Export potential of Kazakhstan in the framework of the third five-year of SIIDP.

“At the end of 2019, an increase in many indicators was observed in the mining and metallurgical industry of Kazakhstan. So, in 2019, the volume of production in the mining and metallurgical complex (MMC) increased by 4.1% compared to 2018 and amounted to 4.8 trillion tenge, metal ore production increased by 3.7%, and the metallurgical industry – by 4 ,1%.”

Within the framework of the third five-year plan of the State program of industrial and innovative development, the task is to expand export potential due to the growth of production of the 4th and the 5th redistribution. That is, it is planned to maximally process domestic products, raw materials, and produce finished products that can be sold with high benefit.

As you know, Kazakhstan is a leading producer of many commodities and occupies a leading position in metal production. The prevalence of minerals, offered by reserves and resources, indicates that the country has the ability to expand the development and mining of its minerals.

However, in the current situation, with insufficiently developed production of high processing facilities, domestic metallurgy is highly dependent on world prices for metals, which today are under pressure due to the coronavirus pandemic and the worsening global economic situation.

The domestic market of Kazakhstan is still dependent on imports of finished products, which is caused by insufficient cooperation between related consumers and a lack of high-tech facilities.

In this regard, the Committee for Industrial Development and Industrial Safety of the MIIR RK developed a vision for the further development of the metallurgical industry, in particular, the production of high value-added products.

In December last year, at a meeting of the Government’s project office, under the leadership of the Prime Minister, a plan for further work on the development of the industry was presented.

In order to identify promising products for production in Kazakhstan, we analyzed the import of aluminum, copper and steel products in the macro-region (the countries of the macro-region include: China, Russia, Belarus, Ukraine, Central Asia, the countries of the Caucasus, Iran).

It was revealed that world imports of copper products amount to 169.3 billion US dollars, aluminum products – 194 billion US dollars, steel – 434 billion US dollars.

Imports within the macro-region include: copper products – $ 48.9 billion, aluminum products- $ 9.6 billion, steel -$ 12 billion.

As a result, taking into account the existing personnel competencies, the availability of raw materials and logistics, the Ministry developed a Roadmap for the development of further processing of raw materials of the Republic of Kazakhstan.

For example, today in Kazakhstan 3.8 million tons of aluminum ore (bauxite) is mined, which is processed into 1.4 million tons of alumina, of which about 850 thousand tons are exported (Russia, China, Tajikistan) and only 550 thousand tons are processed inside the country to metal (265 thousand tons of aluminum), of which 30 thousand tons inside the country are converted to finished products.

For the further development of aluminum production, it is envisaged:

  • an increase in the processing of alumina to 1 million tons to produce primary aluminum of 500 thousand tons due to the implementation of the project of Kazakhstan Electrolysis Plant JSC (+ 250 thousand tons);
  • growth of finished goods output by 100 thousand tons through the implementation of projects for the production of finished products:

foil (15 thousand tons), cans (15 thousand tons), wire (16 thousand tons),

sheet metal (15 thousand tons), radiators (12 thousand tons), profiles (13

thousand tons), powders (4 thousand tons).

Similar events for the production of high value-added products are provided for in the copper, steel and titanium industries of our country. Within the framework of the third five-year plan of the State program of industrial and innovative development, the task is to expand export potential due to the growth of production of the 4th and 5th redistribution. That is, it is planned to maximally process domestic products, raw materials and produce finished products that can be sold with high added value.

 Provided by the Ministry of Industry and Infrastructural Development of Kazakhstan.