THE ROLE OF INVESTMENT ATTRACTIVENESS OF THE GEOLOGICAL EXPLORATION INDUSTRY IN ACHIEVING SUSTAINABLE DEVELOPMENT OF THE STATE

Abstract

To achieve sustainable development and to form an export-oriented model of economic growth, Kazakhstan is making a transition to low-carbon development. The transformation of the economy has improved the investment climate in the country making Kazakhstan one of the key recipients of foreign direct investment in Central Asia. In view of the above, the need to increase the scientific validity of measures taken by the state for increasing the investment attractiveness of the geological exploration industry, on the progress of which changing the resource-export model of development largely depends and building up the energy security of Kazakhstan, is updated. The article identifies the key factors constraining the strengthening of the market positions of the geological industry in Kazakhstan and negatively affecting its investment attractiveness. It has been substantiated that the sectoral problems accumulated over the entire post-Soviet period hinder the further advancement of all the extractive industries and require the activation of new measures of state support. The author analyzes the actions planned by the state to reduce socio-economic tension in single-industry towns caused by the depletion of the mineral resource base near their location. The analysis of the state regulation mechanisms of the subsoil use and the mining and metallurgical industry that are especially attractive for investors, leads to the conclusion that it is necessary to reform the Kazakhstan model of financing geological exploration using the principles of public-private partnership. An example of adaptation by Kazakhstan of the leading countriesexperience in attracting junior companies to geological exploration is considered. The difficulties that hinder the advancement of juniors in the Kazakhstan market, the opportunities for overcoming and opening up prospects have been identified. It has been substantiated that in the medium term one of the new investment policy guidelines in the geological exploration industry should be an innovative and technological course towards digital transformation of production and management processes. At the same time, Kazakhstan, like other countries with the transit economy, will have to overcome the risks and challenges that have emerged as a result of global digitalization. The article shows that to stimulate digitalization of geological exploration, significant investments are needed, which will require, alongside with government regulation, searching for new forms and mechanisms of publicprivate partnership.