"Kazakhstan Center for Industry and Export "QazIndustry" JSC is working on the analysis of the procurement activities of subsoil users in order to determine the current market situation and develop recommendations and amendments to legislative norms and national plans for the development of the manufacturing industry.

Import analysis allows us to determine the most demanded goods of subsurface users and focus on these commodity positions in the development of intra-country value. Thus, the import of goods of subsurface users of hydrocarbons in 2021 amounted to 170 billion tenge. At the same time, the largest volume of imports falls on Tengizchevroil, Karachaganak Petroleum Operating B.V. and North Caspian Operating Company B.V. with the purchase amount of 128.5 billion tenge, 23 billion tenge and 13.6 billion tenge, respectively. The share of three oil and gas operators is 97% of the total amount of imported goods. Large volumes of Tengizchevroil imports are due to the implementation of a future expansion project - the Wellhead Pressure Management Project (FEP-WPMP). As for North Caspian Operating Company B.V., a high share of purchases of this company falls on services, rather than on direct purchase of goods, and most likely, the goods purchased by the company sit in the reporting as a service without a detailed explanation of the purchase structure.

The structure of procurement for the most imported goods is as follows: - containers intended for cargo transportation (18.6 billion tenge); - electromechanical tools (17 billion tenge); - parts of electric motors (8.6 billion tenge); - pipes of different diameters (7.8 billion tenge); - instrumentation and control devices (8 billion tenge). The share of these goods is about 35% of the total structure of imports of subsoil users. Italy, the USA and Germany occupy top positions in the structure of imports by country due to the need of subsoil users for high-tech engineering products (About 80% of imports are accounted for by commodity groups of mechanical engineering).

Kazakhstan purchases such goods as valves, ball valves, lifting and transport equipment and electrical equipment and pipe products. In turn, the import of goods of subsoil users of solid minerals in 2021 amounted to 118.1 billion tenge. The largest volume of imports falls on KAZ Minerals Aktogay and KAZ Minerals Bozshakol LLP with the purchase amount of 22.5 and 22.4 billion tenge, respectively. Next are TNC Kazchrome, Arcelor Mittal Temirtau JSC and Bakyrchik mining Enterprise with a total import amount of 35 billion tenge. The share of subsurface users' data is 67% of the total share among all monitoring subjects.

The purchase structure for the most imported goods for 2021 is as follows: - parts of machinery for the mining industry (31.2 billion tenge); - single-bucket mechanical self-propelled excavators (5 billion tenge); - products with threads cut from ferrous metals (4.3 billion tenge); - open profiles made of steel (3.9 billion tenge); - parts of drilling or tunneling machines (3.4 billion tenge). The share of these goods is 40% of total imports and is mainly supplied from countries such as Russia (46.3 billion tenge), Australia (14 billion tenge), Chile (13.4 billion tenge), the Netherlands (8 billion tenge) and China (4.7 billion tenge).

The share of imports from these five countries is 72% of the total share of imports of solid minerals subsoil users and the main imported goods from these countries are parts of mining machinery and excavators.

The data were prepared as part of the reporting of subsoil users of solid minerals, however, when considering the structure of the import of these companies, it should be borne in mind that some enterprises submit reports as system–forming enterprises (hereinafter referred to as SFE). For example, in the reports of subsoil users of solid minerals, Kazzinc LLP occupy the 11th place with a total import volume of 2.8 billion tenge, when, as part of the SFE reporting, the company ranks first with an import amount of 480 billion tenge. The same applies to ArcelorMitall Temirtau LLP, Aluminum of Kazakhstan JSC and other subsoil users included in the list of SFE.

This factor indicates that the annual procurement plan of enterprises within the framework of subsurface use is several times lower in comparison with standard procurement plans. It is also worth noting that within the framework of the SFE reporting, there are no obligations for in-country value and the method of procurement provided for the reporting of subsoil users of mining companies is not indicated.