Bektenov Pushes for Modernization as Rare Metals Lag Behind

Over seven years, Kazakhstan has allocated only 67 billion tenge for the production of rare and rare earth metals — nearly eight times less than the net profit of KazMunayGas for just six months, Orda.kz reports.

At a meeting chaired by Prime Minister Olzhas Bektenov, held as part of the president’s instructions, it became clear that since 2018, state funding for this strategically important sector has averaged just 9.5 billion tenge per year.

According to the Ministry of Industry and Construction, rare and rare earth metals account for only 2.4% of the country’s overall metallurgical structure.

Bektenov demanded modernization of existing enterprises, expansion of geological exploration, adoption of modern processing technologies, and development of scientific research.

The following figures were presented to show the current state of geological exploration:

• 25 sites with a total area of 100,000 square kilometers have been studied for rare earth deposits
  
• 38 promising sites were identified in 2024
  
• By 2026, the total area of geologically surveyed land should reach 2.2 million square kilometers

Currently, Kazakhstan produces beryllium, tantalum, niobium, scandium, titanium, rhenium, osmium, while simultaneously extracting bismuth, antimony, selenium, and tellurium. In addition, technologies exist for extracting gallium and indium. Promising areas of the industry are the production and recycling of battery materials, heat-resistant alloys, semiconductor materials, and the recycling of permanent magnets, the government noted.

To implement the president’s instructions, funds have already been allocated for the modernization of the rare metals workshop at RSE Jezkazganredmet. The government is also seeking foreign investors interested in Kazakhstan’s projects.

Bektenov specifically instructed to develop production of battery materials and their recycling, as well as heat-resistant nickel alloys. However, the government’s press release did not specify whether state funding will be increased.

For comparison, the expected investment in a single project by ERG related to gallium extraction is $20 million — more than 10.7 billion tenge at the current exchange rate.

Original Author: Nikita Drobny