Mining 2026 Comparisons

Mining holds an important role in Republic of Kazakhstan’s (RoK) industrial framework, making a substantial contribution of 12.7% to the country’s GDP during the period of January to September 2025.

The country has approximately 9,500 different deposits of solid minerals, aggregates and hydrocarbons, according to the state’s records. Kazakhstan is a prominent producer of diverse minerals and currently holds the top position globally in the mining of uranium, chromite, coal, iron, steel, copper, manganese, bauxite, tungsten, silver, lead, titanium, gold and zinc.

The largest mining companies operating in Kazakhstan include Eurasian Resources Group, Kazakhmys, National Mining Company Tau-Ken Samruk, Kazzinc, Kaz Minerals, Kazatomprom, QARMET (previously known as ArcelorMittal), Solidcore Resources (previously known as Polymetal), Rio Tinto, Central Asia Metals, Fortescue Metals Group, etc.

The Code on Subsoil and Subsoil Use (the “SSU Code”), which was adopted on 27 December 2017 and became effective on 29 June 2018, distinctly segregates the regulatory provisions for solid minerals from those applicable to hydrocarbons and uranium.

The SSU Code regulates matters such as access to geological data in the state’s possession, granting mineral titles in the form of licences, requirements for licence holders, licence conditions, project documents, exploration and mining operations, transfer of mineral titles and interests in licence holders, treatment and disposal of mining waste (classed as technogenic mineral formations), mine closure and reclamation, reporting, etc.

Based on the regulatory approach of the Western Australian Mining Act and Canadian mining laws, the SSU Code for the first time introduced the “first come – first served” licence allocation mechanism in Kazakhstan.

Moreover, the SSU Code introduced recognition of resource and reserves reports prepared under the national instrument KAZRC (based on the CRIRSCO template) by the state.

However, a temporary transition period initially provided until January 2024 to allow reporting on resources and reserves under soviet-era standards of the State Commission for Reserves (GKZ standards) under the Geology Committee (GeoCom) of the Ministry of Industry and Construction (MIC), has been extended for mining contracts and licences issued before 31 December 2023 and there is a mandate for the GeoCom to consider and reject KAZRC reports on resources and reserves before registering them at state mineral records.

Kazakhstan has a civil-based legal system. However, the Astana International Financial Centre (AIFC) operates under a common law framework, in areas such as corporate law, commercial law, dispute resolution, labour regulations, personal data protection, currency regulation and other related domains.

The main legislative act governing the mining industry is the SSU Code, which applies to mineral titles granted both under licences issued following the enactment of the SSU Code as well as under the subsoil use contracts for exploration, production, and combined exploration and production of solid minerals executed prior to the enactment of the SSU Code.

There are also several government resolutions and an extensive list of subordinated by-laws of the mining authority (currently the MIC) which regulate specific issues and procedures in the exploration and mining sectors.

Other main legislative acts applicable to the exploration and mining activity include:

• the Environmental Code of 2 January 2021 (the “Environmental Code”);
• the Tax Code of 18 July 2025 (the “Tax Code”);
• the Land Code of 20 June 2003 (the “Land Code”);
• the Business Code of 29 October 2015 (the “Business Code”);
• the Law on Precious Metals and Precious Stones of 14 January 2016; and
• the Law on Civil Protection (safety law) of 11 April 2014.

The RoK Constitution mandates (as amended on 8 June 2022) that the land and its subsoil, water, flora and fauna, and other natural resources are owned by the people of Kazakhstan. However, the property right on behalf of the people of Kazakhstan is exercised by the state.

The state, represented by the government, grants mineral titles on the grounds, conditions and to the extent provided by the SSU Code.

Minerals mined and extracted by subsoil users become their private property.

However, the government and/or the parliament may introduce any restrictions they consider appropriate. For instance, amendments were made to the Industrial Policy Law of 27 December 2021 on 9 October 2024, requiring producers of domestic raw materials to supply them to domestic manufacturers at special competitive prices, should such raw materials be included in the list of domestic raw materials.

The amendments imply an export ban on listed raw materials until satisfaction of domestic demand. It is provided that the listed raw materials may be exported under a special licence issued by the MIC subject to the conclusion of and compliance with a supply agreement with local manufacturing enterprises.

Depending on the type of mineral (eg, solid minerals, aggregates, hydrocarbons or uranium) and the type of operation, the state is represented by the following authorities:

• MIC, which is responsible for state policy in the mining sector other than mining uranium, granting and revoking exploration and mining licences, and overseeing compliance by the licence holder with the conditions of the licence and requirements of the SSU Code.
• Ministry of Energy, which is responsible for state policy in the hydrocarbon industry, concluding and terminating exploration and/or production contracts for hydrocarbons and overseeing subsoil users’ compliance with the conditions of their contracts and requirements of the SSU Code.
• Agency of the RoK for Atomic Energy (“Agency”), which is responsible for state policy in the uranium industry, granting and revoking exploration licences for uranium, concluding and termination of exploration and/or production contracts for uranium mining, and overseeing subsoil users’ compliance with the conditions of the uranium exploration licences, contracts on uranium and requirements of the SSU Code.
• GeoCom, which is responsible for state policy in geology, granting licences for geological survey and licences for the use of subsoil space, and overseeing reporting on mining and geological data, and is generally responsible for the aggregation and provision of access to geological data.
• Local executive bodies (akimats), which are responsible for granting rights to land, granting and revoking licences for artisanal mining, mining aggregates, and overseeing compliance with the licence conditions and requirements of the SSU Code by holders of such licences.

Please also refer to 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors regarding a mining right to uranium deposits.

As noted in 1.3 Ownership of Mineral Resources, subsoil use rights have a constitutional basis and these rights are issued by state authorities. Subsoil use (minerals) rights hold the status of property.

The granting authorities are described in 1.4 Role of the State in Mining Law and Regulations.

There are no overlaps of jurisdictions in Kazakhstan. Exploration and mining rights are granted at the central ministerial level, and mining rights for aggregates and artisanal mining are granted at local jurisdiction.

Before 29 June 2018, the date of enactment of the SSU Code, mineral rights were granted through contracts.

From 29 June 2018, mineral rights are granted by acts in the form of various types of licences: exploration licence, mining licence, aggregates mining licence, artisanal mining licence and licence for use of subsoil space (for disposal of mining waste).

Mineral rights are protected by the general provisions of the Civil Code, by specific provisions of the SSU Code, by the Administrative Procedural and Process-Related Code of 29 June 2020 (APPC) and additionally by bilateral investment treaties (BITs) ratified by Kazakhstan and applicable to foreign investments.

Regarding BITs, please refer to 5.3 International Treaties Related to Exploration and Mining.

Exploration Licence

An exploration licence has the following features:

• A reclamation security instrument to be furnished before the licence grant.
• Licence area is exclusive and formed of blocks (a part of a block can be included).
• No limit on the number of licences per person/company. Transferable, subject to national security review.
• Entitles holder to explore any minerals.
• Granted for six years plus potential extension for five years subject to fulfilment of all licence obligations and mandatory surrender of blocks (if applicable).
• If it includes ten or more blocks, 40% of blocks must be surrendered at the end of the initial licence term to allow further extension of the term.
• Exclusive right to obtain a mining licence on a priority basis within the term of the licence (subject to the discovery of a deposit of solid minerals, with confirmed resources and reserves substantiated by a report assessing the resources and reserves of such solid minerals).

Regarding uranium exploration licences, please refer to 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors.

Mining Licence

A mining licence has the following features:

• Granted for up to 25 years plus possible extensions for a period not exceeding the original term of the licence (for an unlimited number of times).
• Licence area is exclusive and must be in the form of a rectangle or quadrangle where at least two opposite sides are parallel or, if impossible, a polygon with the least possible number of angles. No minimum or maximum size.
• A security instrument for mine closure and reclamation to be furnished before commencing mining activities.
• Entitles holder to mine any minerals, except for uranium deposits.
• No limit on the number of licences per person/company. Transferable, subject to national security review.
• Retention status for up to five years with potential extension for a further five years.

After the issuance of a subsoil use licence, if the RoK legislation, which governs relations in the field of subsoil use, introduces additional conditions for such licences, these conditions shall not be applicable to licences issued prior to the legislative amendment (except for changes of the legislation concerning national security, defence capability, environmental safety, healthcare, taxation and customs regulation).

The SSU Code delineates an exhaustive set of conditions under which a licence can be invalidated, specifically:

• knowingly providing the MIC with unreliable information that influenced its decision to issue a licence;
• violations of the licence issuance procedure that led to an unjustified decision, as a result of a malicious agreement between an official of the MIC and the applicant;
• issuing a licence to a person recognised as legally incompetent, and who was such on the day of issue; and
• if the issuance of a licence is not provided for or is prohibited by the SSU Code.

The authority to invalidate a licence rests with the court.

The statute of limitations for disputes relating to the invalidity of a licence is three months from the day when the plaintiff becomes aware, or ought to have become aware, of the circumstances that constitute the basis for declaring the licence invalid.

Also, note that the APPC specifies the principle of “Protection of the Right to Trust”, which serves as a “guarantee” for the administrative authority that the adopted administrative act (such as a licence) is lawful and consistent. An administrative act (licence) is considered lawful and justified until the administrative authority, public official or court establishes otherwise in accordance with the RoK legislation.

An error committed by the administrative authority (such as the MIC) cannot be turned against the party (subsoil user).

That said, a subsoil user cannot invoke such principle in cases specified in Article 84.6 of the APPC (eg, when there is established deliberate falseness of a document or information provided by a subsoil user).

The Civil Code specifies that an individual or legal entity whose rights are violated may demand full compensation for the losses incurred, including actual damages and lost profits.

Losses incurred by an individual or legal entity as a result of the issuance of an act by a state authority or another government body that does not comply with the legislation, as well as the actions (or inaction) of the officials of these bodies, shall be compensated by the RoK or, respectively, by the administrative-territorial unit.

Subsoil Use Contracts for Solid Minerals (Except for Uranium) Concluded Before 29 June 2018

Exploration contract

A standard contract for exploration of solid minerals could be concluded for a period of six years.

In the event of a deposit discovery, the subsoil user has the right to extend the exploration period for the duration necessary for appraisal.

The subsoil user who discovers a deposit of solid minerals, as outlined in the subsoil use contract, has the exclusive right to obtain a mining licence on a priority basis.

Mining contract

A standard contract for mining of solid minerals could be concluded for a period of no more than 25 years, and for deposits with large and unique mineral reserves, no more than 45 years.

A mining contract can be extended for no more than 25 years (for an unlimited number of times).

In the case of extension of a mining contract or combined exploration and mining contract (mining period) of solid minerals on a subsoil site containing a large deposit for a period exceeding ten years, the MIC may include in the terms of such extension one of the following obligations of the subsoil user:

• creation by a subsoil user or its subsidiary or a joint venture of processing facilities;
• modernisation or reconstruction of the subsoil user’s existing production facilities;
• modernisation or reconstruction of existing processing facilities;
• supply of mined minerals to processing enterprises (production facilities) located in the territory of the RoK; or
• procurement by a subsoil user, its subsidiary or a joint venture of an investment project in accordance with the Business Code or a project aimed at the social and economic development of the region.

If the subsoil user declines to extend the contract under the above terms, the corresponding deposit will be put up for auction upon the contract’s expiration.

The contract area is exclusive under either the exploration, mining, or combined exploration and mining contract.

Grandfather clause

Subsoil use contracts also include a provision known as a “grandfather clause”, commonly expressed as follows:

“The subsoil user is guaranteed protection of its rights in accordance with the legislation of the RoK. Changes and additions to the legislation that adversely affect the results of a subsoil user’s business activities under contracts do not apply to contracts concluded before these changes and additions were made.

The above-mentioned guarantees do not apply to changes in the legislation of the RoK related to national security, defence capability, environmental safety, healthcare, taxation and customs regulation.”

Transition from contractual to licensing regime

Subsoil users under a subsoil use contract are entitled to apply for the transition of their contracts to the relevant subsoil use licence, subject to the decision of the MIC’s commission. However, the transitioning rules are not well drafted. Most issues are at the discretion of the MIC’s commission, for example, inclusion of the additional obligations, grounds for rejection, etc.

The main legal act regulating environmental protection is the Environmental Code. It covers a wide range of environmental issues, including air and water quality, waste management, biodiversity conservation and environmental impact assessment.

Some of the key distinguishing new features of the Environmental Code are the best available technologies for environmental management, environmental monitoring and control, and the “polluter pays” principle. According to the interpretation of this principle in Kazakhstan, a polluter is financially responsible for the environmental damage it causes and is required to take measures to mitigate the damage.

Certain activities with potential environmental impacts, such as mining activities, require an environmental permit. The Environmental Code contains the lists of activities and quantitative criteria, according to which a facility is allocated to Category I, II or III (ie, facilities that have either a significant, or moderate, or insignificant negative impact on the environment, respectively). Obtaining an environmental permit is mandatory for construction and/or operating Category I or II facilities. In contrast, Category III facilities can be constructed and operated by submitting a notification to the relevant permitting authority.

Generally, exploration activities under the exploration licences fall under Category IV (objects that have a minimal negative impact on the environment) and do not require obtaining an environmental permit.

There are two types of environmental permits:

• integrated environmental permit; and
• environmental impact permit.

The environmental permits for Category I facilities are issued by the Committee for Environmental Regulation and Control, the subordinate entity of the Ministry of Environment and Natural Resources or its territorial departments (for Category II – by local executive authorities) in electronic form through the e-government web portal.

In order to secure a permit, a legal entity needs to apply to the relevant permitting authority along with supporting documents. These documents should include project documentation for the construction and/or operation of facilities, draft emission limits, a draft waste management programme, a draft programme of industrial environmental control and other documents.

In general, the effectiveness of environmental authorities in Kazakhstan displays a combination of positive and negative aspects. While there has been progress in developing a legal framework and institutions, significant challenges arise from the lack of enforcement capacity and reaching the institutional development ceiling in terms of government management, as well as economic dependence on oil production and mining.

Kazakhstan features environmental preserved zones with a cumulative area of approximately 30.9 million hectares dedicated to safeguarding its natural landscapes. The main protected areas are the following:

• 14 state national natural parks;
• ten state nature (wildlife) reserves;
• eight natural reserves; and
• five state-protected areas.

Furthermore, subsoil use activities are prohibited within the territories of environmental preserved zones, with certain exceptions. Such exceptions include exploration activities at state-protected areas subject to approval of the authorised state body, and mining is allowed subject to approval of the RoK government.

In 2025, amendments to the Land Code were adopted (effective from 1 January 2026), which narrowed the list of specially protected natural areas where mining operations may be allowed subject to RoK government approval.

Moreover, Article 25 of the SSU Code lists the areas where exploration and mining operations are prohibited, such as water fund lands, areas of groundwater of potable quality, lands designated for the needs of defence and national security, lands of townsites, roads, railways and airports.

The SSU Code mandates the establishment of conditions that facilitate the active involvement of the public community concerned, local executive bodies and territorial environmental authorities throughout the entire Environmental Impact Assessment (EIA) process.

Prior to seeking approval from environmental authorities, subsoil users are obligated to conduct public hearings. In preparation for these hearings, they must proactively inform the community where subsoil use activities are slated to take place, providing details such as the date, time and location of the impending hearings. Additionally, they are required to outline the procedure for interested parties to access pertinent materials related to the EIA of the project.

Generally, for exploration activities, an EIA is not required, and accordingly, public hearings are not necessary. However, the subsoil user will need to conduct public hearings in the case of transitioning to mining.

The public hearings entail creating a record of the proceedings that encompasses the remarks and objections voiced by the public community throughout the hearing. This record is documented in written form and subsequently made available on the website of the local executive body (akimat).

According to the SSU Code, there is no explicit obligation to consider the results of consultations when designing and operating the mine. Instructions for formulating liquidation plans only mandate taking public opinion into account when defining elimination tasks.

At the same time, Kazakhstan legislation does not provide for a concept of social impact assessment.

There are no requirements for mandatory consultation, except for public hearings. Please refer to 2.3 Impact of Community Relations on Mining Projects.

In Kazakhstan, there are no specially protected communities, such as indigenous people.

The SSU Code imposes mandatory obligations for community development agreements in the case of territorial borders of settlements. The execution of an agreement on socio-economic development of the region is required if a requested area of exploration or underground mining wholly or partially belongs to the lands of townsites and adjacent territories within a distance of 1,000 metres.

Also, the rental fees paid by a holder of exploration and mining licences are allocated directly to the local budget (city, village, etc) where the licence areas are located.

Moreover, subsoil use contracts concluded before the enactment of the SSU Code usually include commitments for contributing to the socio-economic development of the region. These commitments are expressed as a percentage and usually amount to 1% of annual exploration or mining costs or a fixed cost agreed upon with the competent authority.

ESG guidelines in Kazakhstan differ from their representation in other regions. Kazakhstan’s legislative framework addresses ESG requirements through separate channels for environmental aspects, social aspects and governmental aspects, thereby lacking a unified structure to consolidate them.

Specifically, the Environmental Code and associated regulations set out requirements concerning environmental protection, including standards for emissions, waste management, water usage and biodiversity protection. Companies, especially those in sectors with significant environmental footprints, must comply with these regulations.

and processes by which a company is directed and controlled. Kazakhstan’s corporate law outlines basic governance structures for businesses operating in the country. These include rules about shareholder meetings, board compositions, audit requirements and disclosure norms.

Illegal mining is strictly prohibited in Kazakhstan, and the government takes measures to prevent and address such activities. While not a pervasive issue, the state remains vigilant, employing various strategies to combat illegal mining. Since 2021, illegal mineral operations are identified using remote sensing data. In 2025, the satellite monitoring enabled Kazakhstani authorities to detect 72 new cases of illegal mining.

Engaging in illegal mining incurs severe penalties, including substantial fines and potential criminal liability.

As the price of gold has increased by more than 50% in recent years, this has driven a notable rise in illegal gold mining. For example, in East Kazakhstan, illegal mining activities have caused damage to the state exceeding KZT400 million (approximately USD754,717). A criminal case has been initiated against the organisers, one of whom was a civil servant.

Positive outcomes resulting from mining activities in local communities are often linked to the initiation of social initiatives by subsoil users in the cities and villages surrounding mining areas. These initiatives encompass the construction of essential infrastructures, such as roads, parks and sports complexes, as well as providing financial and technical assistance to local businesses and entrepreneurs, thereby contributing to the well-being of local residents. Additionally, comprehensive environmental management programmes are implemented, featuring reforestation projects and measures to control pollution. For instance, Eurasian Resources Group, Kazzinc and other major mining companies have demonstrated their commitment by investing in the establishment of schools, hospitals and various other infrastructure projects within communities near their mine sites.

Examples of negative impacts are typically linked to pollution or the damage of natural resources, resulting in environmental degradation and adverse effects on the health and livelihoods of local residents. In addition, unsatisfactory labour practices, such as low wages and lack of safety compliance, contribute to these negative impacts.

General provisions regarding climate change are contained in the Environmental Code. Additionally, in response to the tangible threats of climate change, the President of Kazakhstan has signed the Strategy for Achieving Hydrocarbon Neutrality in the Republic of Kazakhstan by 2060.

Kazakhstan has also ratified the following international treaties on climate change:

• the Paris Climate Agreement;
• the Convention on Long-Range Transboundary Air Pollution;
• the Vienna Convention for the Protection of the Ozone Layer; and
• the Kyoto Protocol to the United Nations Framework Convention on Climate Change.

By 31 December 2030, Kazakhstan aims to reduce its carbon balance by at least 15% from the 1990 level, and it is committed to achieving hydrocarbon neutrality by 2060.

In addition, in order to reduce greenhouse gas emissions, the Environmental Code establishes carbon quotas for carbon dioxide emissions. In simple terms, hydrocarbon quotas mean the volumes of free carbon units distributed by the Ministry of Environment and Natural Resources based on the benchmarking methodology. Installations in the sectors of electricity, oil and gas, mining, the metallurgical and chemical industries, as well as manufacturing industries in terms of the production of cement, lime, gypsum and bricks, are subject to carbon quotas if they emit more than 20,000 tonnes of carbon dioxide per year.

There are no specific climate change programmes or requirements for the mining sector.

Please refer to 3.1 Climate Change Effects.

In 2013, the President of Kazakhstan adopted the concept of the country’s transition to the Green Economy (“the Concept”) in order to ensure the sustainable development of the country and that it becomes one of the 30 most developed countries in the world by 2050. It assumes that the transition will require annual investments of about 4.4% of Kazakhstan’s GDP (or USD15 billion).

The priority tasks of the Concept are:

• improving the efficiency of resource use;
• modernisation of existing infrastructure and construction of new infrastructure;
• improving the well-being of the population and the quality of the environment through cost-effective measures to reduce pressure on the environment; and
• improving national security, including water security.

The threat of water scarcity and the inefficient management of water resources can be major obstacles to sustainable economic growth and social development in Kazakhstan. According to the Concept, the following projects are necessary in order to achieve national security:

• the construction of reservoirs including reservoirs to capture water run-off during floods;
• the development of measures to reduce water losses during transportation across all types of economic activities;
• the development of sustainable groundwater use; and
• the construction and/or modernisation of treatment facilities in the 20 largest cities in Kazakhstan, requiring an estimated investment of USD1–2 billion.

Please also refer to 3.1 Climate Change Effects regarding the Strategy for Achieving Hydrocarbon Neutrality in the Republic of Kazakhstan by 2060.

Kazakhstan produces approximately 18 of the 34 essential raw materials identified by the EU as crucial for batteries, electric vehicles, solar panels and other components in the renewable energy sector. These materials encompass bismuth, gallium, rare earth elements, silicon, vanadium, tungsten, lithium, indium, cobalt, etc.

Despite this significant resource, there are currently no specific legislative initiatives related to “energy-transition minerals”.

In 2023, the MIC developed a Comprehensive Plan for the Development of the Rare and Rare Earth Metals Industry for 2024–2028 (the “Comprehensive Plan”).

The Comprehensive Plan provides for the expansion of the resource base and the introduction of technologies for the complex extraction of rare metals, the modernisation of existing production facilities, the development of standards regulating the industry and the lifting of the secrecy regime for certain metals.

Additionally, as part of the implementation of the Comprehensive Plan, the Development Bank of Kazakhstan in 2025 developed a 2025–2030 financing programme for projects on energy-transition minerals, with a total budget of USD1 billion. This programme is intended to become a key financial tool for advancing projects in the mining and metallurgical sector related to the processing of rare earth and critical materials.

At present, Kazakhstan’s energy-transition minerals sector remains in its early stages. Only a limited number of such minerals are being mined or processed domestically, while most companies are still focused on exploration and identifying new deposits.

Mining companies operating in Kazakhstan are obligated to adhere to the standard taxes and duties applicable to all legal entities, including:

• corporate income tax, currently set at a rate of 20% (25% for second-tier banks and the gambling industry);
• value-added tax (VAT), currently set at a rate of 16%;
• property tax (1.5%); and
• land tax (the rates vary),

as well as specific subsoil use taxes and duties. In this regard, mining companies must maintain separate tax accounting for their activity under a subsoil use licence/contract and their non-subsoil use-related activity. Both companies and joint ventures registered in Kazakhstan are regarded as residents for tax purposes.

The specific taxes and other payments of a fiscal nature for mining companies are as follows:

• Signature bonus: A one-off payment made by a subsoil user upon either acquiring a subsoil use right for a particular territory or in case of its enlargement. The signature bonus for an exploration licence equates to 100 MCIs (approximately USD816); for a mining licence, it is 200 MCIs (approximately USD1,632).
• Mineral extraction tax (MET): A volume-based tax applicable to extracted minerals. The taxable base is the value of the whole extracted volume of minerals. The price of minerals is determined based on the information from the London Metal Exchange. MET is paid separately at specific MET rates for each type of extracted mineral, ranging from 0% to 21.06%. For gold and silver, the MET rates range from 7.5% to 11%, depending on the mid-market price of the respective minerals.

• Rental fees: Paid as a licence obligation under exploration and mining licences. The amounts are as follows: for an exploration licence, from 15 to 100 MCIs (approximately USD122 to USD816) for one block, depending on the year of exploration; for a mining licence, 450 MCIs (approximately USD3,672) per square kilometre of the licence area.
• Payment for compensation of historical costs: A fixed payment made in instalments to compensate the state for the costs of a geological survey and exploration conducted on a subsoil area that were incurred before the execution of a subsoil use contract.
• Royalty tax: Tax applicable to the sale of extracted and processed minerals and payable by subsoil users under exploration or mining licences of solid minerals issued after 31 December 2026. Royalty rates range from 7% to 13%, depending on the level of mineral processing.

The tax legislation in Kazakhstan does not distinguish between national and foreign investors.

Generally, subsoil users carrying out operations for the exploration and/or mining of mineral resources are not allowed to enjoy tax or other preferences.

Investment preferences (including tax preferences) for subsoil users may be provided by conclusion of the following:

• Investment project: The investment project is a set of measures providing for investments in establishing new manufacturing facilities, as well as upgrading and modernising current manufacturing facilities. Investment preferences under an investment project are granted upon negotiation.
• Agreement on investment commitments: Agreement on investment commitments is an investment project under the agreement concluded between the RoK government and a legal entity, outlining the commitments of the legal entity regarding the financing of capitalised subsequent expenditures and/or expenditures for the acquisition, production and construction of new long-term assets. It also covers the financing of other costs that increase the value of long-term assets in accordance with international financial reporting standards and/or the requirements of the legislation of the RoK on accounting and financial reporting.
1. These commitments extend over a period of eight years, including the year in which the application for the conclusion of such an agreement is submitted, and the total amount should be no less than 75 million MCIs (approximately USD612,028,302).
2. In the event of concluding an agreement on investment commitments with a legal entity engaged in the mining and/or processing of solid minerals, such agreement is exclusively for activities in the field of mining and/or processing solid minerals.
3. An investment commitment agreement provides tax stabilisation for ten years (except for VAT, emissions tax and certain other taxes).
• Agreement on the processing of solid minerals: If the mining licence holder intends to create new facilities for the processing of solid minerals, or to expand or modernise existing ones, and the amount of investment exceeds 7 million MCIs (approximately USD57,122,642), then it is entitled to conclude a special processing agreement which, depending on the results of a negotiation, provides for investment preferences (including tax preferences). (Note that the parliament is currently considering increasing the investment amount to 70 million MCIs (approximately USD571,226,415) and revising the definition of a processing project to include the establishment of new solid-mineral processing facilities along with supporting production, energy and/or transport infrastructure.)
• Conclusion of an intergovernmental agreement: In practice, subsoil users may obtain preferences outlined in intergovernmental agreements. These preferences, encompassing various aspects including tax stabilisation, are contingent upon negotiations.

A transaction involving the sale of subsoil use rights is liable to 16% VAT. In practice, parties to such transactions prefer to use “share deal” structures, since the sale of shares in local companies is exempted from VAT.

Kazakhstan secured the 43rd position out of 82 in the Investment Attractiveness Index of the Fraser Institute’s Annual Survey of Mining Companies 2024, after ranking 79th (of 86) in 2023. Investors showed decreased concern about the country’s regulatory overlaps and inconsistencies.

Nevertheless, challenges remain, particularly in enhancing investor confidence in the political stability and fully realising the country’s geological potential.

Kazakhstan is balancing between institutional development and public micromanagement, between promotion of local manufacturing and improvement of the investment climate, particularly in the mining sector. To achieve these objectives, Kazakhstan implemented the SSU Code, thereby opening up the state territory for exploration on a “first come – first served” basis.

This proactive approach is part of Kazakhstan’s broader strategy to enhance transparency and simplify regulatory processes in the mining industry. The SSU Code introduced reforms aimed at streamlining administrative procedures, reducing bureaucratic hurdles and promoting a more investor-friendly environment. By adopting the SSU Code, Kazakhstan aims to boost investor confidence and create a competitive edge in the global mining landscape.

Beyond regulatory changes, Kazakhstan has undertaken strategic efforts to improve its investment climate. The country has embraced common-law principles under the AIFC, reinforcing legal frameworks and providing additional incentives for investors.

One of the primary issues surrounding investment in the mining sector in Kazakhstan revolves around frequent alterations to tax legislation, leading to inconsistent application and interpretation. Companies argue that the unexpected and frequent shifts in the tax regime have resulted in delays in making investments.

There are no general restrictions on foreign companies holding mining rights. Any individual and legal entity (whether national or foreign) can hold exploration or mining rights, provided they comply with the requirements of the SSU Code (eg, availability of financial, professional and technical capabilities). The procedure for obtaining licences is the same for national and foreign investors.

However, the MIC retains the right to refuse an application for an exploration or mining licence due to national security issues.

Mining rights to a uranium deposit may only be granted to the National Atomic Company Kazatomprom JSC (KAP) and can be subsequently transferred to an investor or joint venture, by which more than 75% of direct or indirect interest must remain for KAP.

This 75% direct or indirect interest threshold was increased from the previous 50% by amendments to the SSU Code relating to uranium and hydrocarbons (the “Uranium Amendments”), adopted by the President of Kazakhstan on 26 December 2025 and effective from late February 2026. Moreover, the Uranium Amendments introduced a priority right for KAP to obtain exploration licences for territories containing uranium mineralisation and/or uranium deposits identified in the State Subsoil Fund Management Programme.

Previously, the MIC issued exploration licences for such areas to third parties.

In addition, a mandatory condition for granting the subsoil use right for hydrocarbons in the Caspian Sea is that the National Company KazMunayGas JSC (national hydrocarbon company) must have a minimum 50% of share participation as a subsoil user under the contract in the field of hydrocarbons.

Kazakhstan is a party to actual BITs with approximately 50 countries, establishing guarantees for the protection of investment activities. Texts of these treaties can differ in terms of defining an investor, an object of investment, protected rights of an investor, and the procedure of investment protection. Nevertheless, all treaties stipulate the right of an investor to resolve an international investment arbitration, to protect their rights and investment.

Additionally, Kazakhstan is a signatory to:

• the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards;
• the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States;
• the Energy Charter Treaty; and
• the Agreement on Promotion and Reciprocal Protection of Investments in the Member States of the Eurasian Economic Community.

In Kazakhstan, at the exploration stage, the main financial resources either come from the funds of subsoil users themselves using the capital contribution or involve joint venture transactions. In the context of joint ventures, a smaller company, overseeing a set of exploration licences, provides an option for a senior company. This is done in exchange for the latter expending funds on exploration according to a mutually agreed schedule. Also, in practice, exploration financing is carried out through loans from third companies and banks, IPOs and private equity funds.

As for the mining stage, loans from parent companies and investors, as well as banks and financial institutions, along with project financing and off-take agreements, are expected to become more accessible.

Please refer to 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining regarding financing from Securities Markets.

Securities Market

Currently, there are two securities markets functioning in Kazakhstan: the Kazakhstan Stock Exchange (KASE) and the Astana International Exchange (AIX). Despite their existence, both local and foreign companies usually raise funds on the global stage in Hong Kong, London, Toronto and Sydney financial centres.

Kazakhstan issuers offering their securities (including derivatives) outside of Kazakhstan must offer not less than 20% of the total number of securities or derivatives offered abroad on KASE or AIX and notify the Agency of the RoK for Regulation and Development of Financial Market of the outcome of the placement of such securities or derivatives abroad.

Notably, in 2025, the first successful dual-listing IPO took place on AIX and the Hong Kong Stock Exchange, when Jiaxin International Resources Investment Limited, which operates exclusively at the Boguty tungsten mine in Kazakhstan, went public.

Issuing Securities in Securities Markets

The SSU Code provides for the definition of objects related to the subsoil use right (the “Objects”), encompassing various forms of equity participation such as shares, participatory interests and securities verifying ownership rights or convertible into any type of equity participation in either a subsoil user or a legal entity or another organisation with the ability to directly and/or indirectly influence decisions made by the subsoil user.

The SSU Code requires obtaining prior approval of the MIC for an IPO or SPO of Objects on either domestic or international securities markets.

Mineral rights (or a share in them) may be pledged under the conditions provided by the SSU Code or encumbered in other ways.

However, a pledge of an exploration licence during the first year of the term of the licence is prohibited.

Other than other types of encumbrances, a pledge of mineral rights or a share thereof requires registration with the MIC, and it becomes valid from the moment of registration.

Related assets such as equipment and machinery may be pledged, within the limits and conditions envisaged by the RoK Civil Code.

The mining sector in Kazakhstan faces today a period of regulatory uncertainty and transition. On one hand, the President’s declared commitment to continuing reforms in the subsoil use framework signals long-term strategic intent. On the other hand, the Parliament’s recent rollback of a number of reform measures undermines confidence in a stable legal trajectory. The ultimate outcome will largely depend on the government’s commitment to transparent policymaking and its ability to balance competing interests.

Interest in Kazakhstan’s rare earth metals and other critical minerals continues to grow. China, the United States and EU countries view Kazakhstan as an increasingly important source of energy-transition minerals. This global strategic demand is expected to sustain and likely increase the flow of foreign direct investment into the mining sector in Kazakhstan, which has already more than doubled over the past five years. The government itself has demonstrated a clear strategic focus on enhancing the investment attractiveness of mining and rare earth sector itself.

A notable policy shift is taking place in the uranium sector. In line with Kazakhstan’s long-term strategic priorities, the state is moving towards further consolidation of uranium projects under its control. An Agency has recently been established, and the Uranium Amendments have been adopted.

The trajectory of Kazakhstan’s mining sector over the next two years will depend on the resolution of ongoing legislative debates, growing interest in the development of rare earth metals, and the outcomes of exploration activities conducted under greenfield projects. A stable regulatory environment combined with a balanced approach to state control and market principles will be essential for maintaining investor confidence and supporting growth in the mining industry.