Kazakhstan and US Ink MOU on Critical Minerals Agreement

Kazakhstan has formalized a partnership with the United States by signing a memorandum of understanding (MOU) centered on critical minerals. This agreement aims to enhance collaboration in the vital sector of rare earth minerals.

Kazakhstan and US Agreement on Critical Minerals

The MOU was signed by Yersayin Nagaspayev, Kazakhstan’s Minister of Industry and Construction, and US Secretary of Commerce Howard Lutnick. The signing took place in Washington, D.C., during a meeting that featured Kazakhstan President Kassym-Jomart Tokayev, who had just arrived in the US.

Strategic Meeting Details

The signing followed a meeting that included Tokayev and key US government officials, such as Secretary of State Marco Rubio and Special Envoy for South and Central Asian Affairs Sergio Gor. Tokayev noted the “excellent opportunities” for enhancing the strategic partnership between Kazakhstan and the US through economic cooperation.

Significance of the MOU

This agreement reflects the US’s strategy to secure reliable sources of rare earth minerals. These efforts aim to counter China’s dominance in this crucial market. Kazakhstan, still largely unexplored, presents significant potential in this arena.

• Kazakhstan boasts promising reserves of rare earth minerals.
• The Kuyrektykol deposit is estimated to contain 800,000 tonnes of rare earth metals.
• If confirmed, Kazakhstan could rank among the world’s top 10 producers.

Official geological surveys reveal that Kazakhstan has over 980 solid mineral deposits. Since 2018, the country has granted 2,906 exploration licenses and 111 production licenses; however, only a small number of sites are actively undergoing exploration.

In recent years, Kazakhstan has emerged as an attractive destination for mining investments, drawing around $1 billion in private funding for the sector.

Tungsten Opportunities

In another development, reports indicate that discussions are ongoing regarding US access to two major tungsten deposits in Kazakhstan, valued at billions of dollars. Commerce Secretary Lutnick is reportedly facilitating negotiations between Cove Kaz Capital Group and Kazakhstan’s sovereign wealth fund.

• The new mines could produce supplies for 30 to 40 years.
• Kazakhstan is estimated to have over 2 million tonnes of tungsten reserves.

Currently, China dominates global tungsten concentrate production, accounting for about 80% of the market. As Kazakhstan strengthens its mineral resource collaborations, it could play a pivotal role in reshaping the global critical minerals landscape.