KAZAKHSTAN Trends and Developments Contributed by: Timur Odilov, Mikhail Abdulov, Olzhas Abubakirov and Dauren Sadykov, Haller Lomax LLP
The mining industry in Kazakhstan remains a cornerstone of the national economy, contrib - uting significantly to its growth and diversifica - tion. According to the ministry, over the past six years, the sector has attracted substantial investment in geological exploration, exceeding USD1 billion, following legislative reforms under the Subsoil and Subsoil Use Code (the “SSU Code”). These investments have facilitated the discovery and development of reserves, includ - ing iron, manganese, gold, uranium and hydro - carbons, while driving the adoption of innova - tive technologies to modernise exploration and extraction processes. Regulatory Changes and Legislative Developments Kazakhstan is undergoing significant regulatory transformations to enhance the mining sector’s transparency, efficiency, and investment appeal. Key trends include the following. Expansion of exploration opportunities The government plans to open all regions for exploration activities, encouraging broader investor participation. Existing deposits that have been or will be returned to the govern - ment are expected to be auctioned to ensure transparency in their allocation. This shift rep - resents an effort to democratise access to min - eral resources, fostering competitive participa - tion and enabling small to mid-sized investors to engage in subsoil use. Digitalisation of licensing The Ministry of Industry and Construction (MIC) has transitioned to an online licensing system, streamlining application processes and reduc - ing bureaucratic hurdles. The launch of the minerals.e-qazyna.kz platform in November 2024 exemplifies these efforts. The platform offers subsoil users access to geological data,
licence information, and an interactive map, pro - viding greater transparency and efficiency. The system is expected to simplify the onboarding process for investors, reduce the risks of admin - istrative delays, and foster a more business- friendly environment. National Geological Survey (NGS) In 2021 the President Tokayev instructed the cre - ation of the National Geological Survey (NGS). The NGS aims to digitise and centralise geo - logical data, making archived records accessible to investors. By 2023, 40% of archives, ranging from Soviet-era surveys to contemporary data, had been digitised, with further efforts ongoing. This initiative represents a commitment to utilis - ing modern technology to unlock historical and recent geological insights, potentially driving new exploration ventures and aiding in resource estimation. Challenges and Concerns in Legislative Reforms Legislative changes are often adopted without extensive discussions and analyses, potentially affecting inclusivity. This is particularly relevant to restrictive or limiting regulations, which are frequently implemented on an expedited basis. Such practices may result in a regulatory envi - ronment characterised by unpredictability. While reforms aim to modernise and enhance transparency, recent legislative developments have raised concerns among industry stake - holders. A working group in the Lower Chamber of Parliament recently conducted a contentious review of amendments to a draft law on transpar - ency and competition in subsoil access. Despite official recommendations to ensure thorough regulatory impact analysis and government feedback, key provisions on clarifying the first-
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