Jun. 5, 2025 - Kazakhstan’s new draft Tax Code proposes a tenfold reduction in the mineral extraction tax (MET) for companies processing man-made mineral formations (MMF), a move expected to boost investment in mining waste reclamation and reduce environmental burdens.

Currently, Kazakhstan taxes the processing of MMF, mineral residues left in waste dumps after the primary extraction of solid minerals, at standard MET rates. These rates range from 21.06% for chromite ore to 2% for mineral raw materials containing technical stones. The application of these standard rates to waste materials has discouraged subsoil users from reprocessing them.

As a result, an estimated 55 to 60 billion tons of MMF have accumulated in dumps, tailing ponds, and storage facilities across the country’s mining enterprises, according to Gulnara Bizhanova of the Atameken Chamber of Entrepreneurs. She presented this data at the AMM-2025 Mining and Metallurgical Forum.

In Kazakhstan, only 11% of MMF is currently being processed, compared to 70-80% in many developed countries, where such waste is either exempt from MET or subject to significantly reduced rates.

“The draft Tax Code introduces a reduction coefficient of 0.1 for MET on the processing of MMF. The bill is still under consideration in the Senate,” Bizhanova stated.

Bizhanova noted that this change would benefit both the government and the private sector. For instance, Qarmet, a leading Kazakh steel and mining firm, plans to launch 10 projects worth $137 million if the tax reduction is approved.

“There are many investors interested in this area of MMF processing. It is also important to highlight that increasing waste processing will reduce the operational burden on active mines,” she added.

Previously, The Times of Central Asia reported that Aibar Dautov, head of the Kazakhstan Mining Industry Association, urged reforms to the MET framework to enhance state revenue from both oil and solid mineral extraction.