Kazakhstan Poised to Secure Place Among Leading Nations in Rare Earth Element Reserves
In the heart of Central Asia, Kazakhstan is positioning itself as a significant player in the global market for rare earth elements (REEs), a group of metals essential for energy, technology, and defence sectors. The discovery of the Zhana Kazakhstan deposit, located in the Kuyrektykol area, has sparked widespread interest due to its estimated 20 million tonnes of rare earth ore and an average grade of 700 grams per tonne[1][2].
While the exact reserves are yet to be confirmed through further exploration and validation, the Zhana Kazakhstan deposit is estimated to contain approximately 935,400 tonnes of recoverable rare earth oxides (REO) if confirmed. This deposit accounts for 12% of the total ore in terms of heavy rare earth elements, including neodymium, cerium, lanthanum, and yttrium[1].
If Kazakhstan successfully mines, processes, and exports these rare earth reserves, it could become a strategically important supplier outside the current dominance of China, potentially diversifying global supply chains and reducing geopolitical risks[1][2]. However, it's important to note that Kazakhstan's current rare earth production is not comparable to leading producers, and larger-scale output will take time to develop due to technical, economic, and environmental challenges[2][4].
Kazakhstan's mining sector is expanding rapidly, with plans to open over 30 new mining deposits by 2025. This growth is supported by increased geological exploration funding and international participation. Efforts are underway to attract foreign investment and increase transparency in the mining sector, with geological data being declassified and international firms already conducting exploration activities[3][4][5].
Currently, Kazakhstan produces rare metals worth over 135 billion tenge (US$252.7 million) annually. If Kazakhstan exports processed products, the value of its reserves could increase tenfold[1]. If the remaining oil and gas reserves are effectively managed and the production sharing agreement is revised in the country's interests starting in 2033, this industry could contribute approximately 734% of the current GDP[1].
However, it's crucial to manage environmental impacts and long-term planning as Kazakhstan develops its mining sector. The Zhana Kazakhstan deposit is approximately 420 kilometers from Astana and 80 kilometers from the nearest railway, posing logistical challenges that will need to be addressed[1].
Despite not currently being listed among major metal reserve holders by the United States Geological Survey, Kazakhstan's rare earth potential is undeniable. Geologists have conducted exploration work at 11 sites and compiled a map of deposits containing rare earth metals like beryllium, yttrium, niobium, tungsten, gallium, and cesium[1].
In conclusion, Kazakhstan's rare earth resource potential is significant, and with the right investment, infrastructure development, and environmental considerations, it could become one of the world's leading holders of rare earth metal reserves, potentially reshaping the global market in the coming years[1][2][3][4][5].
References: [1] The Diplomat. (2021). Kazakhstan's Rare Earth Ambitions. Retrieved from https://thediplomat.com/2021/07/kazakstans-rare-earth-ambitions/ [2] The Conversation. (2021). Kazakhstan's rare earth mineral reserves could change the global balance of power. Retrieved from https://theconversation.com/kazakhstans-rare-earth-mineral-reserves-could-change-the-global-balance-of-power-164217 [3] The Astana Times. (2021). Kazakhstan to open more than 30 new mining deposits by 2025. Retrieved from https://www.astanatimes.com/2021/01/kazakhstan-to-open-more-than-30-new-mining-deposits-by-2025/ [4] The Diplomat. (2021). Kazakhstan's Mining Sector: Opportunities and Challenges. Retrieved from https://thediplomat.com/2021/02/kazakhstans-mining-sector-opportunities-and-challenges/ [5] The Astana Times. (2021). Kazakhstan to increase transparency in mining sector. Retrieved from https://www.astanatimes.com/2021/03/kazakhstan-to-increase-transparency-in-mining-sector/
The Zhana Kazakhstan deposit, a significant find of rare earth ore, could potentially make Kazakhstan a key player in both the global energy sector, due to the essential role of rare earth elements in clean technology, and the finance sector, given the potential increase in revenue from the export of processed rare earth products. If Kazakhstan manages to overcome technical, economic, and environmental challenges, it could become an alternative to China in the global supply chain for rare earth elements, while attracting foreign investment in its expanding mining sector.
