Kazakhstan’s state development holding Baiterek is considering financing two rare earth metal extraction projects through its subsidiary the Bank for Development of Kazakhstan, a senior holding official has revealed, as the group targets at least $2.5 billion in annual mining and metallurgical sector financing in 2026.
Speaking to journalists on the sidelines of MINEX Kazakhstan 2026 in Astana, Baiterek managing director Aydin Akan confirmed that two rare earth projects are currently being assessed under a programme the Bank for Development of Kazakhstan launched in November last year. “There is a pool of projects they are looking at,” he said, cautioning that timelines for approval and disbursement remain uncertain as both projects must complete the bank’s internal procedures and have their project documentation pass mandatory state expert review — a process requiring at least six months of preparation.
The rare earth projects may also receive financing through Qazaqstan Investment Corporation, another Baiterek subsidiary, which takes equity stakes of typically less than 50% in projects for a defined period before exiting through sale to the private sector. “We are ready to enter the capital and be participants, co-partners in a project — support it and at a certain point exit through sale to the private sector,” Akan said, emphasising that the operational lead must always remain with a private company.
Baiterek’s broader mining sector financing reached $2.5 billion in 2025 out of a total loan portfolio of approximately $20 billion, and Akan said he expects that figure to be maintained or exceeded in 2026. “The dynamics are very good. We are growing twofold on an annual basis,” he said.
Crucially, Akan was clear about the boundaries of Baiterek’s mandate: the holding does not finance exploration or extraction, but exclusively targets the creation of added value from raw materials. “Our mandate is precisely the financing of processing capacity construction — we finance the creation of added value from raw materials,” he said, listing the instruments available as direct loans, equipment leasing, working capital financing, guarantees and equity participation through QIC. The emphasis on processing aligns directly with Kazakhstan’s broader strategic push to move up the mineral value chain and reduce dependence on raw material exports.
