Mining 2026

KAZAKHSTAN Trends and Developments Contributed by: Timur Odilov, Mikhail Abdulov, Olzhas Abubakirov and Alnur Dauylbay, Haller Lomax LLP

Haller Lomax LLP Office 221, AIFC 55/18 Mangilik El Avenue, C3.3. Astana Kazakhstan Tel: +7 777 791 72 72 Email: info@hallerlomax.com Web: www.hallerlomax.com

The mining industry in Kazakhstan remains a cor - nerstone of the national economy, contributing sig - nificantly to its growth and diversification. Although national foreign direct investment has shown signs of slowing, the mining sector continues to demonstrate stable growth, with strong potential for further expan - sion driven by rising global demand for rare and criti - cal metals in Kazakhstan. Since the legislative reforms were introduced under the Subsoil and Subsoil Use Code (the “SSU Code”), the sector has attracted significant investment in geo - logical exploration, exceeding USD1 billion. Looking ahead to 2026, the government of the Repub - lic of Kazakhstan (RoK) has committed to prioritising the development of the geological sector, increasing its financing, and creating favourable conditions for attracting additional investment. Regulatory Changes and Legislative Developments On 30 December 2025, the President of Kazakh - stan adopted amendments to the SSU Code on the implementation of the instructions of the President (the “SSU Amendments”), which became effective on 2 March 2026. While the initiative was originally intended to increase transparency in the sector and accomplish the implementation of reform, the adopt - ed version represents a significant departure from its initial purpose. The original SSU Amendments, which consisted of only 32 paragraphs, have been subsequently overlaid with 102 amendments from a working group under Mazhilis (the Lower Chamber of Parliament). Consequently, the primary objective of the legislation has been lost amidst these extensive revisions. Rather than clarifying the legal framework, these changes tighten the regulation of subsoil use.

This outcome reflects deeper flaws in the legislative process, as legislative changes are often adopted without extensive discussions and analyses, poten - tially affecting inclusivity. This is particularly relevant to restrictive regulations, which are frequently imple - mented on an expedited basis, resulting in a regula - tory environment characterised by unpredictability. While the initial reform aimed to modernise, enhance transparency and open up the entire territory of Kazakhstan for “first come – first served” applications, the approved SSU Amendments have raised concerns among industry stakeholders. Despite official recom - mendations to ensure thorough regulatory impact analysis and government feedback, key provisions on clarifying the “first come – first served” mechanism and key proposed functions of the National Geologi - cal Service JSC (NGS) were rejected by the working group under Mazhilis. Instead, the SSU Amendments in fact significantly reduced the availability of “first come – first served” areas in favour of National Atomic Company Kazatomprom JSC (KAP) and the state’s early-stage exploration. Strategic shifts in access and state control Beyond raising the investment thresholds for agree - ments on the processing of solid minerals, the SSU Amendments also amend the regulatory framework for entities engaged in industrial-innovative activities implementing industrial-innovative projects (IIPs). Under the revised framework, facilities constructed within an IIP must follow the legal status of the related subsoil use right. Consequently, the transfer of such subsoil use right is permitted only to another indus - trial-innovative entity, and only if both the subsoil use right and the IIP are transferred together.

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