Critical mineral resources: the case of Kazakhstan under the global competition shift

Economic Annals-XXI: Volume 210, Issue (7-8), Pages: 15-28

Citation information
Issatayeva, F., Aubakirova, G., Togaybaeva, L., Shametova, A., Koshmaganbetova, Zh., & Biryukov, V. (2024). Critical mineral resources: the case of Kazakhstan under the global competition shift. Economic Annals-XXI, 211(9-10), 15-28. doi: https://doi.org/10.21003/ea.V211-03

Farida Issatayeva
PhD (Geology),
Associate Professor,
Abylkas Saginov Karaganda Technical University
106/4 Ermekov Str., Sq. 44, Karaganda,100009, Republic of Kazakhstan
isataeva.farida@gmail.com *
ORCID ID: https://orcid.org/0000-0001-6208-3292

Gulnara Aubakirova
D.Sc. (Economics),
Professor,
Abylkas Saginov Karaganda Technical University
11 N. Nazarbayev Ave., Apt. 10, Karaganda, 100008, Republic of Kazakhstan
rendykar@gmail.com *
ORCID ID: https://orcid.org/0000-0003-0337-1539

Lusia Togaybaeva
PhD (Economics),
Abylkas Saginov Karaganda Technical University
106/4 Ermekov Str., Sq. 44, Karaganda,100009, Republic of Kazakhstan
toglusia@mail.ru *
ORCID ID: https://orcid.org/0000-0002-4469-5022

Aigerim Shametova
PhD (Economics),
Associate Professor,
Abylkas Saginov Karaganda Technical University
17/2 N. Nazarbayev Ave., Apt. 1, Karaganda, 100008, Republic of Kazakhstan
ashametova.74@mail.ru *
ORCID ID: https://orcid.org /0000-0002-7200-1921

Zhanar Koshmaganbetova
MA (Economics and Business),
Senior Lecturer,
Abylkas Saginov Karaganda Technical University
17/2 N. Nazarbayev Ave., Apt. 1, Karaganda, 100008, Republic of Kazakhstan
zhanar_kosh@mail.ru *
ORCID ID: https://orcid.org/0000-0002-5433-1070

Valery Biryukov
D.Sc. (Economics),
Associate Professor,
Abylkas Saginov Karaganda Technical University
17/2 N. Nazarbayev Ave., Apt. 1, Karaganda, 100008, Republic of Kazakhstan
_valera@mail.ru *
ORCID ID: https://orcid.org/0000-0003-2712-8840

* Corresponding Author

Critical mineral resources: the case of Kazakhstan under the global competition shift

Abstract. This study presents the authors’ perspective on Kazakhstan’s position during the shift in global competition from hydrocarbon extraction to the race for critical mineral resources in the context of the global energy transition. Describing the response of Kazakhstan’s mining industry to this challenge, the authors offer developing countries a theoretical and practical framework for formulating a new strategy aimed at minimizing environmental impact and finding new ways to create the necessary conditions for the functioning of the rare earth metals industry. This strategy takes into account not only the prerequisites but also the restraining factors for its development against the backdrop of a changing geoeconomic landscape.

The study demonstrates that the growing importance of critical minerals to the global economy, coupled with limited access to them for many countries, could shift Kazakhstan’s position. There is an opportunity not only to conduct responsible exploration, extraction, and processing of critical minerals and to establish a full technological cycle to meet domestic demand, but also for the country to carve out a niche as a global player in the high-tech industry. Kazakhstan could integrate into international technological supply chains, thereby strengthening its strategic autonomy and enhancing its perception by the international community as a key region supplying critical minerals to the global market.

In a context where geopolitical factors, including regional conflicts, are increasing the importance of transcontinental routes and strategic raw materials, the authors’ proposals may be useful for countries with transitional economies in developing plans to diversify sources of critical mineral supplies. A promising area for future research is the study of the role of junior mining companies as new players in the resource extraction sector, as well as expanding their involvement in critical mineral supply chains to strengthen Kazakhstan’s strategic position within the new energy paradigm.

Keywords: Kazakhstan; Investments; Mining Sector; Mining Industry; Critical Minerals; Rare Earth Metals; Lithium; Mining Company; Global Economy; Transitional Economy; Supply Chain; Global Energy Transition

JEL Classifications: JEL: L71; L78; Q56

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V211-03

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Received 22.04.2024
Received in revised form 17.05.2024
Accepted 20.05.2024
Available online 25.10.2024