Orsu Metals reports that according to the IFC and World Bank study, Doing Business 2010, Kazakhstan currently has the most improved business regulation in the entire world. Last year, it moved up an astonishing 15 places and now sits comfortably in the top third. “Not surprisingly the country is buzzing with new business opportunities that this distinction presents. Recently, the Eurasian Natural Resources Corp (ENRC) announced investment of $7 billion in Kazakhstan mining development programs. Already slated for this work, ENRC will invest $2 billion to expand an existing mine, and $750 million to construct a ferroalloy plant in Aktobe.
A landlocked country, Kazakhstan is not only bordered by powerhouses Russia and China, but Kyrgyzstan, Uzbekistan, and Turkmenistan as well. With these markets nearby, and data collection already underway, early indications show the country has the potential for trillions of dollars of metal in the ground.
So far, China has agreed to investments of $13 billion with South Korea ($5 billion), Russia ($3 billion), and France ($2 billion) also investing heavily. This has allowed employment in the mining sector to swell to 130,000 workers.
That said, the US government is also taking note. Last week Kanat Saudabayev – Kazakhstan’s senior international diplomat met with US Secretary of State Hillary Clinton to formally strengthen their countries’ political and economic ties.
Orsu Metals believes it is likely to benefit from the improved regulatory environment. Sergey Kurzin, CEO of Orsu Metals, is a Russian-born international mine builder and deal maker. A member of Doug Casey’s exclusive Explorer’s League, Kurzin has been operating successfully in Kazakhstan for 20 years. He played a key role in establishing UrAsia Energy, a uranium producer with mining operations in Kazakhstan that sold to Uranium One in 2007 for $3.1 billion.
“Kazakhstan has advanced legislation,” explained Kurzin in a recent interview, “If you have a contract with the government, and if they change legislation, your document prevails.”
On the supplier side, Eurotire has just opened its new location in Karaganda, Kazakhstan. Karaganda (Qaraghandy, Қарағанды) is located in Kazakhstan’s northeast mining region, an area rich in both coal and hard rock mining. Eurotire’s focus is on providing the world’s emerging mining markets with exceptional OTR bias and radial tires and world class OTR tire service and support.
The Karaganda mining region of Kazakhstan typifies those emerging mining markets which, Eurotire says “are generally underserved by larger – automotive industry focused – OTR tire manufacturers. Eurotire is dedicated to mining customers where ever in the world they may be and whichever product design (bias or radial) that a customer selects for their specific application.
Eurotire Kazakhstan initiated in-country customer support in 2010 and was located temporarily in Almaty. This new office in Karaganda represents a permanent commitment to mining customers throughout Kazakhstan. Product warehousing and expanded service facilities and capabilities are planned to be implemented in the region in the near future as well. Eurotire’s OTR tire professionals at the Karaganda office will provide full sales and EuroCARE support services for coal and hard rock mining customers.