Government 2008 review: industry

ASTANA. January 14. KAZINFORM. What were the main priorities of the Government in 2008? What are the main indicators of industrial development in this period? Kazinform offers its readers referral information on industry.

Mining and smelting complex. In 2008 an assortment milling production was launched in Temirtau town. More than twenty projects in the mining and metallurgical industries are included in the list of breakthrough projects. A memorandum on mutual cooperation between the Government, regional akimats, trade unions and enterprises, joint-stock company ?NWF Samruk-Kazyna? and large enterprises of mining and smelting complex was initiated and signed. Development of industrial infrastructure At present in Kazakhstan there are 6 special economic zones: ?Morport Aktau?, ?Astana - New City?, ?Park Information Technology Park?, ?Оnтusтік?, ?National Petrochemical Industrial technological park? and ?Burabai?. An analysis of the activities of existing FEZ shows that the efficient operation of these zones is determined by the tax and customs privileges and the necessary infrastructure resources. Currently 3 projects have been implemented here: 1plant to produce marine metal structures (LTD ?Keppel Kazakhstan?); 2) production plant ?AFTA?; 3) plant to produce oil pipe grades (JSC ?Arcelor Mittal Aktau?). Currently, machinery develops in five areas: Northern region - oil and gas, rail, road, bearing, defense; in Kostanay region - road construction; East region - mining, metallurgical, automotive, defense; in the Pavlodar region - electrical (cable production), metallurgical, instrumental; Southern region: in the city of Almaty - defense, oil and gas production and processing, metallurgical, aviation, in the Almaty region - battery, in the South Kazakhstan region - car; Central region: in the Karaganda region - mining and in the Akmola region - air and road; Western Region: the Aktyubinsk region - instrument, aviation, in the West Kazakhstan region shipbuilding, defense, oil and gas production in Mangistau region - shipbuilding. In the field of geology and subsoil management in 2008 году the complex of works was performed within the state geological study on the territory of Kazakhstan, the main task of which is replenishment of the mining and smelting complex by mineral and raw resources. As a result of works 2 fields of gold were found, the field of iron ore, complex field of copper, molybdenum, gold with associated components. The fields are located in the Zhitikarinskiy mining and smelting desrrect, in Southern Kazakhstan, and Mangystau. Exploration work on 12 new projects to provide 108 rural settlements with fresh groundwater has started this year. Oil branch. According to the forecast for 2008 the extraction of oil and gas condensate in Kazakhstan will be 70, 000 thousand tones (in comparison with 2007 of 104,1%). As in the past years, the most significant projects for Kazakhstan are still functioning major projects ? Karachaganak (11500 thousands tones), Tengiz (17500 thousands tones) and other projects. By operative information the volume of the raw oil processing (including mini-oil-processing plants) has reached 13 394 (111,3 %); Production of oil products has reached: Petroleum ? 2 860,1 thousands tones (108,9 %); Jet fuel? 355,7 thousands tones (137,4 %); Diesel fuel ? 3947,8 thousands tones (100,7 %); Мазут ? 2690,1 thousands tones (104,5 %) The export of Kazakhstan?s oil by operative data for 2008, is 62403,0 thousands tones, (102,8 %). Increase of volume of oil and gas extraction, development of perspective fields of Caspian shelf, which will result in enhancing the economic safety, requires dynamic development of oil and gas transport infrastructure. At present the following projects are realized. - Kazakhstan?s Caspian System of Transportation (KCST); - oil pipeline Yeskene-Kuryk; - Transcapsian project. Through the oil pipeline of the Caspian Pipeline Consortium with total length of 1510 km 26,4 mln tones of oil were transported within 10 months of 2008, including Kazakhstan?s oil? 21,9 mln tones. Gas industry. By the results of Nov.-Dec. The extraction of gas by gas-producing companies of Kazakhstan will make 33 177,7 mln cubic meters (111,9%). The main growth of gas extraction is provided by the companies ?Karachaganak Petroleum Operating BV?, LLP ?Tengischevroil?, JSC ?SNPC-Aktobemunaygas?, LLP ?Tolkynneftegas?. Considering the performed arrangements in the gas utilization the volume of gas burned in flares will decrease by 34,7% in comparison with analogous period of the previous year and will make 1,8 bln cubic meters. On oil and gas processing enterprises in Nov.-Dec. 2008 1427,1 thousands tones of liquefied gas was produced (100,7%). Electric power industry. In 2008 the line of power supply ?North Kazakhstan-Aktobe region? was commissioned as well as the first section of ?South-Kazakhstan Hydroelectric Station-Shu?, the second line of power supply of transit ?North-South of Kazakhstan?. As a result of lowering of power consumption by export-oriented metallurgic and mining industry, at the end of 2008 the reserves of power were available. Coal industry. In 2008 the coal-mining enterprises, according to operative data, extracted 105,0 mln tones of coal (111,2 %). In 2008 by the program ?Provision of transition of the coal industry to the international standards for 2007-2010? 18 state standards were developed and approved as well as one alteration to the current standard, , along with catalogues and classifiers of coal products in line with requirements of the international regulatory documents. Atomic industry. Total volume of uranium extraction by the enterprises of JSC National Company ?Kazatomprom? for 2008 made 8 500,5 tones or 128% in comparison with 2007. Total volume of production of sub-oxide ?oxide reached 8 310 tones, the growth in comparison to 2007 was 33%. In 2008 the plant was opened for production and issuance of extrasubstantive tantalum powders within the breakthrough project of JSC NC ?Kazatomprom? on tantalum production of JSC ?UMZ?. The development of issuing the new product ? tantalum powder with capacity of over 80 thousands mkKl /g enlarges export abilities of JSC ?UMZ? and in the prospect may lead to development of condensate construction in Kazakhstan. The construction of power networks and substations for supplying uranium extracting enterprises in the South-Kazakhstan and Kyzylorda regions was completed. Petrochemical industry. At present together with JSC NC ?KazMunayGaz?, JSC ?Kazakhstan Petrochemical Industries? and other petrochemical enterprises several interconnected investment projects on establishing the petrochemical plants of the world class were developed and prepared for realization: - the first integrated petrochemical complex; - complex for production of aromatic hydrocarbons; - production of the road bitumen in Kazakhstan.