Regional Development

Our world is constantly changing and changes in a political and economic system of Kazakhstan gave rise to a new vector in business, government and society liaison. Transition to a new level of social partnership demands joint solutions in solving socio-economic and other problems of the regions.

Zhezkazgan and Balkhash regions have great potential: they boast rich natural resources, industrial facilities, fertile land and hardworking people.

Joint efforts of local executive bodies, Kazakhmys and residents will enable to speed up further development and raise living standards.

With the aim to achieve sustainable social and economic development of the regions, Kazakhmys Corporation together with the local executive bodies determined the main paths of development:

  • rebuilding two cities’ infrastructure which includes safe water supply, reconstruction of utility systems, renovation and extension of the housing stock, reconstruction and landscaping of outdoor territories, streets and parks;
  • social decisions, i.e. creating favourable living environment in the regions which includes improving quality of primary and secondary education, medical services, social safety, as well as construction of extra cultural, tourism, leisure and sport facilities.

During all years of operation, Kazakhmys Corporation pays special attention to solving social issues in its operation areas.

We always bear in mind that the Company’s sustainable development is based on the regions’ well-being and development.

The Company’s mission, as a single employer in this area, is:

  • to ensure employment for local population;
  • to deliver tax obligations and other payments into the state budget;
  • to implement corporate social responsibility projects.

Alongside this, the Company is fully aware that business success depends on qualified and socially protected manpower and stable situation in the region; therefore it uses a system approach to the social policy.

Thus, Kazakhmys and local government bodies (Akimats) have developed and approved sustainable development projects for Zhezkazgan, Satpayev and Balkhash for 2020 – 2025. Arrangements to implement the projects are underway.

Kazakhmys has scheduled to allocate funds amounting to KZT19 bln for the period of 2020-2023 with the aim to implement the aforesaid projects. The funds will be spent for key social projects.

The priority projects are safe water supply, housing for vulnerable social groups, improving the quality of primary education, medical care, social security and foodstuff market stabilization.

Water supply and utilities

In Zhezkazgan region, the water is mainly supplied from Kengir reservoir and underground sources (Uytas-Aidos and Eskula). Currently, 55 per cent of water supplied to two cities and 100 per cent of water supplied to industrial enterprises comes from Kengir reservoir; the quality of water depends on the reservoir filling.

Balkhash and Sayak are completely supplied with drinking water from Tokyrau water deposit. The utility water comes from the lake. The main problem of this region is significant wear and tear of water pipelines and urban utilities.

Kazakhmys Corporation has undertaken the following obligations:

  • to develop applicable design and specifications for drinking water supply for Zhezkazgan and Satpayev from underground Eskula and Uitas-Aidos springs. Our design institute developed and approved three design and estimate packages for Escula project which were submitted to the governmental bodies. The government funded the projects; construction and installation works have commenced. Two more projects will be issued in 2021. By 2025, implementation of these projects will enable to increase stage-by-stage water supply from 11 to 30 mln m3 from Eskula water deposit, and from 10.5 to 26.4 m3 from Uitas-Aidos spring. The aforenamed measures will completely provide the cities with pure water;
  • alongside, in 2020 Kazakhmys has urgently built and launched a reserve water channel from river-water pump house to sewage treatment plants of Zhezkazgan Heat and Power Supplying Division due to frequent breakouts of Uitas-Aidos channel and to ensure uninterrupted drinking water supply for Zhezkazgan population;
  • in order to find a comprehensive solution to water resources management and to ensure stable water supply and discharge in Zhezkazgan and Satpayev we signed a contract with a specialized organisation for Concept and cost-benefit analysis development;
  • Central Design Institute has also developed several design and estimate packages to support reconstruction of water supply, discharge and sewage utility systems in Satpayev, Balkhash and Sayak.

Housing problems

The major housing problems are housing stock depreciation and a long waiting list for vulnerable social groups to receive housing from the state. Kazakhmys actively participates in solving these issues.

In May 2019, based on a memorandum signed with the state, Kazakhmys purchased and donated 10 four-bedroom apartments to multi-member families of Company employees.

In 2020, the Corporation donated housing to 133 multi-member families. The apartments were completely renovated and filled with new furniture and appliances and given to the people on a free-of-charge basis. The new settlers are Kazakhmys Group employees from Satpayev, Zhezkazgan, Balkhash, Karaganda, Karaganda suburbs and Nur-Sultan. The Company is considering further implementation of the program aimed to provide multi-child employees with housing.

In 2021, the company management decided to provide medical staff of Zhezkazgan, Satpayev, Balkhash and Balkhash with free housing.

In order to solve the problems of the Zhezkazgan region’s unsafe housing stock, the Corporation is developing draft documentation to build multistoried residential buildings and submit the design documents to Akimats for funding from the national budget.

Education

The main local level problems of primary and secondary education are inadequate qualification of secondary school teachers, lack of pre-school facilities (children aged 2-6 by region comprise 76%) as well as poor supplementary education system.

The Company is taking the following measures to solve these problems:

  • In spring 2020, National Center of Excellence studied the qualification level and availability of school instructors. Such studies have never been conducted in the region before. Based on the findings, a decision to open Professional Development School in Zhezkazgan city was taken. Secondary school teachers of Karaganda region can improve their qualification there which will consequently increase their salaries. The School was launched in August 2020 and is already yielding positive results.
  • Kazakhmys has scheduled stage-by-stage funding, construction and fitting of a missing number of kindergartens for 2021-2023: four in Zhezkazgan city, one in Satpayev and three in Balkhash city. The kindergartens will be transferred to the government after opening. Design documents development is underway; construction sites have been designated.
  • On Akimats’ request, Kazakhmys supports design estimate documentation (DED) development to construct and renovate secondary schools’ premises, including STEM laboratory (robotics, computer programming classes, etc.) in S. Seifullin gymnasium of Satpayev.
  • The Corporation has developed a program and selected a venue for Education and Employment Center including Career Center and Service Academy in Satpayev. The Centers will be designed on the models of modern centers operating in big cities of Russia and Kazakhstan. The center is scheduled to open by the end of 2021. It will enable our children to become acquainted with future-oriented jobs and unlock their potential from early age. Young people will be able to refocus their career paths to meet the needs of labor market.
  • As requested by local executive bodies, Kazakhmys supports local educational institutions in other ways, i.e. Kazakhmys funded equipping Zhezkazgan School built in 2020. In addition, due to transition of secondary schools to online learning, Kazakhmys purchased and donated 922 PCs and 201 routers to regional schools.

Healthcare

The key healthcare issues in Zhezkazgan and Balkhash regions are lack of state-of-the-art clinics (except Zhezkazgan Medical Center), insufficient material and technical resources of existing medical institutions, lack of qualification, social insecurity and shortage of health professionals, late disease diagnosis and poor commitment to healthy lifestyle of the local population.

In 2019, Kazakhmys signed a Memorandum of Cooperation with Severance Hospital, the leading clinic in South Korea, aimed at joint implementation of healthcare projects. The cooperation includes experience exchange, advisory support and training doctors and nurses of Zhezkazgan Medical Centre. In August 2019, the Medical Center hosted rehabilitation week by therapists from South Korea, as the result of which Telemedicine Project was launched in 2020. The project enables to hold online consultations with Severance Hospital doctors.

Since October 2019, health care research has been carried out in Satpayev city which included interviews with 1,000 respondents from different social categories followed by laboratory and instrumental analysis. The working group consisted of international health care experts, research advisers, representatives of the regional Healthcare Administration and Kazakhmys Corporation.

The research identified main priorities and issues of public healthcare in Satpayev. The research outcomes also included development of Health Promotion and Maintenance Program for 2021-2023 approved by Karaganda Regional Akimat.

The Program budget amounts to KZT 5 bln and will be funded by the republican and local government, as well as by Kazakhmys.

It should be noted that Satpayev is the only city in Kazakhstan to adopt this unique system approach.

Similar Health Promotion and Maintenance Programs are being developed for the Balkhash and Zhezkazgan.

The new state-of-the-art clinic construction in Satpayev is under consideration.

Kazakhmys is also taking active part in pandemic response. Apart from taking necessary measures to prevent COVID incidence across Company enterprises, on Akimat’s request, Kazakhmys procured and handed over medical equipment, PPE and medical supplies to Karaganda region’s healthcare facilities.

Another significant project implemented by Kazakhmys is rehabilitation and recovery of Kazakhmys employees’ disabled children from Zhezkazgan, Satpayev and Balkhash. Center for Rehabilitation of Children with Special Needs opened in Zhezkazgan Medical Center. Kazakhmys funds the children’s treatment and rehabilitation.

Social security

Social security is traditionally one of the priorities for living standards estimation. Общественная безопасность традиционно является одним из важнейших приоритетов для оценки высокого качества жизни.

The following projects are being implemented to improve the level of public safety:

  • in April 2020, pilot Safe Playground Project was launched in Zhezkazgan which included video monitoring and lighting for residential houses along 7-7A-9 Essenberlin str. and secondary school #3;
  • Kazakhmys initiated working group in Satpayev consisting of Akimat representatives, law enforcement agencies and a specialized organization to promote large-scale video monitoring program. The working group resolved to install video cameras in a newly constructed Nurly-meken district. Contract for project implementation has been signed, and Akimat is to allocate a budget for further maintenance of the system;
  • being aware that safety, prevention and detection of offences can be improved with sufficient material and technical equipment of police officers, Kazakhmys approved the amount of aid and is already providing it.

Improvement of public amenities, planting and minimarket construction

During the last years, Kazakhmys has been implementing activities for planting and keeping trees on Kengir Reservoir coastlines. Since 2020, such activities have been carried out in Satpayev as well.

Kazakhmys signed a contract to develop Mining Town Standard Concept with the aim to adopt systematic approach to improving public amenities in the cities and towns of Karaganda region. The standard will help planning further measures to improve life and conditions of local residents.

The Company started improving common areas in Zhezkazgan and Satpayev in compliance with the latest standards.

Measures to stabilize prices for socially important products in Zhezkazgan region have been taken involving Yutariya Company.

Previously, in 2018, Uly Dala, the largest shopping mall in the region, was opened in Zhezkazgan. The Company is developing this social project within the frameworks of a new program.

In 2020, a retail chain consisting of 20 ULY DALA minimarkets was built and launched in Zhezkazgan and Satpayev. Ten similar minimarkets construction in Balkhash is being reviewed.

Tourism, culture and sport development

One of the tourist attractions is sacred Ulytau mountains associated with the national history.

The country government, tasked by the Head of State, is embarking on implementing tourism promotion program in Ulytau.

Kazakhmys is interested in successful and timely implementation of the program. As requested by local authorities, we funded DED development for construction of several tourist attractions.

In addition, study and promotion of historical sites that laid basis for mining and metallurgy development in the region have been commenced to include them into travel itineraries.

With regard to culture education development, Kazakhmys plans to allocate funds for reconstruction, equipment and expanding repertoire of Zhezkazgan Kazakh Music and Drama Theater named after S. Kozhamkulov.

The Company attracted Namys Athletic Club into the region with the aim to promote healthy lifestyle and involve young people into sports.

Funded by benefactors, Namys Athletic Club promotes Olympic sports in the region. The Company reconstructed Kansk Athletic Club which hosts the largest wrestling gym. Extracurricular team sports classes were arranged in secondary schools; the schools received all sports equipment required in this regard. Kazakhmys had developed a concept and DED for Children and Youth Sports School construction in Zhezkazgan.