MINEX Forum

Tag: Kazakhstan

  • Kazakhstan’s Untapped Tungsten Reserves Draw U.S. Interest in Strategic Mining Deal

    Kazakhstan’s Untapped Tungsten Reserves Draw U.S. Interest in Strategic Mining Deal

    Kazakhstan’s sweeping steppes may soon become the focal point of a global shift in critical mineral supply chains. With an estimated 2 million tons of untapped tungsten reserves, the Central Asian nation is emerging as a potential powerhouse in a market vital to defense, clean energy, and advanced manufacturing. Ongoing negotiations between Washington and Astana could lead to the first large-scale, U.S.-backed tungsten mining operation in the region, underscoring Western efforts to reduce dependence on Chinese-controlled supply chains.

    Kazakhstan’s Tungsten Wealth: A Strategic Resource Reawakens

    Two massive deposits — Upper Kairaktinskoye and North Katpar in the Karaganda region — anchor Kazakhstan’s tungsten potential. Industry insiders estimate the sites are worth billions of dollars and could sustain production for up to four decades. While the U.S. Geological Survey (USGS) does not list Kazakhstan among the top tungsten holders, the country’s own geological data points to reserves exceeding 2 million tons, suggesting international underreporting of Central Asia’s mineral wealth.

    Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, has described these sites as the world’s most desirable undeveloped tungsten deposits and is actively soliciting bids from foreign investors.

    From Dormancy to Development

    Tungsten mining in Kazakhstan halted more than 30 years ago following the Soviet Union’s collapse, as infrastructure decay, capital flight, and regulatory uncertainty halted operations. That long pause has left enormous reserves untouched — a rare opportunity for new investment at a time when global tungsten demand continues to climb.

    Strategic Importance of Tungsten

    Tungsten’s exceptional hardness, density, and heat resistance make it irreplaceable in defense and high-tech industries. It is a critical component in ammunition, projectiles, armor-piercing shells, and advanced weapon systems, earning a place on the U.S. Geological Survey’s list of critical minerals. The Pentagon’s Defense Logistics Agency identifies tungsten as a material of strategic importance, with supply disruptions posing potential risks to U.S. defense manufacturing and economic stability.

    Key Players in a High-Stakes Negotiation

    The leading U.S. contender, Cove Kaz Capital Group LLC, has positioned itself at the center of the negotiations. Building on its 2025 partnership with Kazakhstan’s JSC Qazgeology on rare earth exploration, Cove Kaz Capital aims to establish majority control of the tungsten venture while ensuring Kazakhstan retains a significant profit share.

    The company’s responsibilities would include mine development, local processing infrastructure, and export logistics, with a commitment to technology transfer and workforce development within Kazakhstan.

    For Samruk-Kazyna, the deal aligns with national goals of diversifying the economy, modernizing the mining sector, and expanding export markets beyond traditional partners like Russia and China. The fund’s competitive tendering process has attracted multiple international bidders, ensuring Kazakhstan maximizes both revenue and strategic leverage.

    U.S. Government’s Direct Role

    The unusual direct involvement of U.S. Commerce Secretary Howard Lutnick in the negotiations underscores the project’s geopolitical weight. Washington views the partnership as part of a wider strategy to secure critical mineral supply chains and implement former President Trump’s executive order prioritizing access to strategic materials such as tungsten.

    For the U.S., success in Kazakhstan could represent a decisive step toward reducing vulnerability to supply shocks and strengthening control over critical materials vital to both defense and green technologies.

  • Kazakhstan Tightens Mining Code to Combat Illegal Extraction and Strengthen Investor Accountability

    Kazakhstan Tightens Mining Code to Combat Illegal Extraction and Strengthen Investor Accountability

    Kazakhstan is introducing stricter rules on subsoil use as part of an updated version of its Mining and Subsoil Code, aiming to increase accountability for financial obligations and curb illegal mineral extraction. The new draft, presented to the Mazhilis by Deputy Minister of Industry and Construction Iran Sharkhan, proposes several key reforms, LS reports.

    Under the revised Code, auction winners will be required to pay signing bonuses before receiving their mining licenses. Failure to do so will result in a five-year ban on both the company and its beneficiaries, preventing them from applying for new subsoil rights or acquiring such rights from third parties. According to Sharkhan, this measure is intended to eliminate abuse and make investor participation more transparent.

    The amendments also introduce tough penalties for covert mineral extraction disguised as pilot industrial mining. Any such violations will now result in the immediate revocation of exploration licenses. To improve oversight, the government plans to impose strict operational thresholds — for instance, removing or relocating more than 1,000 cubic meters of soil or rock will only be permitted if clearly justified by project needs.

    Additionally, the separation of industrial-innovation projects from subsoil operations will be prohibited to prevent the misuse of exploration licenses for commercial mining activities.

    Sharkhan noted that in 2025–2026, authorities plan to inspect 440 sites for signs of illegal extraction. To date, 300 areas have already been reviewed, revealing seven cases where unauthorized mining was detected.

    Another key aspect of the reform is the transition to electronic documentation. Applications for mining licenses will now be submitted via a unified digital platform that includes an interactive map of exploration sites available for development — part of a broader effort to streamline administration and boost transparency in Kazakhstan’s extractive sector.

  • Trump Team Pushes for U.S. Access to Major Tungsten Deposits in Kazakhstan

    Trump Team Pushes for U.S. Access to Major Tungsten Deposits in Kazakhstan

    According to Bloomberg, former U.S. President Donald Trump’s team is seeking to secure mining rights in Kazakhstan for Cove Capital, an American company aiming to develop some of the world’s largest untapped tungsten deposits. The negotiations involve the Kazakh-American joint venture Cove Kaz Capital and Kazakhstan’s sovereign wealth fund Samruk-Kazyna, with U.S. Commerce Secretary Howard Lutnick reportedly taking part in the talks.

    The project may receive financial backing from the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the United States (Exim Bank). Sources indicate that Washington is particularly interested in developing the Verkhne-Kairaktinskoye and Severo-Katparskoye deposits located in Kazakhstan’s Karaganda region—assets valued at several billion dollars.

    Cove Kaz Capital has been in discussions with Samruk-Kazyna for several months, Bloomberg reports. However, the American firm faces competition from a Chinese state-owned company that has offered a price exceeding the market value for the same assets.

    The United States classifies tungsten as a critical mineral essential for national security and industrial applications. Under the proposed plan, Cove Kaz Capital and Samruk-Kazyna would jointly extract the ore in Kazakhstan, process it locally, and then export the finished metal to the U.S. for use in both defense and civilian industries. While Kazakhstan would receive a share of the joint venture’s profits, Cove Kaz Capital is expected to remain the main beneficiary.

  • Kazakhstan and Finland Sign Cooperation Agreement on Nuclear Energy

    Kazakhstan and Finland Sign Cooperation Agreement on Nuclear Energy

    During Finnish President Alexander Stubb’s official visit to Astana, Kazakhstan and Finland signed an agreement establishing cooperation between the nuclear energy regulators of both countries. The document outlines plans for experience exchange, joint research, and potential uranium fuel supply deals. The Finnish government will also consider the possibility of regular imports of nuclear fuel raw materials from Kazakhstan.

    According to Almassadam Satkaliyev, head of Kazakhstan’s Atomic Energy Agency, the agreement creates a foundation for more detailed discussions on future volumes and conditions of uranium supplies to Finnish nuclear power plants. He emphasized that Finland holds a leading position in the field of peaceful nuclear energy, boasting significant achievements in operating nuclear technologies and conducting scientific and technical research.

    Finland’s legislation is among the strictest in the world when it comes to regulating the extraction, management, and operation of nuclear facilities. Kazakhstan plans to adopt Finland’s best practices and conduct a joint audit of its own regulatory framework to align national standards with global benchmarks, Satkaliyev added.

  • U.S.–China Trade Escalation Puts Spotlight on Kazakhstan’s Rare Earth Potential

    U.S.–China Trade Escalation Puts Spotlight on Kazakhstan’s Rare Earth Potential

    Global markets endured one of their most volatile days since the early stages of the U.S.–China trade war, after China expanded export controls on rare earth elements and U.S. President Donald J. Trump announced sweeping new tariffs and export restrictions in response.

    In a series of social media posts, Trump first suggested there was “no reason” to meet Chinese President Xi Jinping at the upcoming APEC Summit, before declaring that China would impose “large-scale export controls” on nearly all its products starting November 1. The White House later confirmed that the U.S. would respond with 100% tariffs on Chinese imports and new export restrictions on critical software “on or before November 1.”

    The escalation has injected new urgency into the global scramble for rare-earth supply chains, pushing attention beyond East Asia to Central Asia, particularly Kazakhstan — one of the few countries outside China with verified rare-earth reserves and a functioning mining sector.

    Kazakhstan’s Rising Role in Supply Diversification
    Kazakhstan’s mineral wealth is rooted in Soviet-era geological mapping, with modern surveys confirming vast deposits of neodymium, praseodymium, dysprosium, terbium, and samarium — all essential for electric vehicles, wind turbines, and advanced defense systems. The Zhana Kazakhstan deposit in the Karagandy region could become one of the largest rare-earth reserves globally, pending validation of resource estimates.

    According to U.S. defense classifications, these are “critical defense materials.” Both the Pentagon and the Defense Logistics Agency have begun building stockpiles and identifying non-Chinese refining partners, but the challenge lies not in geology — Kazakhstan’s resources are proven — but in processing and commercialization.

    Existing facilities such as the Stepnogorsk Chemical Plant and Ulba Metallurgical Plant could be adapted for rare-earth processing, while the SARECO joint venture has already demonstrated the recovery of magnet-critical elements from uranium residues. The Kuirektykol deposit, rich in neodymium and dysprosium, further strengthens Kazakhstan’s feedstock base. However, infrastructure remains tailored to uranium and base metals, not the precise requirements of rare-earth refining.

    Legal Reforms and Foreign Partnerships
    Kazakhstan’s Unified Code on Subsoil Use (2018) has made the country more attractive to Western investors by clarifying ownership and capital entry rules. Since then, over $40 billion in new foreign mining investment has entered the sector. European and Japanese firms are now exploring partnerships in refining, metallurgy, and supply-chain development.

    The government’s focus is shifting from raw extraction toward value-added production, aligning with global efforts to reduce dependence on Chinese processing. Still, sustained investment will depend on policy consistency, financing mechanisms, and export infrastructure.

    Strategic Context: Central Asia’s Balancing Act
    Kazakhstan’s push to develop its rare-earth potential reflects a regional strategy to manage interdependence with China while courting Western partnerships. While China remains a dominant trading partner, Kazakhstan’s access to the Caspian Sea and international capital markets gives it greater flexibility than most of its neighbors.

    Recent trade volatility and increased Chinese port fees have added pressure to diversify trade routes, not by abandoning China, but by building redundant corridors and risk-mitigated financing.

    The United States, meanwhile, views Kazakhstan not as a substitute for China but as a strategic component in a diversified supply network. The U.S. International Development Finance Corporation (DFC) is assessing refining feasibility studies under strict governance and environmental standards.

    At the C5+1 meeting in Dushanbe on September 4, U.S. and Central Asian officials discussed rare-earth cooperation as part of broader economic diversification efforts — signaling a shift from diplomatic rhetoric to working-level engagement.

    Outlook
    As export controls and tariffs deepen supply chain instability, Kazakhstan is emerging as a key analytical focus for policymakers and investors seeking long-term alternatives. Its rare-earth deposits and industrial base give it potential leverage in the global realignment of strategic materials — but realizing that potential will depend on its ability to scale processing, secure investment, and build reliable transport routes.

    Rather than serving as a replacement for China, Kazakhstan illustrates how mid-sized economies are positioning themselves as essential nodes in a fragmented, multipolar supply chain system.

  • China’s Zijin Mining Acquires Kazakhstan’s Gold Producer RG Gold

    China’s Zijin Mining Acquires Kazakhstan’s Gold Producer RG Gold

    Kazakhstan’s gold mining company RG Gold has officially been acquired by Zijin Gold International Co., Ltd., a subsidiary of Zijin Mining Group, one of the world’s leading mining corporations, Orda.kz reported.

    RG Gold operates the Raigorodok gold deposit in the Akmola region. The company had been managed by Kazakhstan’s Verny Capital Group since 2014, during which it underwent significant modernization — including new infrastructure, updated equipment, and expanded geological exploration.

    Since 2018, Verny Capital has developed RG Gold in partnership with the U.S.-based Resource Capital Funds (RCF). Under their management, the company’s resource base tripled over the past decade to reach 7.6 million ounces, in compliance with JORC standards.

    The partners also expanded the company’s production capacity. The Carbon-in-pulp (CIP) plant reached a throughput of 6.5 million tonnes per year by mid-2025, exceeding its design capacity of 5 million tonnes. The heap leaching facility has an additional capacity of 2 million tonnes per year.

    RG Gold currently employs around 1,200 people, making it one of the major employers in the Akmola region.

    The acquisition by Zijin Mining underscores the Chinese company’s growing footprint in Central Asia’s mining sector, following a series of strategic investments aimed at strengthening its global gold production portfolio.

  • Ferro-Alloy Resources Publishes Feasibility Study for Balasausqandiq Vanadium Project in Kazakhstan

    Ferro-Alloy Resources Publishes Feasibility Study for Balasausqandiq Vanadium Project in Kazakhstan

    Ferro-Alloy Resources Limited has released the results of the feasibility study (FS) for the first stage of development of the Balasausqandiq vanadium deposit in southern Kazakhstan, confirming the project’s strong economic potential.

    According to preliminary estimates, the total investment required for the first phase amounts to $520 million, with the company currently in talks with potential investors to secure financing.

    The project envisions the annual production of 8,500 tonnes of vanadium pentoxide (V₂O₅) and 247,000 tonnes of carbon black substitute (CBS) over a 20-year mine life. A second phase is expected to quadruple production capacity while maintaining a similar project timeframe. The net present value (NPV) of the project is estimated at $748 million.

    One of the project’s main advantages lies in the unique composition of the Balasausqandiq ore, which consists of black shale that does not require pre-concentration – unlike typical vanadium-bearing titanomagnetite ores that require beneficiation and high-temperature roasting. This gives the project significant cost advantages compared to conventional vanadium production.

    The FS confirmed the high economic viability and low operating costs of the project, indicating that Balasausqandiq could position Ferro-Alloy Resources as one of the world’s leading vanadium producers.

    The company also noted additional opportunities to enhance value-added production, which will be further examined during the detailed design phase.

    Nick Bridgen, CEO of Ferro-Alloy Resources Limited, emphasized the growing global demand for vanadium and the looming supply deficit expected from 2029 onward.

    “By 2035, the vanadium shortfall could exceed the total global production level recorded in 2024,” he said, underscoring the strategic importance of the Balasausqandiq project for the global vanadium supply chain.

  • Qarmet Launches Construction of Major Zinc Coating and Polymer Complex in Kazakhstan

    Qarmet Launches Construction of Major Zinc Coating and Polymer Complex in Kazakhstan

    Kazakh mining and metallurgical company Qarmet has officially begun construction of a state-of-the-art continuous galvanizing and polymer coating complex, marking a key step in the modernization of Kazakhstan’s mining and metals industry. The foundation stone was laid on October 10, with the facility expected to become operational by 2027.

    The project is being implemented in partnership with Belgium’s John Cockerill, one of the world’s leading steel and engineering companies founded in 1817. The Belgian firm will supply the core equipment for the new lines.

    Once completed, the modernization will expand Qarmet’s production capacity significantly. The hot-dip galvanizing line will increase annual output to 844,000 tonnes, up by 252,000 tonnes, while the polymer coating line will grow from 115,000 tonnes to 254,000 tonnes per year. The new complex will also create around 350 new jobs.

    The expansion aligns with President Kassym-Jomart Tokayev’s directive to modernize Kazakhstan’s mining and metallurgical sector and strengthen industrial competitiveness. Total investment in the project amounts to 84 billion tenge (approximately $180 million).

  • President Tokayev Outlines Kazakhstan’s Energy Strategy at Turkic States Summit

    President Tokayev Outlines Kazakhstan’s Energy Strategy at Turkic States Summit

    Kazakhstan’s President Kassym-Jomart Tokayev outlined the foundations of his country’s energy strategy during his address at the 12th Summit of the Organization of Turkic States (OTS), emphasizing the central role of the energy sector in Kazakhstan’s economic and strategic development.

    Tokayev highlighted that energy remains “the backbone of the economy and a vital element of our strategic partnerships,” stressing the need for greater regional cooperation on infrastructure and transport routes for energy resources.

    “We are implementing joint infrastructure projects and forming secure and efficient routes for the transportation of energy resources,” he said. “A great example of fruitful cooperation in this area is the Green Energy Corridor project, being developed by Kazakhstan, Azerbaijan, and Uzbekistan.”

    The president called for a stronger focus on renewable energy, particularly solar power, proposing the establishment of a Council of Best Practices on Energy Efficiency under the framework of the OTS.

    At the same time, Tokayev reaffirmed that the development and efficient use of oil, gas, uranium, coal, and rare earth minerals remain the cornerstone of Kazakhstan’s long-term energy policy.

    The initiative reflects Kazakhstan’s broader efforts to balance traditional resource extraction with a gradual transition to clean energy.

    Earlier, President Tokayev arrived in Gabala to take part in the OTS summit, where he was welcomed by Azerbaijani President Ilham Aliyev.

  • Arras Minerals Intersects 457.5m of Gold-Copper Mineralization from Surface at Berezski East Target, Kazakhstan

    Arras Minerals Intersects 457.5m of Gold-Copper Mineralization from Surface at Berezski East Target, Kazakhstan

    Vancouver, British Columbia – October 8, 2025 – Arras Minerals Corp. (TSXV: ARK, OTCQB: ARRKF) has reported exceptional drill results from the Berezski East Target at its Elemes Project in northeastern Kazakhstan, with one hole delivering 457.5 meters of gold-copper mineralization starting at surface.

    Drillhole EL25019 returned a standout intercept grading 0.63 g/t gold equivalent (AuEq) — including 231 meters at 0.98 g/t AuEq and 91 meters at 1.77 g/t AuEq starting from 88 meters depth. The company said the results demonstrate the scale potential of the Berezski Central–Berezski East corridor, part of the 8.8 km-long Berezski Trend.

    A second hole, EL25017, intersected 37 meters grading 0.13 g/t AuEq and 9.5 meters grading 0.55 g/t AuEq, testing a copper-in-soil anomaly north of Berezski Central.

    Tim Barry, CEO of Arras Minerals, commented:

    “Drillhole EL25019 has delivered an exceptional high-grade gold-copper intercept from surface, confirming Berezski East’s strong potential to host broad zones of high-grade mineralization. The presence of copper minerals such as bornite and chalcopyrite, alongside strong potassic alteration, suggests we may be on the edge of a larger porphyry system — a highly encouraging development.”

    Barry added that additional drilling is being planned at Berezski East, while one rig continues to operate at Berezski Central.

    The company’s exploration team noted that EL25019 intersected fine-grained diorites with pervasive potassic alteration, containing disseminated pyrite, bornite, and chalcopyrite. The hole also encountered multiple hematite-magnetite and K-feldspar-quartz vein zones associated with copper-gold mineralization.

    Arras has launched detailed magnetotelluric (MT) and gravity surveys to better define the geometry and scale of the mineralized system. Preliminary gravity data has identified a strong gravity low coinciding with known mineralization at Berezski Central, as well as a new low immediately northeast of EL25019 — supporting the interpretation that the hole may lie close to the core of a porphyry Cu-Au system.

    At the nearby Novii Target, located 4.4 km southwest of Berezski Central, Arras completed three drill holes totaling 1,000 meters. Early geological observations indicate massive sulphide zones and porphyry-style veins, with assays expected next month. The company has expanded its gravity and MT survey coverage to include this area.

    The Elemes Project, located near Ekibastuz in northeastern Kazakhstan, covers 531 km² and benefits from excellent infrastructure, including road, rail, and power access. Situated in the Bozshakol-Chingiz metallogenic belt, the project lies near KAZ Minerals’ Bozshakol copper mine and the Beskauga deposit, both major copper-gold systems.

    Arras is currently advancing a 20,000-meter Phase II drill program with two active rigs, supported by regional geophysical surveys to refine future drill targeting.