The Majilisman listed the weak points of geological exploration in Kazakhstan

Majilisman, member of the AMANAT party faction Erlan Abdiyev, in a parliamentary request addressed to the Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, explained why geological exploration in Kazakhstan is developing poorly, Liter.kz reports.

The deputy of the Mazhilis of the Parliament of the Republic of Kazakhstan recalled that in the Address of the head of state to the people of Kazakhstan “The Economic Course of a Fair Kazakhstan,” the president noted that the mining industry is well developed in Kazakhstan. This sector is a reliable source of growth for the national economy.

Photo: parlam.kz

Thus, at the end of 2023, tax payments for mineral extraction amounted to 10.6 trillion tenge. The treasury received funds from more than five thousand subsoil users. At the same time, the head of state paid special attention to geological exploration.

In 2018, in order to replenish the mineral resource base, new legislation was adopted to manage the mining sector. However, it did not work fully, notes Erlan Abdiev.

According to him, more than eight thousand deposits are recorded as part of the state balance of mineral resources in Kazakhstan. Among them, 317 fields are classified as hydrocarbons, which includes oil, gas and condensate. There are also 910 deposits of solid minerals and more than three thousand deposits of common minerals. In addition, more than four thousand groundwater deposits are taken into account on the balance sheet.

However, work on new deposits is not going intensively enough for a number of reasons.

Firstly, land disputes between subsoil users. Traditionally, the state takes upon itself the early stage of geological exploration (at the same time, there is insufficient funding for subsoil study work). Then it’s up to the investor. However, the long-term mechanism of abandoning a land plot in favor of the state, and then providing it in favor of the subsoil user, does not provide the subsoil user with legal mechanisms to protect their rights, even if an agreement is reached with the owner of the land plot, the deputy noted.

Secondly, international experience shows that in many countries the main role in financing comes from the profits of mining companies, which are not taxed. There are special investment incentive programs.

Thirdly, the problem of lack of qualified personnel in the geological industry remains relevant. The average age of experienced geologists is close to retirement, and there are not enough young specialists who have just completed their training to meet the growing demand caused by an increase in geological exploration, says Erlan Abdiev.

The fourth problem is insufficient digital transformation in the field of geology and subsoil use. When implementing individual solutions, many processes are still paper-based and are influenced by the human factor.

Erlan Abdiev proposed taking a number of measures. Including:

– ensuring sufficient funding for subsoil study work through public and private sources, as well as stimulating investment by private companies in geological exploration;

– creation of an effective system for resolving land disputes between subsoil users with clear rules and procedures that take into account the priorities of subsoil users over land issues;

– ensuring the stability of the investment environment and protecting the rights of investors in geological exploration through the development and compliance with transparent and reliable investment strategies;

– increasing the level of digital transformation in the field of geology and subsoil use through the introduction of modern technologies and digital tools for collecting, analyzing and presenting subsoil data;

– carrying out programs to train qualified personnel in the field of geology and subsoil use, as well as providing scientific and technical support for innovative research and development;

– consider the issue of assigning a special status to mining workers and introducing a form identifying mining engineers to emphasize their professional role and importance.

For our part, we are ready to assist in the legislative support of these processes,” the deputy assured.