Kazakhstan Industry Ministry approves copper concentrate processing tariff methodology

September 14, 2026 at 09:00 AM2 min

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Kazakhstan's Ministry of Industry has published a draft order approving a methodology for setting copper concentrate processing tariffs. The methodology aims to create conditions for deep processing of mineral raw materials and to finance modernization and construction of new copper smelters through tariff components k1 and k2. The draft was announced on the open legal acts portal following a July instruction from the prime minister.

Key Facts

The Ministry of Industry published a notice on the open legal acts portal about developing a draft order approving the methodology for determining copper concentrate processing tariffs.
The methodology includes investment components k1 and k2, expressed in US dollars per dry metric tonne, to finance capital investments for modernization and construction of new processing facilities.
The basis for developing the draft order is an instruction from the prime minister following a July meeting of the Investment Attraction Council.
The tariff calculation will use annual raw material processing volume, annual cathode copper output, total processing costs, and investment components k1 and k2.

Tariff Methodology

The draft methodology specifies that the tariff for copper concentrate processing will be determined using annual raw material processing volume, annual cathode copper output, total processing costs, and investment components k1 and k2. Annual processing volume and cathode copper output will be set according to the approved production program of the processing enterprise. Total processing costs will be calculated based on the approved budget and business plan for the tariff year, with reference to the methodology's annex. Investment components k1 and k2 will be calculated using the approved investment program, capital expenditure volume, design capacity of new facilities, and payback periods of investment projects.

Investment Components

Component k1 is the part of the tariff intended to finance capital investments for maintaining, reconstructing, modernizing, and improving environmental and energy efficiency of existing processing facilities, expressed in US dollars per dry metric tonne. Component k2 is the part of the tariff intended to finance capital investments for construction of new processing facilities, creation of new technological stages, and implementation of production expansion projects, also expressed in US dollars per dry metric tonne. The methodology aims to create conditions for deep processing of mineral raw materials in Kazakhstan, including ensuring sustainable operation, modernization, and development of domestic processing capacities.