ENRC, the large Kazakh diversified mining group, is putting the finishing touches to the first new aluminium smelter in the former Soviet Union since the 1980s. The $1bn plant is due to go into production later this year and to rapidly expand output to 250,000 tonnes a year in a sign of the company’s willingess to invest and of the country’s determination to build a modern diversified economy on the base of its extensive natural resources. “It’s the clear intention of Kazakhstan as a country to add value to its natural resources,” says Johannes Sittard, chief executive.

But clear intentions are one thing. Implementation is another. Many resource-rich states have tried to add value to their commodity exports and to diversify into other sectors, including high-technology. Few have succeeded and the Kazakh authorities are well aware of the difficulties. Maulen Ashimaev, deputy head of the president’s administration, says: “Of course we understand there is tough competition here. We are looking for ways for our companies to survive this tough competition.”