Precious metals
Precious metals are represented by silver, gold and other metals (osmium, palladium, iridium, rhodium) of the platinum group. Industrial gold and silver mining is carried out in Northern, Southern, Central and Northeastern Kazakhstan.
The extraction of precious metals and their subsequent extraction are one of the main sources of replenishment of the gold and foreign exchange reserves of the Republic of Kazakhstan. It is this precious metal that is most valued in the world and the maximum efforts of the country are directed at its production.
As of June 1, 2022, according to the World Gold Council, Kazakhstan had gold reserves in the amount of 3,734 tons, which provided the country with the 14th place in the global ranking of leading countries in this indicator. It is important to note that in the first quarter of 2022, Kazakhstan was the leader among the Central Asian countries in terms of gold reserves.
According to the Ministry of Industry and Construction of the Republic of Kazakhstan, about 33 million tons of ore and 66 tons of refined gold were mined in Kazakhstan in 2021.
Some of the mined gold is exported to other countries, including Kyrgyzstan, Russia, Uzbekistan and Italy. According to the National Bureau of Statistics, in the first nine months of 2020, foreign trade in gold bullion and rough forms increased by 18% compared to the same period in 2019. The main volume of exports fell on Kyrgyzstan — $46 million. Other export destinations include Russia ($2,356 thousand), Uzbekistan ($34 thousand) and Italy ($125 thousand).
Gold deposits in Kazakhstan
Kazakhstan’s gold deposits are distributed throughout the country, but the most significant of them are in the East Kazakhstan and Akmola regions. In total, there are about 300 deposits in the republic.
The largest gold assets of Kazakhstan today are the Vasilkovskoye and Bakyrchik deposits. The Vasilkovskoye deposit has proven gold reserves in the amount of about 370 tons, while the gold content in the ore is 28 grams per ton.
The Bakyrchik deposit is inferior to Vasilkovsky in terms of reserves, which is 326 tons, but the gold content is higher here — 77 grams per ton.
The main players in the gold mining market
The largest gold producers in Kazakhstan are Kazzinc, Polymetal and Altynalmas. These enterprises produce a total of about 40 tons of refined gold per year, which is more than 60% of the total production of the precious metal in the country.
The first place among Kazakhstani gold mining companies is occupied by Altyntau Kokshetau JSC, a subsidiary of Kazzinka. The company is developing the largest gold deposit in the country — Vasilkovskoye.
The gold-bearing ore from this deposit is sent to a processing plant for processing and production of the Dore alloy. The obtained Altyntau Kokshetau alloys are sent to the refining plant of the Ust-Kamenogorsk Metallurgical Complex. On average, the company produces up to 400 thousand troy ounces of gold per year.
The second position is occupied by Polymetal, a holding company engaged in gold mining both in Kazakhstan and in Russia. In Kazakhstan, the company implements two projects: Varvarinskoye (Kostanay region) and Kyzyl (East Kazakhstan region). In 2021, the Varvarinskoye field produced 36 million tons of ore, which is equivalent to 198,000 ounces of gold.
AK Altynalmas JSC closes the top three, developing 9 gold deposits in the country. The company processes the extracted ore at its own gold extraction plants Dolinnoye, Aksu and Akbakai. The company produces up to 370 thousand ounces of gold per year, processing ore at its own gold recovery plants.
Prospects of the gold mining industry in Kazakhstan: By the end of 2023, it is planned to complete the construction of five new gold extraction plants in Kazakhstan, which will add 148 tons of gold in the Dore alloy to the national production. By 2024, the growth of precious metal production in the country may reach 12.5%.