Kazakhstan seeks $20 billion for mining and metals sector: World Bank's role

BAKU, Azerbaijan, October 19. Kazakhstan has become the first country in Central Asia to join the World Bank Group's global Metals and Minerals Compact initiative. The Compact's strategy, developed by Kazakhstan's Ministry of Industry and Construction and the Agency for Strategic Planning and Reforms in cooperation with the World Bank, aims to help mobilize around $20 billion in investment by 2031. Achieving this target will depend on preparing specific projects, creating favorable conditions for investors, and developing the necessary infrastructure.

The scale of the task reflects the importance of the mining and metals sector to Kazakhstan's economy. Mining remains the largest single block of Kazakhstan’s industry. According to the Bureau of National Statistics, industrial output in January–September 2026 totaled 51.9 trillion tenge (about $109.3 billion). Mining and quarrying, which in official statistics includes oil and gas, accounted for 24.4 trillion tenge ($51.3 billion), or 46.9%

The mining sector's substantial share of industrial output reflects its role in Kazakhstan's economy. However, the economic returns from mineral resources depend not only on extraction volumes but also on how much raw material is processed domestically and how much value this processing generates. Ore beneficiation, deeper processing, and the production of higher-value-added goods can help develop new manufacturing activities, create demand for equipment, engineering and transport services, and expand opportunities for local suppliers.

Developing domestic processing requires not only investment but also favorable conditions for implementing projects. Industrial facilities need reliable energy supplies, transport infrastructure, modern technologies, and skilled workers. Reliable geological data, transparent licensing procedures, and predictable regulation are equally important. When information about mineral reserves is insufficient, investors find it more difficult to assess the prospects of deposits. Uncertainty over the rules governing operations can also increase risks and extend project timelines.

Cooperation with the World Bank could help Kazakhstan identify the necessary reforms, improve conditions for investors, and prepare projects to attract capital. However, the outcome will depend on the extent to which the proposed measures translate into concrete regulatory changes and better conditions for implementing investment projects.

The development of critical mineral processing is also being pursued through individual investment projects in Kazakhstan. One example is a tungsten processing plant project worth more than $1.1 billion involving US-based Cove Capital in the Karaganda region. It illustrates interest in establishing facilities focused on processing mineral raw materials. However, the actual economic impact will depend on the project's implementation, its production capacity, and its ability to manufacture competitive products.

At the same time, expanding extraction and processing entails environmental and social risks. Industrial facilities may consume significant amounts of water and electricity, place additional pressure on the environment, and affect local communities. Environmental and social requirements therefore need to be taken into account at the project preparation stage. This is important not only for sustainable development but also for assessing risks that could affect implementation timelines and financing terms.

The effectiveness of the World's Bank Metals and Minerals Compact should be assessed by the volume of investment actually mobilized, the launch of new processing facilities, and an increase in the share of higher-value-added products in exports. The creation of skilled jobs and the development of local supply chains are equally important.

Ultimately, the success of the partnership will depend not only on whether Kazakhstan manages to attract the targeted $20 billion by 2031, but also on whether this investment leads to new production facilities, expanded processing capacity, and a higher share of value-added products in exports. These outcomes will show whether the country can generate greater economic returns from its mineral resources and strengthen its position in international production chains.