Central Asian International Mining Exploration & Mining Equipment Exhibition

18-20 September 2019

Almaty, Kazakhstan

Central Asian International Mining Exploration & Mining Equipment Exhibition

18-20 September 2019

Almaty, Kazakhstan

2018 successful for Kazakhstan’s metallurgy sector

Production growth occurred in almost all industries, and the industrial production index compared with 2017 reached 4.1%. However, it could be more. According to the results of 10 months, it amounted to 4.7%, but the accident at ArcelorMittal Temirtau and the sharp decline in ferrous metallurgy indicators that followed it slowed down the nationwide growth.

According to the Statistics Committee, in January-December 2018 compared with 2017, the industrial production index was 104.1%. Growth rates decreased compared with the end of 2017, when it was 7.1%. However, a year earlier, the low base effect contributed a lot to this pace, the indicators looked good against the background of the fall of 2016.

Kazakhstan's industry is highly dependent on mining, therefore, production growth is primarily associated with the success of the mining industry and the development of quarries.

According to official data, the IPP here amounted to 104.6%. In particular, oil production increased by 4.8% to more than 90.3 million tonnes, gas increased by 5% to about 55.6 billion cubic metres.

Coal mining has also increased, but it is not accurately clear how much. The express information of the Statistics Committee states that coal and lignite mining by the results of 2018 increased by 2.5%. However, in the “Main indicators of the industry of Kazakhstan” bulletin there are other figures - an increase of 5.4%, including coal concentrate, and 4.9% without it.

In the first case, the volume of production increased from 107.9 to 113.7 thousand tonnes, in the second - from 112.3 to 117.8 thousand tonnes. Anyway, the industry is on the rise, as in December, for the first time in 4 years, the monthly production volume exceeded 11 million tonnes.

As for ores, there is also an overall increase. According to the newsletter:

· iron ore production increased by 7.7% to 47.1 million tonnes,

· copper ores - by 8.6% to 103.2 million tonnes,

· aluminum ores - by 26% to 6.1 million tonnes,

· gold ore - by 2.8% to 20.8 million tonnes,

· lead-zinc ores - by 1.1% to about 6 million tonnes,

· chrome ores - by 5.9% to 6.7 million tonnes.

The only exception is manganese ores, the extraction of which fell by 5% to less than 1.4 million tonnes. It should be noted that in 2018 the volume of technical services rendered increased by 3.1%.

The manufacturing industry is growing slower than the extractive industry. At the end of 2018, the IPP was 104%. Production increased for:

· paper and paper products by 104.9%,

· refined products by 108.8%,

· chemical industry products by 108.1%,

· major noble and non-ferrous metals by 105.4%, and

· mechanical engineering by 114.1%.

The greatest growth was shown by the automotive industry. The index of industrial production of motor vehicles, trailers and trailers was 140.4%. This was achieved thanks to an increase in the output of passenger cars to over 30 thousand units against 16.8 thousand in 2017. For the first time in 4 years, monthly production reached the level of 3 thousand units. Production of trailers reached 510 units against 250 last year.

However, the production of trucks dropped significantly to 1173 in 2018, although a year earlier it was 1,635 units, as well as vehicles intended to carry at least 10 passengers at 356 against 650 units.

The worst situation is in the steel industry with a decline in the annual level of production by 1.7%. At the same time, in January-October, there was an increase of 4.2%, and in the first 11 months, an increase was by 1.4%. The reason is the November accident at ArcelorMittal Temirtau, after which the operational parameters have not been reached.

As a result, steel production in Kazakhstan compared with 2017 decreased by 14.7% to 3.97 million tonnes, flat products - by 10.5% to 2.55 million tonnes. The overall situation was somewhat corrected by the growth in ferroalloy production by 7.9% to 2.09 million tonnes.

Among other areas of the industry, it is worth noting the growth of the IPP by 2.4% in the Electricity, gas, steam and air conditioning category, as well as a decrease by 1% in water supply, sewage system, control over the collection and distribution of waste.

The increase in production by the end of the year was recorded in 14 of the 17 regions of the country. Most of all, by 10.6%, in the Atyrau region, helped by the growth of oil production.

In the East Kazakhstan region, mining of copper ores and concentrates, production of sunflower oil, refined gold, refined copper and cars increased. Due to this, the overall growth of the IPP was 9.3%.

Also in the TOP 3 is Kostanay region with 8.3%. Here the production of iron ore pellets and concentrates increased, the production of bars and rods made of steel, gold in Dore alloy and passenger cars increased.

The industry falled in three regions:

In the Turkestan region, the IPP amounted to 97.3% due to a decrease in uranium ore production and a decrease in the production of natural uranium.

In the West-Kazakhstan region, due to a decrease in gas condensate production, the decline in production was 4.3%.

In Kyzylorda region, due to a decrease in crude oil production, the IPP was 93.1%.

Reported by 365 Info (Kazakhstan).

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