"Kazakhstan Mining Report Q2 2011" is now available at Fast Market Research

PRLog (Press Release)– Apr 06, 2011– We forecast the value of Kazakhstan's mining industry to grow at an average annual rate of 8.9% in real terms from 2011 to 2015 to reach US$61bn at the end of the period, more than double the estimated value of US$25bn in 2010. Growth will be led almost exclusive buick ly by the coal, bauxite, iron ore and copper sectors, which together account for the majority of the value of Kazakhstan's mining industry. Recent developments suggest that the industry will account for 20.1% of nominal GDP in 2015, from 18.7% currently.

Regulatory Environment

The constitution of the Republic of Kazakhstan vests ownership of mineral resources in the state. The constitution states that land may be privately owned, but underground resources are state property. The controlling body for the mining industry is the Ministry of Energy and Mineral Resources. Given the strategic and economic importance of the mining sector, the government is supportive of the industry and institutes a generally positive investment climate, although it has also shown that it will intervene when necessary. For instance, in October 2010, the government suspended a proposed takeover deal between Russian gold miner Polyus Gold and Kazakhstan's leading gold miner KazakhGold due to contractual violations and allegations of fraud. Additionally, the government raised tax rates earlier in 2010 when metal prices were high and miners were making substantial profits.

Key Players

Kazakhstan's mining sector is dominated by state-owned entities Kazakhmys and Eurasian National Resources Corp, zinc-focused Kazzinc and gold producer KazakhGold. In the coming years, we expect the sector to become more competitive and increasingly fragmented, with the influx of foreign companies encouraged by the vast po alf chevrolet a romeo tential of the country's mining sector.

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