Operating in the Precious Metals Market: A Complex and Multifaceted Process
Despite the experience and professionalism of the team, newcomers to this industry face a number of significant challenges. From competing with established players to complying with strict regulatory requirements, each of these obstacles demands careful planning and a strategic approach.
We spoke with Yerlan Tasbulatov, the director of the relatively young subsoil user company, Block One Company. He shared the company's development plans, its work on the Chinasyl-Sai ore deposit in the Almaty region, approaches to ongoing mineral exploration, and the planned mining operations. He also discussed how Block One Company is overcoming challenges and the social and economic benefits the company aims to bring to the region.
Could you tell us about your company's activities?
Block One Company has been operating in the precious metals market for a relatively short time, but our team has extensive experience in this field and applies it to our operations. Our primary and only current focus is the exploration of solid minerals, and after confirming the reserves, we plan to start mining gold, silver, and other metals in 2025.
How are you extracting gold, where, and in what quantities?
We currently have a license to conduct geological exploration in the Almaty region at the Chinasyl-Sai polymetallic ore deposit. This deposit was discovered in 1958 during Soviet geological surveys, which gave a high assessment of the deposit’s potential, and this is largely confirmed today. However, to gain an accurate understanding of the reserves and begin mining at this site, we need to conduct geological exploration.
The exploration and development processes, as well as the subsequent construction and operation of the plant, fully comply with all legal regulations, minimizing harm to the environment, employee health, and the local population. We adhere to Kazakhstan's laws, taking into account all regulations to ensure transparency and accountability in our operations.
We are a private company that, in addition to achieving corporate goals, strives to contribute to the development of the country's mining industry, help people, and align with the UN's sustainable development goals. We recognize the need to improve sector performance, as emphasized by President Kassym-Jomart Tokayev, who also highlights the importance of attracting investments and developing local production. This is exactly what we aim to do to contribute to the growth of the mining industry.
Recently, some media outlets reported that residents of nearby villages are against any work being done. How would you respond to this?
First of all, we want to clarify the situation. The Chinasyl-Sai deposit is located 20 km from the village of Kastek. As required, we held public hearings, talked to the residents, explained our work, and shared information about the expected mineral resources in this area. Unfortunately, some residents strongly opposed any work being done.
Regarding the company's plans, after completing geological exploration and confirming the reserve data, we plan to apply for a mining license in 2025 and launch a full-cycle plant with flotation ore enrichment technology capable of processing 300,000 tons of ore per year by 2026.
During preparations for field exploration, we faced resistance from local residents. To date, more than 10 meetings and negotiations have been held with the residents of Kastek, involving local government officials, deputies of the Mazhilis of Parliament, independent experts, and all interested parties.
Additionally, we received an official document from the Department of Natural Resources and Environmental Regulation of the Almaty Region, confirming that the exploration work will have minimal environmental impact and poses no threat to the lives and health of residents or livestock in nearby villages.
We held public hearings on the potential environmental impacts of our work, but some residents did not take into account the objective and competent arguments of the ecologists. Some activists believe that there are reserves of uranium and cadmium at the site. Regarding cadmium, in June 2024, we consulted an expert from the Kazmekhanobr Research Institute, who explained that cadmium in its free form does not harm the environment or people living near the site. Cadmium is only dangerous in finished products like batteries. Furthermore, no data confirms the presence of uranium at the site, as verified by the National Geological Service.
We will continue to engage in educational outreach with the community and will strictly operate within the law and the terms of our exploration license. Therefore, we want to emphasize that our activities will not harm the population or the local environment. We will ensure the maximum safety and comfort of nearby residents and, of course, our workers.
What benefits can your activities bring?
Launching the development project at this ore deposit will help industrial growth in the region, attract investment, create new enterprises, and increase overall production levels. The project will be an important step toward diversifying the economy and strengthening the region's industrial base.
It is important to note that the expected tax revenues from the project will increase the regional budget. This will allow for greater funding of social programs, infrastructure projects, and other important initiatives, providing additional benefits to the region and its residents.
Our company is ready to help develop infrastructure, including building and repairing schools, kindergartens, roads, and other essential facilities. We are committed to investing in improving people’s lives and promoting social well-being.