Key Minerals: Long-term U.S. Investment in Central Asia

The highlight of the Washington Summit was the announcement of a $1.1 billion giant tungsten mine project in Kazakhstan, with the U.S. holding 70% of the shares and promising to provide $900 million in financing through the U.S. Export-Import Bank. Once operational, the mine will become the world's largest producer of tungsten, which is critical for aerospace and defense manufacturing. The project reflects Washington's new policy of building strategic mineral supply chain independence through public-private partnerships rather than direct state loans. Kazakh President Tokayev called the "C5+1" (Central Asian Five + U.S.) summit agreement a "proof of the growing trust and mutually beneficial opportunities in our partnership."

In Washington, a series of similar uranium, copper, lithium, and rare earth development plans were also reached in the region, aiming to reduce reliance on Beijing-dominated supply chains and ensure access to key raw materials needed for semiconductors, weapon systems, and artificial intelligence applications. Coincidentally, the U.S. government has added ten new materials, including copper, to its list of critical minerals and explicitly pointed out the supply potential of Central Asia.

However, these initiatives are not purely for resource extraction. In Central Asia, building a more advanced mining industry can enhance supply chain resilience, significantly increase the value of ore, and reduce dependence on a single Chinese market. Technology transfer by the U.S. to local processing plants and integration into the global capital market will help the region achieve long-term economic stability.

The Washington Summit and Deputy Secretary of State Randy's remarks on economic cooperation once again reflect the view that U.S. foreign policy centers on economic collaboration, leading to several important agreements. Boeing once again became the region's main U.S. commercial aircraft supplier, securing an order for up to 37 planes worth over $9 billion. In the financial sector, Citigroup raised $40 billion for Kazakhstan and arranged Eurobond issuances for Kyrgyzstan and Tajikistan, as well as helped Uzbekistan improve its credit rating. The Freedom Holding Group, based in Kazakhstan and listed on NASDAQ, is expanding cooperation with U.S. fintech and data center companies. Chevron emphasized its $4.8 billion investment plan. The expansion of the Tengiz oil field is seen as a strong testament to the 30-year reliable partnership between the two sides. These projects collectively demonstrate the large-scale industrial cooperation potential beyond resource extraction, which is expected to become the next pillar of bilateral relations.

Ironically, the great success of the Washington Summit largely depended on bilateral contacts, reflecting the practices of China and Russia exerting influence within regional frameworks. Although the U.S. initially established the "Central Asian Five Plus One" mechanism to promote regional coordination, the model of the 2025 Washington Summit was for each of the five country presidents to sign memorandums with the Trump administration separately. To a large extent, this adjusted approach responded to Central Asia's concerns about U.S. neglect of the region by conducting collective consultations with the leaders of the five countries while striving to meet each leader individually and reach agreements.

The transaction-oriented nature of the Washington Summit is reflected in highly personalized relationships around key minerals, technology, aviation, and trade facilitation. However, this mode of cooperation undoubtedly brings many advantages to Central Asia: access to the U.S. capital market, cooperation in the field of advanced technology, and the prospect of integrating regional supply chains with Western markets. The combination of bilateral and regional cooperation highlights the U.S.'s long-term interests in Central Asia, which aligns with the U.S. commitment to promoting peace and connectivity in the South Caucasus along the Caspian Sea.

The significance of the Tashkent Summit goes far beyond the formal recognition of existing trans-Caspian connectivity. The C6 (Central Asian Five + U.S. + Azerbaijan) initiative is indirectly based on the U.S. C5+1 initiative, as Central Asian countries and Azerbaijan are working to promote connectivity, which will help advance the TRIPP Corridor (Middle Corridor) and link the two U.S. initiatives. Additional rail and energy corridors crossing the South Caucasus region and connecting Turkey and the Mediterranean hold immense economic and diplomatic potential.

Accelerating the alignment of these two U.S. initiatives is likely to produce a multiplier effect, encouraging more investments in the entire corridor. International economists predict that the regional GDP, currently at $500 billion, will maintain a 5% annual growth rate in 2025 and beyond, driven by growth in investment, trade, and energy exports. If this growth momentum continues, the entire trans-Caspian region is expected to become one of the most dynamic emerging regions in the next decade.

Source: National Interest

Author: Eric Ridenour

Original: www.toutiao.com/article/1849561074957324/

Statement: This article represents the views of the author alone.