Kazakhstan
Legislation
- Subsoil and Subsoil Use Code 2017 (as amended)
- Environmental Code 2021
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Regulatory Risk Rating Factors | Risk Level |
---|---|
First Come / First Serve | Subscribe |
Application Criteria | Subscribe |
Duration | Subscribe |
Right to Renew | Subscribe |
Competing Licences | Subscribe |
Mineral Coverage | Subscribe |
Right to Mine | Subscribe |
Criteria for Mining Rights | Subscribe |
Tenure | Subscribe |
Surface Rights | Subscribe |
Government Take | Subscribe |
Transfer Rights | Subscribe |
Change of Control | Subscribe |
EIA Process | Subscribe |
Power to Revoke | Subscribe |
Age of Legislation | Subscribe |
Other Factors | Subscribe |
Regulatory risk in Kazakhstan has certainly been impacted by the implementation of the Subsoil and Subsoil Use Code in 2017. The law has made positive changes - the main one being that the system has changed from a contractual process to a licensing system, resulting in an improved risk profile for the jurisdiction in certain key risk areas. However, some of those more problematic provisions from a risk perspective, previously present under the 2010 legal framework, have unfortunately been retained. These include local content requirements, priority rights of the State over strategic resources and incredibly restrictive provisions around transfers and changes of control. The introduction of the licensing system alone has also not proved sufficient to remove the significant levels of government discretion over the granting of rights – with broad caveats in the law providing considerable room for arbitrary decision-making. Investors will be right in thinking that there is an improved landscape for entry into the jurisdiction but would be wise to approach with caution and their eyes wide open to the regulatory risks which still remain.
Contents
Legislation
- Subsoil and Subsoil Use Code 2017 (as amended)
- Environmental Code 2021
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Kazakhstan is a country which is rich in natural resources. The production of fossil fuels (coal, natural gas and crude oil) has been dominant in the past, with the country placed amongst the top 25 producers for all three energy minerals. It is also amongst the top 15 global exporters of energy. However, Kazakhstan is also viewed as an emerging market with considerable potential for other minerals, with a vast amount of its reserves currently undeveloped. According to ‘Austrade’ the country is estimated to possess 30% of the world’s chrome reserves, 25% of manganese ore, 10% of iron ore and lead, 5% of copper and 13% of zinc. Other minerals include gold, phosphate and tungsten, and it is also one of the leading global uranium producers. Various foreign mining companies have pursued opportunities in Kazakhstan, including Glencore and Rio Tinto. ERG is a major player in the market, with over 25% of market share. The mining sector is not without its difficulties and, as is common, conflicts have arisen in the past with local communities and environmental groups.
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