TELF AG analyzes some recent developments in Kazakhstan’s mineral industry
Strategic resources
Over the past few decades, Kazakhstan had the opportunity to stand out on the global stage for its great geological wealth, demonstrating that it can confidently enter the major international players in the raw materials industry. Among the many resources that make up Kazakhstan’s geological wealth are some materials directly connected to the energy transition, such as copper. This latter material, in addition to its use in electrification, is also making a great contribution to the electronics and construction industries. Large quantities of iron, coal, and manganese can also be found in Kazakhstan, a group of resources that contributes to the country’s industry developments. Reasonable amounts of gold and bauxite have also been found in Central Asian countries, particularly important for aluminum production.
But Kazakhstan, in the not-too-distant future, could also carve out a role of great importance in producing an important strategic material, graphite. In the Karagandy region, there is a large Sarytogan graphite deposit, which, according to some estimates, could contain as many as 229 million tons of this precious resource. Deposits like this have inevitably attracted the attention of international players and institutions, which, over the last few years, have continued to establish important strategic partnerships with Kazakhstan focused precisely on geological resources. One of these is undoubtedly the European Union, which has had a cooperative relationship in geological matters with the Central Asian nation for many years and which recently also gave rise to a memorandum of understanding based precisely on resources connected to the green transition (but also on batteries and hydrogen). The Sarytogan deposit has already obtained concrete support from important European institutions. This backing will support the exploration and development of this important deposit (a pre-feasibility study should be finalized by September). As stated in a recent analysis, this deposit would have all the credentials to become an important source of high-quality graphite, mainly intended for the battery market.
The applications of graphite
It is no coincidence that the European Union has included graphite in the list of raw materials considered “critical.” This resource, generally found in metamorphic rocks such as marble or schist, has various properties that make it a valid ally for various industrial uses. Its best-known application is its role in producing lithium batteries for electric vehicles, but the potential of this material certainly does not end there. Graphite plays a leading role in high-tech industries and the metallurgical sector, where it continues to be considered an element of great importance for the completion of production processes.
To date, China remains the world’s largest producer of this resource (approximately 77% of the global production of this material is attributed to Beijing, according to data from the US Geological Survey). According to estimates by Benchmark Mineral Intelligence, the demand for graphite is continuously increasing since 2019, consumption of this resource has grown by 200%. With its geological wealth, as stated in the analysis, Kazakhstan would, therefore, have the opportunity to become a leading player in the global graphite sector, with the potential to advantageously insert itself into global supply chains of strategic raw materials.
