On March 24, a panel discussion was held within the Tashkent Investment Forum on the topic: «Development of value-added production».
As you know, one of the priority strategic industries of Uzbekistan is the mining of minerals, primarily copper, gold, silver, zinc, phosphates, potassium rare earth metals and other minerals. In this regard, the topic of the discussion is even more relevant.
Panel discussion moderator – Alexander Tarasenko, partner, KPMG representative in CIS
Speakers:
Aziz Voitov, First Deputy Minister of Investment and Foreign Trade of the Republic of Uzbekistan;
Bobir Islamov, Chairman of the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources;
Narzullo Oblomurodov, Chairman of the State Committee for Ecology and Environmental Protection;
Jurabek Mirzamakhmudov, Chairman of the Management Board of JSC «Узкимёсаноат»;
Abdulla Azizov, Deputy Chairman of the Board of JSC Almalyk Mining and Metallurgical Plant;
Aleksey Shaymardanov, Deputy General Director for Economy and Finance of JSC Navoi Mining and Metallurgical Plant
Franco Adami Karbonara, Commercial Director and Member of the Steering Committee, Terranova SRL.
Uzbekistan extracts and produces a wide range of different types of primary processing products, which, at the end of the technological cycle, can serve as a good starting material for the production of competitive final products. The high-technology transformation of many sectors will change the geography of production and the concentration of value-added in the future. Production is expected to be less energy-intensive, less material-intensive and less labour-intensive, and the use of a cheap labour force will be reduced.
During the discussion, measures to improve the efficiency of existing production facilities were noted, as well as a brief overview of the projects implemented.
First Deputy Minister of Investment and Foreign Trade of the Republic of Uzbekistan Aziz Voitov noted in the discussion:
– Uzbekistan is one of the leading countries in the extraction of natural resources. In 22 regions, free economic zones for the production of finished products from precious metals have been created. Any foreign investors in these regions can invest and work on favourable terms. All conditions have been created for doing business in free economic zones.
During the discussion, representatives of the relevant committees made presentations on measures taken and results achieved in the production of value-added products.
– Uzbekistan is a geologically studied country by only 40%, – said Bobur Islamov, Chairman of the State Committee for Geology and Mineral Resources of Uzbekistan. – We have to carry out research on 60% of geological sites. A long-term programme has been developed for this purpose. The President signed a number of regulations on the conduct of geological research. Furthermore, our further work is clearly defined in the five-year Country Development Strategy. We plan to increase the geological work, strive to create reserves. In this direction, it is planned to create 150,000 gold reserves and more than 300,000 tons of copper. Our country is ready for mega-mining projects offered by investors.
During the discussion, Deputy Chairman of the Board of JSC «Almalyk mining and metallurgical combine» Abdulla Azizov made a speech.
– AGMK is one of the largest copper producers in the world, producing more than 100 kinds of products – noted A. Azizov – We increased annual production from 109 tons to 140 tons of copper, which is a big increase. Demand for copper is growing as electric vehicles become more popular. Uzbekistan is expected to become the world’s first copper and iron ore processor. However, we are not aiming to achieve records, but to discover new deposits.
As part of the event, measures to attract capital and advanced technologies for the production of value-added products, including on the basis of public-private partnerships, were highlighted.
The discussion highlighted how the transition from mining to value-added could be made, how environmental issues and resource constraints affect the industry, what strategies are being developed to attract capital and technologies for new discoveries and to improve the efficiency of existing production.