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About KZT800 billion of private investment will be attracted to the development of geologic exploration in the Republic of Kazakhstan until 2025

A draft Concept of the State Geological Exploration Program for 2021-2025 was reviewed at the Government meeting, chaired by the Prime Minister Askar Mamin.

The Concept was presented by the Minister of Ecology, Geology and Natural Resources Magzum Mirzagaliyev. The President of the Kazakhstan Society of Petroleum Geologists Baltabek Kuandykov, Commercial General Manager of Shell Kazakhstan Aidan Murphy, Director General of Kazakhmys Barlau Galym Nurzhanov, Akims of East Kazakhstan region Danial Akhmetov, Karaganda region - Zhenis Kasymbek, the Chairman of the Board of NWF Samruk-Kazyna JSC Akhmetzhan  Yesimov, the Deputy Prime-Minister of the Republic of Kazakhstan Roman  Sklyar reported on the importance of this issue and approaches to the development of geological exploration in the Republic of Kazakhstan.

The State Geological Exploration Program for 2021–2025, which is under development, will be aimed at ensuring geological exploration of the territory of Kazakhstan, replenishing the mineral resource base (increase in mineral reserves), scientific and research support for geological exploration of mineral resources, automation and digitalization, development of infrastructure and staffing for the geological industry, and also ensuring the socio-economic well-being of the country's population.

For the implementation of the state program, it is planned to allocate about KZT200 billion from the state budget, as well as attract about KZT800 billion of private investment.

The implementation of the State program will increase the geological exploration of additional areas from 94.5% to 100%, deep, geological and mineralogical mapping from 25.8% to 37%, reveal about 50 promising areas of solid minerals, increase the coverage of geological exploration of sedimentary basins: developed - up to 60%, poorly explored - up to 10%.

The growth of forecast resources is expected, including gold - 200 tons, copper - 5 million tons, polymetals - 5 million tons, uranium – 50,000 tons, hydrocarbons - 700 million tons. The number of employees in the geological exploration sphere will increase from 190,000 to 250,000 people.

“The First President of the Republic of Kazakhstan, Elbasy Nursultan Nazarbayev, set the task of increasing the efficiency of traditional extractive industries and bringing Kazakhstan to the world geological exploration market. The Head of State Kassym-Jomart Tokayev instructed the Government to develop a state exploration program. The oil and gas and mining and metallurgical sectors must be provided with a sustainable raw material base. Existing deposits are gradually being exhausted. Moreover, at present, the territory of Kazakhstan is explored only by 25%”, said Askar Mamin.

The Prime Minister emphasized that the effective implementation of the State Geological Exploration Program will allow attracting additional private investments of up to 4 tenge per 1 invested tenge. Replenishment of the country's mineral resources base, in particular, near monotowns (single-industry towns), will have a positive impact on the economy and become a real basis for the development of industries.

“When the fields are discovered, new production complexes will be created, which will attract up to KZT6 trillion of investments and create about 20,000 additional jobs”, Askar Mamin emphasized.

The Prime Minister noted the need to use new methods of geophysical research and remote sensing of the Earth when conducting geological exploration.

The Prime Minister instructed the Ministry of Ecology, Geology and Natural Resources by May, 31 of this year to submit the draft state program for consideration in the Government.