"Critical Matters: Reflections on Mining in Kazakhstan"
By: Assel Nussupova
Caspian Policy Center
7 April, 2025
Published: https://caspianpolicy.org/research/commentary/critical-matters-reflections-on-mining-in-kazakhstan
Wilder Alejandro Sánchez, President of Second Floor Strategies, a consulting firm in Washington, DC, provided three reasons behind Kazakhstan’s appeal as a location for mining investment. “Kazakhstan has many mining deposits. Moreover, the country already has a good international name in the mining industry due to the production of uranium. The country has a friendly investment climate aimed at attracting more investors, not scaring them away. The Kazakhstani government has created entities like the Astana International Financial Centre, with its arbitration center, and Kazakh Invest, to engage potential investors and industries. There are already many mining projects across Kazakhstan. However, the country is vast, and many deposits are yet to be found. So, mining companies know that Kazakhstan’s mineral deposits have not yet been exhausted.”
Wilder Alejandro Sánchez delineated some of the barriers facing foreign companies or investors wanting to get involved in mining in Kazakhstan. He pointed to three main challenges: “Kazakhstan continues to be regarded as a frontier market. There are concerns about corruption, embezzlement, and other bad financial practices. These are all issues that need to be addressed. Astana must continue to show the world that mining projects will be treated fairly and that the Kazakhstani government and that the nation’s private industries are reliable partners for international investors and companies. [Another factor is] distance: Kazakhstan is rich in minerals but far away from the global market due to its geographical location. Thus, the problem is not just getting the minerals out of the ground but processing them locally and transporting them (processed or raw) to the final destination. This is particularly problematic in the current era of geopolitical tensions. [There is also a] lack of knowledge about new mining deposits.”
