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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.

Critical Minerals

Kazakhstan and South Korea to Establish Rare Metals Research Center in Almaty

Kazakhstan and South Korea are establishing a joint research and technology center in Almaty to support the development of Kazakhstan’s rare metals and critical minerals industry. The Kazakh-Korean Center for Rare and Rare Earth Metals will be established at Satbayev University in partnership with the Korea Institute of Industrial Technology and the Korea National Institute of Rare Metals. During a meeting on July 9, representatives of the three institutions discussed how the project will be carried out. They also reviewed the purchase of modern laboratory equipment and long-term scientific and technological cooperation. The center will train specialists for Kazakhstan’s growing rare metals industry and give local researchers access to modern analytical and processing equipment. It will also support joint research with international partners. “The combined scientific potential of Kazakhstan and the Republic of Korea will enable the implementation of modern technologies for processing strategic raw materials, expand scientific research, and train world-class specialists,” Satbayev University Rector Meiram Begentayev said. According to the university, the facility will become Kazakhstan’s first full-cycle scientific and technological platform dedicated to developing, testing, and commercializing environmentally friendly technologies for the production of high-purity and ultra-high-purity rare and rare earth metals. The center will also conduct fundamental and applied research and pilot new technologies for processing mineral and industrial raw materials. The initiative is part of Kazakhstan’s effort to become a major supplier of critical minerals. Demand is rising from electric vehicle makers and renewable energy companies, while semiconductor and defense industries are also increasing their need for rare metals. Speaking at the C5+1 Critical Minerals Dialogue in Astana on June 10, Minister of Industry and Construction Yersaiyn Nagaspayev described critical minerals as a strategic priority for Kazakhstan’s industrial policy and long-term economic development. He said the country has more than 9,500 mineral deposits, including over 100 containing rare and rare earth metals. Nagaspayev has previously said Kazakhstan is capable of supplying 19 of the 50 critical raw materials identified by the United States and 21 of the 34 minerals included on the European Union’s critical raw materials list, positioning the country as an increasingly important participant in global supply chains. Kazakhstan already produces strategic materials including beryllium, titanium, tantalum, niobium, rhenium, antimony, bismuth, selenium, and tellurium, both as primary metals and as components used in advanced industrial applications.

Rare Earth Elements

Kazakhstan’s Rare Earth Ambitions Hindered by Investment and Control Challenges

Kazakhstan holds significant reserves of rare metals and rare earth elements, sometimes referred to as the "new oil" due to their increasing importance in global industries. However, experts say the country remains far from becoming a major supplier, as geopolitical tensions and a lack of large-scale investment continue to hinder development. Global Context: Rare Earth Metals in Geopolitics U.S. President Donald Trump has called for a rare-earth deal with Ukraine, raising international public interest in these minerals. While the specifics of the deal remain unclear, Trump has estimated its potential value at a trillion dollars. Meanwhile, Russia, which holds the world’s fourth-largest rare earth reserves, has expressed interest in cooperating with the U.S. in this sector. Experts argue that large-scale mining operations in Ukraine are currently unprofitable and impractical. The rare metal sector includes 60 elements, such as lithium, titanium, beryllium, gallium, and tungsten, while rare-earth metals include 17 elements, such as scandium, yttrium, and lanthanides. Their high production costs, complex extraction process, and long payback periods have made large-scale commercial extraction difficult despite growing global demand. Is Kazakhstan a Promising Market? China remains the dominant global producer of rare earth metals, followed by Brazil, India, Australia, and Russia. Despite its extensive natural resource base in oil, gas, uranium, and non-ferrous metals, Kazakhstan has yet to prioritize rare-earth extraction. However, international interest in Kazakhstan’s deposits is growing. France, Germany, and South Korea have already initiated exploration projects in the country. Germany’s HMS Bergbau AG, in collaboration with Qazaq Lithium, is developing lithium deposits in East Kazakhstan Oblast (EKO). Meanwhile, South Korea’s KIGAM has conducted exploration at the Bakennoye lithium deposit, leading to a memorandum of cooperation. The U.S. Embassy in Kazakhstan has also announced upcoming mining and processing projects for critical materials, such as lithium and titanium, involving American companies. President Tokayev has stated that Kazakhstan’s subsoil contains 50,000 to 100,000 tons of lithium, but substantial investment in exploration and development is required. Kazakhstan already holds an 11% share of the global titanium market, rising to more than 20% in the aerospace industry. Newly identified rare earth deposits were announced by the government in early 2025, totaling 2.6 million tons, including 400,000 tons of tungsten and 500,000 tons of niobium. Calls for Stronger State Control As international interest in Kazakhstan’s resources grows, concerns about foreign control over strategic assets have intensified. Financial analyst Rasul Rysmambetov has warned that major international players, particularly from Russia, may seek to dominate Kazakhstan’s rare-earth sector. “Several large Russian companies already operate in Kazakhstan. It is crucial to ensure that control over these resources remains in the hands of the state,” he said. Rysmambetov has proposed the creation of a state agency for strategic assets or expanding the jurisdiction of existing institutions, such as the National Security Committee and the Ministry of Finance. He also suggested that sales of strategic resources should require oversight from the Security Council or Parliament. “We can expect attempts by foreign firms, particularly Russian and Chinese companies, to acquire major...

Kazakhstan’s Mining Association Proposes Reforming Mineral Extraction Tax

Aibar Dautov, head of Kazakhstan's Mining Industry Association, has called for reforms to the procedure for calculating the mineral extraction tax (MET) to boost budget revenues from oil and solid minerals. Speaking at the Astana Open Dialogue during discussions on the new tax code, Dautov noted that Kazakhstan currently employs ten different MET rates for crude oil taxation. These rates are determined based on two key factors: the price of oil at the time of sale and the annual production volume at a given field. The current tax structure is divided into the following production thresholds: 5% tax for annual production up to 250,000 tons 7% for 500,000 tons 8% for 1 million tons 9% for 2 million tons 10% for 3 million tons 11% for 4 million tons 12% for 5 million tons 13% for 7 million tons 15% for production up to 10 million tons 18% for production exceeding 10 million tons Dautov criticized this system as unfair to other sectors of the economy. “We believe the criterion of annual production volume should not exist at all. This differentiation has been in place for many years, but for some reason, it hasn’t been removed or acknowledged as a tax benefit. The Ministry of National Economy continues to support its inclusion in the new Tax Code. It’s unclear why this grading still exists—it should be eliminated and considered a relic,” Dautov stated. The complexity is even greater for solid minerals, according to Dautov, as their MET calculation currently involves 38 different tax rates for various types of minerals. The Times of Central Asia previously reported that Kazakhstan's Ministry of Industry and Construction has proposed replacing the current MET system with royalties. Under this system, taxes would be calculated based on the volume of sold products rather than the volume extracted. This change is scheduled to take effect on January 1, 2026, under new subsoil use contracts, while existing contracts will remain taxed under the current rates.