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Kazakhstan is set to lift export duty for gallium amid ERG’s ambitions

Казахстан обнулит экспортную пошлину на галлий, который планирует производить ERG
Photo: Shutterstock, photo editor: Dastan Shanay

The Kazakhstani cabinet has decided to lift a 10% export duty on gallium, as reported by Primeminister.kz. The move comes as Eurasian Resources Group (ERG) plans to engage in the metal’s export and production.

A government statement said that the decision was made during a meeting of the interdepartmental commission on foreign trade policy and international economic cooperation chaired by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin.

«It was decided to abolish the 10% export duty on gallium,» a statement said.

The cabinet noted that this measure is aimed at stimulating gallium production in Kazakhstan and enhancing the country’s potential in the global supply chain for this strategic metal.   

«Although Kazakhstan hasn’t produced gallium in recent years, global demand for this metal, which is used in high-tech industries, remains steady. The country has the necessary resource base to enter the market and carve out a niche in the supply chain,» the release read.

The cabinet believes gallium production and supplies to overseas markets will create opportunities for increasing export activity and generating more foreign currency revenue.

Furthermore, the commission approved a ban on the export of non-ferrous blanks and ingots from Kazakhstan until Dec. 31, 2025. The prohibition applies to raw copper, aluminum slabs and billets and lead ingots.  

Authorities emphasized that this ban will ensure the domestic market is supplied with strategic raw materials, prevent the exportation of products with low added value and bolster non-ferrous metal processing domestically.

In early June, ERG’s General Director Serik Shakhazhanov told Kursiv.media about the company’s plans to commence production of around 12 tons of gallium annually from red mud waste at the Pavlodar Aluminum Plant, which is part of the group. According to him, exports of the critical metal to Europe are expected to start in 2026.   

Later the same month, ERG announced a $20 million investment in gallium production, with plans to increase the annual production to 15 tons, which could make ERG the world’s second-largest gallium producer. Currently, China dominates the market with an annual output of 800 tons. As of early July, 1 kilogram of gallium cost approximately 1,700 yuan ($237), which means that 12 tons of gallium would cost around $2.8 million under current rates.

In early 2024, Kazakhstan proposed exporting aluminum, scandium and gallium to the U.S. as part of broader economic cooperation.