In his address to the nation, Kazakhstan’s President Kassym-Jomart Tokayev said the country must radically overhaul geological exploration and put its mineral resource base at the service of the economy. Among his instructions are the creation of a National Critical Metals Reserve Management System, a Fund for Non-Ferrous and Rare Earth Metals, and guaranteed demand for domestic producers through offtake contracts. The Government must submit proposals by the end of the year.
According to the president, a rich resource base remains the country’s strategic advantage, but searching for new deposits with old methods is pointless. Geology must be turned into a high-tech industry: a full-scale survey of the subsurface using advanced technologies must be carried out, and data must be made open and accessible. Private capital should be actively drawn into prospecting and exploration.
A separate block is devoted to critical metals, whose role is growing. Drawing on international experience, Kazakhstan is to create a national system for managing their reserves, with long-term financing mechanisms for mining and metallurgical projects. Experts also propose establishing a Fund for Non-Ferrous and Rare Earth Metals. The ultimate goal is the country’s integration into global production chains, and export policy must work toward the same end.
The Government is to build strategic partnerships with world leaders in these areas and, through offtake contracts, ensure guaranteed sales for domestic producers.
The president also warned about planning mistakes. New enterprises must not interfere with existing businesses. One example is the operating large metallurgical enterprise Qarmet, while similar plants are planned in three more regions with investor participation. There is no clear answer on whether their output will be in demand, and the benefit of such decisions is doubtful.
The bet is on turning geology from a catch-up industry into a driver of the economy. But without interagency coordination and a sober assessment of the market, even rich subsoil will not deliver returns. By the end of the year, the Government must present proposals that will show how seriously the country is prepared to restructure its mining sector.
Source: Akorda.kz
Image: Akorda.kz
