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NCE proposes to form a single registry of MMI problems

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In Astana was held the VII Congress of employees of mining and metallurgical industry "Work of MMI  in the conditions of new realities"

The event is organized by the Association of Mining and Metallurgical Enterprises (AMME) together with the Ministry for Investment and Development.

Speaking at the Congress, the Chairman of the Board of NCE "Atameken" Ablay Myrzakhmetov noted that the mining industry has accumulated a lot problems with legal issues, permits, taxes, as well as important environmental issues, training, tariff and local content in procurement. In his speech, the top manager of the country's main business association said what is done to support MMI in Kazakhstan.

"Firstly, we have stopped quota trading system until 2018. Two days ago, we discussed the issues of environmental regulation, and these trades, by and large, didn’t yield anything good. Moreover, we have undertaken further voluntary commitments on domestic trading. There has been cancelled a tenfold increase of the rate for emissions into the environment and the Environmental Code, we asked a year for the concept "temporary storage" of waste, but agreed to six months", - he reported information to the enterprises.

Through the efforts of NCE to three-quarters has reduced the number of state permits, which mainly affected SMEs, but also have a beneficial effect on the regulatory environment for the large mining companies. Speaking of fees, Ablay Myrzakhmetov pointed out that we need coordination and the absence of sharp shifts in their formation. During the investment cycle of the sector, which focuses on the average of 5-7 years, the predictability of the tariff policy for existing players and potential investors is required, he said.

Commenting on the debate about the sales tax, Myrzakhmetov explained that this cascade collection will be harmful not only for MMI, but also for the small, medium-sized businesses. It is necessary to put an end at the debate that unfolded around it, stated the head of the business association. "Until 1st of January 2018 there is a possibility, an expert group has been established, the Association (AMME) was the first among those with whom we met, and with large companies "Kazakhmys", "Kazzinc" and the ERG, and we have agreed that the new Tax Code, of course, must contain a part, taking into account the clear and stimulating investment in the industry for subsoil users, but there should be a field for small and medium-sized businesses. In this direction, we will form the terms of reference with the Association, large enterprises, we continue to move and to prepare our approaches. The cascading sales tax, probably will not have a place in our vision of the tax regulation, as well as issues of its administration", - he said.

Talking about ways of solving the problems with land and licensing, Ablay Myrzakhmetov proposed the Association of Mining and Metallurgical Enterprises to learn from NCE and to create a unified register of systemic problems, which could be formed on the basis of appeals of enterprises.

"We have created the registry of systematic problems, for the entire period NCE has received more than 700, we now have in the portfolio of a little more than 400, and 70% have been resolved. The single register of entrepreneurs includes all calls from the regions, industries, and we discuss and look at this registry with the First Deputy Prime Minister, - what responsible state bodies are involved in it, where legislative, where regulatory changes are required, where are the orders of the Ministry, where collisions must be eliminated and what state bodies simply do not perform it. If such a register will be prepared, we are ready to assist, to discuss it with Askar Uzakpaevich (Mamin, Vice-Premier Minister of RK), and Zhenis Mahmudovich (Kasymbek, Minister for Investment and Development of Kazakhstan), I think they will support. To make monthly meeting of state bodies and coordinate it well, and then by the next Congress, we can report, that we had these problems in the registry, list them, and to announce what has been resolved. This is convenient, there is 70% of small problems, cash registers, accounting, taxes, submission of reports. For example, a pig farm was paying the same amount of environmental fines as "Kazzinc" and large enterprises. We have had so many conflicts that have been resolved. I offer to perform this work under co-ordination, at the level of first deputy prime minister with the strengthening of the role of the Ministry Investment and Development", - suggested the head of “ Atameken”.

The head of NCE raised separately the issues of exploration, training and procurement of local content. With the fall in raw material prices, the state could support the industry by tax deductions or exemptions in subsurface exploration, in order to encourage large companies, he said. As part of the dual education model, the success of professional training at "Kazzinc", "Kazakhmys" and ERG is obvious. However, it is impossible to say that about the state order, which is distributed among the colleges without subsequent employment indicators. Money should be used for employed, specific VET students, who work directly with employers, believes Myrzakhmetov. Speaking of local content, he cited the example of the company for manufacture of overalls "Yutariya", whose successful activity was forged in orders of "Kazakhmys", and now the company has been a leader in the consortium in the contract with the Ministry of Defence for 7 billion tenge.

Referring to the problems single-industry towns of Kazakhstan, the head of "Atameken" reported that NCE now on behalf of the Government ends up a pilot project in the city of Zhanaozen. After the government's discussion, it’s experience can be extended to other single industry towns of the country.

"As for single-industry towns, our town-forming enterprises bear a particular burden. So much money, in addition to the budget ones, are sent to the sponsor, social things, all companies allocate money. We believe that Akimats should share in proportion this money. 50% can be directed to regional needs, and the remaining 50% should be sent to the solve the problems of single-industry towns - roads, electricity, social services, where you can keep track of everything.

Now we propose to carry out certification of 27 single-industry towns, the money will be sent by large companies for special purposes, which are aimed at solving problems of single-industry towns. With the ERG, this year we have created a pilot project, the company has allocated money, micro-credits to those who were streamlined, who were laid off or want to go into another realm, with SSGPO. These micro-credits can be used to organize the business", - said Ablay Myrzakhmetov.

Daniyar Serikov

 


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