Kazakhstan, the world’s ninth-largest country by area, is angling to be a big player in the global critical minerals market. Second overall in mineral resources, with over 5,000 deposits. The nation already has extensive critical minerals supplies, serving as the world’s leading supplier of uranium and titanium. Perhaps that’s why it is currently working to increase its production capacity even further.
In 2024, Kazakhstan accounted for approximately 17% of the global production of titanium sponge. It still further controlled the world’s uranium market, supplying 38% of worldwide demand. This makes the country one of the world’s largest reserves of critical minerals. These latter materials include rare earth elements (REEs), copper, lithium, tungsten and tantalum. Combined with a wealth of mineral resources that position Kazakhstan as a desirable destination for investment in the minerals sector.
To strengthen its budding critical minerals industry even more, Kazakhstan points to its educated workforce and a modern legislative framework. The government has been hard at work establishing a friendly climate for investments into mining. They are providing a range of financial support packages to foster relationship building and collaboration.
A Wealth of Resources
Kazakhstan’s mineral wealth includes 17 commodities listed on the US critical minerals list and 19 materials on the EU’s critical raw materials list. This diversity adds to its strategic importance as countries around the world increasingly look for reliable, non-Chinese sources of supply for critical minerals.
Kazakhstan, with an output of 828,500 tonnes, ranked as the world’s eighth largest copper producer in 2023. It had been the world’s eighth-largest zinc producer. The government has identified four priority areas for mineral development: battery metals, refractory metals, permanent magnets, and those essential for the semiconductor industry.
Kazakhstan is unique in having production facilities for gallium—rare metal used widely in electronic applications and LED technology. Additionally, the country is considering establishing domestic production of lithium-ion phosphate batteries thanks to Pakistan’s rich deposits of phosphorus.
“Kazakhstan remains open for business and international partnerships.” – Gabidulla Ospankulov
With Kazakhstan currently in the midst of a modernization of its mining sector, by simplifying licensing and permitting processes, the world’s second most populous country is opening the door for foreign investment. Previous to this, these procedures were widely regarded as sluggish and nontransparent. Organizational reforms over the past few years have made strides to correct this dynamic, improving transparency and creating financial and time efficiencies.
Investment Opportunities
The European Bank for Reconstruction and Development (EBRD) has high expectations of Kazakhstan. They recently led a €3 million investment round into Sarytogan Graphite, obtaining a 17.36% stake in the company. This investment is indicative of an increasing confidence in Kazakhstan’s mineral industry. It’s a power hub to dominate in the production of graphite – a critical mineral for batteries and other emerging technologies.
Kazakhstan’s government is highly supportive of its mining industry and encourages investment with a range of generous incentives. These range from exemptions from corporate income tax, value-added tax, and customs duties. Technical assistance The administration is focusing on providing legislative stability and training programs specifically targeting investment contracts and agreements.
“Our government support packages include exemptions from corporate income tax, value added tax and custom duties, legislative stability [and] courses in investment contracts and agreements.” – Gabidulla Ospankulov
A second factor that bolsters the appeal of Kazakhstan as an investment location is the country’s skilled workforce. Each year, the country only produces approximately 3,000 new geology graduates. This constant flow of educated professionals keeps up with the mining industry’s demand.
“In some other jurisdictions in the world, it is very hard to develop local talent – it takes years or decades. That is not the case in Kazakhstan – we have already got that.” – Kanat Sharlapaev
Strategic Partnerships and Future Growth
Kazakhstan’s strategic partnerships with international stakeholders play a key role in realizing its lucrative mineral potential. MoUs with American companies aim at increasing US investments in oil and gas exploration and development. They further technology transfer and share expertise in advanced mining practices.
“These agreements support US investment in exploration and development of Kazakhstan’s vast mineral resources, technology transfer, and expertise in modern mining and downstream processing – key for Kazakhstan’s goal to move beyond raw material exports.” – Pini Althaus
One pillar of that collaboration is on securing reliable, non-Chinese sources of critical minerals. In the process, this initiative is advancing Kazakhstan’s goal to industrialize its economy. Kazakhstan is prepared to assume a central position in the global minerals supply chain. It can do this by plugging into global clean technology supply chains.
“Support US goals of securing non-Chinese sources of critical minerals, while helping Kazakhstan industrialize and integrate into global clean tech supply chains.” – Pini Althaus
If Kazakhstan can keep improving its mining infrastructure and regulatory frameworks it will likely make itself a magnet for foreign investments. It is clear that the country’s commitment to drastically improving transparency and efficiency in the licensing process will continue to create waves of positive effects in the years ahead.