Kazakhstan has pulled in approximately $1 billion in private investments into its minerals sector over the past five years, according to a senior government official. Speaking at an international mining congress held this week in Astana, Margulan Baibatyrov, deputy chairman of the geology committee under the Ministry of Industry and Construction, detailed the current state and future outlook of the country’s mineral exploration efforts.
The announcement came during the third annual mining congress in the capital, which brought together officials and industry representatives from Kazakhstan and seven other countries: China, Hungary, Italy, Kyrgyz Republic, Russia, Tajikistan, and Uzbekistan. The gathering focused on investment potential and resource development across Central Asia.
Baibatyrov said that foreign and domestic private entities have poured a cumulative $1 billion into Kazakhstan’s minerals sector since 2018, with international companies contributing $80.6 million of that total into exploration alone. The sector has seen steady licensing activity during this time, with 2,906 exploration licenses and 111 production licenses issued. Despite this, only about a dozen sites are currently undergoing active exploration.
The country holds more than 980 known deposits of solid minerals, based on official geologic surveys. Baibatyrov said work began in 2022 to prospect 11 sites, and that exploration activities on those locations concluded earlier this year.
Kazakhstan sees itself as a potential key player in the rare earth elements market. Baibatyrov said the country has promising reserves of rare earth metals, and, if current forecasts are accurate, Kazakhstan could rise to become one of the ten largest producers globally. The discovery of the Kuyrektykol deposit is central to this outlook. The deposit is estimated to contain around 800,000 tonnes of rare earth metals. If the estimates hold, Kazakhstan would rank behind only China and Brazil in terms of rare earth reserves.
Baibatyrov said the geology committee considers the Kuyrektykol find a significant breakthrough, reinforcing the potential of Kazakhstan’s underexplored mineral regions. He added that the government remains focused on boosting exploration to uncover more deposits like Kuyrektykol.
The country’s leadership has also signaled its intentions to expand exploration activities. At a Foreign Investors Council meeting in October 2024, President Kassym-Jomart Tokayev emphasized the need to widen geological exploration, pointing out that only 1.6 million square kilometers of Kazakhstan’s territory have undergone geological surveying. The total area of Kazakhstan is over 2.7 million square kilometers.
Building on Tokayev’s remarks, Baibatyrov said the goal is to increase exploration coverage by 680,000 square kilometers by 2026, which would represent about one-third more than is currently being explored. This planned expansion is meant to improve knowledge of the country’s subsurface resources and support future mining development.
The congress in Astana serves as a platform for government and corporate leaders to coordinate plans and share insights into ongoing exploration and extraction projects. Baibatyrov and other officials used the event to underline the need for continued investment, clearer licensing processes, and stronger international partnerships.
While Kazakhstan’s resource wealth is well-known, much of it remains untapped. The country has traditionally exported base metals and hydrocarbons, but its reserves of rare earth elements — increasingly vital for global technology and energy industries — remain largely unexplored. Rare earth elements are used in a wide range of products, from electric vehicles to smartphones to renewable energy infrastructure.
The country’s mineral sector, however, has faced challenges. Despite the large number of licenses issued, the relatively low number of active exploration sites highlights possible barriers in the development pipeline. Regulatory, financial, and logistical hurdles could be limiting more widespread exploration efforts, though officials did not elaborate on specific causes.
As the global demand for rare earths and other critical minerals continues to grow, Kazakhstan’s strategy now seems focused on positioning itself as a stable and attractive destination for mineral exploration and production. Whether the country can meet its goal to significantly expand exploration by 2026 — and whether estimates such as those for Kuyrektykol prove accurate — will likely shape the country’s future standing in the global mining sector. The congress ended with calls for greater cooperation between governments and mining firms, particularly in areas like data sharing, resource mapping, and technology transfer. Participants also discussed the role of regional infrastructure, legal frameworks, and environmental regulations in facilitating new projects.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
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