GILS Mining: Kazakhstan

Mining

Kazakhstan

1. What is the nature and importance of the mining industry in your country? What are the target minerals? Which regions are most active?

According to the latest official statistics, the “mining” sector (excluding the production of oil and gas) plays an important role in the Kazakh economy, contributing an estimated 13–17% of national GDP.

Kazakhstan’s state balance takes into account mineral reserves for 102 types of mineral raw materials, including 40 types of solid minerals. If compared with world reserves, Kazakhstan ranks: 

• first in terms of total reserves and quality of chrome ores (according to the US Geological Survey, 86% of the world’s reserves of chrome ores are in Kazakhstan and South Africa);
• second in terms of reserves and resources of uranium and silver;
• third for confirmed reserves of lead and proven reserves of manganese ores;
• fourth for confirmed reserves of zinc;
• fifth in terms of proven reserves of iron ore (and in terms of their quality, Kazakhstan ranks third in the world);
• eighth in terms of (i) the quantity of confirmed reserves of tin, with the quality (Syrymbet deposit) being not inferior to the main world producers and (ii) gold reserves (mainly represented by small and medium-sized deposits by the standards of the industry);
• ninth in proven cobalt reserves and confirmed reserves of titanium dioxide; and
• thirteenth in terms of proven nickel reserves and bauxite reserves (the latter being in eighth place in terms of mine production).

Kazakhstan’s mineral wealth spans a wide range of regions, each specializing in different resources. In the south, uranium mining is a major industry, with Kyzylorda and Turkistan regions hosting some of the world’s most productive deposits. Moving northward, the Pavlodar region is known for its role in alumina production and its access to extensive coal reserves. In the country’s northwest, iron ore and chromite are extracted on an industrial scale, particularly in Aktobe and Kostanay. The eastern part of Kazakhstan, including East Kazakhstan and Akmola regions, is a key source of non-ferrous metals such as copper, gold, lead and zinc. Meanwhile, the Karaganda region continues to play a vital role in the coal and metallurgy sectors. This geographical diversity ensures that mining remains a cornerstone of both Kazakhstan’s economy and its regional development strategy.

2. What are the principal laws that regulate the mining industry? What are the principal regulatory bodies that administer those laws? Were there any major amendments in the past year?

The mining industry in Kazakhstan is primarily governed by the Code on Subsoil and Subsoil Use dated 27 December 2017 (the “Subsoil Code”), which entered into force on 29 June 2018. (For the sake of clarity, the Subsoil Code also regulates oil and gas, uranium, and other types of subsoil use operations.)

By adopting the Subsoil Code, Kazakhstan transferred from a contractual regime to a licensing regime for solid minerals (except for uranium, which remained under a contractual regime). The Subsoil Code is based on the Western Australian model. The purpose was to boost geological exploration and remove administrative burdens for subsoil users.

Certain issues related to precious metals are governed by the Law on Precious Metals and Precious Stones dated 14 January 2016. There are also other legislative acts regulating related issues, including the Tax Code, the Land Code and the Environmental Code.

The principal regulatory body in mining is the Ministry of Industry and Construction (the “MIC”) having the status of the competent authority. It is authorised to grant and terminate subsoil use rights (SURs) for solid minerals (except for uranium) and supervises subsoil users’ compliance with their obligations related to SURs. A SUR is defined as a right giving “the opportunity afforded by the Subsoil Code to use subsoil on a reimbursable basis within the limits of an allocated site for entrepreneurial purposes within a certain term”. (The competent authority for uranium is the Ministry of Energy.) 

The MIC also supervises the mining industry through its subordinate, the Geology Committee, which is authorized to issue licenses for geological surveys and subsoil space use.

Regional executive bodies (akimats) are authorized to issue mining licenses for commonly occurring minerals.

3. What classification system does the mining industry use for reporting mineral resources and mineral reserves? (How does this system compare to generally recognised international systems such as the CIM Standards (Canada), the JORC Code (Australia) and the SAMREC Code (South Africa)?

The Subsoil Code entitled subsoil users to estimate their reserves under the Committee for Mineral Reserves International Reporting Standards (CRIRSCO)-aligned KAZRC standard, which eases the evaluation of projects by the international community (earlier reserves estimation was made under the State Commission for Reserves (GKZ) standards only).

4. To what extent does the state control mining rights in your jurisdiction? Can those rights be granted to private parties and to what extent will they have title to minerals in the ground? Are there large areas where the mining rights are held privately or which belong to the owner of the surface rights? Is there a separate legal regime or process for third parties to obtain mining rights in those areas?

According to the Kazakhstan Constitution, subsoil resources are the property of the people of Kazakhstan and owned by the state on their behalf.

In practice, the state exerts full control over mineral rights and can grant these rights to private parties via licenses. Private and foreign companies, including foreign investors, can be granted exploration and mining rights, but they do not own the minerals in situ, ownership of minerals passes to the private miner only upon extraction.

Surface rights (known in Kazakhstan as land use rights) are separate from exploration or mining rights and shall be obtained under procedures set out by the Land Code.

Owners of exploration rights may conduct relevant operations based on a public or private servitude. In the latter case, unless otherwise set out by an agreement on establishing a private servitude, subsoil users may not start operations on exploration unless they have paid a servitude free and reimbursed losses under the agreement on private servitude or a court decision (in case of a dispute with landowners or land users).

Obtaining a mining license is the ground for reserving and subsequently granting the land use right by local executive authorities (akimats) under the Land Code.

If the land plot where mining operations are conducted is in the state’s property, the relevant regional akimat (regional executive authority) provides such land.

If land plots where mining is supposed to be undertaken is owned or leased by a third person, subsoil users shall conclude a relevant agreement with such owners/leaseholders. Normally, subsoil users shall reimburse losses of agricultural activity (due to withdrawal of land plots used for agricultural activities). In certain cases, subsoil users are obliged to conclude servitude contracts.

5. What information and data are publicly available to private parties that wish to engage in exploration and other mining activities?

Under the Subsoil Code, the state ensures open access to:

1) information on auctions for subsoil use rights, including their terms and results;
2) information on subsoil use rights (types of rights, owners, terms of validity, direct and indirect parent companies);
3) geological information, except for data deemed confidential under the Subsoil Code or classified under state secrets legislation.

Currently, potential subsoil users can view territories available for subsoil use operations on the official state e-map. Only subsoil plots included in the State Subsoil Fund Management Program (the “Program”) are available for application. As of April 2025, out of a total of 2,725,000 km², an area of 1,615,000 km² is available for subsoil use. From 2018 to April 2025 the competent authority issued about 3300 exploration and 150 mining licenses. Applicants may also request that a specific prospective area be added to the Program. The Program is updated periodically. 

For many areas, state geological surveys are ongoing. Upon completion, these areas will become available for exploration.

The titles of geological reports related to specific subsoil plots are publicly accessible via the state e-map. Some reports can be downloaded directly. Full copies of such geological information may be obtained from National Geological Service JSC, which also operates the National Mineral Resources Data Bank and manages geological data processing.

6. What mining rights may private parties acquire? How are these acquired (eg, first come, first considered; first come, first served; discretionary or competitive bidding)? What obligations does the rights holder have? If exploration or reconnaissance licences are granted, does such tenure give the holder an automatic or preferential right to acquire a mining licence or more senior tenure? What are the requirements to convert to a mining licence?

Under the Subsoil Code, private parties may acquire the following types of subsoil use licenses for solid minerals and commonly occurring minerals:

1) Exploration license – grants exclusive rights to carry out exploration activities for any solid or commonly occurring minerals within a defined area (issued by the MIC);

2) Mining license for solid minerals – grants the right to extract any solid minerals (excluding uranium) within a defined area (issued by the MIC);

3) Geological survey license – grants the right to conduct geological surveys on subsoil plots (issued by the Geology Committee);

4) Subsoil space use license – a special license granting rights to use subsoil space for purposes such as waste storage, tailings disposal, or other underground infrastructure (typically issued together with a mining license for the placement of mining waste and issued by the Geology Committee);

5) Mining license for commonly occurring minerals – grants the right to extract commonly occurring minerals (excluding solid minerals and uranium) within a defined area (issued by regional akimats);

6) Artisanal mining license – may be granted exclusively to citizens of Kazakhstan for the exploration and extraction of gold (issued by regional akimats).

If before 2018 exploration contracts were concluded within 1 1⁄2 years from the date of winning a tender, from 2019 exploration licenses are generally issued under the principle “first come, first served” within 3-4 weeks from the date of submission of the application and providing a relevant security for remediation works. (For new territories recently added to the Program, there is a one-month preliminary period from the application filing commencement date. The lodging of two or more applications for the same block(s) during this period causes an auction between the applicants.)

Holders of exploration licenses have a preferential right to obtain a mining license for the area in which a commercial discovery has been registered. In order to convert to a mining license, the rights holder must submit a mining plan and secure all required approvals in accordance with the Subsoil Code, including environmental and land use approvals.

7. What is the regime for the renewal and transfer of mineral licences? (Describe the renewal and transfer rights with respect to exploration, reconnaissance, exploitation and mining licences and the level of government discretion. Is government consent required to transfer a licence or with respect to change of control of the licence holder or its parent? What notices, filings or approvals are required in relation to the transfer of mineral rights or mining businesses?)

Exploration licenses are initially issued for a term of six years for an area from 1 to 200 blocks (each block is approx. 2 km2). The subsoil user may extend this term once, for an additional five consecutive years. However, if the license covers ten or more blocks, the subsoil user is required to relinquish at least 40% of the original licensed exploration area (excluding any area already declared for a mining license) before applying for the extension.

Mining licenses are generally granted for a term of 25 years, with no limitation on the number of extensions.

Transfer of an exploration license is prohibited for one year after its issuance.

Any further change of direct or indirect control over an exploration or mining licence requires a prior approval of the competent authority (save for limited exceptions). After transfer of indirect control over a license, both the acquirer and the related subsoil user shall notify the competent authority within one month after the change of control.

8. What is the typical duration of mining rights? Is there a requirement to relinquish a portion of the mining rights to the government after a certain number of years? (Can mining rights be extended or renewed, and under which conditions? Can mining rights be revoked or cancelled anticipatively by the government, and on which grounds?)

Please see our response to question 7 above regarding the duration and relinquishment criteria.

Both exploration and mining licenses may be revoked only in cases of serious violations, such as submission of false information or failure to comply with key license obligations, including the payment of a signature bonus, rental fees, or non-compliance with minimum exploration or mining expenditures as prescribed by the Subsoil Code. If the subsoil user disputes the revocation, the final decision rests with the court.

9. Is there any distinction in law or practice between the mining rights that may be acquired by domestic parties and those that may be acquired by foreign parties (eg, is the ownership of mining rights by foreign parties restricted or prohibited in any fashion? is it necessary or desirable for a foreign party to have a domestic partner)?

No, there are no general restrictions on the acquisition of mining rights by foreign parties, except in the case of uranium and in situations involving a threat to national security — such as the so-called concentration of mining rights (although we are not aware of this ground having been applied in the mining sector). Under current law and practice, only the National Atomic Company Kazatomprom JSC is initially entitled to obtain mining rights for uranium deposits. A direct or indirect transfer of control is permitted, provided that Kazatomprom retains more than 50% control at all times.

10. What are the principal business structures used by private parties carrying on mining activities (eg, branches, corporations, partnerships, joint ventures and trusts)?

In Kazakhstan, an overwhelming majority of subsoil users in the mining sector operate as limited liability partnerships (LLPs). The number of joint-stock companies (JSCs) involved in mining remains very limited. In recent years, there has been a steady increase in the number of legal entities registered with the Astana International Financial Centre (AIFC) that have obtained mining rights. Branches of foreign legal entities holding mining rights in Kazakhstan are extremely rare.

11. What duties, royalties and taxes are payable by private parties carrying on mining activities? Are these revenue-based or profit-based?

In addition to the generally applicable taxes such as corporate income tax, VAT, payroll taxes, transport tax, property tax, withholding tax obligations on transactions with non-residents, etc., mining companies are required to pay the following special payments and taxes:

1) Special payments (signing bonus; reimbursement payment of historical costs);
2) Mineral extraction tax;
3) Excess profits tax;
4) Export customs duty on certain types of mineral resources.

Corporate income tax is calculated based on taxable income. The excess profits tax is calculated on the portion of net income exceeding a specified level of profitability, whereas other special taxes are based on production volumes of extracted mineral resources.

13. What is the environmental review and permitting process for a mining project? How long does it normally take to obtain the necessary permits?

Large mining projects require a full Environmental Impact Assessment (EIA), classified as Category I (projects are those that have a significant negative impact on the environment). Category I facilities that were not commissioned and did not receive a positive conclusion of the State Environmental Expertise before 1 July 2021, must operate on the basis of an integrated environmental permit starting from 1 January 2025.

Exploration projects, depending on the scale and nature of their environmental impact, may fall under categories II, III, or IV.

• Category II projects are those that have a moderate negative impact on the environment. They, in particular, include exploration projects involving the extraction of rock mass and soil displacement for the purpose of mineral resource assessment of solid minerals. Such projects are subject to mandatory screening — a procedure to determine whether a full environmental impact assessment (EIA) is required.  Besides that, implementation of such projects requires environmental impact permits.
• Category III projects are those that have a minor negative impact on the environment. Their activities are conducted without an environmental impact permit, but require a conclusion of the State Environmental Expertise and submission of an Environmental Impact Declaration to the local executive body.
• Category IV projects are those that have a minimal negative impact on the environment. Exploration projects of Category IV do not require an EIA, a screening, an Environmental Permit, a conclusion of the State Environmental Expertise and an Environmental Impact Declaration. 

EA and Environmental permits typically take 6 to 12 months to obtain. Permits cover emissions, water usage, waste disposal, and environmental monitoring. Obtaining a conclusion of the State Environmental Expertise and submitting an Environmental Impact Declaration for a Category III project may take approximately six months.

13. What is the closure and remediation process for a mining project? What performance bonds, guarantees and other financial assurances are required?

Any exploration or mining operations are prohibited unless the relevant remediation security has been provided to the competent authority.

As noted in our response to Question 6 above, to obtain an exploration license, the applicant must provide a security for remediation works. Such security may take the form of a pledged bank deposit, a bank guarantee, insurance, or a combination thereof.

During exploration, subsoil users may extract or move more than 1,000 m³ of soil only after providing an additional security covering the estimated remediation costs.

To conduct mining operations, remediation security may be provided in any combination of the three forms mentioned above; provided, however, that no less than 40% of the total amount shall be in the form of a bank guarantee or a pledged bank deposit during the first third of the mining license term, no less than 60% during the second third, and 100% during the final period.

Even if a license expires or is revoked by the competent authority, the remediation obligations shall remain a statutory obligation of the former subsoil user until fully discharged.

14. What were the biggest mining news events over the past year in your jurisdiction and what were the implications? What are the current trends and developments in your jurisdiction's mining industry (legislation, major cases, significant transactions)?

In 2023, ArcelorMittal Temirtau was nationalized following a fatal mine fire, leading to the creation of state-backed QARMET. 

Polymetal completed its exit from Russia, re-domiciled in Kazakhstan’s AIFC, and rebranded as Solidcore Resources. 

A new 2024 law requires miners to supply certain raw materials to domestic processors before exporting, reflecting a broader push for value-added production. 

From 1 November 2024 the government launched the Unified Subsoil Use Platform providing open access to geological data, an interactive map of licenses, and e-licensing services.

In early 2025, the government launched a “second phase” of mining law reform, gathering industry feedback on 60+ proposed amendments. These proposals, expected to reach the Parliament by late 2025, include: splitting the Subsoil Code into separate laws for hydrocarbons versus solid minerals, making exploration expenditures tax-deductible, introducing royalties for miners, aligning mining laws with land and water codes, and incentivizing utilization of low-grade and waste ores. The aim is to close remaining legal gaps and improve the fiscal/regulatory regime to attract investment while promoting safety and sustainability.

Overall, the trend is toward tighter state oversight, ESG compliance, and promotion of local processing.

Authors: Yerbolat Yerkebulanov, Assel Ilyassova, Leila Makhmetova