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Mineral Processing

Kazakhstan Proposes Local Rare Earth Processing Partnership with Belgium

Kazakhstan has invited Belgian companies to help process critical minerals domestically. Astana hopes to gain access to European processing technologies to expand exports of higher-value products used in high-tech industries. For now, the two sides are discussing laboratory testing and potential projects, with no new investment agreements announced. The proposal was presented at a Kazakhstan-Belgium seminar held on October 12 at Nazarbayev University in Astana. Vice Minister of Industry and Construction Olzhas Saparbekov said Kazakhstan could supply 21 of the 34 critical raw materials on the European Union's list. "We are ready to discuss phased models under which processing is gradually transferred to Kazakhstan along with the necessary technologies and expertise," Saparbekov said. Belgian companies were offered opportunities to cooperate in extracting metals using chemical solutions, separating rare earth oxides, recycling, and manufacturing industrial equipment. Potential projects include producing materials for batteries, semiconductors, specialty alloys, and permanent magnets. The participants also discussed shipping products to Europe through Belgium's port of Antwerp. Kazakhstan already produces several sought-after industrial metals, including tantalum, niobium, and beryllium. It also plans to begin gallium production, with a target of 15 metric tons a year. However, developing more advanced processing facilities remains a challenge. Since 2018, Kazakhstan has allocated more than 67 billion tenge (approximately $149 million) to geological exploration. According to the ministry, surveys at 11 exploration sites have identified 38 promising areas. Commercial development will require determining the metal content of the ores and the cost of extracting them. In particular, studies of the Kuirektykol site in the Karaganda region have revealed significantly larger rare earth reserves than previously estimated. The size of the discovery does not establish whether mining would be commercially viable. To study mineral resources and test processing technologies, Kazakhstan plans to establish a regional rare earth research center with the participation of European institutions. The European Bank for Reconstruction and Development has supported the preparation of a preliminary feasibility study. Construction of the laboratory complex is expected to begin in 2027, with operations scheduled to start in 2028. Representatives of metals processor Molymet Belgium and Australia's Lindian Resources Limited, which owns a rare earth processing plant in Kazakhstan, took part in the discussions. The next stage of negotiations is expected to involve exchanging samples, testing processing methods, and preparing feasibility studies. For European industry, Kazakhstan could become an additional supplier of critical minerals amid Europe's dependence on Chinese processing capacity. However, the country's stated potential to supply 21 types of critical raw materials encompasses projects at different stages of development, ranging from geological exploration to operating production facilities.

Migrant Resettlement

Kyrgyzstan Rejects European Migrant Resettlement Proposals

Kyrgyzstan has repeatedly rejected proposals from several European countries to accept migrants from Afghanistan and African countries, Foreign Minister Jeenbek Kulubaev said on October 13. In exchange, those countries had offered employment opportunities for Kyrgyzstan’s skilled workers. He said Bishkek would not negotiate on those terms. Kulubaev did not specify which countries had made the proposals or how many migrants Kyrgyzstan had been asked to accept. No European government has publicly confirmed such an offer. On October 1, the Council of the European Union adopted new rules for returning foreign nationals who have no legal right to remain in its member states. The rules allow countries to establish migrant return centers outside the bloc under agreements with third countries. Such arrangements must comply with international human rights protections, including the prohibition on sending people to countries where they face persecution or ill-treatment. Similar arrangements have been discussed elsewhere in Central Asia. On May 7, Austria and Uzbekistan signed an agreement to cooperate on deportations during a visit by Austria’s foreign and interior ministers to Tashkent. The deal also provided for greater cooperation on legal employment opportunities for skilled workers from Uzbekistan. Unlike the proposals described by Kulubaev, the Austrian arrangement envisaged Uzbekistan as a potential transit route for Afghan nationals being returned from Austria, rather than a place of resettlement. Kyrgyzstan is reassessing its own approach to labor migration. According to Kulubaev, growing numbers of its citizens are choosing Turkey and the United States as destinations for work. South Korea and Japan are also interested in recruiting workers from Kyrgyzstan, particularly staff to care for elderly patients in hospitals. Bishkek has reduced the organized placement of its citizens in long-term jobs abroad while continuing to facilitate seasonal employment. Kulubaev said Kyrgyzstan also faces labor shortages at home. Kyrgyzstan’s Ministry of Labor, Social Security, and Migration said 736,600 citizens had worked abroad so far in 2026, compared with 798,400 during the whole of 2025. Russia remains the main destination, with more than 472,000 citizens of Kyrgyzstan living there in March. Approximately 70,000 were working in Kazakhstan, 60,000 in the U.S., 35,000 in Turkey, and 20,000 in Germany.

Flaxseed Trade

Kazakhstan Flaxseed Exports Hit Record 1.3 Million Tons

Kazakhstan ended the 2025/2026 marketing year with record flaxseed exports of nearly 1.3 million metric tons, 2.5 times the previous season's volume. The country accounted for 72.5% of flaxseed imports into the European Union (EU) in the 12 months to June 2026, with European tariffs on Russian flaxseed helping Kazakhstan improve its position in the market. "Kazakhstan is the undisputed leader in flaxseed supplies to the EU and the second-largest exporter to China after Russia," said Yevgeny Karabanov, head of the Analytics Committee of the Grain Union of Kazakhstan. Flaxseed, also known as linseed, comes from the flax plant, which is grown for the fibers used to make linen. The seeds are eaten as food, added to animal feed, or pressed for oil used in cooking and industrial products such as paints and varnishes. According to Karabanov, the export total covers September 2025 to August 2026. European Commission data show that the EU imported 686,800 metric tons of flaxseed between July 2025 and June 2026, up 16.8% from the previous 12-month period. Kazakhstan supplied 497,800 metric tons of that total. Karabanov attributes the shift in the European market to higher tariffs on Russian flaxseed, which rose to 20% in 2025 and 50% in 2026. In January 2026, the value of Russian flaxseed exports to the EU fell to €96,500, its lowest level since July 2010. Belgium became the largest European buyer of Kazakhstan's flaxseed, increasing purchases 1.84-fold to 347,100 metric tons. Other European buyers, including Poland and Estonia, also increased their purchases. Outside the EU, China remains Kazakhstan's largest market. Exports there totaled 537,700 metric tons, 2.8 times the previous season's volume. Afghanistan increased its purchases 3.38-fold to 141,400 metric tons. Exports to Uzbekistan, Tajikistan, and Turkey also grew. China and Belgium together accounted for 68.1% of Kazakhstan's total flaxseed exports. Afghanistan, the third-largest buyer, accounted for another 10.9%. In the new season, exports to Europe could face logistical constraints. According to Karabanov, the redirection of Russian grain exports to Baltic ports could increase pressure on rail networks and complicate the transit of Kazakhstan's shipments through Russia. An alternative route through Belarus and Lithuania would be more expensive. Rising transportation costs are already affecting prices in Ghent, Belgium, a major European trading hub for agricultural commodities. Flaxseed prices there have been rising for the past six weeks, he said. Further increases in logistics costs could erode Kazakhstan's price advantage in the European market.

Customs Modernization

Turkmenistan Looks to AI in Customs Modernization Drive

Customs specialists in Turkmenistan discussed the use of artificial intelligence in their work during a seminar last week, as the country steps up efforts to modernize trade systems and expand its role in the Caspian Sea transit corridor. The three-day training course in Ashgabat drew about 30 customs experts and was held at a regional training center. Turkmenistan’s State Customs Service said the event was part of a European Union-funded project to promote trade on the corridor, which links China and Central Asia to Europe by rail and maritime transport. The trainer at the seminar was Sertaç Yapıcı, whose LinkedIn page identifies him as a department head at the Directorate General of Customs Enforcement in Turkey. Yapıcı discussed risk management systems in customs offices and “demonstrated the effectiveness of modern methods of data analysis and the use of artificial intelligence technologies with specific examples,” the Turkmen customs authority said. The customs specialists discussed how to identify risks associated with goods and vehicles crossing borders and how “to adapt the best international approaches to the conditions of our country,” the authority added. The World Customs Organization and the customs service established the center in Ashgabat under a 2025 agreement.

TRACECA

Kazakhstan’s TRACECA Chairmanship Pushes Transit Corridor Expansion

Kazakhstan has assumed the chairmanship of the Intergovernmental Commission of the Transport Corridor Europe-Caucasus-Asia (TRACECA), following a decision adopted during the organization’s 18th annual meeting in Astana on May 15. The TRACECA program was launched in 1993 with support from the European Union and the participation of post-Soviet states in the South Caucasus and Central Asia. Today, TRACECA includes 14 member states: Armenia, Azerbaijan, Bulgaria, Georgia, Iran, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan. According to Kazakhstan’s Ministry of Transport, Astana intends to focus its chairmanship on further developing the Europe-Caucasus-Asia transport corridor and strengthening the region’s transit potential. One of the organization's immediate priorities is to finalize its 10-year development strategy for 2027-2036, which officials aim to complete before the group's next forum, scheduled to take place in Bishkek in 2027. According to officials, the document intends to incorporate trends towards digitalization, evolving international supply chains, and emerging transport and logistics technologies, as well as accommodate the ever-increasing growth in transit traffic. An important step toward that goal came with the initial signing in Astana on May 15 of the Agreement on a Single Transit Permit for TRACECA member states. The agreement allows road freight carriers to conduct transit transportation through participating countries without obtaining separate national permits, significantly simplifying international cargo transport and improving the efficiency of transport routes. The plan is for single transit permits to be issued electronically through a unified digital information system. For now, the document has only been signed by Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Ukraine. While this is expected to simplify border crossings in Central Asia and across the Caspian, it has not solved the problems further down the line towards Europe. Other TRACECA member states are continuing domestic procedures required for future accession to the agreement. Kazakhstan's TRACECA chairmanship is seen by authorities in Astana as providing additional momentum for the development of international transport corridors and strengthening transport connectivity between Europe and Asia.

Forced Labor

Forced Labor in Turkmenistan the Target of New EU-ILO Project

A new joint project is being launched by the International Labour Organization (ILO) and the European Union aimed at combating child and forced labor in Turkmenistan. Its focus is primarily on the country’s cotton sector, which has long faced criticism from human rights groups and international companies. The ILO announced the initiative on May 13. The program, titled Promoting Decent Work and Preventing Child and Forced Labour in Turkmenistan, is scheduled to run from 2026 to 2027 with the project’s budget estimated at approximately €2 million ($2.3 million). The initiative will focus on three main areas: updating labor legislation, implementing international labor standards, and strengthening institutional oversight mechanisms for the protection of workers’ rights. Organizers say the project’s ultimate goal is to prevent labor rights violations and create a more sustainable system for monitoring working conditions across the country. The initiative is directly linked to longstanding concerns over forced labor during Turkmenistan’s annual cotton harvest. Human rights organizations including turkmen.news, the Turkmen Initiative for Human Rights, Progres Foundation, and the Cotton Campaign previously released a joint report alleging that Turkmen authorities have only partially fulfilled commitments to reform the sector. According to the report, despite an official ban on child labor, minors continue to participate in cotton harvesting campaigns. Rights groups say some children assist relatives in meeting production quotas, while others work in the fields because of difficult economic conditions facing their families. The report also alleged that teachers, medical workers, utility employees, and other public-sector staff continue to be mobilized for cotton harvesting under state direction. The launch of the new project was discussed during a special event in Ashgabat attended by Turkmen Deputy Labor and Social Protection Minister Halbibi Tachjanova. “This project reflects Turkmenistan’s strong commitment to preventing child and forced labor, especially in the cotton sector, and to promoting decent working conditions,” Tachjanova said. European Union Ambassador to Turkmenistan Beata Pexa said the initiative should contribute to protecting labor rights and supporting sustainable economic development. However, it remains unclear whether the program will include mechanisms allowing workers subjected to forced labor to safely file complaints without fear of retaliation. The issue carries not only social but also economic significance for Turkmenistan. Cotton and textile products remain among the country’s key exports and an important source of foreign currency revenue. Both state authorities and private companies have been seeking to expand access to Western markets. In May, the textile company Batly Gadam from Balkanabat held talks with British retailer Primark and signed a memorandum of cooperation with Somerbond in London. Nevertheless, many international brands continue to avoid Turkmen textiles because of allegations involving forced labor practices. Against this backdrop, the new ILO-EU project is being viewed not only as an effort to prevent forced labor in Turkmenistan but also as a step toward rebuilding trust with international partners and global markets.