Kazakh building tycoons pivot to mining as power shifts
Two Kazakh construction tycoons are looking to extend their business empires into mining, underlining how new money is edging out interests connected to the country’s previous president.
Shakhmurat Mutalip, owner of railway and highway builder Integra Construction KZ, is in talks to buy 70% of zinc and gold producer Kazzinc from Glencore Plc, according to people familiar with the matter, who asked not to be identified as the information is private. At the same time, Nurlan Artykbayev, founder of construction and development group Qazaq Stroy, is seeking to purchase copper miner Kazakhmys, other people familiar said.
There are no guarantees that either deal will happen, as pricing and payment methods have yet to be agreed on, the people said. Glencore shares rose as much as 2% in London trading on Thursday.
The deals may signal a further stage in Kazakhstan’s changing balance of wealth, with a new elite rising after President Kassym-Jomart Tokayev consolidated power in the wake of the 2022 riots, which he called an attempted coup. Since then there has been a noticeable shift of wealth and authority away from the circles that flourished during Nursultan Nazarbayev’s long presidency.
Tokayev’s government passed a law in 2023 requiring a review of any wealth exceeding $100 million accumulated by individuals with state ties since the country declared independence from the Soviet Union in 1991. Some tycoons from the Nazarbayev era struck deals with the government, pledging payments and investments, while others have been selling assets, including in the mining sector.
At least one international company has also sold assets. In 2023, businessman Andrey Lavrentyev, 46, an owner of a car dealership network, purchased ArcelorMittal SA’s steelmaking assets in Kazakhstan.
While there is no evidence that the current owners of Kazakhmys or Kazzinc are facing any issues with the authorities, both have ties to the wealthy inner circle that surrounded Nazarbayev.
Vladimir Kim, the billionaire who controls Kazakhmys, amassed his fortune during Nazarbayev’s rule.
Glencore’s former partner in Kazzinc was billionaire Bulat Utemuratov, who previously served in the former president’s administration and once owned about 1% stake in Swiss-based commodities giant. Kazzinc helped finance the construction of Astana’s Talan Towers business center, which is controlled by Utemuratov.
Glencore has flirted with the possibility of selling some or all of its Kazzinc assets for several years. Still, so far it has decided against selling, as the rising gold price has made the business more valuable and prospective bidders have struggled to keep pace with Glencore’s price expectations.
Artykbayev and Mutalip have both been welcomed by the current administration, meeting Tokayev this month to discuss construction projects.
Since 2022, when 35-year-old Mutalip fully consolidated Integra, his business has grown. In the first 11 months of this year, his firm’s revenue from government contracts soared to about 206 billion tenge ($398 million), compared with 42 billion tenge in 2021, according to government purchases disclosure.
Artykbayev, 50, oversaw growth at Qazaq Stroy, which has been involved in the construction of state-supported housing.
The tycoon’s interests already extend beyond construction. He controls Qazaq Kalium Ltd., which has been developing the Satimola potassium mine since 2023 and plans to invest $2.4 billion by 2035. In 2024, his firm bought a 9% stake in state-run Kazakhtelecom from Jusan Bank, after a deal the lender’s co-owner struck with a company that was linked to a foundation set up by Nazarbayev.
Glencore, Kazakhmys and Qazaq Stroy declined to comment. Integra Construction didn’t respond to requests for comment.
(By Nariman Gizitdinov)
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