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A substantial $240 million loan has been secured from the U.S. Export-Import Bank for a major project aimed at developing Kazakhstan's rich mineral resources. The funding has been allocated to QazMoly Limited for the development of the Drozhilovskoye deposit, which holds significant reserves of tungsten, beryllium, and molybdenum.

This strategic initiative is poised to strengthen Kazakhstan's position in the global raw materials market and foster economic ties with the United States. The Drozhilovskoye deposit is known for its considerable deposits of minerals crucial for various industrial applications.

Global Demand for Essential Minerals

According to QazMoly Limited, this loan will cover a significant portion of the project's capital expenditures. The development of the deposit is expected to be cost-effective, with the produced materials anticipated to be in high demand on the international market.

Tungsten, in particular, is experiencing rising demand due to its widespread use in manufacturing, mechanical engineering, aerospace, and defense sectors. Projections indicate that global demand for tungsten could grow by 8% annually, reaching $10 billion by the mid-2030s.

Fosbury Capital to Handle Exclusive Offtake

Fosbury Capital has secured an exclusive agreement to purchase the tungsten produced. This company specializes in trading essential minerals and other valuable metals. The U.S. Export-Import Bank conducted a comprehensive legal and commercial review of this Kazakhstani project.

Aidar Assaubayev, Chairman of QazMoly, expressed gratitude for the U.S. bank's support, highlighting that the project will create new jobs and reinforce the global supply chain for critical minerals.

Unique Features of the Drozhilovskoye Deposit

Spanning 5.86 square kilometers, the Drozhilovskoye deposit is rich in tungsten-molybdenum ores. Previously, the exploration and extraction rights for these ores belonged to Qaz Mining Company. The project aims to extract 11 million tons of ore annually.

QazMoly's financial reports indicate that the mineral reserves of tungsten trioxide at the Drozhilovskoye deposit amount to 126.4 thousand tons. The company has also conducted geological exploration at the Smirnovskoye molybdenum deposit in the Kostanay region.

Altyn Group Qazaqstan's Plans

Separately, Altyn Group Qazaqstan plans to modernize a processing plant in the Abai region. Post-modernization, the facility will be capable of extracting gold not only from commodity ore but also from tailings located within the former Semipalatinsk nuclear test site. This project is slated for completion in 2025.

Furthermore, the company intends to commence gold extraction from the Utkyn Karashoky deposit in the Abai region and produce gold-silver ores from the Maikalykara deposit in the Pavlodar region. Both these deposits are also situated within the former Semipalatinsk nuclear test site.

Altyn Group Qazaqstan acquired the rights to explore and extract precious and non-ferrous metals in the Naimanzhaly area, spanning Pavlodar, Karaganda, and East Kazakhstan regions, in 1999. Both deposits in this area belong to this region.

Earlier reports indicated that Prime Minister Olzhas Bektenov signed a decree granting Altyn Group Qazaqstan temporary use of 71.37 hectares of land within the former Semipalatinsk nuclear test site until 2028. This plot will be utilized for the development of the Utkyn Karashoky deposit.

The sole participant of Altyn Group Qazaqstan is the British company A Gold Plc, managed by Yerly Syrbay. The company's activities include the extraction of precious and rare earth metal ores.

A Gold Plc is controlled by the Assaubayev family, who have familial ties to Kazakhstan's first president, Nursultan Nazarbayev. Lyazzat Assaubayeva, wife of Aidar Assaubayev, is the niece of Sara Nazarbayeva, the former First Lady. The board of directors for the British company includes Aidar Assaubayev, Kanat Assaubayev, Sanzhar Assaubayev, Mariam Buribayeva, Vladimir Shkolnik, Ashar Qureshi, and Andrew Charles Terry.

Previously, it was reported that the American company REalloys (in the process of merging with Blackboxstocks Inc., traded on NASDAQ under the ticker BLBX) signed long-term cooperation agreements with AltynGroup Kazakhstan for the production of rare earth elements. Specifically, rare metals produced in Kazakhstan will be processed in North America. The agreements include a 10-year repayment term and AltynGroup's commitment to attract investment capital. REalloys stated that these funds would be used to expand the U.S. company's position in metal processing and alloying.

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