"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.”
