Kazakhstan Mining Report Q1 2011: New research report available at Fast Market Research

Jan. 27, 2011 - PRLog -- Good H110 returns from Kazakhstan's biggest mining companies, including ENRC and Kazakhmys, have  contributed to halting the decline the industry suffered in 2009. The mining sector that has been growing, albeit  erratically, over the past decade suffered a contraction of 12% last year, largely as a result of global economic  conditions. BMI expects the situation to stabilise this year with a return to growth of 7% forecast for 2011 and  similar annual growth levels through to 2014.  With demand for Kazakhstan's mineral wealth likely to increase in the next decade, the country looks set to  benefit from a healthy and vibrant mining sector, but warning bells are being sounded that the government  would do well to listen to. The results of the Fraser Institute's 2010 mid-year update of its Survey of Mining  Companies are worrying for the industry. It shows that Kazakhstan has fallen considerably in the ratings of  areas favourable to mining business operations. It is now in 49th out of 51 rated regions - ahead of only  Mongolia and Ecuador. Given that Kazakhstan has dropped from 33rd place and a score of 42.8 to 8.0 points for  mining company executives in just one year begs the question of why it is fallen so far and so fast.  There is little doubt that foreign investors are watching the political situation in Kazakhstan with some concern.  President Nursultan Nazarbayev has been in power for 21 years and the current term ends in 2012. There is no  ban on him running again and he is likely to be re-elected, but there has been in-fighting among the political  elite, periods of instability and changes of asset ownership following shifts in political power. Other former  political insiders have fled the country and there is a feeling among potential foreign investors of instability and  conflict in Kazakhstan.  There are also fears of resource nationalism. Oil and gas companies that have invested in the development of  Kazakhstan's resources now feel they are being squeezed and contractual agreements are being ignored. The  imposition in August of new export duties for oil companies despite an agreed tax stability accord, and the  announcement in June by Prime Minister Karim Massimov that other commodities would face new duties,  have raised concerns in the mining industry. At the time of writing, the threat on new duties in 2010 appears to  have receded but the situation has created a climate of uncertainty that is hardly conducive to long-term  business planning or investment.  Observers have also watched the way Russian mining company Polyus Gold's buyout of Kazakhgold and the  plan for a US$10bn listing on the London Stock Exchange has unravelled. A deal that had already been  approved by the government went sour when Polyus accused the powerful former owners of Kazakhgold of  'substantially inflated' production figures. The government annulled the sale of shares, froze Polyus' bank  accounts and the deal is subject to a US$450mn lawsuit in the London courts.  This sort of manoeuvring and uncertainty has greatly harmed Kazakhstan's reputation and the government may  find that in future, international investors are more wary. In a country where the mining industry is worth up to  US$23.89bn and makes up 19% of the GDP, the government may need to start listening to the messages that  are being sent.

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Report Table of Contents:

SWOT Analysis
- Kazakhstan Pharmaceuticals And Healthcare SWOT
- Kazakhstan Political SWOT
- Kazakhstan Economic SWOT
BMI Industry View
- Kazakhstan
- Regulatory Environment
- Key Players
Industry Trend Analysis
- Kazakhstan
- Table: Kazakhstan Mining Industry
Global Mining Outlook
- Continued Exploration Due To Strong Earnings
- Table: Expansion Plans
- Table: Tax Developments
- Table: Mining Sector Developments
- Upward Revision To Coal Production Forecast
- Table: Kazakhstan Hard Coal Production
- Copper: Output To Slow, Then Grow Rapidly
- Table: Major Copper Projects In The Pipeline
- Table: Kazakhstan Copper
- Gold: Output To Grow
- Major Gold Projects In The Pipeline
- Table: Kazakhstan Gold
- Uranium: Production To Grow In The Coming Years
- Table: Kazakhstan Uranium Production
- Zinc & Lead Set For Growth Over Forecast Period
- Table: Zinc & Lead Output Growth
- Iron Ore Production Set For Rapid Growth From 2013
- Table: Growth In Iron Ore Output
- Bauxite Production Set For Modest Growth
- Table: Growth In Bauxite Output
Business Environment Analysis
- Russia Leads The Pack
- Table; Europe Business Environment
- Russia
- Kazakhstan
- Mongolia
- Romania
Commodities Forecast
- Gold To Average US$1,400/oz In 2011
- Table: BMI Gold Forecast
- Table: Gold
- Tin To Average US$24,000/tonne In 2011
- Table: BMI Tin Forecast
- Table: Tin, 2006-2012
Competitive Landscape
- Key Players
Company Monitor
- Kazakhmys PLC Q1 2011
- Table: Key Company Data (Five-Year Summary)
- KazakhGold Group Limited
- Table: Key Company Data (Five-Year Summary)
- ShalkiyaZinc
- ENRC
Global Assumptions Q111
- Table: Global Assumptions
- Table: Global & Regional Real GDP Growth % Chg Y-O-Y
- Table: Developed States, Real GDP Growth Forecast
- Table: Emerging Markets Aggregate Growth
- Table: BMI Versus Bloomberg Consensus
Business Environment Ratings Methodology
- Table: Mining Business Environment Indicators
- Table: Weighting Of Components

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.