In addition to lifting the export duty, the resource-rich Central Asian country plans to temporarily ban the export of certain unprocessed metals.
According to media reports, Kazakhstan has removed its ten percent export duty on gallium. At the same time, it introduced an export ban on unprocessed non-ferrous metals, including copper, aluminum, and lead, which remains in effect through the end of this year. The aim of both measures is to support domestic production and processing of these raw materials, thereby increasing local value creation.
Gallium is used in semiconductor chips, LEDs, and military technology. Since China, the main producer, introduced export restrictions two years ago, global shipments have dropped sharply and at times halted completely. Although Kazakhstan ceased its primary gallium production in 2013, according to the U.S. Geological Survey, government officials claim the country still holds sufficient reserves to become a significant player in the global market.
Kazakhstan to Expand Production of Critical Raw Materials; Significant Investment Across the Entire Supply Chain Required
The country’s ambition to make better use of its domestic resources is not new. In recent years, Kazakhstan has presented itself as a potential future supplier of rare earth elements. According to government sources, most known deposits of critical raw materials remain unexplored, and further international funding will be required (we reported).
Equally important will be investment in downstream processing. China not only dominates extraction but also controls a significant portion of the global refining capacity for key minerals. One important move may already be in progress. Just days ago, it was announced that mining group Eurasian Resources will invest $20 million in local gallium production facilities starting next year. The company plans to use bauxite ore, which it uses for alumina production. According to Eurasian Resources, this could position Kazakhstan as the second-largest gallium producer after China.
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