ASTANA – A United Arab Emirates company has secured a 25-year license to develop the Kenderlyk coal deposit in eastern Kazakhstan, expanding foreign investment in the country’s mining sector. Kazakhstan has awarded a 25-year license to a United Arab Emirates investor to develop the Kenderlyk coal deposit.
Photo credit: gov.kz According to documents released ahead of public hearings in early August, MQ Emirates Group Ltd will develop Coal-Shale Field No. 1 of the Kenderlyk deposit using open-pit mining methods. Coal production is scheduled to begin in 2028, following geological exploration and preparatory work planned for 2026 and 2027.
Initial output is projected at 10,000 metric tons, increasing to the mine’s planned annual capacity of 50,000 metric tons by 2034. Recoverable reserves are estimated at 940,000 metric tons. The Kenderlyk deposit is located around 70 kilometers from the town of Zaisan in the East Kazakhstan Region.
It has been known since the late 19th century, when coal and oil shale were extracted through small surface mines. During the Soviet era, the area underwent extensive geological exploration for coal, shale, and hydrocarbons. Several years ago, the Kazakh Industry Ministry offered parts of the Kenderlyk deposit for auction.
According to the National Geological Service, the broader deposit contains 11.3 million metric tons of coal reserves across three coal-bearing formations. Coal at Field No. 1 has a relatively high ash content of 35% to 40%. Although many countries are accelerating the shift toward renewable energy, coal remains one of the world’s primary sources of electricity.
It generates roughly one-third of global power. Demand continues to be driven largely by China and India. According to the Energy Ministry, Kazakhstan ranks 10th globally in proven coal reserves, with an estimated 33.6 billion metric tons, enough to sustain current production levels for more than three centuries.
The country’s largest coal-producing regions include the Karagandy and Turgai coal basins in central Kazakhstan and the Ekibastuz, Maikuben and Karazhyra deposits in the northeast. Kazakhstan exports coal primarily to Russia, Poland, Uzbekistan, Türkiye, India and Malaysia.
To support future growth, the Energy Ministry plans to auction 10 additional coal exploration blocks by the end of the year. The government has also approved the Coal Power Development national project, which includes investment projects with a combined installed capacity of around 7.8 gigawatts.
Investment in the sector continues to rise. Mining companies invested 305 billion tenge (US$654 million) in 2025, while investment is projected to increase to 553 billion tenge (US$1.2 billion) this year. Kazakhstan is also expanding investment in its broader mining sector.
The government plans to develop the Northern Katpar and Upper Kairakty deposits, among the world’s largest undeveloped tungsten reserves, into the country’s first full-cycle tungsten operation. While Kazakhstan is expanding coal production, a new report from the Agency for the Protection and Development of Competition (APDC) found that the country’s primary wholesale coal market remains highly concentrated.