My friend Balihar Sanghera has just sent me  an interesting background article that provides important insights on President Trump’s announcement of U.S. intention to work with Kazakhstan’ on developing its rare  earth and mineral deposits. He and his wife Elmira Satybnaldieva,wrote an important background book, Rentier Capitalism and its Discontents: Power, Morality and Resistance in Central Asia  (Palgrave McMillan, 2021), that I recommend to readers.

This article was very useful for my recent Nima discussion. Here is a note from Balihar’s co-author Elmira Satybnaldieva:

We are witnessing a neo-imperial competition for rare earth minerals. The new  US ambassador to Kazakhstan, Julie Stufft, stated that Kazakhstan is capable of meeting 50% of the US demand for rare earth resources.  She called for rapid extraction of resources and suggested the export of extracted resources via the Trans-Caspian route.

The  US is particularly interested in tungsten mining. The US based Cove Kaz Capital is planning developing large deposits of this strategically important metal in Kazakhstan (Verkhne-Kairatinskoye and North Katpar.)

The US views tungsten as a key resource for the defense industry, used in the production of shells, armor, and special equipment. The American side’s goal is to reduce dependence on China for this metal.

The negotiations are being led by US Secretary of Commerce Howard Lutnick, who previously participated in a successful deal between the American company Wabtec and Kazakhstan Railways.

A joint venture is proposed between Cove Kaz Capital and Kazakhstan’s Samruk-Kazyna Fund. The American company plans to not only mine but also process tungsten in Kazakhstan and then supply it to the US. Kazakhstan will receive a share of the profits, but control over the project will likely remain with the American side.

The United States is considering financial support for the project through government agencies, but does not plan to directly participate in the company’s capital.

This project is part of a broader U.S. strategy to reduce dependence on China for critical resource supplies. China is also showing interest in developing Kazakhstan’s deposits, offering more favorable terms.

A week ago, Kazakhstan’s Minister of Economy Serik Zhumangarin met with American businessmen in Washington, where he presented Kazakhstan’s investment potential. It appears that the United States has now seized another strategic mineral in Kazakhstan.