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Kazakhstan is shifting its economic focus from exporting raw materials to enhancing domestic processing of valuable metals such as copper and aluminum. This strategic pivot aims to create added value within the country and foster economic diversification.

Boosting Domestic Metal Processing

The government has outlined ambitious plans to significantly increase the domestic processing of metallurgical raw materials. This initiative involves launching large-scale projects specifically designed for deeper processing of metals like copper and aluminum. The goal is to reduce the export of unprocessed raw materials and boost the value generated within Kazakhstan, leading to the creation of new employment opportunities.

In response to parliamentary inquiries, the government confirmed its commitment to this strategy. The focus will be on increasing the volume of processing within Kazakhstan, supported by state-provided financial assistance, leasing options, industrial grants, and joint financing of projects. This approach aims to incentivize businesses to invest in advanced manufacturing capabilities.

Financial Support for Industry

Since 2022, the "Baiterek" holding has channeled 539 billion tenge into 118 projects within the processing industry. When factoring in co-financing, the total investment volume reaches approximately 748.8 billion tenge. Looking ahead, an additional 329 billion tenge has been allocated in the 2026 budget to further support these industrial development goals.

Securing Raw Material Supply and Regulating Exports

To ensure domestic manufacturers have a stable supply of raw materials, the government is facilitating agreements between raw material producers and processors. Furthermore, export licensing for raw materials will be introduced, taking into account the needs of the domestic market. This measure is intended to prioritize local demand before allowing exports.

Currently, applications from approximately 30 enterprises involved with copper, aluminum, zinc, and lead are under review. Notable companies include LLP "KazKhat Plant," LLP "Alageum Cable Product," LLP "Kazakhstan Aluminum," and LLP "Alutech," among others.

The demand for metals from processing enterprises is on the rise. Copper requirements are projected to increase from 13,000 tons in 2024 to 20,400 tons by 2026. The demand for aluminum shows an even more significant growth trajectory, expected to rise from 54,100 tons to 77,700 tons. For zinc, the demand is anticipated to grow from 725 tons to approximately 2,700-3,000 tons.

Establishing New Industrial Clusters

A key aspect of the government's plan involves the creation of new industrial clusters. Following a model similar to Qarmet, the authorities intend to establish a metallurgical cluster through "Mineral Product International" LLP. The initial phase of this project will see the launch of a ferroalloy plant in the "Ekibastuz" industrial zone.

This project will leverage Kazakhstan's raw material resources and the region's affordable energy. The long-term vision extends beyond mere production and initial processing, with plans for further development into steel product manufacturing.

An aluminum cluster is slated for development in the Kostanay and Pavlodar regions, involving companies such as "Kazakhstan Westerfield Mining," "Kazakhstan Jingyum Aluminium Industries Limited," and "Kazakhstan Jinjiang Co." The government anticipates these projects will boost alumina and primary aluminum production, create jobs, expand export potential, and crucially, retain more processing activities within the country.