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Critical Raw Materials

U.S. Backs Private Bid for Kazakhstan’s Tungsten

The United States is facilitating a private American bid by Cove Kaz Capital Group LLC for Kazakhstan’s Upper Kairakty and North Katpar tungsten deposits, in competition with state-backed Chinese bidders. Tungsten is not a rare earth element, but it is a critical raw material. In particular, it underpins armor-piercing ammunition, penetrators, and high-temperature tooling used across aerospace and industrial manufacturing. Reporting indicates direct engagement by senior U.S. officials and active coordination with Kazakhstan’s sovereign-wealth ecosystem. The metal’s significance elevates the commercial negotiation into a strategic policy. The policy driver is diversification away from China’s dominance along the mine-to-powder supply chains. China accounts for well over four-fifths of global tungsten production and processing, and tightened export controls in 2025 have upset pricing and availability. The U.S. has established a procurement deadline of 2027 to avoid sourcing from China or Russia for covered defense uses. All this adds urgency to securing non-Chinese volumes. Kazakhstan’s revived tungsten sector includes a newly opened processing plant, with destinations not yet announced for the concentrate to be produced. The country thus offers a practical non-Chinese source of tungsten. Strategic Stakes and Principal Actors The American role would be one of facilitation and financing, rather than ownership. The administration has supported talks linking Cove Kaz to Kazakhstan’s Samruk-Kazyna and relevant mining entities. Commerce Secretary Howard Lutnick is mentioned as a key interlocutor. Potential financial tools include the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank. Insurance (EXIM), guarantees, or direct loans from these institutions would offset pricing and risk advantages historically offered by Chinese bidders. The U.S. government’s approach is to enable a private operator to compete without placing federal equity as an asset. Kazakhstan’s Samruk-Kazyna and its mining arm Tau-Ken Samruk coordinate with the national exploration company Qazgeology. Kazakhstan has pursued a wider critical-minerals investment agenda, signaling its openness to joint ventures and privatization pathways under a special legal regime that provides a familiar legal and compliance framework for Western partners. That structure streamlines licensing and dispute resolution and has already been used for joint ventures in other critical minerals projects. China remains the current market leader, dominating tungsten mining, ammonium paratungstate (APT) conversion, and downstream powders and carbides. Beijing’s 2025 export controls cover tungsten, tightening an already narrow global market and raising the policy value of non-Chinese options. Reports of Chinese interest in Vietnam’s Nui Phao tungsten complex underscore that non-Chinese sources face active competition, framing Kazakhstan’s appeal to Western buyers. The Assets and Kazakhstan’s Capacity Rebuild Kazakhstan suspended tungsten production after the 1990s but has moved over the past several years to re-establish a mine-to-processing base, with corporate and ministerial communications emphasizing the strategic nature of these deposits for long-term development. Upper Kairakty (also rendered as Verkhneye or Upper Kayrakty) and North Katpar sit in the Karaganda Region and feature repeatedly in Samruk-linked materials as the top tungsten prospects. Upper Kairakty is by itself the world’s largest tungsten deposit, and represents over two-thirds of the total tungsten reserves across the ex-Soviet territories. One...

Digital Assets

Kyrgyzstan Advances Digital Asset Strategy with Support from Binance

The second meeting of Kyrgyzstan’s National Council for the Development of Virtual Assets and Blockchain Technologies was held in Bishkek on October 24, with the participation of President Sadyr Japarov and Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange. Following the meeting, Zhao, who serves as a public adviser to Japarov on digital asset development and is a member of the Council, announced on X that Kyrgyzstan’s national stablecoin, the KGST, has officially launched on @BNBChain. The KGST is pegged to the Kyrgyz som. Zhao also confirmed the creation of a National Cryptocurrency Reserve and the full localization of the Binance app for Kyrgyz-speaking users. Japarov and Zhao previously met in May to discuss the digital future of Kyrgyzstan. Their agenda included developing a national digital asset ecosystem, integrating blockchain into public administration, and strengthening cybersecurity. Zhao pledged Binance’s support through training and expertise for specialists working on the country’s digital currency initiative. As part of this collaboration, the National Council and Binance are preparing to launch an online educational platform in the Kyrgyz language, aimed at providing basic knowledge about virtual assets. The platform will be accessible to the general public. During the Council meeting, Japarov underscored Kyrgyzstan’s pioneering role in the region, highlighting that the country has enacted legislation to regulate virtual assets and is actively pursuing a coherent government policy in the sector. He noted the national market is expanding, with an increasing number of licensed participants, a stronger regulatory framework, and new infrastructure projects emerging. Japarov pointed to several national advantages, including a flexible institutional environment, a motivated and tech-savvy youth population, and the ongoing digitalization of public services, as key factors driving Kyrgyzstan’s ambition to become a regional hub for digital finance. “The combination of these factors makes the goal of transforming the country into a regional hub for virtual assets realistic and achievable,” he stated. Melis Turgunbaev, Chairman of the National Bank of Kyrgyzstan, announced that the digital som project has entered its practical implementation phase. The initiative aims to create a fully regulated blockchain-based payment system under the control of the National Bank, which will oversee the issuance and circulation of the digital currency.

Banking

National Bank of Kyrgyzstan Reports Profit Surge in 2025

The National Bank of the Kyrgyz Republic (NBKR), the country’s central bank, reported a net profit of 33.2 billion soms (about $380.7 million) for the first nine months of 2025, nearly 13 times higher than in the same period last year. The sharp increase was driven by gains from monetary gold transactions, the revaluation of foreign currency reserves, and overall asset appreciation. According to the central bank, gold now accounts for around $5 billion of its total assets, a 2.5-fold rise from 2024. Gold holdings currently represent about half of the NBKR’s total assets. Officials attributed the growth to the bank’s risk-diversification strategy and higher global gold prices. The NBKR also reported a rise in household investment in government securities, reflecting stronger public confidence in domestic financial instruments. While the overall asset structure remains stable, several notable shifts have occurred. The volume of nonmonetary gold and bullion has declined to $1.1 billion, reflecting strong demand from the jewelry industry and increased gold exports. Gold continues to be a key contributor to Kyrgyzstan’s export portfolio. The commercial banking sector is also expanding. The total loan portfolio reached $2 billion, up from $1.5 billion a year earlier. As previously reported by The Times of Central Asia, Kyrgyzstan’s GDP grew by 11.5% in January–July 2025, supported by strong investment in finance, manufacturing, and construction. Construction firms have been borrowing more from local banks, which are expanding lending to meet rising demand from businesses.

Forced Labor

Medical Staff in Turkmenistan Resign En Masse Over Extortion to Avoid Picking Cotton

Hospitals and clinics in the Turkmen city of Turkmenabat are facing a growing staffing crisis as doctors and nurses resign en masse in protest over extortionate cash demands, particularly those tied to the annual cotton harvest. Efforts by local authorities to ease the burden have so far proven ineffective. According to sources cited by Chronicles of Turkmenistan, three family nurses recently resigned from Turkmenabat City Clinic No. 2, leaving just 11 nursing staff at the facility. Their responsibilities have since been redistributed among remaining colleagues, nearly doubling individual workloads, while salaries have only risen by 30%. The added pressure has led many remaining staff to consider resigning as well. Similar developments are unfolding at other clinics across the city. One doctor and two nurses have left Polyclinic No. 5, while multiple specialists have exited Polyclinics No. 3 and No. 4. The primary cause, according to local healthcare workers, is systematic extortion, most notably mandatory contributions for cotton harvesting. In September, Turkmenistan’s Ministry of Health reportedly issued a directive requiring medical personnel to participate in the cotton campaign. Employees in the Lebap region were assigned daily quotas to pick 45 kilograms of cotton. At both the new multidisciplinary hospital and the infectious diseases hospital in Turkmenabat, medical staff have been dispatched to the fields immediately after completing night shifts. Those unwilling or unable to comply must pay for a substitute picker, at a rate of 50 manats (approximately $14.30) per day. In practice, the burden of physical labor during this period often falls on staff nearing retirement age. One doctor at the infectious diseases hospital revealed that up to two-thirds of some employees’ monthly salaries are spent hiring replacement pickers during the cotton season. “Not everyone can work in the fields after a full shift, but everyone is expected to pay. That’s why many simply quit,” he said. In an attempt to stem the exodus, clinic administrators reduced the daily contribution for hiring workers from 50 to 30 manats (around $8.50) in mid-October. However, sources told Chronicles of Turkmenistan that the adjustment has done little to stop the resignations. Chief physicians have been trying to rehire former employees and bring retirees back into service, but interest remains low. As workloads increase and staff numbers dwindle, the quality of medical care continues to deteriorate.

Digital Development

How Uzbekistan Plans to Lead Central Asia’s Digital Future – An Interview With the Minister of Digital Technologies

Uzbekistan’s ambitions to position itself as Central Asia’s digital powerhouse took center stage during ICT Week Uzbekistan 2025 this September - the country’s largest-ever technology forum, drawing more than 20 official delegations, 300 companies, and 20,000 participants from over 50 countries. With artificial intelligence and future technologies at its core, the event showcased how Tashkent aims to turn international partnerships into lasting investment, innovation, and talent pipelines. At the forefront of these efforts stands Sherzod Shermatov, Minister of Digital Technologies, who has overseen landmark initiatives extending IT Park incentives until 2040, launching the IT Visa for foreign specialists, and embedding AI education across Uzbekistan’s schools and universities. The Times of Central Asia spoke to Minister Shermatov to discuss how Uzbekistan plans to sustain investor confidence beyond ICT Week, prepare its workforce for an AI-driven economy, and balance rapid digitalization with data protection and national sovereignty. [caption id="attachment_37995" align="aligncenter" width="1280"] ICT Week 2025; image: The Ministry of Digital Technologies of the Republic of Uzbekistan[/caption] TCA: Uzbekistan showcased itself as a regional IT hub during ICT Week. What concrete steps will the Ministry take to ensure foreign investors and global tech firms remain engaged in Uzbekistan? Shermatov: In order to comprehensively stimulate and develop the activities of foreign investors and global technology companies in the Republic of Uzbekistan, a number of key preferences for IT Park residents have already been implemented. The Government of Uzbekistan has extended and reinforced the system of benefits and guarantees for foreign investors and IT Park residents, ensuring long-term stability and predictability of the investment climate. Among these measures, IT Park tax incentives have been officially extended until 2040, offering exemption from a range of taxes, a simplified foreign currency regime, and a 5% dividend tax for non-residents, provided that more than 50% of their revenue is generated from export activities. These reforms provide a reliable and attractive environment for both established global players and emerging startups. To further strengthen the country’s position as a regional digital hub, the Government has also introduced the IT Visa - a three-year visa designed for founders, investors, and foreign specialists of IT Park resident companies. The IT Visa facilitates simplified entry, residence, and employment procedures for international professionals and their family members, making Uzbekistan one of the most open and accessible markets for global technology talent. In parallel, a “One Stop Shop” service has been launched to streamline administrative procedures. It provides fast-track company registration, bank account opening, and work and residency permits, enabling investors and foreign specialists to begin operations in Uzbekistan with unprecedented efficiency. At the same time, the Ministry continues to expand cooperation between global technology partners and the national innovation ecosystem under the “ZERO Risk” and “Local to Global” mechanisms, as stated in the relevant decrees of the President of the Republic of Uzbekistan. These instruments create a foundation for long-term growth, stimulate venture financing, and support the international scaling of Uzbek startups. Also, comprehensive programs are being implemented to train highly qualified IT specialists to...

Business

Open for Business: New Reforms Accelerate Investment in Uzbek Companies

Uzbekistan’s business sector is in a period of rapid transformation. The catalyst for this is the government's newest set of economic reforms, through which it is seeking to attract long-term investment. New legislation, targeted incentives for enterprises, and an influx of international partnerships are changing the way that companies operate and invest. A key part of this transformation is the government’s effort to create a more predictable and transparent regulatory environment. The World Bank has noted that Uzbekistan’s reform strategy is centered on expanding trade integration and accelerating the long-planned privatization of state assets. The country’s priorities include accession to the World Trade Organization, which has brought about legal adjustments designed to align Uzbek standards with global norms. Investor confidence has been encouraged by new policies that now make it easier to live and work in Uzbekistan. A five-year “golden visa” now makes it possible for foreign nationals who invest at least $250,000 to receive residency. This simplifies procedures for those developing long-term projects. Another focus for the government is financial liberalization. The International Monetary Fund recently noted that state ownership of banks is expected to fall to around 40 percent next year, which creates space for potential private lenders and foreign capital. Recent data suggests that these reforms are beginning to bear fruit. In the first quarter of 2025, Uzbekistan attracted about $8.7 billion in new foreign investment, according to figures published by UzDaily, with the total inflow this year projected to reach $42 billion. The Times of Central Asia has reported that over the past eight years, the country has absorbed more than $113 billion in foreign capital. These numbers highlight the nation's growing appeal to international investors. Alongside the surge in foreign activity, the authorities are developing policies to encourage domestic entrepreneurs. There are now more than 370,000 registered small and medium-sized businesses in Uzbekistan, which now receive more support from the government through simpler registration rules and targeted tax incentives. Private industrial parks in Tashkent and Samarkand are driving innovation in the textiles, IT and construction sectors, and creating prospective local jobs. The business community has taken notice of these reforms. At the Tashkent International Investment Forum in June, European delegates described Uzbekistan as a country “undergoing large-scale transformation”, with a growing array of opportunities for international investors. Guests in Tashkent praised efforts to increase transparency in business and cut back on beaurocracy. At the same time, they stressed the need to be consistent in their implementation across regions. Despite tangible progress, challenges remain. Inflation has remained high, and analysts continue to point to structural issues hampering growth. These include an underdeveloped financial system and a large informal economy. Foreign businesses operating in Uzbekistan are also advised to pay close attention to compliance and labor law as the legal environment evolves. Two of the government's priorities stand out in the short term. The first is the privatization of major state assets in the energy, transport and telecommunications industries -- part of the 2025 national economic program...