Can Kazakhstan’s Mineral Wealth Match UK Industrial Demand?

2026-03-17 - 04:35

The Astana Times provides news and information from Kazakhstan and around the world. ASTANA — Demand for critical minerals is reshaping how governments think about industrial growth, economic security and international partnerships. Turning political momentum into bankable projects will require stronger investment frameworks, processing capacity, and closer supply chain cooperation, said experts during a webinar hosted by the British-Kazakh Society on March 12. Collage is created by The Astana Times. The discussion highlighted the strategic role of rare earth elements and other critical minerals in the global economy, as well as opportunities for cooperation between resource-rich Kazakhstan and technology-driven economies such as the United Kingdom. “This is the new great game. Rare earths would be as important to geoeconomics in the 21st century as oil was in the last century,” said Daniel Alan Witt, the president of the International Tax and Investment Center (ITIC). He noted that critical minerals are essential for modern technologies ranging from renewable energy systems to defense equipment. For example, a single F-15 fighter jet requires approximately 950 pounds (430 kilograms) of rare earth elements. Because many of these materials are currently sourced from a limited number of countries, diversifying supply chains has become a strategic priority for many Western economies. Experts also emphasized Kazakhstan’s potential role beyond mining. Al-Farabi Ydyryshev, director general of Kazakhstan’s National Center for Technology Foresight, said the country aims to develop processing capacity and move further along the value chain. “Due to the unique features of their economies, the U.K. and Kazakhstan are fully complementary to each other. Kazakhstan is in the upstream and midstream of the value chain, while the U.K. is mainly downstream,” said Ydyryshev. “I would like to emphasize the role of Kazakhstan as a processing hub, not mining, but a processing hub that is able to meet the needs of the U.K. and which is a producer of high-tech products,” he added. Speakers highlighted the existing bilateral framework for cooperation, including a memorandum of understanding on critical minerals and a renewed roadmap signed on Feb. 25 in London, on the sidelines of the Central Asia+U.K. ministerial meeting. U.K. strategy on diversified supply chains Oliver Richards, head of critical minerals and mining at the U.K. Department for Business and Trade, said securing reliable access to critical minerals has become a central pillar of the U.K. industrial policy. Oliver Richards. Photo credit: 2024.minexeurope.com “In terms of the policy, our government has been very focused on economic growth, as all other governments are, and has published a new industrial strategy about what the UK can do to grow its economy. And of course, very important to that are critical minerals,” he said. The U.K. released an updated critical minerals strategy in November, outlining how the government plans to strengthen supply chains and support the domestic industry. “We have done that by setting some clear targets, ambitions, if you like, about what we can do domestically. And that is an aim to produce 10% of our demand from domestic projects and 20% from recycling in the U.K.,” said Richards. He noted that many critical minerals are concentrated in a limited number of countries, sometimes accounting for up to 90% of particular segments of the value chain. The U.K., therefore, aims to diversify its sourcing so that no more than 60% of supply comes from a single country. To better understand future demand, the government is working with industries such as defense, automotive, aerospace and clean energy to map their mineral requirements through 2035. While the U.K. has several domestic projects, including lithium, tungsten and tin developments in Cornwall, Richards said international partnerships will remain essential. “On the international side, what we really want to do is work with partners to develop shared supply chains,” he said, pointing to Kazakhstan as an example of a country with significant mineral resources. He added that London’s financial ecosystem, including the London Stock Exchange, the London Metal Exchange and specialist consulting firms, can help support mining and processing projects abroad. Exploration and resource development expansion in Kazakhstan Ydyryshev said Kazakhstan has significantly expanded geological exploration in recent years to identify new deposits of strategic minerals and attract investment. He highlighted that since 2018, more than $135 million in government funding has been allocated to exploration programs. Geological and geophysical surveys now cover more than two million square kilometers and are expected to reach 2.2 million square kilometers by the end of 2026. Exploration work has identified 38 promising rare earth sites across 11 locations. Kazakhstan also holds substantial reserves of several minerals considered critical for the global industry. These include approximately 307 million tons of chromium, placing the country among the world’s leading producers, and 270 million tons of aluminum, ranking it within the global top ten. The country also holds nearly 35 million tons of copper, 2.4 million tons of tungsten, and approximately one million tons of molybdenum, placing it among the top global producers. The mining and metallurgy sector remains a major contributor to Kazakhstan’s economy. In 2024, it accounted for approximately 8% of gross domestic product (GDP), with production exceeding $28 billion. Investment reached $3.6 billion, and exports totaled $21.4 billion. Investment climate and industry challenges While Kazakhstan’s resource base is significant, experts noted that attracting international capital requires a stable regulatory and fiscal environment. Witt said that investors look beyond geology when deciding where to allocate capital. “The geology is there, but if we want to attract foreign direct investment, not only in mining but to help develop refining, so it is not simply dig it out and ship it out, you need to think about the soft infrastructure – the legal, the regulatory, and the tax infrastructure,” he said. Dan Smith. Photo credit: le.ac.uk Dan Smith, senior research fellow on critical minerals at the U.K. Foreign, Commonwealth and Development Office and professor of critical minerals at the University of Leicester, said Kazakhstan’s existing mining and metallurgical sector provides a strong foundation for cooperation. “What makes Kazakhstan stand out and is a huge motivator behind strong bilateral relations between the U.K. and Kazakhstan is that it is not just resource-rich in terms of the geology and the ground. It’s actually got a really established mining and metallurgical sector,” said Smith. He highlighted that mining projects operate on long timelines. Exploration can take 15 to 20 years, while production may continue for decades, which makes regulatory stability particularly important. He also noted that the recent surge of interest in critical minerals could lead to unrealistic expectations among investors. “We are seeing a lot of investment pour into critical minerals from non-traditional investment areas. I worry that there will be a snapback as those investors discover that there are no quick returns in the mining sector. Mining is an industry that requires patience and stability,” he said. He also highlighted a global shortage of skilled professionals in mining, geology and engineering. “As a university academic, I worry about traditional skills and expertise and practical fundamental skills applied to the mining sector that need to be maintained and nurtured. (...) Otherwise, our investments and our resource potential will not be realised,” said Smith. Turning agreements into projects Daniel Alan Witt. Photo credit: iticnet.org Speakers said that translating diplomatic cooperation into real investment projects will be the next challenge. According to Witt, strategic partnerships alone are not enough without financial commitments. “I think it comes down to who is putting up co-financing. (...) If we should listen to what Western governments are saying as they seek to partner with resource-rich countries like Kazakhstan, but are they willing to put some money behind those words?” he said. Richards echoed the sentiment, noting that attention is increasingly shifting from formal agreements to concrete results. “Writing pieces of paper and signing them between our ministers is fine, but increasingly people say, what’s that agreement delivering?” he said. Governments can help by connecting investors, mining companies and industrial buyers, he added, particularly in sectors where markets for certain minerals remain underdeveloped.