Publication: Kazakhstan : Strategic Review of the Mining and Metallurgy Sector
Loading...
Published
2002-09
ISSN
Date
2013-08-26
Author(s)
Editor(s)
Abstract
Kazakhstan is exceptionally endowed with petroleum, and mineral resources. However, since independence, the vast majority of new investment in the sector has been devoted to petroleum, while, new investment in the mining, and metallurgical sector has not been commensurate with the country's geological potential, or with the importance of a sector accounting for over thirty percent of total export earnings, ten percent of GDP, and nineteen percent of total industrial employment. The study focuses on the minerals legislation, and regulation as the corner stone of development of the mining, and metallurgy sector, governing access by the private sector to mineral rights, highlighting the country's fundamental problem, i.e., the confusion of the mining and metallurgy, with the oil/gas sector, pointing that the economics of the two sectors are entirely different. It outlines the tendering system for blocks of geologically prospective ground contemplated in the legislation, while a practice extensively used in oil/gas industry, is quite uncommon in mining/metallurgy, actually proven an unsuccessful practice. Moreover, mining taxation as applied to mining and metallurgy is fundamentally unattractive to new investment, and not competitive internationally. In order to fairly administer the legislation, public institutions are essential, where the focus should be on funding, logistical support, and training of professionals, thus far insufficient for long term sustainability. It is recommended that government proceed with a responsible program of divestiture, such as the reactivation of the "blue chips" program, and include environmental, and infrastructure considerations.
Link to Data Set
Citation
“World Bank. 2002. Kazakhstan : Strategic Review of the Mining and Metallurgy Sector. © World Bank. http://hdl.handle.net/10986/15359 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Albania : Mining Sector Reform, Restructuring and Future Prospects(World Bank, 2009-06-01)This report provides a concise overview of the current situation of the mining sector in Albania. It evaluates the major events that took place in the last two decades (especially regarding the privatization process), and examines its governance, overarching policies and its legal frameworks that have guided the sector development. Having identified the weaknesses and difficulties that the sector faces, the report then suggests an outline for a comprehensive reform program. The main findings in this regard are related to: improving sector governance; improving regulatory effectiveness; strengthening the technical capacities; addressing environmental and social legacy, and community benefit sharing issues; and sustaining sector growth through sector promotion. The report also summarizes an evaluation of the mineral legal and regulatory environment, in order to inform an overall reform strategy and to identify commodities and/or resource areas of particular interest going forward, 'low hanging fruit' that might offer new growth opportunities. The overall conclusion of the report is that sector reform should emphasize new Greenfield resource potential through generative exploration by smaller and medium-sized international 'junior' mining companies. New resource development will be undertaken within a strengthened governance framework reinforced by a competitive, transparent, stable, non-discretionary regulatory regime. Although now highly fragmented, existing operations will be improved with the introduction of new operations performing to international good practice. Additionally, the private sector should be enabled to consolidate license holdings under improved regulatory enforcement that prevents licenses being held for speculation without intention to undertake meaningful investments that will result in development.Publication Transitional Islamic State of Afghanistan : Mining as a Source of Growth(Washington, DC, 2004-03)This Note examines the potential of the mining sector to be a source of growth for the Afghanistan economy. In order to address this fundamental and strategic issue, this Note will ask and provide answers to three principal questions. First, what is the potential in Afghanistan for large and small scale minerals development? Second, given the potential, what are the constraints for development of the sector in terms of the enabling environment (policy, regulatory, taxation) for private investment, institutional capacities, infrastructure and other constraints? And, third, what would be a reasonable sector development scenario over the next five years and what could be the benefit streams (production value, taxes, jobs, value added, etc.) generated under such a scenario? It is intended that the Note serve as a baseline document to help the government reflect on sector policies and strategies and to provide a "roadmap" for development of the sector. The roadmap will help the government to know where it wishes t o go, how it intends to get there, what obstacles and impediments it may face along the way, and what it can reasonably expect to receive in terms of economic and social impacts. This, in turn, will serve as the basis for the development of enabling legislation and fiscal mechanisms for the sector as well as for institutional strengthening required to stimulate investment.Publication Sierra Leone : Tapping the Mineral Wealth for Human Progress, A Break with the Past(Washington, DC, 2005-07)Political instability and lack of an enabling and internationally competitive environment conducive to attracting investments particularly affected the mining sector. Excessive government control and attempts to raise higher foreign exchange and fiscal revenues from artisanal diamond activities were detrimental to artisanal mining development. The study provides an assessment and analysis of the economic and social importance of the mining sector in Sierra Leone and its impact on economic outcomes. It makes recommendations and identifies an action plan for mining sector revival and development. The Government presented this report to the stakeholders, including its international development partners, at a workshop in May 2003. The outcome of the discussions and recommendations is reflected in the report. The resulting report was subsequently discussed in a second national workshop during January 2004. Since January 2003, the Ministry of Mineral Resources has focused on a number of fronts including: formation of a core mineral policy; deepening the policy work through a review of the mineral and regulatory framework; efforts to improve the development of basic mapping geo-information; completion of the initial work required for improved administration and management of mineral rights through a cadastre system; improvements in productivity, safety, and environmental conditions of mining activities; increased transparency in mineral sector revenues through the Extractive Industries Transparency Initiative and Kimberley Process; and improved social conditions in the mining areas. These efforts have led to positive results. Among the most notable are the sharp rise in diamond exports, the rehabilitation of a rutile mine initiated in May 2005, the current assessment of the possible reactivation of the existing bauxite mine during 2005; and a significant increase in mineral exploration.Publication Malawi - Mineral Sector Review : Source of Economic Growth and Development(World Bank, 2009-07-01)This mineral sector review examines the mineral sector as a potential source of growth and development in Malawi. In seeking the World Bank's assistance the Government of Malawi was particularly interested in confirming the potential for mineral sector growth, identifying which constraints to the development of the sector need to be addressed by the Government and suggesting strategies to foster a positive contribution by the mineral sector to sustainable development and poverty reduction. This report is organized into four chapters. Chapter one examines the potential for mineral sector growth in the short, medium and long term and indicates the direct and indirect economic and development benefits that could result. The remaining chapters address constraints that could prevent the mineral sector's full potential from being realized, especially those that can be addressed by government action, focusing on the development of efficient and effective legal, regulatory and institutional arrangements for managing the mineral sector (chapter two); the design of robust mineral revenue generation and management regimes (chapter three); and the creation of sound arrangements for the environmental and social management of the mineral sector (chapter four). Each chapter concludes with a summary of the main findings and recommendations for action with an indicated timeframe.Publication Kyrgyz Republic : Update on the Mining Sector(Washington, DC, 2002-09)The study, discussed at large with the Government of the Kyrgyz Republic, outlines several development objectives envisaged for the mining sector, namely, to maintain production, and social well-being at existing "kombinats"; to create competitive legal, and fiscal conditions, attractive to private sector investment; to increase the value added of the sector in terms of taxes, jobs, and induced spin-off industries; to sustain the sector's socioeconomic, and environmental performance; to provide acceptable conditions for closure of non-viable operations; and, to create a professional organization of public institutions. However, and despite government efforts to achieve the objectives, the study finds most of these are not being met. On reviewing the macroeconomic indicators for the country's mining sector, though some have increased since 1994, by and large are deceiving: employment in the sector has decreased, and, tax revenues are actually negative, implying a subsidy by the central treasury to the sector. Virtually all growth in the sector results from the Kumtor gold mine opened in 1997. Notwithstanding external factors outside government's control (price of gold) the study finds poor performance in the sector is due to deficiencies in the policy, legal and regulatory framework, and fiscal and institutional conditions pertaining to the industry. Findings point at the fundamental error by the Government, in taking direct equity participation in mining ventures, suggesting new tax policies to invert the excessively generous tax concessions, i.e., to apply a value added tax. Moreover, a revision to the Mining Law is essential, to provide easier access for exploration rights, and mining titles, including new legislative proposals, while strengthening institutions, professional competencies, environmental protection, and, adopting the United Nations Reserve Resources Classification system.
Users also downloaded
Showing related downloaded files
Publication Comoros Country Climate and Development Report(Washington, DC: World Bank, 2025-06-18)The Union of the Comoros (The Comoros) has significant vulnerability to climate change-related risks but has considerable opportunities to strengthen preparedness and resilience against these challenges. According to the Notre Dame Global Adaptation Index, the Comoros is the 29th-most vulnerable country to climate change and the 163rd most ready to adapt (out of 191). The Comoros archipelago is exposed to many natural hazards that adversely affect the country’s natural capital, people, and physical infrastructure. In 2014, the economic cost of climate-related disasters was estimated at 5.7 million dollars annually, equivalent to 9.2 percent of Gross Domestic Product (GDP). Between 2018 and 2023, as many as 11 tropical depressions or cyclones impacted the country, with Cyclone Kenneth causing the greatest damage, equivalent to 14 percent of GDP, resulting in total economic growth falling from 3.6 percent in 2018 to 1.9 percent in 2019. More than 345,000 people (40 percent of the population) were affected by the cyclone, with 185,000 people experiencing severe impacts and 12,000 people displaced. However, there is an opportunity for the country to grow more robust and shock-responsive, and to establish pre-positioned funding mechanisms to enhance future crisis response efforts. For the Comoros, adaptation and climate-resilient development are the key climate change focus areas, with the country projected to face 836 million dollars 2050 in additional costs due to climate-related impacts. Current plans to adapt to the impacts of climate change in the Comoros include efforts to improve water management, strengthen coastal protection, and develop climate-smart agriculture practices. Given the country’s reliance on its natural resource base for economic growth and mobility, protection of these resources from climate change will be essential for promoting resilient growth and development. In addition to growing the adaptive capacity of the country’s natural resource sectors, strategic economic diversification will be important to help minimize future climate impacts, and development activities will need to be undertaken in such a way as to attract low-carbon co-benefits. The Union of the Comoros is committed to addressing climate change through its Nationally Determined Contribution (NDC) and national priorities. The country’s NDC (which was revised in 2021 for a ten-year horizon) sets ambitious targets, with a goal of reducing greenhouse gas emissions by 23 percent by 2030. The country also plans to significantly increase the share of renewable energy in its energy portfolio, reaching 33 MW by 2030. This will not only promote low-carbon development but also reduce the country’s dependency on imported oil and coal, which currently make up 95 percent of the energy mix. Additionally, the Comoros has declared its intention to increase CO2 removals by 47 percent by 2030, compared to BAU.Publication Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies(Washington, DC: World Bank, 2025-11-05)The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.Publication Kyrgyz Republic Country Climate and Development Report(Washington, DC: World Bank, 2025-11-03)This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.Publication Guinea-Bissau Country Climate and Development Report(Washington, DC: World Bank, 2024-10-23)Guinea-Bissau is endowed with a wealth of natural resources, with the highest natural capital per capita in West Africa (US3,874 dollars per capita), which could be leveraged for sustainable and resilient growth. However, Guinea-Bissau faces significant development hurdles, such as high poverty rates, political instability, and economic challenges, including an over-reliance on cashew nuts. Rural poverty has increased, and the nation's infrastructure, education, and health care systems are underdeveloped. Climate change poses a severe threat, potentially impacting agriculture, fisheries, and infrastructure. Without adaptation, it could lead to a significant cut in real GDP per capita (minus 7.3 percent by 2050) and increase in poverty (with up to over 200,000 additional poor by 2050, that is, 5 percent of the expected population, in the worst scenario). The country's low greenhouse gas emissions are expected to rise, mainly due to agriculture and land-use changes, with deforestation being a major contributing factor. Although Guinea-Bissau is a low emitter, it has high mitigation ambitions, targeting a 30 percent reduction in greenhouse gas emissions by 2030. The Nationally Determined Contribution outlines significant climate actions, with initiatives focused on forest conservation, sustainable agriculture, and community development. However, the country's political instability, institutional weaknesses, and limited financial resources pose challenges to implementing these climate commitments, which depend heavily on external funding. The financial sector's underdevelopment and vulnerability to external shocks limit its ability to support green investments, though reforms could enhance resilience. Guinea-Bissau must consider its climate financing as development financing and vice-versa, engage the private sector, and integrate climate goals with national development plans to ensure a sustainable future. Concessional climate financing is vital due to the underdeveloped financial sector and the government’s limited borrowing capacity. Addressing Guinea-Bissau's vulnerability to climate change and its structural issues requires a cohesive approach that integrates development and climate strategies. This could involve improving governance, diversifying the economy, protecting natural capital, developing human capital, and investing in sustainable agriculture and infrastructure. The transition to a more sustainable and inclusive development pathway that supports economic growth is possible, but requires focusing on key strategic sectors, enhancing institutional capacity, and creating the conditions to mobilize finance. As a highly vulnerable country, there are myriad needs in the different sectors; however, to be more efficient and effective, Guinea-Bissau should prioritize actions in a few sectors, especially actions on biodiversity, agriculture, and social protection. Low carbon development, especially in energy and forestry sectors, could provide cost-efficient solutions and attract climate finance, including from the private sector, which will support the overall development agenda.Publication Mongolia Country Climate and Development Report(Washington, DC: World Bank, 2024-10-22)Mongolia’s development prospects are uniquely challenged by both the impacts of climate change and the global shift toward a low-carbon economy. The country’s efforts toward decarbonization pose significant challenges given the structurally high-emission intensity of its economy. While challenging, climate action also presents Mongolia with opportunities to achieve important development benefits. The effects of climate risks and the shift away from coal will have diverse impacts across different regions, communities, and socioeconomic levels. The report assesses the critical interconnections between Mongolia’s development ambitions and climate change action and identifies ways to transition to a more economically diversified, inclusive, and resilient development path. It highlights key climate and transition risks affecting Mongolia’s future development and presents a pathway to enhance climate mitigation and adaptation. The report also makes a case for strengthening policies to enhance resilience to climate change and ensure a just transition, particularly for the most vulnerable. The report is structured as follows: section 1 gives introduction. Section 2 delves into the linkages between development and climate in Mongolia and presents model-based findings on the economic and poverty impacts of climate change under different scenarios. Section 3 covers four in-depth sectoral analyses. The first two mainly focus on adaptation to climate change in the agriculture and water sectors. The third considers prospects for the extraction sector, while the fourth sectoral analysis focuses on decarbonizing power and heat generation. Section 4 shifts the focus to how the government can boost resilience for climate-vulnerable populations. Section 5 outlines options for mobilizing private and public financing and private investments to support the green transition. Section 6 examines the existing institutional and governance structure for climate action and presents recommendations to improve its effectiveness, and section 7 concludes with a framework for prioritizing the policy actions outlined in this report.