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  • Kazakh mining and metallurgy embracing digitalization

Kazakh mining and metallurgy embracing digitalization

29 July, 2019 17:32
The mining and metallurgical complex makes up around 6.7% of the GDP, 25% of the industrial production and 24% of Kazakhstan’s exports. It is represented by 800 plants and 185 thousand workplaces. Over the last 10 years, 114 projects have been carried out in the mining and metallurgical complex.

The fourth industrial revolution is one of the current developments of today. It allowed for a reduction in industrial and transport-related costs, optimized business processes, rolled out new business models and significantly increased the competitiveness of industrial plants.

Metallurgical output has grown by 1.5%, with the biggest increase observed in non-ferrous metallurgy – 8.9%.

“Construction of the Kazakhstan electrolysis plant was completed and primary aluminium, aluminium alloys and end products started to be made. High-quality titanium alloys allowed us to integrate into the global chain of aircraft engineering,” said Kanat Baitov, the Chairman of the Kazakh Ministry of Industry and Infrastructural Development’s Committee on Industrial Development and Safety.

This year Kazakhstan has joined the OECD Steel Committee as an associate member.

“Today, providing constant drastic changes, high volatility, growing demands the mining and metallurgical companies need to identify in what way they will carry out their work,” recalls the Chairman, stressing to take advantage of the fourth industrial revolution.

Nowadays, the largest domestic companies in mining and metallurgy have already set up their development strategies as there are positive changes in the issues of digitalization. Among them, Eurasian group, Kazzinc, ArcelorMittal Temirtau, Kazakhmys Corporation, Kazminerals which carry out around 20 major projects on digitalization by 2025.  

The Committee on Industrial Development and Safety’s Chairman announced work focused on limiting factors in digitalizing the production is planned.

As he said, one of the barriers is a lack of qualified personnel, especially IT personnel.

Between 2015 and 2019, the modern mining and metallurgical plants using new equipment complying with the 4th industrial revolution were put into operation, including Kazminerals Aktogay and Bozshakol, the Bakyrchik mining venture, Sary-Arka cooper processing and others.

The new modern automated YDD ferroalloys plant with a capacity of 180 thousand tons a year is in the first phase of operation. 3 ore thermal rotating bath furnaces meet the best world standards using the latest achievements of world ferrosilicon production, equipped with the Industry 4.0 elements.

The project saw the new technological developments in the production cycle, gas cleaning systems and using electricity over coal which fully eliminates noxious emissions into the atmosphere reducing a negative impact on environment.

As part of the digitalization process of mining and metallurgical plants, 192 projects for 1.7 trillion tenge are about to be implemented in the period from 2018 to 2025. Economic benefits after their full implementation are calculated at 2.2 trillion tenge by 2025.

As of today, 79 projects with the effect measured at 1.75 trillion tenge by 2025 are completed.

In the second half-year of 2019, it is planned to bring to fruition 53 projects for 70.3 billion tenge.

The Kazakh Ministry of Industry and Infrastructural Development has developed the actions aimed at creating a necessary eco-system to support domestic plants moving towards digitalization and stimulate even active introduction of digital technologies following the world experience. These actions were included in the Digital Kazakhstan national programme.