding on establishing the framework for investment cooperation between the Ministry of National Economy of the Republic of Kazakhstan, China State Investment Fund Silk Road Fund Co.Ltd. and Kazakhstan Investment Development Fund (KIDF) Management Company Ltd. for the amount of $552 million;
Agreement between Qarmet JSC and Xinxing Ductile Iron Pipes Co., LTD on construction of a plant for production of high-strength cast iron pipes with spheroidal graphite with a capacity of 200 thousand tonnes per year in the Republic of Kazakhstan for the amount of $161 million. The products are intended for projects on construction, modernisation, reconstruction, expansion and renovation of facilities of the housing and communal system of the Republic of Kazakhstan;
Agreement between Qarmet JSC and China Metallurgical Group Corporation to establish long-term and comprehensive cooperation in the mining and metallurgical industries for the amount of $1 billion;
Agreement between Qarmet JSC and ACRE Coking & Refractory Engineering Consulting Corporation on implementation of the strategic project on modernisation of coke-chemical production and development of coal chemistry for the amount of $649 mln;
Agreement between Qarmet JSC and Nanjing Fiberglass Research & Design on construction of a factory for production of mineral insulation from blast furnace slag in Temirtau for the amount of $30 million, with a capacity of 100 thousand tonnes of finished products per year and creation of 200 new jobs;
A package of agreements between Saran Machinery LLP and Sinotruk International on cooperation in distribution and assembly of KDs, technology licensing and use of trademarks for the amount of $70 million. Among them is a Memorandum on the implementation of a project in Saran for the production of cargo and special-purpose machinery, under which it is planned to create about 1,000 new jobs in the future.

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01.11.2024, 15:05 174286

Olzhas Bektenov and Li Xuechun, Head of Fufeng Group, discuss new project on deep processing of Kazakhstani agricultural products

Prime Minister of Kazakhstan Olzhas Bektenov discussed with the Chairman of the Board of the Chinese company Fufeng Group Li Xuechun cooperation in the field of agro-industrial complex and coal chemistry. Attention is paid to the issues of long-term investment cooperation with emphasis on deep processing, primeminister.kz reports.

Fufeng Group Company Limited is a world leader in the bio-fermentation industry, specialising in the production of amino acids and their derivatives, as well as research and development in this field. The company is the largest producer of monosodium glutamate and xanthan gum in the world.

Fufeng Group's proposal to create a vertically integrated industrial park in Kazakhstan for deep processing of corn, including starch sugar and amino acid fermentation plants, as well as a coal-fired thermal power plant and a wastewater treatment plant, was discussed.

Deep processing of wheat and corn allows to obtain products with high added value such as starch, amino acids, monosodium glutamate and xanthan gum, the price of which is 10-15 times higher than the cost of raw materials. The project will create 1,000 jobs and investments will amount to about $300-350 million.

Li Xuechun stressed the company's readiness to participate in the process of growing crops, provide quality fertilisers and share experience in modern agricultural technologies with Kazakh specialists. The investor also expressed interest in co-operation in the coal-chemical sector.

The Head of the Government of Kazakhstan noted the importance of investment in the agro-industrial complex as part of achieving the goal set by the Head of State to ensure economic growth.

Kazakhstan seeks to increase the production of products with high added value, and the construction of complexes for deep processing of grain is a priority. This is a strategic direction that allows us to diversify the economy and expand export opportunities. We have everything we need for this: infrastructure, raw material resources and government support measures. The project will be a good example of value-added creation in the agro-industrial sector and introduction of advanced technologies. The Government will provide the necessary support," Olzhas Bektenov said.

The emergence of such a major player in the Kazakh market as Fufeng Group will contribute to the diversification of agricultural crops, especially in the northern grain-growing regions. Planned by the company conclusion offtake contracts with Kazakhstani farmers will provide guarantees for effective co-operation.

Following the results of the meeting Prime Minister instructed the Ministries of Agriculture, Industry and Construction to urgently start preparing an investment agreement with Fufeng Group.

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Olzhas Bektenov and Deputy Managing Director of the IMF Bo Li discuss financial and economic cooperation issues

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