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Foreign investors intend to conduct geological exploration of adamants in Kazakhstan

by March 9, 2017 Legal

Concern ‘Rio Tinto’ intends to perform serious investments into geological exploration of Kazakhstan, the Ministry for Investments and Development of Kazakhstan reports.

The Kazakh delegation headed by Vice-Minister for Investments and Development of Kazakhstan Timur Toktabayev took part in PDAC International Mining Forum in Toronto, Canada.

During the meeting with Head of the Geological Exploration Department Dave Andrews and Rio Tinto Australian-British concern Exploration Director for Africa-Eurasia, Ken Tainton, was discussed the current status and prospects for the development of joint cooperation in the field of exploration projects, and also planned legislative reforms in the field of subsoil use, possibility of growth in volumes of investments into geological exploration and training issues of Kazakhstani personnel.

T. Toktabayev informed on the new draft of the Code on Subsoil and Subsoil Use that will ensure attraction of investments in geological exploration, and also planned conceptual changes in the taxation system, on plans of creation of geological cluster in Almaty and international certified laboratory in the territory of Kazakhstan.

The Vice-Minister, having noted the strategic cooperation with Rio Tinto, spoke on the possibility of increasing the geological exploration ramp up in Kazakhstan under a new licensing model. In particular, it was proposed to the concern to conduct exploration work for adamants and to start these operations with aerogeophysical research in Zhambyl region jointly with KazGeoTech.

D. Andrews noted that the company expects the Government of Kazakhstan to strengthen the good investment climate in the country. Rio Tinto is interested in implementing the new Subsoil Code, and also counts on the possibility of switching their contracts to new regime and possible transition to the generally accepted tax regime (royalty) in the world that stimulates the processing of raw materials in the country.

For today, Rio Tinto intends to invest more than 100 million dollars in geological exploration in 14 countries, where the company conducts operations, including in Kazakhstan. Taking into account the introduction of the new Code on Subsoil in the Republic of Kazakhstan, which, according to the management of the concern, inspire the corresponding confidence of symbiosis of geological potential and the reforms announced, special attention will be paid to Kazakhstan.

Rio Tinto is interested in working together on creation of a national database and ensuring the implementation of the best practices in the systematization of geological information, training of the Kazakh specialists, having emphasized the importance and the need of development of this cooperation, including within OECD.

Source: Kazakhstan 2050