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 KAZAKHSTAN International Business Magazine №3, 2012
 Kazgeologiya will insure the national interests

Kazgeologiya will insure the national interests

Geological industry is a basic sector in the economy of Kazakhstan and at present the country’s leaders pay a special attention to its development. This is confirmed by the order of the President Nursultan Nazarbayev on establishment of the National Company Kazgeologiya, which shall protect the interests of the state in the optimal development of the subsoil and the formation of mineral stock for the future generations. Mr. Bulat Uzhkenov, Chairman of the Board, JSC Kazgeologiya tells the readers of our magazine about plans of geology development in Kazakhstan.
Bulat Sultanovich, what are the main achievements of the national geology during the years of independence?

For sure an important factor in the economic recovery of our country was the wealth of our natural resources – a considerable mineral stock which obtained a significant contribution from the geological industry of the sovereign Kazakhstan. There were the favourable conditions, created for attracting the investments into the subsoil use. For the first time the reserves from 123 mineral deposits were explored and registered as the state balance, including more than 50 complex objects, over 40 gold, 30 iron-manganese, one uranium and one chromium ore deposit, as well as 103 hydrocarbon deposits. More than ten of modern mining and metallurgical works were put into operation on the basis of explored reserves of Nurkazgan, Jaman-Aybat, Vasilkovskoye, Sekisovskoe, Varvarinskoye and other fields. Such fields as Kashagan, Kayran, North Truva, Kenlyk, Northwest Kyzylkiya and others were discovered in the oil and gas sector.

As a result, today our Republic is among the top ten countries both by the reserves of basic minerals and by the number of world-class deposits.

However, I would like to mention one of the major achievements of the industry, namely, the fact that the Geological Survey of the country in the conditions of budget deficit during the formation of an independent state was able to start systematic works on the additional exploration of republic's territory and carry out their major part. Thus, in all regions of Kazakhstan over a total area of about 500 thousand km2  was carried out the additional exploration at a scale of 1:200 000 with an estimate of forecast resources, and a geological and minerogenic mapping was carried out within the major mining regions of the country on the area of more than 33 thousand km2.

The forecasting potential on almost all types of minerals, whose volume exceeds the explored reserves in times, was estimated following the results of these works, which opens up high prospects for discovery of new mineral deposits.

For the first time in the CIS was compiled and prepared for publication a set of specialized thematic maps of Kazakhstan at a scale of
1:1  000  000, and also completed a 40-year cycle of works on preparation for the publication of the State gravity map of the entire territory of the republic.

Kazakhstan’s geologists resumed international cooperation and integration in conduction of joint research with the CIS geologic surveys. The integrated explorations were completed in the areas bordering with Kyrgyzstan, Russia and China.

It should be noted that due to the constant attention of the Head of State the development of geological industry was among the strategic priorities of Kazakhstan. Thus, as late as 1998, in accordance with the Decree of the President of the RoK “On further measures for implementation of Kazakhstan’s development strategy till 2030” the domestic geologists elaborated a long-term development strategy of the resource base of the mineral resources sector. The main objective of the strategy was the rational use and protection of natural resources.

How would you describe the current state of Kazakhstan’s mineral resources base in terms of replenishment of mineral reserves?

Today more than 5 thousand deposits of all kinds of mineral resources – raw hydrocarbons, solid and commonly occurring mineral resources, as well as groundwater are explored in our country. On the basis of these reserves was created a powerful oil and gas industry, uranium and coal mining industry, ferrous and nonferrous metallurgy, gold mining and other sub-sectors. A substantial share of produced minerals is supplied to the foreign market, providing a high level of export.

However, in the last decade, there has been a tendency of excess consumption of some types of minerals over their growth, which resulted in a sharp increase in production against the background of improved situation in world prices. A significant decrease in availability of mineral reserves of individual enterprises and industries requires early actions for intensification of the exploratory and appraisal works. To resolve the current situation we need to strengthen the state's role in the conduct of exploration work that will ensure the reduction of geological risks for investors.

What tasks your company sets for itself in this context for the coming future?

The absolute priority of the activities of JSC Kazgeologiya is promoting a sustainable development in the country, the observance of social obligations and environmental legislation. Our company plans to carry out geological works under the public assignment for the development of the mineral resources complex. In addition, we will carry out exploration in the framework of agreements with national and private companies to ensure the effective operations of subsoil use and rehabilitation of mineral resources. This will allow to improve the reliability of geological service of subsoil use and to ensure transparency and reliability of reimbursable expenses for exploration.

In the coming years we shall solve a broad range of issues, which include – providing with modern equipment and qualified staff of professionals capable of conducting high-quality exploration works and analysis of the obtained geological information.

The creation of two production branches – an integrated geophysical enterprise and mining company is also significant. Equipped with the advanced technology and production techniques, they will carry out their activities in South, Central and Western Kazakhstan.

An equally important step is the creation on the basis of JSC Kazgeologiya of Scientific and Technological Centre, which will conduct promising scientific research and development of advanced methods and technologies, devices and equipment designed to improve the efficiency of exploration and rehabilitation of mineral resources. The introduction of high-precision, corresponding to world standards laboratory and analytical research methods for the determination of qualitative and quantitative characteristics of minerals will improve the reliability of reserves estimate, will provide a comprehensive study of subsoil use objects, and also will help to reduce the volumes of samples exported outside the territory of the republic.

Currently, JSC Kazgeologiya is at the initial stage of its development. The formation of production and technical facilities, profession-oriented personnel, systems of interaction with government agencies and other companies is in progress. The process of creation of such a large structure, corresponding to the state interests requires large initial capital investments and sufficient time for better organization of production processes.
What steps are being taken now for the creation and development of professional human resources?

This issue is given special attention. Our human resources strategy is focused primarily on the attracting professionals already working in the market of exploration, through the establishment of an effective system of rewards and motivation, as well as providing a competitive benefits package. The coordination of incentive programme with performance evaluation policy based on key performance indicators will allow to improve labour productivity, to monitor the achievement of assigned strategic goals and objectives and to take prompt corrective measures. At the same time the assessment of effectiveness of each employee will depend directly on the execution of specific tasks and individual goals. Such an approach will allow to motivate and hold experienced professionals in the field of exploration. In addition, will be used the option to attract professionals as consultants in various stages of the work completion.

In general, the creation and development of professional personnel pool – is a keystone of our success. Moreover, the specific character of the JSC Kazgeologiya activities requires the involvement of professionals with extensive experience in the field of exploration and with an ability to transfer their knowledge to the young professionals. To form a complete target structure able to ensure the execution of the approved scope of work for 2012–2014, we will require drillers, geologists, geophysicists and scientists.

However, we will not keep in the dark the fact that this field has specific problems. Unfortunately, we can say that on today's labour market there is a shortage of professionals sought for geological sector. Therefore, we plan to establish strategic partnerships with specialized educational institutions, such as Satpaev’s Kazakh National Technical University, Kazakh British Technical University, Karaganda State Technical University, Semey Geological College and etc, which will provide the operating personnel of our company with their best graduates.

We hope that the cooperation with training centres under the implementation of development program for specialized technical qualifications and skills development in the required areas will also have effect. It certainly will improve the quality of our human resources. Achieving an effective balance between experienced staff and young professionals, a creation of the system of mentoring and knowledge transfer will allow to solve the problem of a shortage and quality training of technical staff.

In general, in our work, we aim at becominga reliable, competent and highly-performing domestic company – a leader in the field of exploration.

Table of contents
· 2016 №1  №2  №3  №4  №5
· 2015 №1  №2  №3  №4  №5  №6
· 2014 №1  №2  №3  №4  №5  №6
· 2013 №1  №2  №3  №4  №5  №6
· 2012 №1  №2  №3  №4  №5  №6
· 2011 №1  №2  №3  №4  №5  №6
· 2010 №1  №2  №3  №4  №5/6
· 2009 №1  №2  №3  №4  №5  №6
· 2008 №1  №2  №3  №4  №5/6
· 2007 №1  №2  №3  №4
· 2006 №1  №2  №3  №4
· 2005 №1  №2  №3  №4
· 2004 №1  №2  №3  №4
· 2003 №1  №2  №3  №4
· 2002 №1  №2  №3  №4
· 2001 №1/2  №3/4  №5/6
· 2000 №1  №2  №3

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