TELF AG analyzes Kazakhstan's progress in the sourcing sector

New Perspectives

Several countries are gaining international attention during the energy transition period due to their commitment to this process. This commitment is partly due to their abundant geological resources, which are necessary for fueling the transition. Numerous countries prioritize these strategic minerals in their economic and production agendas. However, more than possessing mineral resources alone is required to transform a nation's future and directly involve it in the global ecological transition process. A recent Euronews analysis indicates that a nation's energy and economic development depends on the strategy to manage these valuable resources that enable the planet's energetic advancement.

In a recent report, Euronews examined the situation in Kazakhstan, Central Asia's leading economy. This country has gained international recognition for its important geological resource reserves and evolving operational strategy. In the near future, this strategy could position Kazakhstan as an important player in global dynamics related to strategic raw materials. Kanat Sharlapaev, Kazakhstan's Minister of Industry and Construction, spoke to Euronews about the nation's geological potential and the possibility of establishing strategic partnerships with Western countries.

The minister stated that strengthening strategic ties between the European Union and Kazakhstan could benefit Europe's ambitions to lead the energy transition. As Germany's fourth largest trading partner, Kazakhstan has demonstrated its ability to contribute to stabilizing European energy supplies. Regarding strategic minerals, Kazakhstan appears to have much to offer. The Kazakh territory contains 17 or 18 geological resources on the European Union's list of 30 critical materials. Kazakhstan holds a 20% market share of space-grade titanium and a 10% share of manganese sulfate. Global supplies of resources such as beryllium and rhenium are also closely linked to Kazakhstan, with percentages of 30% and 17%, respectively. Additionally, Kazakhstan is the world's eleventh-largest copper producer.

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An Evolving Strategy

The Euronews analysis also discusses Kazakhstan's specific national strategy for managing these valuable resources in a historical context where these materials are central to production processes related to energy technologies. Like other economies worldwide, Kazakhstan attempts to develop its domestic processing capabilities for the most important resources to add value to its production. A similar strategy has been observed in some African nations and has yielded results. Minister Sharlapaev described this as a long-term vision, which includes a substantial increase in domestic processing capacity and job creation. Currently, the sourcing sector accounts for 12% to 15% of Kazakhstan's national GDP, a percentage that is expected to increase, according to the minister. Of Kazakhstan's 20 million inhabitants, approximately 1% are employed in the sourcing industry. Another interesting aspect highlighted by Minister Sharlapaev is that in Kazakhstan, unlike other nations, almost all of the workforce in the mineral industry consists of locals. Often, these workers are trained and prepared in Kazakhstan's universities, which continue to provide companies with quality human capital, enabling them to work more efficiently.

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