Critical minerals power our cell phones, cars, and computers.  They are also currently making international headlines as U.S. President Donald Trump explores the idea of obtaining critical minerals from Ukraine in exchange for security assistance.  While many might think of China or the Democratic Republic of Congo along with Ukraine as sites for critical minerals, there is a stable, peaceful country, often overlooked, with an abundant supply of minerals like uranium, lithium, titanium, and more.  That country is Kazakhstan.  The Caspian Policy Center recognized this fact at their recent forum exploring critical minerals.  As growth continues in Kazakhstan’s mining sector, however, questions arise about navigating its future, both in the area of critical minerals and other types of deposits.  I recently connected with several leading experts from the mining industry and representatives from the government of Kazakhstan who shared their insights with me.  

Regarding the positive elements of Kazakhstan’s mining industry today, the experts pointed to a number of factors and accomplishments.  

The Ministry of Industry and Construction of the Government of Kazakhstan informed me that the mining sector is responsible for 29% of the industrial output of the country (second only after the oil sector that provides 31%) and 7% of Kazakhstan’s GDP.  It gives employment to over 80,000 people. They noted that in 2024, the total output of production reached roughly $30.5 billion, and capital investment increased by 20%, or $3.6 billion. The export revenues for 2024 exceeded $21 billion that is over 26% of the total exports of Kazakhstan. In 2025, Kazakhstan is setting a goal to achieve 3% growth in the extraction of copper, 1% growth in gold, and 4.8% growth in production of ferroalloys.  A further positive development is that 10 foreign companies plan to invest over $80 million in geological research that will cover an area of 25,000 square kilometers. World-leading companies, such as Rio Tinto and Fortescue, are conducting geological research across 13,000 square kilometers.

.Industry professional Mike Beare, founder of Mike Beare Associates Ltd., offered a robust list of Kazakhstan’s favorable qualities in the field of mining.  He noted: “There are a number of reasons why Kazakhstan is attractive for mining investment. (1) Geological prospectivity. Kazakhstan has the right geology with potential for almost all minerals and metals. It is also very under-explored. The potential for very large deposits of copper, uranium, and gold is huge. (2) Mining is accepted here - people will not protest against the wealth it brings and there is strong government support. (3) Kazakhstan is not highly populated, and social issues will not affect most projects. The steppe is mostly not a sensitive habitat - so a mining company will not be destroying virgin rain forest to build a mine, for example. (4) There is a modern subsoil law in place that protects investors and provides a stable legal framework. (5) If you are in the AIFC you can benefit from English law and an English judge in the dispute resolution center.”

Nariman Absametov, CEO of the National Mining Company Tau-Ken Samruk, commented that mining is a strategic sector of Kazakhstan’s economy. He pointed to the fact that the country holds leading positions in the world in terms of possessing huge reserves of tungsten, chrome, manganese, zinc, lead, and other minerals.  In Absametov’s view, the government of Kazakhstan is actively supporting the mining sector with an emphasis on facilitating the development of geological research. He informed me that after adopting a new mining code, “On Subsoil and Subsoil Use,” in 2018, the government has granted over 3,000 mining licenses. Kazakhstan has also simplified the license-granting process, lowered bureaucratic barriers, cut down on the time for reviewing mining applications, strengthened environmental standards, and launched a digital portal with open data for subsoil users. 

The Ministry of Industry and Construction drew my attention to the fact that in 2023, Kazakhstan launched the Unified Subsoil Use Platform.  This platform had as its aims both reducing bureaucratic barriers and helping the country move towards implementing the international standards of CRIRSCO, a multi-international organization that promotes best practices for the reporting of mineral deposits and exploitation (see https://crirsco.com/about-us/). The Parliament of Kazakhstan is currently reviewing changes in the code, “On Subsoil and Subsoil Use.”  These changes have the goal of facilitating automatization and digitization in the mining sector and improving its competitiveness. The changes will likely result in the decision to grant strategic investors a priority right for subsoil use, under the condition that the investors assume “counter” obligations. 

Dr. Qanat Qudaibergen, Managing Partner of GreyWolf Management, noted that in the last two  or three years, Kazakhstan’s mining industry has been showing steady growth.  The overall output in the mining industry has increased by 3-4%, despite some decline for several kinds of metals. The most heartwarming sign Dr. Qudaibergen observed has been the progress in mining exploration where the amount of private investment has exceeded $1 billion (total for the last six years). Another positive development he drew to my attention is that Kazakhstan has begun the production of rare and rare-earth metals. Dr. Qudaibergen attributes this growth to the incentive programs initiated by the Government of Kazakhstan. He noted that it is expected that after a series of long debates, Kazakhstan will finally move to a tax regime based on royalties that will replace the Mineral Extraction Tax. 

Alex Walker, CEO of East Star Resources, shared the following about the appeal of the Kazakh mining industry and what resources offer the biggest draw: “The new mineral code implemented in 2018 has made the application for exploration licenses simple, fast, and transparent; however, this was just the catalyst. Exploration companies for decades have been interested in the huge geological prospectivity of Kazakhstan; there are very few jurisdictions in the world that host so many Tier-1 deposit types, such as Volcanogenic-Massive Sulphide (Ridder), sediment-hosted copper (Zhezkazgan), porphyry copper (Aktogay), and intrusive-gold (Vasilkovskoe). In my view, the commodities that offer the best potential for new large mines are in gold and copper, although I have seen some exceptional projects in tungsten, molybdenum, and other industrial minerals.”

Arthur Poliakov, Executive Chairman of the MINEX Forum and Managing Director of Advantix Ltd remarked on improvements in a number of areas of mining in Kazakhstan.  He informed me, “Over the last couple of years, Kazakhstan has upgraded its legislative base in order to improve conditions and attract foreign investment in the mining sector. In particular, the amendments to the Constitution solidified that the underground resources, along with land, waters, flora and fauna, and other natural resources are owned by the nation. In 2024, Kazakhstan introduced more than 100 changes in the Code on Subsoil use that aimed at improving the investment climate….”  He also pointed to transparency in auctions and the prohibition of “behind-the-scenes” decision making as another wise step made by the Kazakhstan authorities. 

Dr. Telman Shuriyev, an industrial analyst from Kazakhmys, believes that due to energy transition and decarbonization trends, lithium, nickel, copper, cobalt, graphite, aluminum, and rare earth minerals will be in high demand. Given the fact that the mineral reserves are being depleted, recycling of technogenic minerals and industrial waste will be a significant trend in the future. He stated that China remains the main destination of Kazakhstan’s mineral exports. Kazakhstan has a high potential to supply metals to Europe, but logistically China is more affordable, and it is ready to buy large amounts of the Kazakh minerals and metals. However, the pandemic period taught Kazakhstan a big lesson: Kazakhstan needs to diversify export routes and cannot depend on a single buyer. In Shuriyev’s opinion, Europe could present a great opportunity for Kazakhstan.

Wilder Alejandro Sánchez, President of Second Floor Strategies, a consulting firm in Washington, DC, provided three reasons behind Kazakhstan’s appeal as a location for mining investment.  “Kazakhstan has many mining deposits. Moreover, the country already has a good international name in the mining industry due to the production of uranium.  The country has a friendly investment climate aimed at attracting more investors, not scaring them away. The Kazakhstani government has created entities like the Astana International Financial Centre, with its arbitration center, and Kazakh Invest, to engage potential investors and industries.  There are already many mining projects across Kazakhstan. However, the country is vast, and many deposits are yet to be found. So, mining companies know that Kazakhstan’s mineral deposits have not yet been exhausted.”

Darren Klinck, President and Director of Arras Minerals Corp, noted that “…the strong mineral endowment, mining culture, and understanding by the people and the government along with a modern mining law that was recently revamped in 2018. Most of the world is focused on energy security and critical minerals – Kazakhstan is fortunate to be blessed with many of them.”

While there is much promise in the Kazakh mining sector, it is far from perfect.  I turned to our experts to discover what challenges Kazakh mining needs to overcome and their view of the steps needed to address them.

Dr. Qudaibergen outlined some of the issues facing mining in Kazakhstan.  He explained that “Kazakhstan, as well as other countries of Central Asia, Africa, and South America, finds itself in a highly competitive environment for foreign investment in the mining sector. Inconsistency in following up with contract obligations, frequent changes in the legislation, especially in the tax regime, are huge negative factors that can result in significant costs for investors and discourage them from working in the mining industry.”  Dr. Qudaibergen added that transparency in the license-awarding system and access to geological information is also key.  In his opinion, logistics problems are the main barrier for Kazakhstan to integrate into the global supply chain.  He also noted that geographical remoteness hugely affects the cost of production.

Dr. Shuriyev said that according to the National Development Plan of Kazakhstan till 2029, reserves of some minerals are currently at the lowest level. Considering that it takes about 16 years from the geological exploration to the beginning of extraction, the mining industry in Kazakhstan is facing huge challenges. Depletion of mineral reserves, lack of investment to replenish them, high tax rates, high electricity tariffs, and transportation costs are negatively affecting the competitiveness of Kazakhstan’s mining. According to Dr. Shuriyev, low labor productivity, old technologies, poor logistics, and infrastructure shortages are also huge factors that are hampering the Kazakh mining industry. Frequent changes in the country’s regulatory policies are an additional challenge that threatens the competitiveness of the mining industry in Kazakhstan.

Wilder Alejandro Sánchez delineated some of the barriers facing foreign companies or investors wanting to get involved in mining in Kazakhstan.  He pointed to three main challenges: “Kazakhstan continues to be regarded as a frontier market. There are concerns about corruption, embezzlement, and other bad financial practices. These are all issues that need to be addressed. Astana must continue to show the world that mining projects will be treated fairly and that the Kazakhstani government and that the nation’s private industries are reliable partners for international investors and companies.  [Another factor is] distance: Kazakhstan is rich in minerals but far away from the global market due to its geographical location. Thus, the problem is not just getting the minerals out of the ground but processing them locally and transporting them (processed or raw) to the final destination. This is particularly problematic in the current era of geopolitical tensions.  [There is also a] lack of knowledge about new mining deposits.”

Arthur Poliakov described the negative factors in Kazakh mining as including the following: the dependence on imported equipment (which is alarming due to the sanctions on Russia), the weak tenge (local Kazakh currency) affecting the cost of imports, decreasing supplies to Russia (e.g., iron ore), serious environmental issues, low value-added metal processing, increased tax rates for subsoil users, high energy consumption during a period of energy deficit, and a high dependence on coal.  He also pointed to tax changes, high energy costs, and logistics costs as problems, along with Kazakhstan being technologically behind other countries in the mining field.  The country is also, in his opinion, facing geopolitical instability, sanctions, trade restrictions, and changes in logistic routes.

Alex Walker highlighted access to data as an issue needing to be addressed in the Kazakhstan’s mining industry.  He commented, “Although there are a few bureaucratic hurdles, these are not insurmountable. The main barrier is data. There are vast amounts of data from Soviet exploration, much of which is available in report format; however, it’s not digitized in a format that allows you to do a search based on mineral or geological concepts, and this needs to be pursued…”  

Like Walker, Nariman Absametov expressed the importance of information.  He stated that the key factor for attracting investors into Kazakhstan’s mining is access to geological information. He claimed that Kazakhstan needs to accelerate its work in digitization of the historic data, noting that the country has a functioning database, but it is working in a limited format. Asbametov noted that Kazakhstan needs to digitize all the aspects of subsoil use, including transfer and return of the assets.  He also felt that the implementation of the international standards for the certification of the mineral reserves was an important issue. 

Dr. Qudaibergen, commenting on what steps need to be taken by the country to expand mining markets and diversify into new product areas, shared his belief that Kazakhstan should focus on critical minerals, processing technogenic waste, systemizing approaches to research and development, and creating a solid basis for scientific research. He pointed out that it is critical that the country stays consistent with reforms and follows international standards. Looking for new logistic pathways to export minerals to the global markets is also crucial for success of the mining industry, according to Dr. Qudaibergen.
Dr. Shuriyev thinks that now is the time when the Government of Kazakhstan should adopt a long-term concept plan for mining-sector development. In his opinion, this plan should be based on the constitutional principle of the natural resources being owned by the nation. The  plan should respect the interests of both the state and subsoil users, he argued. Dr. Shuriyev thinks that the concept plan should include provisions such as compliance with international standards, balanced taxation regime, support of scientific research and development, and keeping the approaches that Kazakhstan put in the 2018 code on “Subsoil and Subsoil Use,” including the CRIRSCO standards.

Arthur Poliakov believes that the following will bring success to Kazakh mining: stability and predictability of legislation, further simplification of procedures to shorten terms for getting permissions,to optimize licensing processes, as well as tax incentives for investment in advanced technology, research and development, environmentally “clean” projects, and development of infrastructure that would include the construction of roads, energy networks, access to water resources, investment in human resources and professional training that would create conditions for junior companies, upgrade geological maps, and harmonize national environmental standards with international standards.

Nariman Absametov stated that Kazakhstan must accelerate moving towards a royalty tax system and implement the international standards for the certification of mineral reserves. He feels this would help Kazakhstan to “speak the same language” as foreign investors. Also, he believes this step would incentivize development of the more advanced stages of the mining process that eventually would benefit the economy in general.

Mike Beare laid out a clear strategy. “If Kazakhstan wants to be a leader in critical minerals, it must do [the following]: (1) conduct more state-sponsored exploration over the whole country to generate more information to attract mining investors. By this I mean geophysics and remote sensing, as well as follow-up work on the ground. (2) Establish critical metals processing hubs and bring in feed sources from around the world to be processed in Kazakhstan. It is unlikely that the business models for refineries will be viable with feed from one country - Kazakhstan will need to emulate China and bring in concentrates from elsewhere. (3) Spend serious money on subsidizing the facilities.  China has got into a strategic position with significant state support. The Chinese have been proved to manipulate the market to destroy competitors.  They will do this again when new players enter the market.” 

Darren Klinck, in responding to a question on how Kazakhstan can expand its capabilities in order to become a global leader in supplying critical and rare earth minerals, remarked that it should “…continue to attract foreign investment from junior exploration companies up to large major mining companies by maintaining a steadfast approach to being consistent and transparent with policy and regulations. By maintaining this consistent and transparent approach, Kazakhstan will continue to be looked [on] favorably vs. other jurisdictions around the world that struggle to do the same and see investment confidence decline as a result.”

Wilder Alejandro Sánchez, when similarly asked about Kazakhstan becoming a leader in critical minerals, pointed to a report he co-authored, “Rare Earth Elements in Central Asia” (published last year by the Atlantic Council), summarizing its recommendations as follows:  “Invest in transport infrastructure – roads, railways, and ports (in the Caspian to move the product to Baku, Azerbaijan). Improving transportation infrastructure will convince investors and mining companies that once a critical mineral or rare earth element is mined, it can be transported quickly and efficiently out of the country.  Support the Middle Corridor and also engage with other potential regional partners for transportation routes to move the CMs and REEs to their final destination.  Carry out state-sponsored surveying for CMs and REEs.”

Asked about what steps should be taken by the country to expand mining markets and diversify into new product areas, Alex Walker shared his view that, [e]Ensuring access to data and a stable investment climate are the most important things. Kazakhstan is already doing this, though there is always room for improvement, such as changing from a Mineral Extraction Tax to a Net Smelter Royalty, which we hope to see happen in the near future. Diversifying into new product areas will be a direct result from increased spending in exploration…”.

The Ministry of Industry and Construction noted that in 2024, Kazakhstan signed international agreements on critical minerals with China, France, and with organizations from Japan and Korea. In July 2024, Kazakhstan also became a member of the Mineral Security Partnership Forum that will help to get support for strategic projects along the value chain.  One of the large mining projects in the works is the launch of the new chrome mine “Bolashak” in which The Eurasian Resources Group is investing $2 billion. The mine will produce up to 7.5 million tons of chrome annually.  This output will help to maintain Kazakhstan’s leading position in the world’s ferroalloy market. Another significant project is being undertaken by Qarmet.  It is investing $3.5 billion in a project focused on the modernization of steel production. Kaz Minerals, together with investors from China, intends to invest $1.5 billion in the construction of a copper plant.

The insights shared by our group of industry professionals and government representatives point to the fact that there are at once possibilities, as well as problems and potential solutions in Kazakhstan’s mining sector.  With political will, technological know-how, creative thinking, and a willingness to learn and grow, Kazakhstan can improve its already thriving mining sector.  The building blocks are there: they only need to be brought together.