Kazzinc: Human Capital as Key Competitive Advantage

ASTANA – Kazzinc is a major fully integrated zinc producer with considerable copper, precious metals and lead credits and a manufacturer of 23 types of finished products. The company Management states that a key competitive advantage is well-skilled, mobile and motivated human capital, with the company’s focus on continuous improvement and innovation stipulated in its development strategy and policy.

Photo credit: Kazzincholdings.kz

Photo credit: Kazzincholdings.kz

“Yes, the situation in the global mining and metals industry is very complicated because of the decline in economic activity and metal prices, but due to the efforts taken by the Government and the company’s Management, Kazzinc is overcoming the current difficult economic period with minimal losses,” said a representative of the company’s PR in an interview with The Astana Times.

The company employs more than 21,000 people in mining, processing, metallurgy, energy generation, etc. The range of products includes Zinc (304,500 t produced in 2015), refined Lead (119,805 t), refined Gold (520,364 toz.), refined Silver (approximately 3.7 M toz), Copper Cathode (62,236 t) and related products.

History

In November 1996, the Kazakh Government had faced the fact that the nonferrous metallurgy enterprises it owned in East Kazakhstan region had been in decline.

Over the past 10 years, these companies had no money for reconstruction and upgrading and had not been able to maintain a cost-effective and balanced mine, concentrator and smelter operation.

As a result, the company was established in 1997 through the merger of three main non-ferrous metal companies in East Kazakhstan region to form Kazzinc. Glencore International AG, a world leader in production and sales of metals, minerals and energy and agricultural products, became the company’s main investor.

Kazzinc began its operation as an integrated production company on February 1, 1997. With good financial support, Kazzinc consolidated the efforts of hundreds of teams and thousands of people and became a major company in the region.  

The Kazzinc Management emphasises the importance of the State Program for Accelerated Industrial and Innovative Development established and promoted by the Kazakhstan Government based on which the favourable investment climate is being established, the transparent tax system is under development that results in harmonised state-business relations.

Social Programmes

The company takes part in the economic and social development of Kokshetau, Kurchatov, Ridder, Serebryansk, Ust-Kamenogorsk, Zyryanovsk and other towns and regions, contributing to education, health, sports and culture projects, facilitates the development of infrastructure and provides support to socially-vulnerable groups. In Ridder and Zyryanovsk, Kazzinc has arranged shelters for children, provides assistance to orphanages and boarding schools and implements programmes to assist orphans and disabled people in East Kazakhstan region. A joint project with the region’s administration helped more than 150 children to find new families.

Kazzinc also supported the initiative of local authorities to provide 48 orphans with housing and decent professions, regularly transferring money to their accounts so that they would be able to buy an apartment when of lawful age. The company is committed to training the young people leaving orphanages in various specialties in its training centre and offering subsequent employment.

Local Content Development

In 2012, Kazzinс created a special department to develop local content under the memorandum of cooperation signed by the East Kazakhstan Region Administration, Damu Entrepreneurship Development Fund, the National Agency for the Development of Local Content, Atameken National Chamber of Entrepreneurs and Nur Otan Party. Two years later, the company was recognised as a leader in the acquisition of domestic goods and services and received the “Leader of Local Content” award at the Golden Hephaestus National Industry Competition.

Since 2013, the company has signed 63 memorandums with domestic producers for KZT 125 Bln (US$370.6 M). In 2015, Kazzinc and the East Kazakhstan region administration inked a document on the acquisition of goods, works and services from regional companies for KZT 59 Bln (US$175 M).

Investments in Science and New Technologies

Kazzinc cooperates with scientific centres in Finland, Germany, Kazakhstan, Russia and other countries to improve the existing technologies and develop new ones.
Along with cooperation with external research organisations, the company strives to develop and improve mining and metallurgical industry technology and environment using its research centres and laboratories which are outfitted with the up-to-date equipment.

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