Kazakhstan could become one of the world's leading holders of rare earth metal reserves.
Until recently, it was considered that the country’s state-owned reserves mostly consisted of non-critical metals, including tungsten (2.4 million tons), molybdenum (one million tons), lithium (226,900 tons), tantalum (4,600 tons), niobium (27,200 tons), beryllium (117,500 tons), cobalt (55,000 tons) and nickel (841,000 tons), The Caspian Post reports citing The Astana Times.
Since 2022, geological exploration has intensified. Geologists have conducted exploration work at 11 sites and compiled a map of deposits containing rare earth metals, such as beryllium, yttrium, niobium, tungsten, gallium, and cesium.
Particular attention has been drawn to the Kuirektykol area in the Karagandy Region. A deposit there, now known as Zhana (New) Kazakhstan, could contain up to 935,400 tons of metals. It is predicted that the actual reserves may reach one million tons.
If confirmed, Kazakhstan would become the third-largest holder of rare earth reserves in the world.
Located approximately 420 kilometers from Astana and 80 kilometers from the nearest railway, the Zhana Kazakhstan deposit is believed to contain a high proportion of heavy rare earth elements, including neodymium, cerium, lanthanum, and yttrium, which account for 12% of the total ore. With an average composition of 700 grams of rare metals per ton, the deposit could yield about 14,000 tons of rare earth elements out of 20 million tons of ore.
The demand for rare earth metals is growing faster than that for oil and gas. Yet Kazakhstan is not currently listed by the United States (U.S.) Geological Survey among major metal reserve holders. If its reserves are confirmed, that could soon change.
In 2023, China led the world in rare earth production, with 240,000 tons, followed by the U.S. at 43,000 tons. However, even the U.S. sends over 90% of its mined rare earths to China for processing, due to a lack of domestic refining capacity. China currently controls 85% of global rare earth metal processing and over 90% of permanent magnet production.
If Kazakhstan exports not raw ore but processed products, the value of its reserves could increase tenfold, experts say. Under this scenario, the sector could contribute up to 7.1% of national GDP, almost equal to the 7.3% attributed to oil and gas reserves.
Currently, Kazakhstan produces rare metals worth over 135 billion tenge (US$252.7 million) annually. However, the share of processing remains low, just 0.6% of total industrial output and 1.5% of metallurgical production, reflecting a continued reliance on imported raw materials.
If the remaining oil and gas reserves are effectively managed and, starting in 2033, the production sharing agreement (PSA) is revised in the country’s interests, this industry could contribute approximately 734% of the current GDP.
