It was founded in 1856 and developed on the strength of iron ore deposits; the extraction industry is still important to the local economy. The metallurgical plant was in operation until 1926. The settlement serving the plant was known as Abaza, an abbreviation of Abakan and Zavod (plant).[2] The extraction work of iron ore is carried out at a mine 5 km from the city. Iron ore is sent to Novokuznetsk metallurgical enterprises. Abaza was granted urban-type settlement status in 1957 and town status in 1966.[2]
Since 1995, the Abakan mining group has been operating as a division of the OJSC "West-Siberian metallurgical plant».
It was included in the list of single-industry cities of the Russian Federation by order No1398-r of the Government "On approval of the list of single-industry towns" dated July 7, 2014.[9]
Верховный Совет Республики Хакасия. Закон №20 от 5 мая 2004 г. «Об административно-территориальном устройстве Республики Хакасия», в ред. Закона №54-ЗРХ от 10 июня 2015 г. «О внесении изменений в Закон Республики Хакасия "Об административно-территориальном устройстве Республики Хакасия"». Вступил в силу по истечении 10 дней со дня официального опубликования. Опубликован: "Вестник Хакасии", №22, 12 мая 2004 г. (Supreme Council of the Republic of Khakassia. Law #20 of May 5, 2004 On the Administrative-Territorial Structure of the Republic of Khakassia, as amended by the Law #54-ZRKh of June 10, 2015 On Amending the Law of the Republic of Khakassia "On the Administrative-Territorial Structure of the Republic of Khakassia". Effective as of the day which is 10 days after the official publication date.).
Верховный Совет Республики Хакасия. Закон №74 от 15 октября 2004 г. «Об утверждении границ муниципального образования город Абаза и наделении его статусом городского округа», в ред. Закона №45-ЗРХ от 10 июня 2014 г. «О внесении изменений в Закон Республики Хакасия "Об утверждении границ муниципального образования город Абаза и наделении его статусом городского округа"». Вступил в силу с 1 января 2005 г. Опубликован: "Вестник Хакасии", №50, 22 октября 2004 г. (Supreme Council of the Republic of Khakassia. Law #74 of October 15, 2004 On Establishing the Borders of the Municipal Formation of the Town of Abaza and on Granting It Urban Okrug Status, as amended by the Law #45-ZRKh of June 10, 2014 On Amending the Law of the Republic of Khakassia "On Establishing the Borders of the Municipal Formation of the Town of Abaza and on Granting It Urban Okrug Status". Effective as of January 1, 2005.).