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3rd MINING AND EXPLORATION FORUM “MINEX CENTRAL ASIA 2012”

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Preparations have commenced for "MINEX Central Asia 2012" - the 3rd Mining and Exploration Forum, which will be held in Astana on April 17-19, 2012*

According to the statement issued by Asset Issekeshev, Vice Prime Minister and the Head of the Kazakhstan’s Ministry of Industry and Trade - MINT, published by Kazakh Today on October 6 2011 **, the results of the audit conducted by the Ministry, revealed a number of systemic problems in all segments of the country’s mining industry, including mineral reserves and resources, regulatory framework, infrastructure and personnel policy. In particular, as noted by MINT, mineral resources near several purpose built “mining towns”, are close to exhaustion and unless Kazakhstan takes prompt action, in 10 - 15 years the resource base of non-ferrous and precious metals will be exhausted.

In addition, MINT notes that the law "On Subsoil and Subsoil Use" does not fully encourage mineral exploration and needs to be amended. The country's leadership hopes that the new regulatory changes will boost mineral exploration and attract junior and large mining companies to Kazakhstan.

Another matter of concern is the lack of infrastructure. According to the survey Kazakhstan’s Mining industry lacks technical and technological expertise which cannot be offered by currently operating companies. The government believes that alongside modernisation of existing organisations, it will be crucial to create a mining research and engineering centre. Furthermore, geological exploration industry experiences acute shortage of qualified staff. To address this problem, several “Geology and Mining” faculties should be established at the leading Kazakh universities. Also, specialist training centres must be created and funded by the subsoil users. Asset Issekeshev also proposed to establish a Mining Advisory Council which would consist of respected experts. The Council should evaluate and determine training needs for the geological industry and in cooperation with the leading mining companies, will be taking part in shaping up new state policies in the mining sector.

The head of MINT also called on creating greater transparency and accountability at the Committee for Geology and Subsoil Use, urging it to avoid inefficient and illegal use of budgetary funds. "The development of geology equals development of the regions, creating new industries and service companies. Therefore, there is an urgent need to solve all these problems. This means that the industry's major changes have to be systematic. It is necessary to develop a clear action plan, make changes in current legislation and adjust mining development program presently being reformed within the framework of the presidential industrial growth program. There is a need for coordinated work of all parties: the government agencies, businesses, and non-governmental organizations ", - concluded the Vice Prime Minister.

"MINEX Central Asia” forum is organised with the aim of unlocking underexplored mineral potential of Kazakhstan and Central Asia and focuses on creating of new international partnerships and attracting investments in the development of mineral exploration and sustainable mining in the region. The organisers of "MINEX Central Asia 2012" commend the leadership of Kazakhstan, which celebrates this year its 20th independence anniversary, for taking proactive approach in resolving the issues faced by the mining industry. Forum’s technical committee comprised of 30 leading industry experts and chaired by Mr Jan Lewis, President of IOM3, will be preparing forum’s agenda in close cooperation with the leading mining companies, government agencies and foreign investors. Forum will address proposed changes in the reorganisation and further development of mining and geological industry of Kazakhstan. The forum will also offer platform for other Central Asia states for showcasing mining investment projects and innovative technologies for more efficient mineral exploration, extraction and processing.

* Further information about the forum will be announced in December 2011 on: www.minexasia.com/2012

** “Kazakhstan Today" news: http://www.kt.kz/