Strategic Measures by Central Asian Nations to Advance Critical Mineral Development

In response to the intensifying “New Great Game” over critical minerals, Central Asian nations have shifted from passive resource providers to proactive strategic players. While their approaches vary based on resource endowment and institutional frameworks, their collective actions center on four key pillars:

I. Accelerating Exploration and Scaling Up Production (The Upstream)

To unlock latent resource potential, regional governments are prioritizing geological exploration as the foundation of supply chain security.

• Policy & Fiscal Support: * Kazakhstan: Defined rare earths as the “New Oil.” Through the National Geological Exploration Plan (2021–2025), it aims to attract 100 billion Tenge in investment and expand the physical exploration area from 1.5 million to 2.2 million km² by 2026.

  • Uzbekistan: Under the Uzbekistan-2030 Strategy, it has set rare earth extraction as a top government priority, aiming for integrated exploration and industrialization.

  • Tajikistan: Implementing the National State Program for Geological Development (2021–2030) with a specific focus on high-impact breakthroughs in lithium and other rare metals.

• Diversification of Investment:

  • Kazakhstan offers a three-year tax holiday for new investors and has halved project approval times through digitalization.

  • Uzbekistan’s new Law on Subsoil (effective Feb 2025) introduced a “Single Window” principle and allows for the transfer/mortgaging of subsoil use rights to increase liquidity and attractiveness.

  • Kyrgyzstan lifted its 2020 ban on uranium and thorium exploration in June 2024 to revitalize its mining sector.

II. Strategic Planning for Industrial Upgrading (Value Chain Ascension)

Countries are moving beyond the “resource curse” by mandating local processing and technological integration to produce high-value-added products.

• Vertical Integration: * Kazakhstan: The Comprehensive Development Plan for Rare and Rare Earth Metals (2024–2028) focuses on four sectors: battery metals, refractory metals, permanent magnets, and semiconductors. The goal is a full-chain leap from raw extraction to high-end manufacturing.

  • Uzbekistan: Launched a $500 million rare earth project in 2024 and a $2.6 billion three-year investment plan in 2025 to establish technology centers in Tashkent and Samarkand for localized expertise.

• International Alignment: * Kazakhstan became the first in the region to join CRIRSCO (2016), aligning its reserve reporting with global standards.

  • Both Kazakhstan and Kyrgyzstan are active participants in the Extractive Industries Transparency Initiative (EITI) to foster a transparent investment climate.

III. Legal Reforms to Safeguard Resource Sovereignty

Central Asian states are adopting a “rational resource nationalism,” using legal levers to ensure national interests and environmental sustainability.

• State Control & Ownership:

  • Statutory Priority: Kazakhstan’s 2017 Code on Subsoil grants the state right of first refusal to purchase critical minerals at or below market prices.

  • State-Led Development: Kyrgyzstan has barred foreign capital from lithium mining, opting for a 100% state-owned development model for strategic deposits like those in the Issyk-Kul region.

  • Export Controls: Tajikistan now requires a “Triple Certification” (Chemical analysis, Provenance, and Production qualification) for all strategic metal exports.

• Localization Requirements (Local Content):

  • Mining firms in Kazakhstan must allocate 1% of annual expenditures to local R&D and personnel training.

  • Uzbekistan mandates that at least 80% of staff must be local citizens and sets a 50% minimum localization rate for the procurement of goods and services.

• Environmental Governance:

  • Kazakhstan’s 2021 Environmental Code introduced Best Available Techniques (BAT) standards and a “polluter pays” market mechanism. Uzbekistan similarly embedded mandatory environmental impact assessments into its 2024 mineral laws.

IV. Infrastructure & Connectivity (The Strategic Pivot)

Geopolitics has transformed Central Asia from a mere “energy corridor” into a “strategic resource hub” connecting East and West.

• The Middle Corridor (TITR): The Trans-Caspian International Transport Route (linking China to Europe via Kazakhstan and the Caucasus) saw an 88% surge in cargo volume in 2023. This route is now a core component of U.S. and EU supply chain diversification.

• North-South Connectivity:

  • The International North-South Transport Corridor (INSTC) offers a strategic alternative to maritime routes, potentially cutting delivery times by 10%–50%.

  • The 2024 “Roadmap” signed by Russia, Kazakhstan, Iran, and Turkmenistan focuses on upgrading the Eastern branch of this corridor.

• Regional Integration: Projects like the China-Kyrgyzstan-Uzbekistan (CKU) Railway and the 2023 Agreement on Strengthening Land Transport Connectivity are institutionalizing regional logistics to facilitate mineral exports.