Kazakhstan’s mineral sector is undergoing a profound transformation, characterised by the government’s large-scale initiatives to drive economic growth and diversification, as well as the implementation of progressive approaches to geological research, the development of high-value-added productions, and reducing environmental impact.

Kazakhstan remains significantly underexplored in terms of geological surveys. Over the past 30 years, there has been virtually no greenfield exploration. The extensive geological data collected before the country’s independence are either incomplete or outdated. The scarcity of investment in geological exploration has severely hindered the development of the mining sector, resulting in only a few new projects being implemented, primarily limited to open-pit copper and gold operations. This has led to a substantial gap between the production levels of most minerals and the expansion of their resource base.

The government aims to achieve economic diversification by enhancing the competitiveness of the mining sector, through the discovery of new mineral resources, the production of higher value-added products, improved technology, and greater environmental protection. To address these challenges, the Government of Kazakhstan has launched a range of initiatives aimed at improving the investment climate, streamlining legislation, and promoting the use of cutting-edge technologies, including artificial intelligence and aero-geophysical surveys.

The government is actively seeking joint ventures with foreign companies to exploit untapped mineral resources, with a focus on rare earth and other “clean energy” metals and minerals. A key priority is to increase the scale of geological exploration, with the government aiming to expand its research coverage from 1.5 million to 2.2 million square kilometres by 2026. There are also plans to shift from a 200,000-scale to a 500,000-scale map. This will help uncover hidden and complex geological formations, potentially boosting the country’s mineral resource base. These initiatives are supported by advancements in digitalisation and the adoption of artificial intelligence to improve data processing, making the industry more competitive and transparent.

Recent agreements, such as the offtake contracts and signed long-term agreements, highlight the country’s commitment to fostering collaboration between domestic producers and international industry leaders. Additionally, tax exemptions for new projects in the mineral extraction sector aim to stimulate investment and innovation.

Kazakhstan’s Ministry of Industry and Construction is proposing to replace the existing Mineral Extraction Tax with a royalty system. The shift is expected to offer clearer regulatory guidance and incentivise processing minerals within Kazakhstan by applying lower taxes to domestically processed minerals. The changes are set to affect licences issued from 1 January 2026.

The Kazakhstani Parliament is discussing a new Tax Code with key amendments:

Exploration: Deductions will be allowed for both successful and unsuccessful exploration expenses, boosting investment in this area.

Mineral extraction tax (MET): MET for metals from technogenic mineral formations will be reduced by 90%.

Mineral processing: Tax incentives will be introduced for processing agreements.

Royalty tax: A new royalty model may be introduced, but only for new entrants to the industry.

Kazakhstan is committed to adopting the OECD environmental standards, with a strong emphasis on cleantech and the decarbonisation of mining operations. The Environmental Code, adopted in 2021, encourages the replacement of old technologies with more environmentally friendly ones, presenting opportunities for companies offering cutting-edge cleantech solutions.