Home Expert opinions The sixth challenge– exhaustibility of natural resources

The sixth challenge– exhaustibility of natural resources

It is crucially important for us to reconsider our attitude of our natural wealth…

D.A. Aitzhanova, Ph.D. in Economics, A.P., Institute of Economics CS of the MES RK “It is crucially important for us to reconsider our attitude of our natural wealth… The most important is to transform the natural wealth of our country to the stable growth to maximum effect” The sixth challenge– exhaustibility of natural resources ·  This challenge directly concerns the development of mineral resource sector of Kazakhstan, one of the leading locomotive sectors of which is the mining and metals sector (MMS). The planning and forecasting of the MMS of RK is based on the large-scale utilization of republic natural-resource potential, by virtue whereof relying on the Letter of the President of Kazakhstan it is necessary to elaborate the single national mining and technical policy in a part of mastering and exploitation of subsoil resources with account of principles of ecological security provision in the regions of metallurgical subjects operation. The program of MMS development supposes the necessity of taking in consideration the factor of a natural resources exhaustibility, natural capital depletion and according to it the need of timely elaboration of resource-saving nature-oriented programs of our country economy development. In other words, the question is about the accumulation of income form the resource use and its direction in the best interests of Kazakhstani society. ·  The technological revolutionchanges the structure of raw materials consumption. In this context the question is about the search of new composite materials, curtailment of pure metals demand and, as a consequence, reduction of a man-induced load to natural environment. However at that the mine workers and metallurgists, taking into account the technical-technological problems of composite materials production, note the need of recording and evaluation of the world conjuncture to the volumes and rates of production anddelivery of primary natural resources.All this should be reflected in the strategy of formation and distribution of earnings from the base materials sector. The subsoil use policy should be focused on the “subsoil assets- in exchange for technologies” principle. Besides, the ore mining and iron and steel enterprises of MMS should apply in its activity the ecologically safe processes and productions, minimizing the wastes output and environmental pollution, as well as the life quality in the metallurgical regions. · We need the plan of the following industrialization stage. Considering that the Government should elaborate thedetailed plan of the following industrialization stage, in the MMS of RK it is necessary on basis of effective SWOT-analysis elaborate thescenario of the promising technologic directions development, for which reason by2050it is necessary torenew the plant assets of branch and bring it into conformity with the advanced technological standards.The share of non-resource export in the total volume of export should increase twofold by 2025 and three-fold by 2040, i.e. the question is about the national economy refocusing, its transition to the hi tech mode. In the competitive branches it is necessary to increase the share of domestic consumption of mining and metallic products, i.e. creation of the new market niches for domestic producers is required. · The domestic products should become competitive. On the threshold of CES establishment for the MMS of RK it is crucially important to raise the competitive ability of output metal products. On this basis the long-term and concrete plan of Kazakhstan’s development till 2050 was framed, for implementation of which it is expected to do many things. Thus, by 2015 on the new facilities, established within a framework of Industrialization map, the production for the amount of more than 100 bln KZT will be produced, by 2030 upon the industrial capacity volume they should come up with such giants of heavy industry as the “ArcellorMittal Temirtau” JSC and the “Kazakhmys” Corporation” LLC. Alongside with that in the metallurgy and mining industry the work on the modernization and renewal of MMS fixed assets will be carried on. Among other objectives is the implementation of fundamentally new system of natural resources management, development of export potential of the national economy real sector, improvement of transport infrastructure. The entrepreneurship support on the “Strong business-strong state” principle will be continued. If in 2013 the share of the small and medium-sized entrepreneurship products in the GRP of one of the regions-leaders – Karagandinskaya oblast-  is expected at the level of 21,3%, then by 2030 it is necessary to increase this index twice, and by 2050-  come to world-wide level, according to which the SME objects produce up to 55% of GDP.

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Dina Aitzhanova
Dina Aitzhanova
Senior researcher at the Institute of Economics MES RK
Ph.D. in Economics, A.P., Institute of Economics CS of the MES RK