External News in Brief

Over the past 10 years, Kazakhstan has invested $900 million in Singapore’s economy, while the inflow of direct investment from Singapore into Kazakhstan’s economy amounted to more than $60 million, Chairman of the Investment Committee of the Ministry of Investment and Development of Kazakhstan Yerlan Khairov announced at an April 15Kazakhstan-Singapore Business Forum meeting. “Kazakhstan has invested$900 million in Singapore. From 2005 to 2014, the inflow of direct investment from Singapore to Kazakhstan amounted to more than $60.25 million,”Khairov said. He noted that Kazakhstan has created a favourable investment climate, having undertaken reforms based off of those implemented by Singapore. Thus, Kazakh businessesthat are actively cooperatingwith Singaporean companiesin communication management consulting havetaken on a new economic model. “Because of Singapore’s economic and social development, the approaches chosen by Lee Kuan Yew have gained respect and a foothold in Kazakhstan, as we view them asproven methodsfor stimulatinggrowth and safeguarding the population’s welfare. Kazakhstan is actively cooperating with Singaporean companies ineconomiczone managementconsulting. Kazakh companies, together with JURONG International, have developed recommendations for a new model of economic zone management,” Khairov said.

On April 14,First Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev met with the head of the French company Total, Patrick Pouyanne. During the meeting, the parties discussed  cooperation in the oil and gas industries and the implementation of a project at the Kashagan field. The two sides also reviewed exploration progress in the Aktobe region. Sagintayev noted that Totalhas a 20-year track record of success in Kazakhstan and is one of the country’s largest strategic investors. Following the meeting, the parties expressed interest in further deepening cooperation in oil and gas.

“Kazgeology has successfully attracted foreign investment inmineral exploration in Kazakhstan,” Chairman of the Board of Kazgeology, Kazakhstan’s state ownedgeological exploration and miningcompany, Galym Nurzhanov saidat an April 15 media briefing. Over the past two years, four major foreign investors, including the Anglo-Australian Rio Tinto, South Korean KORES,Australian Iluka Resources and the German investment fund ULMUS FUNDhave taken part in exploration operations in Kazakhstan. These companies are ready to invest 5.5 billion tenge (US$296 million) in mineral exploration. Rio Tinto completed all of the necessaryprocedures for setting up joint ventures in the Karaganda region. Iluka Resources, the world’s largest producer of zircon and a global manufacturer of titanium products, is now a name in Kazakhstan’s markets. Nurzhanov said that this year’s exploration operations in Dyussembai and Besshokywill include KORES and the ULMUS FUND.“The companies are satisfied with their progress and are interested in implementing new joint exploration projects with Kazgeology,” he said. Kazgeology is constantly engaged in exploration and introducing new equipment and advanced technologies. Together with the Canadian company Geotech, they founded an airborne geophysical company. Kazakhstan has already used unique VTEM and ZTEM technology, which allows geologists to survey solid minerals to a depth of 2.5 kilometres.

A legal code on subsurface resources in Kazakhstan will be developed based on an Australian model, Executive Director of the National Association of Mining and Metallurgical Enterprises Nikolai Radostovets recently announced. “The code demonstrates new relations with investors. The relations should be based on the best international experience. Thus, Australia’s experience will be applied,” he said. According to him, the Australian code interprets the size of taxation. He also noted that within the second phased of the State Programme of Accelerated Industrial and Innovative Development, ferrous metallurgy projects worth 390 billion tenge (US$2.09 billion) will be implemented and over 1 trillion tenge (US$5.4 billion) in nonferrous metallurgy. “Despite the difficult conditions, we expect investments to be made in this sector. According to expert predictions and Bloomberg, Kazakhstan ranked 9th among the fastest developing economies after the United Arab Emirates,” he highlighted.

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