TELF AG discusses the role of Kazakhstan (and its copper) in the global green transition
The strategic role of copper
Over the next few years, the global energy transition will require a huge amount of natural resources and raw materials, resulting in an inevitable increase in demand for certain minerals. One of these is undoubtedly copper, a raw material of essential use for the production of renewable energy (also for solar panels and offshore wind energy), for batteries and charging stations for electric vehicles, also for the creation of some important components for the computers and mobile phones we use every day. It is, therefore, no coincidence that the world’s attention is shifting more and more towards a nation like Kazakhstan, one of the few nations in the world that can boast some large copper deposits that are still completely unexplored.
The Central Asian nation is known worldwide for the abundance of its mineral resources – particularly coal, iron, copper, gold, lead, and zinc -attracting a large number of national and international investments in everything it has to what to see with extraction and processing operations. At the moment, Kazakhstan is the seventh largest producer of copper in the world (92% is exported) and can also boast an enormous amount of reserves that are still unexplored or only partially explored.
Demand for copper is inevitably destined to rise, which is precisely why many companies have set their sights on Kazakhstan’s unexplored deposits. For them, these resources could contribute decisively to satisfying the demand for refined copper, which is destined to rise from 21 million tons in 2021 to the 49 million tons expected for 2045 (according to a study by S&P Global). Some companies are already working to explore some of Kazakhstan’s largest copper deposits, such as the one located in the Rudny Altai mining district.
Over the years, the mines of this formidable district have produced copper of the highest quality, which has already attracted the attention of several global players in the mining sector. The fact that a large part of the mining belt is still unexplored and therefore, potentially rich in large quantities of copper and other equally useful resources certainly makes this particular Kazakh district an exceptional asset on which to focus to support the energy transition already underway.
Further particularly attractive factors for this district are represented by the low operating and drilling costs, as well as the concomitant presence of a good number of processing plants and logistical infrastructures in the immediately adjacent areas. Another sign of the renewed international interest in Kazakh deposits is represented by the project for the construction of a new copper concentrator in Kazakhstan, entrusted to the Finnish company Metso.
In Kazakhstan, some of the richest copper mines are located in Bozshakol and Aktogay, but also in Pavlodar. All of these are controlled by the KAZMinerals company, which also controls three underground mines and copper concentrators in the east of the country. In 2020, these mines produced approximately 281,000 tonnes of copper and will most likely remain operational until 2044. Kazakh mines are also capable of producing materials that are absolutely crucial for the ecological transition: among these, there are undoubtedly nickel and cobalt, which often represent by-products of copper extraction. Furthermore, most Kazakh mines are already working to reduce carbon emissions as much as possible during the various processes.
With its immense copper reserves, Kazakhstan is therefore destined to become an international point of reference for the extraction and processing of one of the most important raw materials for the completion of the energy and ecological transition, also thanks to the hidden potential of its numerous unexplored deposits. Kazakhstan’s copper rush has officially begun.
