THE QUIZ WITHIN THE FRAMEWORK OF AMM’2012

An interview made for a special edition of International Business Magazine «Kazakhstan» (# 3, 2012) within the framework of III International Congress of Mining and Metallurgy AMM’ 2012.

tokhtarov

1. How would you characterize the current state of MMI in Kazakhstan in terms of industrial-innovative development?

  As the head of Mining and Metallurgical Company I surely interested in the development of MMI in Kazakhstan and want to note that the steel industry now accumulates more than 35% of entire manufacturing industry of the Republic of Kazakhstan and the share of MMI in the country's GDP is 47.4%.
  Under these conditions, within the framework of State Program of Forced Industrial-Innovative Development of the country for 2010-2014, the state and prospects of the Mining and Metallurgy Industry are playing a vital role, as an important sector of national economy. The maximum processing capacity within the country, the transition to base metals and production of high quality products with participation of private sector - are critical for the development of mining and metallurgical sector.
  Nowadays , creation of a national innovational system acquires a certain definite and specific shape in Kazakhstan. The concept of planning industrial-innovative development of economy is playing especial role based on of rational distribution of production and infrastructure capacity. Doubtless, all this will allow to increase efficiency of state investment policy, balance the objectives and available resources, develop guidelines for infrastructure development and forecasting of social-economic development of country and regions.Today the production is being actively renewed and modernized, modern technologies, energy and resources savings, providing technical and environmental safety of the applied technologies, reducing waste and management of mineral resources are introduced ensuring movement to new high-added value products. New productions are created and existing production with high added value is developed, problems of Kazakhstan content are solved in an integrated manner.
  Surely, along with this, there are certain weak points: slow development of science, introduction of high technologies; diversification of the economy has not become a real priority for all governmental bodies and the national idea for the country.

2. What do the government and business need to accomplish to ensure integrated use of mineral resources and establish final high-added value products of its refining?

  First of all, it is necessary to ensure the functioning of mining and metallurgical industry not only in terms of current yield, but also, based on strategic interests of the state, private business and society.
  Under these circumstances, it is required to direct our joint efforts to the following areas:
- Currently, it is important to further develop and qualitatively improve mineral resources base for metal production through identification and exploration of new highly cost effective ore deposits.
- Relevant ministries need to establish accounting and develop a regulation on strategic raw materials.
- We must develop a strategy for the integrated use of mineral resources with emphasis on the development of raw material base ensure high-tech and efficient processing and obtain wide range of globally competitive products.
- Previously existing production capacities of the enterprises should be restored to produce associated products extracted simultaneously from flue gases and solid wastes.
- It is necessary to intensify the involvement of research institutions for private sector development in mining and processing of ores for the purposes of integrated extraction of the metals and stimulate the expansion of knowledge-intensive and export-oriented production of finished products.
- Develop the production based on increase of research and advanced development activities, aimed at deep extraction of associated metals applying high technology and state-of-the-art equipment, production of competitive products.
- Improve the competitiveness of domestic steel production at foreign markets through the development of optimal schemes of products transportation and distribution, as well as to undertake series of legal and financial measures such as reducing tariffs on services of natural monopolies; cancellation or reduction of custom duties on certain goods, establish long-term intergovernmental agreements on specific types of products, export crediting, state stimulation of improvement of quality of products with acceleration of transition to international standards of product quality.

3. How does your company contribute to this process? 

  Our company is a modern, vertically integrated holding company managing a number of major projects in mining and metallurgy industry both in Kazakhstan and abroad.
  To expand the resource base we conduct active exploration and mining for manganese, coal and nickel-cobalt deposits. Enterprises of the Group are developing new deposits, establish infrastructure and workplaces and invest into innovative technologies, in particular, studies of new methods of smelting of lateritic nickel ore of Gornostayevskoe deposit, which will allow creating first production of nickel in Kazakhstan. "Taraz Metallurgical Plant" LLP was included in the list of breakthrough projects and the Program "30 Corporate Leaders" capable to expand capacity to 300 tons ferrosilicomanganese per annum, adding ferrochrome, ferromanganese and ferrosilicon to the range of production variety.
  Finished products produced by the enterprises of «SAT & Company» JSC, namely ferroalloys, calcium carbide, electrode materials / repair, coal, manganese concentrate, limestone, chrome concentrate and others are in constant demand both in Kazakhstan and abroad.