Tag: economic transformation

  • Deep Processing Emerges as Kazakhstan’s Core Economic Strategy at MINEX as Industry Calls for Systemic Transformation

    Deep Processing Emerges as Kazakhstan’s Core Economic Strategy at MINEX as Industry Calls for Systemic Transformation

    The transition from raw material extraction to deep mineral processing dominated discussions at the MINEX Kazakhstan forum in Astana, where business representatives and industry experts argued that the shift requires not isolated investment projects but a fundamental restructuring of the economy.

    Priority sectors identified by participants include the processing of copper, polymetallic, rare and rare earth metals — materials whose strategic value is rising rapidly in global markets. But forum speakers were clear that the ambition goes far beyond building individual facilities.

    “When processing emerges, the entire structure of the economy changes — new industries appear, supply chains form, jobs are created and the technological level rises,” said Artur Polyakov, managing director of Advantix and chairman of the MINEX Forum. He argued that creating the right conditions for investors is as important as the physical infrastructure itself. “It is not simply a matter of building plants — you need to create conditions where an investor understands how they will work, how their investments are protected, what the project economics will be. This is a comprehensive task — from legislation to technology,” he said.

    The forum has previously noted growing interest from foreign investors in Kazakhstan, a trend Polyakov attributed in part to the country’s reform momentum and the global scramble to secure critical mineral supply chains outside China. Participants concluded that the processing question has become not merely a sectoral concern but a strategic national priority on which Kazakhstan’s long-term economic resilience and competitiveness depend.

  • Kazakhstan Leads Central Asia in Industrial Output

    Kazakhstan Leads Central Asia in Industrial Output

    In 2024, Kazakhstan emerged as the industrial leader of Central Asia, with total industrial output reaching $106.8 billion, according to the Ministry of Industry. This figure surpasses Uzbekistan’s output by 1.5 times, Kyrgyzstan’s by 16 times, and Turkmenistan’s by nearly 22 times.

    Kazakhstan ranked second in the region for processing volume at $52.2 billion, trailing only Uzbekistan. The country also placed second in the CIS, following Russia, which recorded $1.3 trillion in industrial output, including $896.5 billion from manufacturing. Other notable CIS figures include:

    • Uzbekistan: $68.3B (processing: $58B)

    • Belarus: $62.4B (processing: $56B)

    • Azerbaijan: $37.7B (processing: $11.2B)

    • Armenia: $7.6B (processing: $5.5B)

    • Moldova: $7.6B (processing: $4.6B)

    • Kyrgyzstan: $6.7B (processing: $5.2B)

    • Tajikistan: $4.9B

    • Turkmenistan: $0.5B (processing only)

    In 2024, Kazakhstan launched 180 industrial projects worth 1.3 trillion tenge, generating 14,400 permanent jobs. Key highlights include:

    • KamLitKZ Foundry (Kostanay): 45K tons of cast iron parts annually, 500 jobs

    • Boguty Tungsten Mining (Almaty): 3.3M tons of ore/year, 10K tons of concentrate, 350 jobs

    • Kyzyl Aray Copper: 30K tons of cathode copper/year, 780 jobs

    • Ulytau Gold: Producing 1.78 tons of gold and 1.98 tons of silver/year, 300 jobs

    • KZTA Valve Factory: 45K units/year, 200 jobs

    • TechnoNICOL Insulation Plant (Almaty): 1.4M m³ of stone wool/year, 220 jobs

    In 2025, 190 projects valued at 1.5 trillion tenge are expected to create 20,000 new jobs. Notable plans include:

    • Astana Motors Auto Plant (Almaty): $182B tenge, 2.2K jobs, capacity: 90K vehicles/year

    • KIA Plant (Kostanay): $90B tenge, 1.5K jobs, 70K vehicles/year

    • Liman Field Development (Aktobe): $241.4B tenge, 460 jobs, 1.2M tons of ore/year

    • Ekibastuz FerroAlloys Plant (Pavlodar): $92.4B tenge, 800 jobs, 240K tons of ferrosilicon/year

    • PZTM Rail Welding Plant (Aktobe): $21.4B tenge, 297 jobs, 825 km of rails and 290K sleepers/year

    • TEMPO Kazakhstan Steel Pipe Plant (Karaganda): $15B tenge, 400 jobs, 250K tons/year

    • QazAlPack Aluminum Packaging Modernization (Shymkent): $21.7B tenge, 112 jobs, 1.15B cans/year

    • Silumin of Qazaqstan Radiator Plant (Karaganda): $18.6B tenge, 183 jobs, 3.7M units/year

    President Kassym-Jomart Tokayev continues to emphasize the strategic importance of manufacturing, which experts say reflects a structural transformation of the economy, rising value-added production, and increased investment appeal.

    Meanwhile, S&P Global Ratings reaffirmed Kazakhstan’s sovereign credit rating at ‘BBB-/A-3’ with a stable outlook, citing strong fiscal and external buffers as key factors supporting resilience to external shocks.

  • Critical Raw Materials: A Catalyst for Ukraine’s Economic Transformation

    Critical Raw Materials: A Catalyst for Ukraine’s Economic Transformation

    Ukraine’s abundant deposits of critical raw materials could serve as a key driver for its economic growth and global market integration, according to We Build Ukraine co-founder Oleksandr Kubrakov.

    Kubrakov points out that the current closed nature of Ukraine’s mining sector poses a major challenge for investors. He recommends several reforms: aligning Ukraine’s mineral reporting standards with international frameworks, streamlining land acquisition for mining operations, and introducing industry incentives. He also emphasizes the need to digitize geological data, particularly through AI technology, to make it more accessible.

    Beyond just extraction, Kubrakov envisions developing comprehensive value chains – from building infrastructure to establishing local processing facilities and manufacturing finished products, such as electric vehicle components and medical-grade titanium items.

    The country holds impressive positions globally in terms of mineral reserves, ranking eighth in coal, fifth in iron ore, and fourth in manganese ore (a crucial element in glass, ceramic, and steel production).