KAZAKHSTAN Law and Practice Contributed by: Timur Odilov, Mikhail Abdulov, Olzhas Abubakirov and Dauren Sadykov, Haller Lomax LLP
6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector The mining sector in Kazakhstan is navigat - ing a period of uncertainty driven by regulatory reforms, environmental challenges, and geo - political dynamics. Central to this is the ongo - ing implementation of the SSU Code, where the pace and effectiveness of reforms remain critical. The outcomes will largely hinge on the government’s commitment to transparent poli - cymaking and its ability to balance competing interests. Among the key developments is the considera - tion of a new water code, designed to protect dwindling water resources in Central Asia. Pro - posed measures include stringent restrictions on activities near water bodies, with exceptions for select industries. If enacted, these regulations could introduce significant operational challeng - es for mining companies, increasing costs and complicating project viability. The trajectory of the mining sector over the next two years will be shaped by the resolution of these legislative debates. While some reforms offer the promise of modernisation and transpar - ency, the reintroduction of centralised mecha - nisms risks undermining investor confidence. The ability to strike a balance between regula - tory control and market-driven principles will be pivotal in determining Kazakhstan’s long-term appeal to international investors and its capac - ity to sustain growth in the mining industry.
ticipation in either a subsoil user or a legal entity or another organisation with the ability to directly and/or indirectly influence decisions made by the subsoil user. The SSU Code requires obtaining prior approval of the MIC for an IPO or SPO of Objects on either domestic or international securities markets. 5.6 Security over Mining Tenements and Related Assets Mineral rights (or a share in them) may be pledged under the conditions provided by the SSU Code or encumbered in other ways. However, a pledge of an exploration licence dur - ing the first year of the term of the licence is prohibited. Other than other types of encumbrances, a pledge of mineral rights or a share there - of requires registration with the MIC, and it becomes valid from the moment of registration. Related assets such as equipment and machin - ery may be pledged, within the limits and condi - tions envisaged by the RoK Civil Code.
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