http://nz.biz.yahoo.com//091103/24/fgze.html
Research and Markets (http://www.researchandmarkets.com/research/ad4e59/kazakhstan_mining)
has announced the addition of the "Kazakhstan
Mining Report Q4 2009" report to their offering.
The Kazakhstan Mining Report provides industry professionals and
strategists, corporate analysts, mining associations, government
departments and regulatory bodies with independent forecasts and
competitive intelligence on Kazakhstan's mining industry.
The arrest in May 2009 of Mukhtar Dzhakishev, the long-serving head of
Kazatomprom, cast a shadow over the foreign companies that have dealt
with the company in recent years. As accusations of illegal sales of
uranium deposits were being reported, Canadian mining firm Uranium One
saw its shares plunge 38% as the announcement of an investigation by
Kazakhstan into past uranium sales was made. The company explained it
was working with Kazakhstan authorities on their investigation. One deal
in with which Uranium One may be associated was the sale of a 30% stake
in the uranium mine in Khorasan. Though the buyer was not specified in
the announcement, Uranium One purchased a 30% stake in the mine in 2007.
Uranium One is adamant that the purchase of the stake was carried out
within the remits of Kazakh law. However, as reported by Reuters, the
issue may not be with the company's actions, but of the ownership rights
of the vendors. Uranium One saw some recovery of its share price after
Kazatomprom announced in June 2009 that it would continue to honour
existing agreements despite the arrest of the company's former president.
In the same month, further announcements were made stating that more of
the country's uranium fields had been sold illegally to foreign
companies. There are a number of foreign investors with significant
uranium mining joint ventures (JVs) established within the country and
though the sales under investigation have not yet been announced, such
news will no doubt make the investors in these projects nervous.
Kyzylkum, owned by Uranium One (30%), a consortium of Japanese investors
(40%) and the remaining share by Kazatomprom; runs the Khorasan mine in
Kazakhstan. Betpak Dala operates two uranium deposits and 70% is owned
by Uranium One. Appak is owned by Japan's Sumitomo Corporation (20%),
Kansai Electric power (15%). Katco is owned by France's Areva (51%) and
Canadian firm Cameco Corp owns 60% in Inkai.
Despite the scandal affecting the uranium industry in Kazakhstan, the
country's rich resources continue to attract investment from foreign
businesses. Cameco announced in June 2009 that it would be persisting
with investment into the country and the investigation into the illegal
sales of uranium deposits were not related to any of Cameo's deals with
Kazamtomprom.
In March 2009, the government demonstrated a willingness to relieve some
of the financial burdens being felt by mining companies in the country.
A tax relief on minerals extraction was offered to any companies within
the sector who were operating at a loss. The move will go some way to
avoid bankruptcies and job losses and demonstrates a commitment to
support the industry. The tax relief would be waivered, however, should
any of the companies begin to make a profit, no matter how small, and
taxes would have to be paid in full. With eligibility for the tax break
stipulating that no major job redundancies can occur, some firms with
marginal profits may prefer to take cost cutting measures by reducing
personnel.
Industry Forecast The recent arrests and scandals surrounding
Kazatomprom has had a detrimental effect on the uranium mining industry.
However, as further developments are revealed and more foreign companies
are cleared of involvement, share prices and confidence in the sector is
slowly being restored, though it is far from resolution. Despite the
impact of the global fall in metals and commodity prices, the author
expects growth to be solid in the Kazakh mining industry. By 2013, the
author forecasts that the market will be worth US$18.9bn, up from a
level of US$15.38bn in 2008.
Key Topics Covered:
Executive Summary
Special Focus: Outlook For Global Mining
Business Environment
Political Environment
Mining Industry Forecast
Company Monitor
Appendices
Companies Mentioned:
Kazakhmys
Eurasian Natural Resources Corporation (ENRC)
KazakhGold Group
ShalkiyaZinc
For more information visit http://www.researchandmarkets.com/research/ad4e59/kazakhstan_mining
Contact:Research and MarketsLaura Wood, Senior Manager,press@researchandmarkets.comU.S.
Fax: 646-607-1907Fax (outside U.S.): +353-1-481-1716
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