KAZAKHSTAN Law and Practice Contributed by: Timur Odilov, Mikhail Abdulov, Olzhas Abubakirov and Dauren Sadykov, Haller Lomax LLP
2.7 Environmental, Social and Governance (ESG) Guidelines and Regulations ESG guidelines in Kazakhstan differ from their representation in other regions. Kazakhstan’s legislative framework addresses ESG require - ments through separate channels for environ - mental aspects, social aspects and governmen - tal aspects, thereby lacking a unified structure to consolidate them. Specifically, the Environmental Code and asso - ciated regulations set out requirements concern - ing environmental protection, including stand - ards for emissions, waste management, water usage, and biodiversity protection. Companies, especially those in sectors with significant envi - ronmental footprints, must comply with these regulations. Labour and employment laws in Kazakhstan address several social issues, such as workers’ rights, safety standards, and non-discrimination. Additionally, there are laws and programmes aimed at promoting social welfare, health, and community development. Governance in the ESG context typically refers to the system of rules, practices and processes by which a company is directed and controlled. Kazakhstan’s corporate law outlines basic gov - ernance structures for businesses operating in the country. These include rules about share - holder meetings, board compositions, audit requirements, and disclosure norms. 2.8 Illegal Mining Illegal mining is strictly prohibited in Kazakhstan, and the government takes measures to prevent and address such activities. While not a perva - sive issue, the state remains vigilant, employing various strategies to combat illegal mining. For
At the same time, Kazakhstan legislation does not provide for a concept of social impact assessment. 2.4 Prior and Informed Consultation on Mining Projects There are no requirements for mandatory con - sultation, except for public hearings. Please refer to 2.3 Impact of Community Relations on Min- ing Projects . 2.5 Impact of Specially Protected Communities on Mining Projects In Kazakhstan, there are no specially protected communities, such as indigenous people. 2.6 Community Development Agreement for Mining Projects The SSU Code imposes mandatory obliga - tions for community development agreements in the case of territorial borders of settlements. The execution of an agreement on socio-eco - nomic development of the region is required if a requested area of exploration or underground mining wholly or partially belongs to the lands of townsites and adjacent territories within a dis - tance of one thousand meters. Also, the rental fees paid by a holder of explora - tion and mining licences are allocated directly to the local budget (city, village, etc) where the licence areas are located. Moreover, subsoil use contracts concluded before the enactment of the SSU Code usu - ally include commitments for contributing to the socio-economic development of the region. These commitments are expressed as a percent - age and usually amount to 1% of annual explo - ration or mining costs or a fixed cost agreed upon with the competent authority.
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