Mining - The Times Of Central Asia

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Coal

Kazakhstan’s Largest Coal Mine to Increase Production from 2026

Bogatyr Kömir LLP, the operator of Kazakhstan’s largest coal mine in Ekibastuz, in Pavlodar region, plans to gradually increase production beginning in 2026, the Ministry of Energy reports. The company, which uses open-pit mining, is the country’s largest supplier of coal to the domestic market, accounting for about 38% of total coal output. According to the ministry, coal production in Kazakhstan reached 120.5 million tons in 2025. With balance reserves estimated at 2.4 billion tons, the company is positioning itself for long-term growth. Under current plans, output is expected to rise from 42.7 million tons in 2024 to 45.2 million tons by 2026, reaching 56.5 million tons annually by 2032. The expansion will be backed by a $733 million investment program for 2026-2032. Funds will be allocated to capital construction and technological upgrades, including the introduction of cyclic-flow technology at the Severny open-pit mine and the development of new spoil tips. The company also plans to modernize its mining transport fleet and reconstruct and overhaul existing facilities to ensure stable fuel supplies to the energy sector. The Ministry of Energy links the production increase to the implementation of a national project to expand coal-fired power generation. The Pavlodar region already plays a central role in the country’s energy system, accounting for about 42% of Kazakhstan’s total electricity generation last year. Key elements of the program include expanding the Ekibastuz GRES-2 power plant, increasing its installed capacity from 1 GW to 2.1 GW; constructing a new Ekibastuz GRES-3 power plant with a capacity of 2.64 GW using “clean coal” technologies; and modernizing the GRES plant in Aksu. According to the ministry, a significant increase in power generation requires advance expansion of the raw material base. Additional electricity demand is also expected from digital infrastructure projects. As previously reported by The Times of Central Asia, authorities plan to create a “valley” of data centers in the Pavlodar region focused on digitalization and high-performance computing.

Energy

Kyrgyzstan Turns to Coal Power Amid Electricity Shortages

Kyrgyzstan is turning to coal-fired electricity generation as a key strategy to address its chronic energy deficits, particularly acute during winter, when heating demand spikes and reliance on costly imports increases. While the country continues to expand hydropower capacity, the government is emphasizing the role of thermal power as a stable, year-round energy source. Unlike hydropower, which is vulnerable to fluctuating river flows worsened by climate change, coal-fired generation offers a more consistent electricity supply. On January 22, Energy Minister Taalaibek Ibrayev met with representatives of an international consortium that includes the German consulting group GPRC, along with NRP and KCG. The minister proposed the construction of thermal power plants at domestic coal sites. According to the Ministry of Energy, the consortium has expressed its intention to design, finance, and build three coal-fired power plants, each with a capacity of 350 MW for a total of 1,050 MW. The proposed facilities would utilize clean coal technologies aligned with international environmental standards. Before construction begins, specialists will assess coal quality and geological conditions at the proposed sites. Kyrgyzstan’s coal reserves are estimated at around 2 billion tons. In 2024, the country produced 4.396 million tons of coal, with nearly half mined in the Naryn region and the rest in Batken, Osh, and Jalal-Abad. The country’s largest coal deposit is Kara-Keche, a lignite mine in Naryn operated by the state-owned Kyrgyzkomur. In June 2025, Electric Stations OJSC, which generates about 86% of Kyrgyzstan’s electricity, announced a tender to build a 1,200 MW coal-fired power plant near Kara-Keche. The project was structured in two phases: the first involving two 300 MW units at a cost of $934.38 million, and the second, a 600 MW unit valued at $370.6 million. The proposed plant was expected to generate 7.8 billion kWh annually. However, the tender was declared invalid in September 2025 due to incomplete documentation from bidders. Despite the setback, the Ministry of Energy remains committed to attracting international investors, viewing coal-fired power as a transitional solution until long-term hydropower projects are fully operational. Kyrgyzstan exported 1.1 million tons of coal in 2024, valued at $52.7 million. Uzbekistan was the largest buyer, while exports to China surged to 118,200 tons, up from just 13,000 tons in 2023. As electricity demand rises and hydropower faces increasing climate-related constraints, officials see coal-based generation as a pragmatic measure to stabilize the national grid and bolster energy security during a critical transition period.

Rare Earth Elements

Central Asia, Vanadium, and the U.S. National Security Strategy

Dated November 2025 and released publicly in early December, the U.S. National Security Strategy links overseas trade and investment, but overlooks Central Asia as a target region for critical minerals. This oversight merits reconsideration in the NSS’s next iteration, given the region’s known natural resource base, openness to foreign investment, proficiency in mining operations, low processing costs, and manageable geopolitical risks. As governments and businesses review supply-chain resilience for critical minerals, vanadium – not one of the 17 rare earth metals – has increasingly become a strategically relevant rather than optional or cyclical commodity. It is widely used in high-strength steel, grid-scale energy storage functions such as redox flow batteries, and infrastructure with defense and industrial applications. A recent letter from the U.S. Congress highlights a critical shortfall of vanadium in the United States: with 14,000 metric tons consumed in 2024, only 3,800 tons were produced domestically. Imports, mainly from Brazil and South Africa, are at risk due to shifting market conditions, meaning the U.S. needs a more structured and focused industrial-like approach to counter unnecessary import dependencies and geopolitical stresses. U.S. supply is secured solely through imports and recycling, given that the mining of vanadium-bearing mineral precursors is minimal to non-existent in the United States. With mining dominated by China and Russia, and with South African production in decline, today’s need to secure primary materials and supply chains means the U.S. must invest overseas until domestic mining is viable. What is needed is vertical integration from mine to final product – vanadium pentoxide (V205), vanadium trioxide (V2O3), and vanadium sulfate (VOSO₄ / V₂(SO₄)₃) for batteries. In an October Development Finance Corporation media release, DFC CEO Ben Black said that “Securing critical minerals is a paramount matter of U.S. strategic interest and economic prosperity.” That’s clearly beyond dispute. Central Asia and Vanadium Central Asia as a region fits within the U.S.’s broader geostrategic goals and geographic diversification plans aimed at building solid asset-based partnerships that go beyond raw material extraction and precarious trading arrangements. Last November's gathering of Central Asia’s five presidents at the White House finally placed the region firmly on the global map. U.S. Assistant Secretary of State for South and Central Asian Affairs Paul Kapur has also been clear: “Under President Trump’s and Secretary Rubio’s leadership, we’re elevating the C5+1 partnership as a priority — a strategic priority and an economic priority.” Here, amongst critical minerals, vanadium surely emerges as a priority commodity, given the near absence of U.S. domestic mining. Kazakhstan leads Central Asia in vanadium mining and production, hosting the region’s most productive deposits. Established operations, strong infrastructure, cost advantages, supportive laws, tax incentives, and a free FX regime make the country highly attractive to investors. Kazakhstan has three vanadium assets—Balasausqandiq in advanced production and Lisakovsk and Kurumsak in exploration—making them attractive targets for miners or funds with long horizons and low-cost capital. Kyrgyzstan has scattered, under-explored vanadium deposits, including in the Jetim Mountain Range. Uzbekistan is expanding exploration, but the value is yet to...

Mining

Kazakhstan’s Kazchrome Launches Flotation Plant to Recover Chromium from Waste

A new flotation unit for extracting chromium from industrial waste has been launched at the Donskoy Mining and Processing Plant (GOK) in Khromtau, located in Kazakhstan’s Aktobe region. The initiative, part of the ERG Green program, was developed by Kazchrome, a subsidiary of Eurasian Resources Group (ERG). Founded in 1938, Donskoy GOK operates the world’s second-largest confirmed chromium ore deposit. Most of its output supplies Kazakhstan’s ferroalloy plants in Aksu (Pavlodar region) and Aktobe. In 2024, the plant reported record output, producing 6 million tons of ore and 1.864 million tons of ferroalloys. The new flotation facility is expected to boost production by processing accumulated industrial waste. Kazchrome invested more than 20.6 billion tenge (approximately $38 million) into the project. While flotation is commonly used in non-ferrous and precious metals mining, it is rarely applied in the chromium sector. ERG’s Research and Engineering Center patented the process, which enables chromium recovery from ultrafine particles (UFPs) previously considered unprocessable. “This technology is a clear example of ERG’s approach to combining advanced global practices with in-house solutions,” said Shukhrat Ibragimov, Chairman of the Board of Directors and CEO of ERG. “It reflects our strategy to transform legacy industrial waste into valuable resources.” The flotation unit marks the second stage of ERG’s environmental program at Donskoy GOK. In 2023, the plant launched a facility utilizing gravity separation to produce concentrate with a chromium content of at least 48.5 percent. The new unit targets ultrafine fractions remaining after gravity processing. The process involves injecting air or gas into water mixed with waste particles. Hydrophobic chromium particles attach to air bubbles, float to the surface as foam, and are collected for further treatment. According to the company, the facility will process approximately 14.5 million tons of historically accumulated waste. The project aligns with Kazakhstan’s national policy to incentivize recycling of man-made mineral formations (MMF). The government has proposed a tenfold reduction in the mineral extraction tax (MET) for companies engaged in MMF processing, as mining sites are estimated to contain 55-60 billion tons of waste stockpiles.

Mining

Kazakhstan and Germany Launch Mining and Metallurgy Consortium

The second Kazakh-German Week, Science and Education: Partnership between Kazakhstan and Germany, opened on September 23 at Serikbayev East Kazakhstan Technical University in Oskemen (Ust-Kamenogorsk), the industrial heart of East Kazakhstan region and a key hub for the country’s mining and metallurgical sector. A major outcome of the opening ceremony was the establishment of the Consortium for the Development of the Kazakh-German Institute of Science and Technology. The institute, launched in 2024 at East Kazakhstan Technical University, focuses on specialized training for professionals in mining and metallurgy. The new Consortium brings together leading academic institutions from both countries, including Serikbayev East Kazakhstan Technical University, Kazakh-German University, Technische Universität Bergakademie Freiberg (Freiberg University of Mining and Technology), Ruhr University Bochum, Clausthal University of Technology, Technical University of Dortmund, and the University of Duisburg-Essen. Its mission is to promote joint research, academic exchange, technology transfer, and applied projects across critical industrial domains such as mining, geology, rare earth metals, energy, and environmental engineering. Key industrial players in East Kazakhstan, including Kazzinc, the Ust-Kamenogorsk Titanium and Magnesium Plant, and the Ulba Metallurgical Plant, are actively supporting the initiative through applied science and innovation partnerships. In a video address, Minister of Science and Higher Education Sayasat Nurbek emphasized that German universities remain strategic partners for Kazakhstan in developing a future-ready workforce. Officials noted that the consortium’s launch holds particular significance for East Kazakhstan, where mining and metallurgy form a cornerstone of the national industrial economy. Long-term sustainability in the sector, they said, will depend on the integration of science, innovation, and high-level technical education.

Mining

Kyrgyzstan Sees Growth in Mining Output Despite Fewer Licensed Operators

Kyrgyzstan recorded a notable increase in the extraction of gold, silver, coal, and natural gas in the first half of 2025, even as the number of companies operating in the sector declined, according to data from the Kyrgyz Geological Service. Compared to the first six months of 2024, the country produced an additional 700 kg of gold and 1.1 million m³ more natural gas in 2025. Silver and coal production also rose significantly. However, the sector is seeing a consolidation. A total of 199 production licenses were revoked in the first half of 2025, while only 15 new licenses were issued, down from 26 over the same period last year. Government officials noted that many license holders had not initiated development, and their permits were reallocated to other operators upon expiration. Increased Output and Revenue The state resource balance in the first half of 2025 was as follows: Regular gold: 5.8 tons Placer gold: up from 28.3 kg to 57 kg Silver: up from 198 kg to 3.8 tons Coal: up from 3.1 million to 4.4 million tons Tax and non-tax revenues increased from 17.9 billion KGS ($205.2 million) to 27.8 billion KGS ($318.5 million). Industrial production reached 30.7 billion KGS ($352 million), marking a rise of nearly 3 billion KGS ($34.4 million). Risks to Construction Resources At the same time, reserves of marble, sand, and gravel have declined due to high demand from the construction sector. As previously reported by The Times of Central Asia, the ongoing construction boom is driving aggressive extraction of these materials, hastening depletion. Balancing Growth and Sustainability While the increase in mineral production and revenue contributes positively to Kyrgyzstan’s GDP and reflects the benefits of a streamlined licensing policy, the report emphasizes the importance of sustainable resource management. With continued pressure from the construction and energy sectors, experts caution that long-term planning is crucial to avoid overexploitation of finite resources.