Kazakhstan
Located in Central Asia, Kazakhstan is bordered by Russia to the north and west, China to the east and the Kyrgyz Republic, Uzbekistan and Turkmenistan to the south. Astana, the nation's capital city, is in central Kazakhstan, whilst the principal financial centre, Almaty, is in the south east.
Kazakhstan became an independent sovereign state in 1991 as a result of the dissolution of the former Soviet Union. After Russia, it is the largest country of the former Soviet Republics and is similar in size to Western Europe. However, with a population of only around 15m people, Kakakhstan has one of the lowest population densities in the world.
The country is politically stable, with President Nazarbayev re-elected in December 2005 for a further seven-year term with a substantial majority.
The country is rich in natural resources, and mining, metallurgy and mineral processing have traditionally been the country's main industrial activities. More recently, however, major oil and gas discoveries have meant that this has become the most important sector of the economy. Overall, Kazakhstan is now the world's fifth-largest exporter of natural gas and has the world's eighth-largest proven oil reserves, including the huge Kashagan oil field beneath the Caspian Sea.
Since achieving independence, Kazakhstan has progressively implemented market-based economic reforms, including a significant privatisation programme, the promotion of foreign direct investment and the introduction of an extensive legal framework. In September 2002, Kazakhstan became one of the first FSU countries to receive an investment grade rating from a major international credit rating agency. Between 1993 and 2005, the country attracted more than US$34bn in foreign direct investment, the highest per capita rate of all the CIS countries.
In each of the past five years, the GDP of Kazakhstan has grown by over 9p.c.. This is also the highest rate achieved amongst the CIS nations. In absolute terms, GDP per capita has grown three-fold since the year 2000, reaching about US$3,763, driven by rising world demand for oil and higher prices. The same factors have boosted the country's current account and balance of payments and Kazakhstan now has a trade surplus of more than US$10bn.
Kazakhstan benefits from a good transport network, low energy costs and royalty payments which are set at comparatively low level, all of which supports ongoing investment in the mining industry. Its proximity to China also benefits mining companies by providing ready access to low-cost Chinese technology and mining equipment.