Kazakhstan should more actively develop deep metal processing within the country rather than exporting raw materials abroad. This was stated by economist Aidarkhan Kusainov on Arman Abdolla's YouTube channel, commenting on the state of the metallurgical industry, according to infohub.kz.
During the podcast, Abdolla noted that Kazakhstan ranks ninth in the world by territory and possesses significant mineral reserves. Nevertheless, substantial volumes of raw materials are still exported abroad.
As an example of a different model, he cited the oil industry. Kazakhstan has three large oil refineries, each producing about 6 million tons of petroleum products. Petrochemicals are also developing, including the production of polypropylene and polyethylene.
In metallurgy, according to the participants, the picture is different. After 35 years of independence, Kazakhstan continues to export significant volumes of raw materials, including copper concentrate.
Kusainov is convinced that the country would benefit more from investing in developing its own processing.
"Raw materials are being exported – that's a fact. There are millions of tons leaving, that's a fact. We could also become a metal powerhouse," the economist said.
According to him, the importance of metals in the world is growing, and they are turning into a geopolitical asset. Against the backdrop of global changes, it is becoming especially important for countries to have their own industrial base.
"These are difficult times. The world will segment, tear apart, divide, and we need normal long-term contracts, long-term prices, long-term tariffs of some kind," Kusainov noted.
At the same time, for individual companies, exporting raw materials may remain the simpler option. Such a model does not require building new processing plants or additional investments within Kazakhstan.
However, according to the economist, as a result, a significant part of the potential added value is created outside the country.
"Why should they bother building something, developing something, when they can just export it all? It turns out that values move to another country. Individual corporations benefit from these values, but countries as such lose," Kusainov said.
Developing deep processing, in his opinion, would allow keeping most of the created value within Kazakhstan. Beyond industry itself, this means creating jobs and additional contribution to the economy.
Earlier it was reported that German D.A.R. Metall AG will handle waste processing in Alatau: read here.