Kazakhstan’s mining sector bounces back, ending two-year slump
An analysis of financial statements from Kazakhstan’s 10 largest mining companies shows that last year was exceptionally strong for the industry. Total revenue rose 16%, while net profit surged 85%. All major indicators — including production, capital investment and exports — showed solid growth.
Production, investment and exports in 2024
The value of mining output climbed to 15.5 trillion tenge (about $33 billion). In real terms, the sector expanded 8.9%, according to GDP deflator calculations—well above the overall national economic growth rate of 6.3%. The rebound marks a clear recovery after two years of decline. In 2022, mining output fell 3.9% (following a high base year) and then dropped another 13.1% in 2023.
Within this broader sector, data from the Bureau of National Statistics show that the metallurgical industry — typically responsible for up to 65% of total mining and metallurgical output — reached 9.9 trillion tenge (roughly $21 billion), up 6.9% in real terms. Metallurgical ore mining, which averages about 28% of total output, grew slightly faster to nearly $9.5 billion, an increase of 7.8% in real terms.
Meanwhile, coal mining, which accounts for roughly 4% of the mining and metallurgy sector, saw output rise to about $1.1 billion, up 3.5% in real terms. However, this modest gain failed to offset the 6.8% decline recorded in 2023.
The production of finished metal products — excluding machinery and equipment — posted the strongest growth. Though the segment has historically held only about 3% of total industry output over the past five years, it represents the sector’s most value-added products. Output reached nearly $1.2 billion last year, an increase of 28.4%.
Investment growth outpaces the economy
On the investment front, capital investment in the mining and metallurgy sector reached almost $4.7 billion, according to Kursiv Research estimates — an impressive 19.9% increase in real terms, more than double the overall investment growth rate in Kazakhstan’s economy.
Notably, metal ore mining led the way, attracting just over $2 billion in investment, up 10% in real terms compared with the previous year.
Kazakhstan’s mining and metals sector tracks global markets. A 2.3 percent decline in exports in 2023 hurt domestic performance, but the sector rebounded in 2024 with higher export volumes and revenues.
Hike in export revenues
Mining and metals exports totaled $22.4 billion in 2024, up 12.2 percent from the prior year.
The rise in export revenue was driven by higher global base metal prices and increased shipments from Kazakhstan.
Shipments of key commodities rose sharply. High-carbon ferrochrome led with a 27.6 percent increase, followed by unwrought aluminum (21.6 percent), refined copper (21.3 percent) and copper cathodes (20.1 percent). Alumina climbed 14.3 percent, while unwrought zinc (5.3 percent) and uranium (4.4 percent) posted moderate gains.
Top commodities
While many commodities rose, some declined. Exports of unwrought silver fell 19.4 percent, copper ores and concentrates declined 6.7 percent, and agglomerated iron ores slipped 3.5 percent. Export prices dropped for only two major items — unwrought aluminum (down 4.9 percent) and high-carbon ferrochrome (down 14.3 percent).
Despite these decreases, export revenue for nine of the top 10 products rose in 2024. Uranium led in value and growth, climbing 32 percent to $4.5 billion. Copper cathode exports followed at $3.7 billion, up 29 percent. Copper ores and concentrates brought in $3.1 billion, up 4 percent. Alumina exports jumped 27.9 percent to $449.4 million, and unprocessed aluminum rose 15.6 percent to $459.1 million.
