Why can't Kazakhmys double miners' salaries?

This week, the miners of "Kazakhmys" went on strike for two days. One of the protesters' demands was a doubling of their salaries, but the company's management promptly warned that this was not feasible. Oil and gas industry expert Nurlan Zhumagulov provided a detailed explanation of why "Kazakhmys" is unable to meet such a demand, according to Orda.kz.

2024-12-21 07:30:09https://orda.kz/pochemu-kazahmys-ne-mozhet-udvoit-zarplaty-shahteram-395955/

«In the Kazakhmys Copper holding, which includes the LLP "Kazakhmys Corporation", there are 39 thousand employees on staff. The net profit for 2023 has increased five to six times, reaching 110 billion tenge. The average median salary is 660 thousand tenge (according to the company). Meanwhile, the average salary for miners exceeds one million tenge», — emphasized Nurlan Zhumagulov.

In addition to the need to pay miners million-tenge salaries, "Kazakhmys" must fulfill its social obligations. This includes implementing infrastructure projects, constructing social facilities in the regions, and ensuring the operation of heating and power plants with low electricity tariffs. During the floods, the holding (both of its "branches") allocated 40 billion tenge to assist those affected.

«It is clear that the holding cannot make concessions to the strikers, but a compromise has been reached (an average salary increase of 15% including bonuses). The task of the holding is to retain and support such a large workforce», Nurlan Zhumagulov noted.

At the same time, the expert points out that KAZ Minerals has a better financial situation than Kazakhmys Copper. There are no strikes at its enterprises, and the projects generate stable income (up to 350 billion tenge from Aktogay and Bozshakol alone). The group's enterprises receive more net profit than they pay in taxes to the budget.

Nurlan Zhumagulov added that during his search for information, he came across an intriguing document.

«I stumbled upon a copy of a power of attorney, according to which Nursultan Nazarbayev had control over "Kazakhmys" in 2006. It is difficult to verify», — the expert wrote.

The document cited by the director of the Energy Monitor fund states that Nursultan Nazarbayev owned 100% of LLP "Kazakhmys" in 2006 and granted his daughter Dariga the right to sign company documents on his behalf for a period of three years.

Currently, control over the structures of "Kazakhmys" belongs to major businessmen Vladimir Kim and Eduard Ogay.

For more details on why the miners of "Kazakhmys" went on strike, what they want, and why they rarely live to see retirement, read the exclusive material on Orda.kz.