In the global race for natural resources, Kazakhstan is committed to positioning itself as a reliable supplier of critical minerals. Although this resource-rich Central Asian country is expected to soon become the third-largest holder of rare earth reserves in the world, Astana is signaling that it is more than just a raw material supplier.

Decades of collaboration with major international energy giants have shaped the country's overall economic growth. Its per capita GDP (14,770 dollars, leading far ahead in the Central Asian region) is expected to exceed Russia's 14,260 dollars and China's 13,690 dollars. But from Kazakhstan's perspective, things could be even better. Astana is currently seeking to revise contracts with Western oil companies, especially in oil exploration.

It has been reported that 98% of the revenues from the Kashagan field - a large offshore field in the Caspian Sea and also Kazakhstan's most valuable discovery in the past fifty years - are shared among British Shell, Italian Eni, and French Total Energies. Therefore, it is no surprise that this Central Asian country aims to secure a more favorable position in these arrangements.

Another challenge facing Kazakhstan is its export product structure. Currently, Europe mainly imports oil from Kazakhstan, with 80% transported via Russia. Astana is actively working to diversify its exports and increase crude oil shipments through the Baku-Tbilisi-Ceyhan pipeline.

At the same time, Astana expects to continue efforts to achieve another ambitious goal: to reach 15% of electricity generation from renewable sources by 2030, and 50% by 2050. This is part of the country's strategy to become an important exporter of green electricity to Europe.

Meanwhile, Kazakhstan plans to attract new investors into its energy sector. It seeks to develop nuclear energy cooperation with Japan and plans to establish a joint gas project with Indonesia. In addition, it is expected that by the end of 2026, Kazakhstan and Jordan will begin developing uranium mines in this Middle Eastern country. If the results prove economically viable, a joint venture will be established, with Kazatomprom, the national atomic energy company of Kazakhstan, holding 70% of the shares, and Jumco, the national uranium company of Jordan, holding 30% of the shares.

This move shows that Astana is not only focused on developing its own natural resources but also seeking to expand its energy interests abroad. It is well known that despite being the world's largest uranium producer, Kazakhstan is interested in uranium and rare earth metal mining and processing in Tajikistan. Tajikistan is an inland Central Asian country that seems eager to strengthen its ties with its neighbor, the region's largest economy.

In fact, an increasing number of countries are eager to trade with Kazakhstan and establish closer economic and political ties with this resource-rich nation. The policymakers in Kazakhstan are fully aware of this and have decided to invite experts from various countries to discuss geopolitical, economic, and strategic issues at the upcoming Astana Think Tank Forum. The forum will take place on October 15th and 16th, aiming to provide a platform for open and constructive policy dialogue in a divided world.

For years, Kazakhstan has pursued a balanced multilateralism on the international stage, balancing relations with all major participants in Central Asia: Russia, China, the United States, and the European Union. The fact that Rosatom, the Russian state atomic energy company, and China National Nuclear Corporation plan to build nuclear power plants in Kazakhstan, the largest country in the region, clearly indicates that Astana intends to extend its "multi-vector" strategy to the energy sector.

To achieve diversification of its export portfolio, Kazakhstan is actively cooperating with China to develop its energy and mining industries. At the same time, Kazakhstan is also seeking to strengthen its ties with American investment company Cove Capital, which is interested in geological exploration in this former Soviet republic.

It has been reported that in the first three months of this year, Kazakh authorities discovered 38 new mineral deposits, including gold, rare earth metals, copper, nickel, and lignite. As Joseph Sikera, the EU Commissioner for International Partnerships, emphasized in March, access to critical raw materials is crucial for the EU to achieve economic modernization.

On the other hand, Kazakhstan plans to modernize existing production facilities and infrastructure, expand geological exploration, introduce modern processing technologies, and strengthen its research base. To achieve this goal, Astana plans to involve international partners in exploration and processing projects, aiming to obtain advanced technologies, state-of-the-art equipment, and profitable markets.

The country has abundant critical mineral resources, including zinc, copper, lead, and nickel. However, despite the growing global demand for these resources, the ease and cost of extraction will still depend on factors such as depth, grade, availability and accessibility of water resources. Kazakhstan is aware of the huge potential of its mineral resources, which can help accelerate the global energy transition and bring tangible benefits to its people.

That is why this Central Asian country - whose production of rare metals exceeds 252.7 million dollars annually - is investing in advanced mining technologies, infrastructure development, and diversified international cooperation.

Source: The National Interest

Author: Nikola Mikošić

Date: September 6

Original: https://www.toutiao.com/article/7548058176747225651/

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