JPMorgan - KASE

Oil and Gas
For Oil and Gas see Annex C
Mineral Resources
Despite being a major mineral producer with an annual production valued at over 194.6 billion
tenge, Kazakhstan’s mining output has been relatively modest in relation to its estimated
reserves. Moreover, further reserves are known to exist which have not yet been fully surveyed.
Although much of Kazakhstan’s mineral production has historically been exported in
unprocessed form, with a view to retaining domestically part of the value added by processing
such minerals, it has recently started exporting a progressively greater proportion of semiprocessed
minerals. Significant investments will be required to take advantage of Kazakhstan’s
mineral resources.
According to The BP Statistical Review of World Energy of June 2001, Kazakhstan produced 38.4
million tons of coal in 2000, approximately 1.8 per cent. of total coal produced globally in 2000.
According to Government estimates, less than 3 per cent. of the country’s coal reserves have been
mined so far.
Kazakhstan has uranium reserves estimated to be in excess of 1 million tons, of which reserves
amounting to 469,777 tons have been prospected.
Kazakhstan produces a significant amount of precious metals. According to the Kazakhstan
Institute of Geology, the country has gold reserves in excess of 1,000 tons and produced
approximately 28.2 tons in 2000 and 27.1 tons in 2001. Kazakhstan produces a significant amount
of the world’s silver, producing approximately 981.9 tons in 2001 and 927.1 tons in 2000.
Kazakhstan has substantial reserves of non-ferrous minerals, including lead, zinc, copper and
manganese. By reserves, Kazakhstan is ranked second in the world in lead, first in zinc, third in
manganese and fifth in copper. Kazakhstan’s manganese reserves are exceeded only by those of
South Africa and Ukraine. In 1999, Kazakhstan produced 92,300 tons of lead, 288,300 tons of
zinc, 373,500 tons of copper and 536,000 tons of manganese.
In 2000, Kazakhstan produced 185,800 tons of lead, 262,200 tons of zinc, 413,900 tons of copper
and 664,600 tons of manganese.
In 2001, Kazakhstan produced 158,800 tons of lead, 276,900 tons of zinc and 433,300 tons of
copper.
Balance of Payments and Foreign Trade
Current Account
The current account deficit in 2001 was U.S.$1,748.7 million compared with a surplus of
U.S.$411.8 million in 2000.
Capital and Financial Account
The current account deficit has been offset by inflows of foreign direct investment, which
amounted to U.S.$1,143.3 million or 5.2 per cent. of GDP in 1998, U.S.$1,468.0 million or 8.7 per
cent. of GDP in 1999 and U.S.$1,244.3 million (excluding repaid direct investment) or 6.8 per cent.
of GDP in 2000. Due to the surplus of U.S.$1,094.3 million in the capital and financial account,
the 1999 balance of payments surplus was U.S.$253.6 million compared to the 1998 deficit of
U.S.$442.5 million. The capital and financial account surplus in 2000 was U.S.$1,032.2 million. The
2000 balance of payment surplus was U.S.$585.1 million. The current account deficit for 2001 has
been offset by the inflow of foreign direct investments in the amount of U.S.$2,759.7 million.
The capital and financial account surplus for 2001 was U.S.$2,282.6 million.
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