Kazakhstan mining and metallurgical industry enters new stage of development - Vice Minister of Industry and New Technologies N. Abdibekov

in the upcoming decade must be ensured through accelerated diversification and raising competiveness of the national economy. By the Presidential instruction the Government has developed the State Program of Forced Industrial-Innovative Development and the Industrialization Map.

Vice Minister of Industry and New Technologies N. K. Abdibekov told about the plans on development of the most promising sectors of Kazakhstan economy - ore mining industry - in an interview to Kazinform

In his Message to the Nation the President noted development of mining and metallurgical industry as one of the major conditions of forced diversification of the country's economy. What tasks must the mining and metallurgical complex of Kazakhstan solve under the 2010-2014 State Program of Forced Industrial-innovative Development?

Mining and metallurgical industry is one of the main sectors of the country's economy. Its importance can be characterized by the following parameters: its share in gross domestic product (GDP) of Kazakhstan makes up to 9.5%; export volume reached USD 8.5 bln last year; the share of the sector in the country's total export is 19.5%. These are the key figures to consider development of mining and metallurgical industry a priority within the forced industrialization program.

It should be mentioned that mining and metallurgical industry of Kazakhstan is at a new stage of its development today. A 2010-2014 Program of the sector's development will be submitted for Government's consideration soon. The objectives of this program are: more efficient use of the current mineral and raw materials potential, introduction of innovative technologies into the productions, transfer of up-to-date technologies.

The country has good potential for the program's realization. Kazakhstan is rich in a lot of different mineral raw materials. We mine and process iron, manganese, chrome ores and nonferrous metals - copper, zinc, titanium, magnesium, gold etc.

How many investment projects are included into the program of mining and metallurgical industry development?

There are more than 30 projects which have been included in the country's Industrialization Map. Their total cost is KZT 1 bln.

What new industries will be created within the program?

In whole these are the projects which will lead the sector to a new level of development. For example, recently the Head of the State has taken part inauguration ceremony of the Vasilkovsky ore mining and processing complex. In Aktobe it is planned to build a ferroalloy plant with capacity of 440 tons of ferrochrome per year. There is already one with the capacity of 380 tons per year. This plant is going to be built with the use of new technologies and more efficient furnaces will be installed.

How will you solve the problem of personnel recruitment at the new ventures?

First, the range of specialties for mining and metallurgical industry will be expanded. For example, a new production - Kazakhstan electrolysis plant - has been put into operation in Pavlodar region. 250 thousand tons of primary aluminum will be produced there - more expensive product which can be represented at the market and from which several products can be made. Accordingly there is a need to train personnel in certain directions. For instance, Pavlodar State University plans to begin admission of students for new professions - operators of electrolysis installations. In Ust Kamenogorsk the students will be admitted for metallurgical professions, in Atyrau - for oil and gas industry, in Karaganda - for ferrous metallurgy.

One more direction in staff training is organization of students' internships. In the Soviet period such internships were conducted in all high, vocational and technical schools. The students will be sent up to three months to work at the industries under the guidance of the experienced professionals. In such a way they will obtain necessary skills after graduation, successful start in the workplace.

What measures does the state provide for new projects in mining and metallurgical industry?

Certainly, state support will be provided primarily for priority sectors of mining and metallurgical complex. First of all this relates to those ventures where new repartitions are carried out. For example, Pavlodar oblast plans to establish an industrial or special economic zone within its new aluminum cluster. Appropriate documents are under development now and the enterprises which will join this zone will enjoy certain benefits and preferences. Those are at least 9 ventures which will manufacture various products from primary aluminum, namely, rod, profiles, tubes, cables and etc.

Huge work is performed in large companies such as removal of administrative barriers, simplifying the licensing procedures. It should be remembered that within the Custom Union, customs barriers will be removed too which will also stimulate development of the industry - through the expansion of sales markets.

In addition to tax preferences and reduction of administrative barriers, the Government will maintain the enterprises through development of transport infrastructure. I cited the example of the Aktobe Ferroalloy Plant. Its products are sent to the customers from Zhinishke station. The capacity of the station corresponds to the old power plant. It is up to 400 thousand tons and production is planned to be increased up to 440, 000 tons per year. It is clear that the possibilities of the station have been exhausted and capacity becomes a limiting factor. The Ministry of Transport and Communications will be charged to resolve the issue of station reconstruction to increase its capacity. The instruction is already given to the Temir Zholy National Company, feasibility study is under implementation.

As is known, development of new fields and creation of new industries negatively impact the environment. What kind of measures will be taken to ensure that newly established enterprises are ecologically safe?

First, all industrial projects undergo an examination, assessment of environment impact. Secondly, prior to realization of the project we hold public hearings on its environmental safety. Of course while developing the project the main condition is stipulation of introduction of technologies that will have minimal impact on the environment.

Will the sectoral program stimulate domestic mining and metallurgical science?

Yes, the state will allocate funds for research and development. Recently the Chemical and Metallurgical Institute of Karaganda has developed original technology to produce coke from coal. Today we import coke from abroad, but now Innovator ltd has acquired the technology and started production of coke under the agreement with ArcelorMittal. I think that our program will provide an opportunity for our scientists to develop new technologies and introduce these technologies in production.

Do you think it is possible to implement all the projects under the program?

I hope implementation of this program will give us good experience and the next 5-year program will be even bigger. We must provide greater scientific support to the program - monitoring, analyzing results, making recommendations. Earlier the programs were developed for the term of five years, then - for three years and now for five years.

When will the program be launched?

The draft document will be submitted for the Government's consideration in June. If it is necessary we will make amendments to it.

Thank you for the conversation.