Kazakhstan’s Development Bank Launches $1 Billion Program for Rare Earth Metals Processing

The Bank for Development of Kazakhstan (BDK) has announced the launch of a $1 billion program to finance projects for the extraction and processing of rare, rare earth, and critical materials between 2025 and 2030. According to a press release from the bank, the new program is intended to support the mining and metallurgical industries as part of Kazakhstan’s strategic push into high-tech sectors. The minimum project financing threshold has been reduced to $9.4 million, down from the usual $13 million. Funding will be available in various currencies, including dollars, euros, and yuan, for terms of up to 20 years. The bank stated that it will not charge commissions for organizing or altering the terms of financing under this initiative. Borrowers will also benefit from grace periods. BDK described the program as strategically important for diversifying Kazakhstan’s industrial base and integrating the country into global value chains. It will also support the implementation of the 2024-2028 Comprehensive Development Plan for the Rare and Rare Earth Metals Industry. “The launch of the program reflects BDK’s strategic focus on supporting new growth points in the economy. We are creating conditions for Kazakhstan to become a producer of finished products with high added value. This will allow us to form new technological chains, increase the competitiveness of domestic industry, and strengthen the country's position in the global market for critical materials,” said Marat Yelibaev, Chairman of the Board of BDK. The financing will target projects in the metallurgical industry, including mining enterprises with processing capabilities. All applicants must confirm reserves in accordance with the JORC international standard, which governs reporting on geological exploration, mineral resources, and ore reserves. Eligible materials include lanthanides, scandium, yttrium, lithium, cobalt, tungsten, germanium, gallium, graphite, and other critical elements used in advanced technologies, green energy, and electronics. Separately, Kazakhstan’s Minister of Industry and Construction, Yersayin Nagaspayev, announced during the Kazakhstan Global Investment Roundtable (KGIR) that the country plans to launch more than $6 billion worth of mining projects. “Investments in this sector have already reached $3.6 billion. In the near future, we plan to implement five major projects worth over $6 billion, which will create about 8,000 new jobs,” he said. Nagaspayev emphasized Kazakhstan’s global standing in reserves of tungsten, uranium, and chrome ores, and its role as a top producer of manganese, silver, and zinc. In 2024, the mining sector accounted for 8% of GDP, with total production surpassing $29 billion and metallurgical exports totaling $21 billion. “Today, Kazakhstan is one of the key suppliers of non-ferrous, ferrous, and rare earth metals. We are actively working to diversify both our export products and sales markets,” Nagaspayev noted. Recent geological studies suggest that Kazakhstan's rare earth metal reserves exceed previous estimates, bolstering the country’s potential as a global supplier of these strategic resources. To support this shift from raw material exports to domestic processing, Kazakhstan also plans to open an internationally accredited rare earth metals laboratory.