On February 22, Ambassador Daniel Rosenblum outlined the expectations of the US investors in Kazakhstan’s mining industry in his speech at the Chamber of Mines Conference in Astana, QazMonitor reports citing the press service of the US Embassy and Consulate in Kazakhstan.
Key takeaway: “I am here today to underscore the strong desire of the United States to partner with Kazakhstan as it develops its critical mineral resources,” said the US Ambassador to Kazakhstan.
Rosenblum noted Kazakhstan’s significant progress reducing bureaucracy and digitizing processes over the past several years, which has improved its attractiveness as a destination for foreign investment, saying that “U.S. government agencies are in the process of developing and implementing a number of cooperative projects to help further develop Kazakhstan’s mineral potential.”
What investors expect: The Ambassador offered observations on how the potential of Kazakhstan’s mining sector can be maximized.
Transparency. “U.S. investors like predictability and want visibility into all levels of government decision-making, including rulemaking, enforcement, and taxation. We constantly hear from U.S. private sector companies the desire for maximum transparency.”
Equitable and fair implementation of laws and rules. “U.S. investors want to see a level playing field, and to know that their investment will be protected through judicial institutions, such as commercial or arbitration courts.”
More than being a revenue source. “Foreign investment should be viewed as the engine that grows a broader tax base for the future, and not exclusively or even primarily as a source of revenue for current needs.”
An expanding private sector. “More private ownership in a key industry such as mining should drive innovation and create new economic opportunities. Importantly, it would also improve overall efficiency, as shareholders demand accountability from the managers who handle their money. The Kazakh government has recently been taking concrete steps to reduce its presence in the economy overall. More privatization in the mining sector would positively affect that sector’s attractiveness to investors.”
We judge very positively Kazakhstan’s current focus on welcoming and even incentivizing international investment into its critical minerals sector. We also appreciate the Kazakh government’s consistent willingness to engage in dialogue with business and industry through such mechanisms as the Foreign Investors’ Council, the MFA’s Committee on Investment, and professional associations. We should build on these established lines of communication to continue to listen to the international business community.