Tag Archives: metals and mining

British miner lists on Kazakhstan’s AIX

ALMATY/Jan. 8 2020 (The Bulletin) — London-based Ferro-Alloy Resources said it had listed on the Astana International Exchange in Nur Sultan, part of the Astana International Finance Center project that is being pushed by the government.

Ferro-Alloy Resources already has a listing on the London Stock Exchange. Its main asset is the Balasausqandiq vanadium deposit in southern Kazakhstan.

Nick Bridgen, the CEO of Ferro-Alloy Resources said: “We see the AIX as a strong platform that will allow the company to capture interest from investors who we expect to be encouraged by the AIX’s use of the English language and English law, and its compatibility with the rules of the London Stock Exchange.”

Analysts have said that government officials are pushing smaller companies looking to curry favour into listing on AIX, as the Astana International Exchange is called.

Since its launch to much fanfare by then-president Nursultan Nazarbayev in 2017, eight companies have placed shares on AIX, although there are three dozen or so other assets trading on the exchange, including bonds and GDRs. Most companies consider AIX an illiquid and unnecessary distraction.

ENDS

— This story was first published in issue 433 of the weekly Bulletin on Jan. 13 2020

— Copyright owned by the Central Asia & South Caucasus Bulletin

Lydian calls in protection from creditors over Armenian mine dispute

Leave a Reply

YEREVAN/DEC. 23 2019 (The Bulletin) — Lydian International, the owner of the Amulsar gold mine in Armenia, said that it had called in protection from creditors while it held talks with them and restructured its loans.

For Armenia’s reputation as a place to do business, news that one of its most high-profile investors has had to call for protection from creditors will be damaging.

The company, which has registrations in Canada, Britain and the US, has been unable to access the Amulsar mine in the southeast of the country since June 2018 because local activists have blocked the single track road running up to the mine. They say that Lydian is causing environmental damage, accusations that Lydian denies.

Although the government of Nikol Pashynian has said it would disband the protests it has appeared less willing to do so in practice. Analysts have said that this is partly because the constituents that put Mr Pashinyan in power through a revolution in April and May 2018 are the same that are protesting against Lydian.

And in a statement, Lydian blamed the Armenian government for inaction which has turned creditors off the project.

“Despite its many public statements that there is no legal basis on which to prevent the Company’s development of the Amulsar Project, the Government of Armenia has failed to remove the illegal blockades,” Lydian said. “As a result, the Company’s lenders were not prepared to further extend a previously announced forbearance agreement, which expired on December 20, 2019.”

Lydian said that it had been granted 10 days of protection from creditors.
The Armenian government has not commented.
ENDS

— This story was first published in issue 432 of the weekly Bulletin on Dec. 27 2019

Kazakh uranium production rises by 5%

Leave a Reply

DEC. 19 2019 (The Bulletin) — Kazakhstan, the world’s biggest uranium miner, said that it had increased its uranium production by 5% this year. Previously Kazakhstan said that it would aim to limit its uranium production in an effort to give stagnant prices a boost.
ENDS

— This story was first published in issue 432 of the weekly Bulletin on Dec. 27 2019

Second batch of low-enriched uranium arrives at IAEA site in Kazakhstan

Leave a Reply

DEC. 10 2019 (The Bulletin) — A purpose-built storage facility managed by the International Atomic Energy Agency (IAEA) in eastern Kazakhstan received its second and final consignment of low-enriched uranium (LEU). The site in Ust-Kamenogorsk was set up to allow countries developing nuclear power to buy fuel for their power stations safely.

ENDS

— This story was first published in issue 432 of the weekly Bulletin on Dec. 27 2019

Markets: Copper price rise fails to give KAZ Minerals a boost

Leave a Reply

DEC. 9 (The Bulletin) — A 10% rise in the price of copper failed to give KAZ Minerals, the Kazakhstan-focused copper producer, much of a lift. Analysts said that the price rise was already, broadly, built into its share price.

It did, though, give Central Asia Metals a bit of a lift pushing it up 2% to 211p. It has been hovering around this level for some time.

In other metals news, Anglo Asian Mining, the Azerbaijan-centric gold producer, jumped up more than 6%.

Analysts said that the fall in value of Centerra Gold’s stocks was linked to its problems in Mongolia and not to the Kumtor mine in Kyrgyzstan.

Georgian banks both increased in value after the Central Bank intervened to prop up its ailing currency. They are sensitive to Georgian macro-economic news.
ENDS

— This story was first published in issue 431 of the weekly Bulletin on Dec. 9 2019

China eyes up $545m investment into Tajikistan’s Talco

Leave a Reply

DUSHANBE/Dec. 4 (The Bulletin) –China is lining up a $545m investment to buy a stake in the Talco aluminium smelter, Tajikistan’s biggest industrial unit.

Yue Bin, China’s former ambassador to Tajikistan, told the Tajik language version of Radio Free Europe/Radio Liberty that the investment, announced earlier this year, would be paid for by China Machinery Engineering Corporation (CMEC) to help modernise the Soviet-era plant.

“In my opinion, the joint venture will benefit both parties, both in terms of creating new jobs, and in terms of increasing production capacity and volume of production, sales of products and, ultimately, tax revenues to the state budget of Tajikistan,” he was quoted as saying.

Talco has not comment, neither has the Chinese government nor the Tajik government but in November Talco was converted into a joint stock company, which should make it easier to sell stakes in. This year it was announced that China would invest $545m into Talco to modernise the Soviet-era factory, although it wasn’t explained at the time how this investment would be paid for.

The potential deal highlights what many analysts have described as an economic takeover of Tajikistan by China. In return for political influence, China has given Tajikistan cheap loans to build new roads and tunnels, construct cement factories and beautify Dushanbe. Chinese companies now own various mining rights in Tajikistan and earlier this year reports surfaced that it had built a military base in the Pamir Mountains.

The ownership structure of Talco if opaque. Officially it is owned by the Tajik government although there are close links to the presidential family. Talco also has a management company based in the BVI.
ENDS

— This story was first published in issue 431 of the weekly Bulletin on Dec. 9 2019

Kumtor expects to produce more gold this year than anticipated

Leave a Reply

BISHKEK/Nov. 30 (The Bulletin) –Kumtor, Kyrgyzstan’s biggest gold mine and the cornerstone of its economy, will produce more gold this year than expected.

In a statement, the Kyrgyz government said that Kumtor, which is owned by Canada’s Centerra Gold, would produce 18.2 tonnes of gold, beating an initial target of 16.6-17.6 tonnes.

This is critical for Kyrgyzstan which relies on Kumtor to generate around 10% of its annual GDP.

Separately, Centerra Gold, said that two employees were missing after a landslide near the open-pit mine. Mining had been halted to search for the two workers.
Kyrgyzstan owns a 26.6% stake in Centerra Gold.
ENDS

— This story was first published in issue 431 of the weekly Bulletin on Dec. 9 2019

France’s Orano signs deal to mine for uranium in Uzbekistan

Leave a Reply

DEC. 3 (The Bulletin) — French nuclear company Orano signed a deal with the Uzbek government to set up a joint-venture called Nurlikum Mining. Nurlikum, which is 51% owned by Orano and 49% owned by the Uzbek government, will mine for uranium in the Djengeldi area in the province of Kyzylkum.
ENDS

— This story was first published in issue 431 of the weekly Bulletin on Dec. 9 2019

Russia is blocking coal exports to Ukraine, says Kazakhstan

Leave a Reply

NOV. 11 (The Bulletin) — Kazakhstan is losing $11m every month because of Russia’s ban on coal being sent to Ukraine across its territory, the Kazakh ministry of trade said. The Kazakh ministry said that it had approved a plan in July to send 103,500 tonnes of coal to Ukraine but that this had been downgraded by the Russian authorities to 60,200 tonnes. It said that subsequent coal supplies had also been reduced by the Russian authorities.

ENDS

— This story was first published in issue 428 of the weekly Bulletin.

Anglo Asian Mining says it has found more gold

Leave a Reply

NOV. 4 (The Bulletin) — Anglo-Asian Mining, the Azerbaijan-focused gold producer, said that it had found new gold reserves at its Gedabek mine. It said of the new gold reserves that it “identified further mineable extensions giving increased confidence in life of mine”. Anglo Asian Mining is listed on the London Stock Exchange and has seen its share price increase rapidly over the past couple of years.

ENDS

— This story was first published in issue 428 of the weekly Bulletin.