Introduction of innovative-investment approaches to the industry of Kazakhstan
Table of contents: The Kazakh-American Free University Academic Journal №2 - 2011
Author: Kurmangaliyev Аrman, Kazakh-American Free University, Kazakhstan
Metallurgy of Kazakhstan is characterized
by the presence of a rich mineral and raw-material base having considerable
potential, not only within the limits of the country, but also on a global
scale. For stocks of many metal ores (chrome, manganese, iron ore, other) the
country is included into ten leading countries, as well as for stocks of coal. Security
of the metallurgical enterprises by the specified raw materials makes at
current capacity from 50 till 300 years. Ore deposits are basically complex,
i.e. containing some kinds of metals in ore that demands application of various
technologies of extraction, enrichment and processing. All it is the basic
precondition of growth of branch on which development other factors work also:
rather developed infrastructure, professional shots, property complexes and
fixed capital of metallurgical appointment.
The development of metallurgical branch of
the republic of Kazakhstan from the moment of the country’s independence
reception proceeded differently, but catastrophic recessions (several times)
both in extraction, and in processing wasn't observed. It is sufficient enough
to analyze dynamics of an index of physical volume of metallurgical production
of republic enough. For Kazakhstan within the years 1991-2010 in percentage by
the last 1991-1994 reduction of volumes of extraction and manufacture because
of rupture of economic communications within the limits of the USSR and the
economic destabilization caused by it is characteristic. The period of time
from the years 1995 till 2000 are distinguished by resuscitation of branch and
return lost after reception of independence of positions. Within the years 2000
and 2004 shows branch decreasing, but steady rates of increase. Up to 2010 the
level of production remains almost constant, each next year slightly above or
below previous, on the average exceeding indicators of the previous period.
The titanium industry of the Republic
Kazakhstan is presented by the unique enterprise – Joint-Stock company
«Ust-Kamenogorsk Titanium and Magnesium plant» (further, JSC “UK TMP”) which
manufacture (basically reception of a titanic sponge) is based till now on
imported from abroad raw materials. Joint JSC “UK TMP” unlike two other similar
industrial complexes of the CIS – in Ukraine (Zaporozhye – ZТМP) and in Russia
(Bereznikovsky – BТМP) –
only in 2001 has begun manufacture of titanic slag and basically imports it
from the countries of near and far abroad.
At the same time the production of JSC “UK
TMP” was guided completely by imported raw materials from Ukraine and Russia,
and the choice of a site of this power-intensive enterprise has been defined,
first of all, proceeding from power security and as a whole the developed
infrastructure of region. The issue of creation owns raw-material base of the
titanic industry in Kazakhstan practically was not given any attention.
Research of problems of development of
manufacture of titanium and magnesium production in JSC “UKTMP” testifies that
in view of a number of the objective reasons, conditions and factors
(complication of public requirements, fast updating of innovations, etc.)
irrespective of degree of perfection of a control system of industrial complex
the additional special mechanism of influence on innovative process is
necessary. It means that in industrial complex manufacture two interconnected
control systems of innovative process function.
The control system of innovative processes
considerably differs from management of other social and economic processes by
objectives, the maintenance, functions, principles and methods. The management
purposes innovative process, are:
– Continuous updating of assortment and the
nomenclature of let out production, and also the applied techniques,
technology, methods of the organization of manufacture;
– The further development of scientific and
scientific and technical potential of the company, creation of a scientific
Today share JSC “UKTMP” in the world market
of the titan makes about 14%, thus half of import of the spongy titan in the
market of the USA is necessary on the Kazakhstan metal.
World demand for titanium rolled products
during the period till 2017, under the forecast of Japanese company
"Chori", will be characterized by the following data (table 1).
Table 1 – World demand on titanium rolled
products, thousands tenge
Apparently from table 1, world demand for titanium rolled production
for the analyzed period of time will be 3,9 times higher.
Now the spongy titan is certificated by all manufacturers of the
world‘s aircraft engines («General Electric», «Pratt and Whitney»,
"Rolls-Royce", "Snekma" etc.). Besides, manufacturing and
quality system are certificated under last versions ISO-2000, special air and
space standard AS 9100 and under the international standards of ecological
activity ISO 14001 and labor safeties OHSAS 18001.
Research of the world market of demand on titanium production of JSC
“UK TMP” testifies that about 40% of production is claimed in the USA, 20% –
in Europe, 20% – in the Asian countries and 10% – in the CIS countries,
i.e. almost all
goes for export. Proceeding from it the mixed transportations of the
Kazakhstan export cargoes with use of transport potential of Kazakhstan,
are rather important today.
Now the area of the mixed transportations of Kazakhstan export cargoes
is in a transition state. The railway tries to order process of export
transportations by their planning, to reach according to the lights, timely
carrying out of loading and unloading of a railway rolling stock.
The innovative cycle in the developed raw-material base of JSC “UK TMP”
includes following links: a science-manufacture-consumption. They possess
The science in JSC “UKTMP” system is represented by fundamental, search
and applied researches, and also technical workings out at which there is an
element of creativity, search new (quite often essentially new) scientific and
Studying of materials of a mineral and raw-material base of Kazakhstan has
shown that stocks on deposits Obuhovsky, Shokash and Satpaevsky (former
Bektemir) demand carrying out economic and geological prospecting works.
Transition to local raw materials at the expense of development Shokashsky (the
Aktyubinsk area), Obuhovsky (Akmo-linsky area) and Satpaevsky (the East Kazakhstan area) deposits will allow lowering the cost price of production at JSC “UKTMP”.
At the same time the Satpaevsky deposit is the most perspective for
joint-stock company JSC “UKTMP” both on a territorial arrangement and on
volumes of stocks and concentration of metals in ore, therefore efforts of the
enterprise are focused on this deposit.
All it allows the grounds for input of the Satpaevsky deposit in the
project coordinated and confirmed when due hereunder «Trial site» which problem
consists in working off of technology of extraction and processing of ilmenite
ores and preparation of the feasibility report on perspective expansion of the
Research of problems of a choice of the optimum scheme of
transportation of raw materials from the Satpaevsky mineral deposit, in
particular ilmenite ore sand, will allow to reduce import of an ilmenite
concentrate practically twice depending on volumes of output.
In view of this fact the schemes of transporting ilmenite
concentrate from the Satpaevsky deposit on concentrating factory of JSC “UKTMP” are analysed.
In table 2 the transport infrastructure of the East Kazakhstan area
table 2, crucial importance at a choice of the scheme of transportation a total
cost of transportation on delivery has quantities of raw materials. Besides,
each scheme of transportation should submit to rules of transportation of
cargoes on the involved types of transport and contains a certain complex of
the logistical operations also influencing expenses. Observance of rules of
transportation, for example, the minimum transit norms, leads to change of
frequency of deliveries of raw materials and consequently, influences the size
of industrial stocks.
Table 2 – Conditions of transporting by
various means of transportation
The transport system (automobile, river and
rail-road types of transport) East Kazakhstan area with a view of optimization
of the scheme of transportation of raw materials from the Satpaevsky deposit is
investigated. Economic calculations confirm what most effectively to transport
raw materials from the Satpaevsky deposit on concentrating industrial complex
of JSC “UK TMP” motor transport. It allows reducing delivery of cargoes till 1
day instead of 3–5 days river or by rail.
Economic benefit of realization of the
offered actions allows reducing delivery of raw materials from a deposit to
concentrating industrial complex of JSC “UK TMP” motor transport to 7–10% in
comparison with river and by rail. Annual economic benefit will make more than
half billion tenge. However the above-stated projects demand attraction of
For potential investors of Kazakhstan this factor is, of course, important, but not the crucial one. Partners are
involved with such key factors, as political stability and successes in
transformation of economic way. Work with investors is one of the primary goals
of the Program of the forced industrially-innovative development developed on
the instructions of the President of the country starting in last year. Thus
the accent becomes on attraction of direct investments in creation
export-oriented manufactures aimed at output with high added cost. The
government for this purpose creates all necessary conditions. The majority of
partners and independent experts share opinion that among all CIS countries in Kazakhstan an optimum investment climate.
Arguments in protection of the given thesis
First, Kazakhstan has the favorable
geopolitical position giving to investors the consumer market almost in
half-billion the person (the Central Asia, the Peoples Republic of China and the Russian Federation). Besides, within the limits of the created Customs union to Kazakhstan, Russia and Belarus the market in capacity in 170 million persons opens. And this
circumstance creates the big possibilities and prospects for the foreign
Secondly, the considerable role is played
by presence of rich mineral resources. Kazakhstan is on the 9th place in the
world on oil stocks, on 8th – on coal and molybdenum stocks, on 5th – on stocks
of iron ore, on 3rd – on zinc stocks, on 2nd – on uranium stocks, on 1st place
– on chrome stocks.
And at last, an important role the business
climate of the country supported by the favorable investment legislation,
attractive measures of support of investments, and also economic and political
stability plays. Creation of comfortable conditions for investors is a priority
of the Government and the Ministry of the industry and new technologies in
According to the instructions of Kazakhstan’s President state system measures and programs of support of the business,
reflected in four complex programs are developed: «Investor-2020»,
"Productivity-2020", "Export-2020" and «Business Road
map-2020». In these documents various tools of stimulation are provided: from
granting of service support to exporters and investors before support by
financial and fiscal measures.
The state is ready to offer the foreign
investors realizing projects in priority branches of economy, the full spectrum
of investment support is a participation in an authorized capital stock,
granting of extra financing, leasing, use of possibilities, use of investment
preferences, analytical maintenance, export support.
1. The message of the President of Republic
Kazakhstan of N.A. Nazarbaev to the people of Kazakhstan «New Decade – New
Economic Lifting – New Possibilities of Kazakhstan» from 1/29/2010.
2. The message of the President of Republic
Kazakhstan of N.A. Nazarbayev to the people of Kazakhstan “Through crisis to
updating and development” from 3/6/2009
3. Strategy of industrially-innovative
development of the Republic of Kazakhstan
4. The report of Government RK on results
of social and economic development for 2009 (www.government.kz)
5. Strategy of territorial development of Republic
Kazakhstan till 2015
Table of contents: The Kazakh-American Free University Academic Journal №2 - 2011