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12/12/2024
Mining News

UK and Kazakhstan strengthen ties with tungsten supply talks and critical minerals collaboration

Kazakhstan and the United Kingdom are negotiating agreements for the supply of tungsten, marking a significant step in deepening economic and resource development ties between the two nations. This collaboration builds on a 2023 memorandum of understanding focused on critical minerals and a roadmap signed earlier this year. A conference organized by the British Association of Critical Minerals on December 2 brought together over 300 industry representatives, diplomats, experts and officials, emphasizing the importance of the Kazakh-British partnership, which British officials now consider one of the most promising in the sector.

Strengthening cooperation

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Gavin Mudd, Director of the Critical Minerals Intelligence Center at the British Geological Survey, noted that the Kazakh-British efforts are already yielding positive outcomes. Since the signing of the memorandum, the British Embassy in Kazakhstan has facilitated business deals worth £5.4 million (US$6.9 million) and has contributed to the strengthening of business, political and educational ties. These efforts are expected to bring £100 million (US$126.8 million) in economic benefits to the UK over the next five years.

Part of this growing partnership includes a collaboration between the British Geological Survey and the Kazakh Geological Survey to digitize geological data. This effort aims to provide better insights for investment decisions and reduce risks for British companies. Additionally, Kazakh manufacturers have forged links with six British brokers and three major tungsten end-users, paving the way for continued negotiations on supply contracts.

Expanding the critical mineral list and addressing challenges

The British Information Center on Critically Important Minerals has recently expanded its list of critical minerals from 18 to 34, reflecting the increasing challenges of maintaining reliable global supply chains. Newly added minerals, such as aluminum, nickel, titanium and zinc, play crucial roles in technologies vital for national security and economic growth.

Gavin Mudd explained, “This assessment shows that the diversification of the UK economy and its increased reliance on global trade has made the country more vulnerable to disruptions in critical mineral supplies.”

Kazakhstan’s mineral wealth and processing ambitions

Kazakhstan is a key player in the global mineral market, with an estimated 9,000 deposits containing 103 types of minerals, including tungsten, vanadium, cobalt, lithium and molybdenum. The country ranks 11th globally in nickel reserves, with over two million tons.

Kazakhstan has become a critical supplier for various industries worldwide. Its titanium is used in aircraft fuselages, rhenium in jet engines and beryllium from the Ulba Metallurgical Plant is integral to satellite and nuclear energy applications. Furthermore, the country recently provided 5% of the global high-purity manganese sulfate market, a material essential for lithium-ion batteries. Kazakhstan plans to double its manganese sulfate production and start manufacturing nickel and cobalt cathode components.

Kazakhstan is committed to processing its mineral resources domestically, aiming to add value to raw materials and foster economic growth. While foreign companies retain the right to export, the country’s growing local production facilities provide opportunities for in-country processing, aligning with Kazakhstan’s long-term development goals.

Looking to the future

Kazakhstan is positioning itself as a reliable partner for the UK in the critical minerals space, with its rich resource base and expanding processing capabilities. By 2025-2026, new enterprises with foreign participation are expected to emerge, enabling deeper raw material processing and more value-added production.

For British companies, engaging actively and flexibly in these ventures will be key to strengthening ties and securing long-term benefits. The partnership between Kazakhstan and the UK represents a shared commitment to sustainable and mutually beneficial resource development, ensuring a reliable and resilient supply chain for critical minerals in the years to come.

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