Chinese companies are further expanding their presence in the resource sector in Central Asia. China Nonferrous Metals Mining Co., Ltd. (hereinafter referred to as "China Nonferrous") completed the acquisition of a controlling stake in SM Minerals in Kazakhstan for 89 million US dollars. After the transaction was completed, the shareholding ratio increased from 15% to 70%, becoming the absolute controlling shareholder. The core of this acquisition is the Benkara large-scale copper project located in Aktobe Oblast, Kazakhstan, under SM Minerals. It comes at a time when global copper demand is entering a medium to long term upward cycle due to the expansion of electrification, renewable energy, and electric vehicle industries.

This transaction was disclosed by foreign investors and was first pointed out by Arman Bataev, author of Finmentor Telegram channel. Prior to the transaction, the equity of SM Minerals was held by three natural person shareholders from Kazakhstan, namely Ainur Muhatayeva (43.35%), Saltana Sabdikova (29.75%), and Samat Akterakov (11.9%). China Nonferrous Metals had previously held 15% of the shares, but this time it achieved absolute control through the acquisition of 55% of the shares, significantly diluting the original shareholder equity.

This Kara project covers two mining rights blocks in the north and south. The resource foundation of the northern block is relatively clear, with a total of 384 million tons of proven mineral resources, approximately 1.58 million tons of copper metal, and an average grade of 0.41%. Among them, approximately 940000 tons of copper resources have been explored and estimated, accounting for 60% of the known total. The southern block is still in the early exploration stage, with only inferred resources confirmed.

According to the plan, this Kara project will adopt open-pit mining method, with a designed annual ore processing capacity of 14 million tons, and the final product will be copper concentrate, with an expected annual output of about 45000 tons of copper. In terms of timeline, the feasibility study and preliminary design plan for the northern block are scheduled to be completed in 2027, followed by construction and official production in 2029. This rhythm indicates that the project is positioned towards stable supply in the medium to long term, rather than short-term resource arbitrage.

This article is the 154th article in the "Kazakhstan Business Economy" series of Central Asian industry research on the "Resource Engineering Information Ranking List". In depth introduction of industrial policies, laws and regulations, industry trends, market demand, competitive landscape, and potential trading opportunities in the investment, trade, and engineering construction fields of five Central Asian countries (Uzbekistan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan) and neighboring countries (Afghanistan, Azerbaijan, Georgia, Armenia, Mongolia, Pakistan). Provide information on resources, engineering, and trade in the Middle East, Africa, and Eastern Europe.Editor/Bian Wenjun