We expect Kazakhstan's mining industry value to reach US$31.0bn by 2018, down from our previous forecast in light of our view of an overall decline in commodity prices. Growth will be led almost entirely by the coal, gold and copper sectors, which together account for the majority of the value of Kazakhstan's mining industry.

BMI Industry View 7

SWOT 9

Industry Forecast 10

Coal: Domestic Power Demand To Drive Production Growth 10

      Table: Kazakhstan - Coal Production 12

Iron Ore: Challenges Keep Growth Subdued 13

      Table: Kazakhstan - Largest Iron Ore Projects 14

      Table: Kazakhstan - Iron Ore Production Forecast 15

Copper: Industry Due For Revival 15

      Table: Kazakhstan - Largest Copper Projects 17

      Table: Kazakhstan - Copper Output 17

Industry Risk Reward Ratings 18

Russia On Top; Kazakhstan Not Far Behind 18

      Table: Mining Risk/Reward Ratings 18

Nordics Lagging 19

Reward Paucity In Germany 19

Corruption & Infrastructure To Remain Key Risks In Russia & Ukraine 20

Weak Commodity Prices Weigh On Rewards 21

Market Overview 22

      Table: Kazakhstan - Country Reserves Relative To Global Reserves 23

      Table: Kazakhstan - Mining Industry Value & Production Forecasts 25

Regulatory Development 26

      Table: Kazakhstan - Applicable Mineral Extraction Taxes 27

      Table: Kazakhstan - Political Overview 29

Commodities Forecast 30

Commodity Strategy 30

Aluminium: Continued Short-Term Weakness 33

Copper: Recent Strength Doesn't Change Our View 33

Nickel: Recent Strength To Subside 35

Zinc: Price Momentum To Continue 37

      Table: Select Commodities - Performance & BMI Forecasts 39

Competitive Landscape 40

      Table: Kazakhstan - Country Reserves Relative To Global Reserves 41

      Table: Kazakhstan - Comparative Valuation Metrics 42

Company Profile 43

Kazakhmys 43

      Table: Kazakhmys - Financial Results 45

ENRC 47

      Table: ENRC - Financial Results 49

Regional Overview 51

Europe Overview 51

      1. Coal Production Growth Mainly In The East 51

      2. Iron Ore Mining To Come Under Threat 53

      3. Greater Regulation On The Horizon 55

      Table: Europe: Mining Regulatory Outlook 55

      4. Long-Term Promise For Rare Earths 56

      5. Public Opposition To Present Major Downside Risk 57

Global Industry Overview 58

Methodology 70

Industry Forecast Methodology 70

Sources 71

Risk/Reward Rating Methodology 72

      Table: Mining Risk/Reward Ratings Indicators 74

      Table: Weighting Of Indicators 75

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