Kazakstan

Kazakstan, the former Soviet republic stretching from the Caspian Sea to the borders of China, has immense reserves of oil, natural gas, base metals and gold. Under the Soviet regime the gold was primarily a by-product of lead and zinc mining. Initial attempts in the mid-1990s to start joint venture operations with international gold mining companies met with some success, lifting output to 15 tonnes (0.458 million oz) by 1995, but foundered on achieving the right mix of state and private co-operation. Production then declined for a number of years. The first signs of a recovery was seen in 1999, primarily due to large-scale investment in the base metals sector which has seen gold by-product output pick up as well. The pace of growth appears to be accelerating: GFMS estimates that output in 2001 reached 14.7 tonnes (0.47 million oz), which represented a 15% increase on the previous year. Much of the increase was generated at the country’s giant copper mines (operated by Kazakhmys) where by-product gold output soared almost 40% last year.