We expect consistent growth in Kazakhstan's mining industry through 2018, averaging 2.5% on average per annum and reaching a value of USD38.2bn. Growth will be derived from increasing output of both industrial and precious metals, including coal, copper, gold and iron ore, which together account for the majority of the value of Kazakhstan's mining industry. We forecast copper output will growth the fastest in percentage terms through 2018.

BMI Industry View 7

SWOT 9

Industry Forecast 10

Coal: Domestic Power Demand To Drive Production Growth 10

Country's Energy Needs Reliant On Coal 10

Industry Set To Expand Through Decade 11

      Table: Coal Production Forecast (Kazakhstan 2010-2018) 12

Iron Ore: Challenges Keep Growth Subdued 13

State-Owned Firm Drives Industry 14

      Table: Kazakhstan - Largest Iron Ore Projects 14

Risks To Outlook 14

      Table: Iron Ore Production Forecast (Kazakhstan 2010-2018) 15

Copper: Industry Due For Revival 15

      Table: Top Copper Projects 17

      Table: Copper Production Forecast (Kazakhstan 2010-2018) 18

Industry Risk Reward Ratings 19

Risk/Reward Ratings 19

Rewards 19

Industry Rewards 19

Country Rewards 19

Risks 20

Industry Risks 20

Country Risks 20

      Table: Mining Industry Forecasts (Kazakhstan 2010-2018) 21

Industry Risk Reward Ratings 21

Kazakhstan On Top; Russia Not Far Behind 23

      Table: Mining Risk/Reward Ratings 24

Germany & Ukraine: Key Changers On Last Quarter 24

Weak Commodity Prices Weigh On Rewards Across The Board 25

Regulatory Development 26

      Table: Kazakhstan - Applicable Mineral Extraction Taxes 27

      Table: Kazakhstan - Political Overview 29

      Table: Mining Regulation Index 30

Commodities Forecast 31

Commodity Strategy 31

Iron Ore: Chinese Stimulus Not A Game Changer 31

Steel: Gradual Rationalisation Insufficient To Boost Prices 33

Aluminium: Recent Rally Unlikely To Persist Into H214 34

Copper: Bearish Forecast Appears Well Placed 35

Lead: Picking Up Autos Sector Tailwinds 36

Nickel: Recent Rise To Fall Back In H214 37

Zinc: Potential Test Of Resistance In Coming Weeks 39

      Table: Select Commodities - Performance & BMI Forecasts 41

Competitive Landscape 42

      Table: Kazakhstan - Country Reserves Relative To Global Reserves 42

      Table: Kazakhstan - Comparative Valuation Metrics 43

Company Profile 44

Kazakhmys 44

      Table: Kazakhmys - Financial Results 47

ENRC 48

      Table: ENRC - Financial Results 49

Regional Overview 50

Europe Overview 50

      1. Coal Production Growth Mainly In The East, But Upside In Germany 50

      2. Iron Ore Mining To Come Under Threat 52

      3. More Stringent Regulation On The Horizon 54

      Table: Europe: Mining Regulatory Outlook 54

      4. Long-Term Promise For Rare Earths 55

      5. Public Opposition To Present Major Downside Risk 56

Global Industry Overview 57

Challenges 57

      Table: Mining - Select M&A Deals 61

Cause For Optimism 64

Methodology 71

Industry Forecast Methodology 71

Sources 72

Risk/Reward Rating Methodology 73

      Table: Weighting Of Indicators 75

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