Kazakhstan’s Tau-Ken Samruk to mine new rare earth deposit
Tau-Ken Samruk, Kazakhstan’s national mining company and a subsidiary of sovereign wealth fund Samruk-Kazyna, may start developing the Kuirektykol rare earth metal deposit in the Karaganda region, according to a statement published on the Primeminister.kz website. The deposit was discovered in 2024, and the government has tasked officials with evaluating its development potential.
«As part of the objectives set at the cabinet meeting on Dec. 3, 2024, regarding state-owned companies’ involvement in natural resource exploration, cooperation with the national mining company Tau-Ken Samruk has been strengthened… Under this arrangement, pilot projects are underway at the Karatas (copper), Zhosabai (gold), Northern Katpar and Upper Kairakty (tungsten) deposits. The next project under consideration is the Kuirektykol deposit, discovered last year in the Karaganda region, which holds significant reserves of rare earth metals used in semiconductor manufacturing and high-powered magnets,» the statement said following a government meeting on geological exploration and subsoil use.
Officials believe that developing another rare earth metal deposit will boost Kazakhstan’s high-tech industries. In 2024, the government identified 38 promising solid mineral deposits nationwide. Under a government-approved framework, the relevant ministry conducts geological surveys to pinpoint viable deposits. Tau-Ken Samruk then begins pre-investment preparations, including additional exploration, selecting extraction technologies and conducting feasibility studies. The company may then proceed with independent development or partner with other firms. Deposits deemed unsuitable for state-led development are auctioned off to private investors.
Over the past six years, private investment in metal exploration has tripled, surpassing $213 million in 2024. However, the government considers current state investment in geological exploration insufficient. Therefore, Prime Minister Olzhas Bektenov has directed the Ministry of Finance to secure additional funding to expand state-backed exploration efforts.
The government plans to expand geological and geophysical exploration to cover 2.2 million square kilometers by 2026. According to Minister of Industry and Construction Yersaiyn Nagaspayev, state geological surveys are currently conducted at a 1:200,000 scale. For promising projects, the government aims to introduce a 1:25,000 scale to enable more detailed mapping, which could help identify potential deposits and boost the industry’s investment appeal.
Tau-Ken Samruk CEO Bakhyt Chirchikbayev told Kursiv.media in 2024 that the company held negotiations with potential partners from Russia, China, the U.S. and Europe about their possible involvement in developing the Northern Katpar and Upper Kairakty projects.
The Severny Katpar company, which operates the Northern Katpar and Upper Kairakty projects, is included in Kazakhstan’s 2021-2025 privatization plan, which aims to transition certain state-owned assets to the private sector. Samruk-Kazyna and its subsidiaries have been actively involved in privatization efforts. Under this plan, the projects could be transferred not just to a single company but to a consortium of interested investors.
According to the feasibility study, the Northern Katpar project is valued at $552.4 million, while the Upper Kairakty project is estimated at $606 million.
In April 2024, Nariman Absametov, chief business development officer at Tau-Ken Samruk, announced that the company would begin research and development on the Upper Kairakty tungsten project in the Shet district of the Karaganda region. The company plans to develop and test heap leaching technology for tungsten ores as part of this effort.
