A memorandum of understanding (MOU) on critical minerals was signed by Kazakhstan, the world’s leading uranium producer, and the United States government. The agreement was formalised by Yersayin Nagaspayev, Kazakhstan’s Minister of Industry and Construction, and U.S. Secretary of Commerce Howard Lutnick during a Washington meeting, as announced by the Press Office of the President of Kazakhstan on Thursday.
The signing followed a meeting between Tokayev and U.S. administration officials, including Secretary of State Marco Rubio and Special Envoy for South and Central Asian Affairs Sergio Gor. In a separate statement, Tokayev highlighted the “excellent opportunities” for enhancing the strategic partnership between Kazakhstan and the U.S. through economic cooperation.
Strategic Rare Earth Ventures
The MOU signing marks another strategic move by the U.S. to secure future supplies of rare earth elements, aiming to reduce China’s dominance in this sector. Kazakhstan, largely unexplored, presents a promising opportunity. Earlier this year, the deputy chairman of Kazakhstan’s industry and construction ministry noted the nation’s “promising reserves” of rare earth minerals, suggesting it could become one of the world’s top 10 producers if forecasts are confirmed. This is supported by the discovery of the substantial Kuyrektykol deposit, which, if verified, would place Kazakhstan behind only China and Brazil in reserve size.
According to official geologic data, Kazakhstan has over 980 solid mineral deposits. Since 2018, it has issued 2,906 exploration licenses and 111 production licenses, with only a dozen sites currently under exploration. Over the past five years, Kazakhstan has attracted about $1 billion in private investment into the mining sector.
U.S. Investment and Tungsten Reserves
U.S. investors are taking notice. In March, New York-based private equity firm Cove Capital formed a joint venture with JSC Qazgeology, Kazakhstan’s national geological exploration company, to advance the Akbulak Rare Earth Project in the Kostanay region. This project involves geological surveys, feasibility studies, and exploration work, with Akbulak hosting a historical resource of 380,000 tonnes of rare earth oxides, including neodymium and praseodymium.
The Trump administration has been strengthening ties with Kazakhstan for some time. In September, the Commerce Department assisted Pittsburgh-based manufacturer Wabtec in securing a $4.2 billion locomotive order.
Although Kazakhstan is not ranked by the U.S. Geological Survey among the top countries for recoverable tungsten deposits, it is estimated to have over 2 million tonnes of the mineral in reserve. China currently accounts for about 80% of global tungsten concentrate production, according to U.S. Geological Survey data.
