Kazakhstan Expects a Decline in Mineral Reserves due to Geological Exploration Problems
Minister of Industry and Construction of the Republic Kanat Sharlapaev noted that state expenditures on geology are at a fairly low level
Kazakhstan needs serious development of geological exploration in order to avoid a decrease in proven mineral reserves, which is predicted in 5-10 years. This was stated at a briefing in Astana by the Minister of Industry and Construction of the Republic, Kanat Sharlapaev, answering a question from a TASS correspondent.
“We need to make every effort to geological exploration, since the level of current reserves [of minerals], their development, creates a situation where our proven reserves will decline in the next 5-10 years,” the minister said.
He noted the insufficient development of the geological exploration industry. “Unfortunately, government spending on geology is at a fairly low level, about $8 per hectare, which is quite low compared to other countries, even our closest neighbors. We must increase the influx of private investment and government investment in exploration,” – Sharlapaev emphasized.
Previously, the government of Kazakhstan has repeatedly noted the low replenishment of reserves in the republic due to the insufficient development of the geological exploration industry.
Development concept
At the end of 2022, the Cabinet of Ministers approved the concept for the development of the geological industry of Kazakhstan for 2023-2027, according to which it is planned to include geological exploration in national priorities. In particular, new mechanisms will be developed in the republic that will increase the level of public and private investment in mineral exploration by 2029 to $300 per square meter. km.
Kazakhstan is a major exporter of energy raw materials, ferrous, non-ferrous and precious metals. In particular, Kazakhstan accounts for 41% of the world’s uranium and 16% of chromium.
According to the Kazakh authorities, the extractive sector of the economy provides about 30% of the republic’s GDP. In general, the mineral resource complex accounts for up to 70% of GDP and provides the republic with the majority of foreign exchange earnings.
