On Tuesday, Kazakhstan President Kassym-Jomart Tokayev ordered his government to levy higher taxes on mining companies within Kazakhstan. In a speech to parliament, Tokayev stated: “The income of firms in the mining sector has grown against the backdrop of higher prices for raw materials.”
The boom in income for miners came after prices of industrial metals surged in the last year. The Central Asian state holds vast mineral reserves, possessing 30% of the world’s chrome ore reserves, 25% of manganese ore, 10% of iron ore, 5.5% of copper, 10% of lead, and 13% of zinc, according to official estimates.
The mining industry within the country is predominantly focused on the extraction and export of raw materials. Estimates are that 80% of mining products are exported from the country, representing 20% of the country’s total exports.
In his speech to parliament, the Kazakhstan President offered large incentives for mining companies in return for the increase in taxes. He stated: “I am ordering the government to come up with a plan (to bring) additional revenues to the budget.
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