Social projects and local procurement
KAZ Minerals is committed to supporting communities located close to its operational locations, many of whom have been affected by Covid-19. Social investment payments of $27 million were made during 2020.
The Group has a social investment policy and monitors projects that are funded to ensure they meet the aims and objectives of the Group. The types of projects the Group seeks to support are: (i) projects local to the Group’s operations in the areas of healthcare, education, infrastructure, culture and sport; (ii) national projects in the Group’s countries of operation also in the areas of healthcare, education, infrastructure, culture and sport; and (iii) projects to promote the culture and economic profile of the Group’s countries of operation.
During the Covid-19 pandemic, the Group has provided significant support to vulnerable communities in its countries of operation, as described in the case study below. In addition, within Kazakhstan, the Group has also provided assistance to flood victims and supported the construction of a new cultural centre in Nur-Sultan city. The Group has also supported local colleges, providing equipment and training materials as part of a programme to promote mining skills in the regions local to the Group’s operations. In Russia, the Group has donated medical supplies to a hospital in Chukotka, and has supported the New Economic School, a leading international business school in Moscow, and the Meschersky Park, a public sports and recreation facility based in historic woodlands close to Moscow.
As required by subsoil use law, the Group prioritises local procurement to assist diverse economic growth within Kazakhstan. In the East Region, local procurement was 66% of total spending (2019: 68%). The level of procurement from outside Kazakhstan at Aktogay and Bozshakol in 2020 was 87% and 71% respectively. These mines employ modern technology that is only possible to source internationally.