This session focused on creating an investment-ready framework for Central Asia’s critical minerals sector, emphasising the importance of a robust regulatory foundation to unlock long-term investment. Industry experts and policymakers explored recent mining reforms, especially in Uzbekistan and Kazakhstan, and discussed broader regional initiatives aimed at enhancing legal clarity and institutional capacity. The dialogue consistently returned to aligning regulatory frameworks with international standards to ensure greater transparency, predictability, and ESG (environmental, social, and governance) compliance.
Key points covered:
Investor Confidence and Private Capital: Panellists highlighted that capital remains cautious, particularly in “non-traditional” or higher-risk destinations like Central Asia, preferring established mining hubs. Governments must therefore undertake substantial reform to compete globally for scarce private investment, which tends to flow only after the early, riskier phases have attracted capital and shown stability.
Progress and Reform in Kazakhstan and Uzbekistan:
Kazakhstan, the region’s most mature mining jurisdiction, has implemented a significant 2018 Subsoil Code and is pursuing further reforms, though implementation gaps remain.
Uzbekistan has rapidly improved its investment climate since 2017, including liberalising currency exchange, enacting new investment laws with foreign investor guarantees, establishing a Foreign Investors Council, and launching an ambitious privatisation and IPO programme for state enterprises—notably through the new National Investment Fund, managed by Franklin Templeton.
Privatisation and Market Access:
Uzbekistan’s strategy includes listing major state assets on local and international exchanges, with the aim of improving governance, increasing transparency, and creating a pipeline of investable companies for institutional investors. This approach, it is argued, will foster greater competition and reduce state dominance, thus encouraging more foreign investment.
Sustainable Mining and ESG:
Central Asian nations are increasingly focused on ESG standards and sustainable practices as a means of strengthening global investment appeal. The session underlined the region’s need to add value within the supply chain—moving from raw mineral extraction to processing and manufacturing—to overcome geographic limitations (such as being landlocked).
Geopolitical Dynamics and Competition:
The region faces both risks and opportunities amid complex international competition, with China remaining a prominent investor and competing interests from Europe and other global powers. The panel discussed how geopolitical factors and changing regulatory approaches (such as new Chinese ESG requirements) shape both investment flows and strategic policy.
Challenges with Capital Markets:
Despite the “critical” classification of certain minerals, the public capital markets do not always recognise their importance through high valuations. There was debate over why, if these resources are so vital to governments, public or policy-driven capital does not take a greater equity stake—especially given private capital’s risk aversion.
Case Studies and Real-World Application:
Presentations included examples such as Uzbekistan’s gold producer Navoi Company, highlighting successful governance reforms, international bond issuances, and progress towards international best practices.
International Finance and Support:
Entities like UK Export Finance and the World Bank outlined their roles in providing guarantees, loans, and technical assistance, further supporting the sector’s opening to global markets.
The session concluded with a panel Q&A exploring the obstacles to attracting the required private equity, the role of strategic (especially Chinese) investment, and the future trajectory for Central Asia as an emerging node in global critical mineral supply chains. Presenters consistently emphasised the need for ongoing reform, transparency, and practical implementation—not just policy announcements—to truly create an investment-ready future for the region.
