As global demand for rare earth elements grows, Kazakhstan must not overlook the development of coal chemistry, said Nikolai Radostovets, Executive Director of the Republican Association of Mining and Metallurgical Enterprises (AGMP), at the MINEX Kazakhstan forum.
“Technologies around the world are constantly evolving. First it was aluminum, then copper and steel. Now rare earths are in high demand. But we also want to see investment interest in the coal industry. Many have recently told Kazakhstan to phase out coal combustion — and we understand this,” Radostovets said.
Despite global energy transition initiatives and the rise of renewables, coal remains a vital energy source, he emphasized. “You see how the situation is changing. Coal is still a very important product. We need concrete proposals and actions from the government to develop coal chemistry. We’re looking at stimulating cluster-based initiatives, and our industry is actively working on forming clusters with local manufacturers.”
Discussions are also underway regarding the development of copper and aluminum clusters. “I believe the president and prime minister, by supporting our sector’s cluster initiatives, will create opportunities for processing and developing new products,” he added.
Global coal giant China Energy is currently selecting a suitable deposit in Kazakhstan to develop coal chemistry. In January, Prime Minister Olzhas Bektenov confirmed the company’s $4 billion interest in coal chemical investment projects in the country.
Kazakhstan ranks among the world’s top 10 countries in coal reserves, with an estimated 33.6 billion tons. At current consumption rates, that supply could last 300 years. Currently, coal generates about 70% of Kazakhstan’s electricity.
Vice Minister of Energy Sungat Yesimkhanov previously announced that up to 5 GW of coal-based energy capacity is expected to be introduced by 2035. This includes several power blocks at Ekibastuz GRES-1 and GRES-2, as well as new thermal plants in Kokshetau, Semey, and Ust-Kamenogorsk. While the government forecasts coal’s share in electricity generation to decline to 34% by 2035, major infrastructure projects remain coal-dependent.
