Rare Earth Metals: What Can Kyrgyzstan Offer to Global Players?

What rare earth elements are found in Kyrgyzstan, and what are Bishkek’s plans for their development? These questions are becoming increasingly relevant as rare earth elements (REEs) emerge as a major topic at the upcoming Central Asia–EU Summit, to be held in Samarkand (Uzbekistan) on April 3–4. In recent years, global interest in Central Asia’s rare earth reserves has surged. China, the United States, and the European Union are intensifying their competition for access to these strategic resources. EU Interest During his visit to Central Asia in March 2024, European Commissioner for International Cooperation, Jozef Síkela, emphasized the importance of rare earth elements in discussions with regional leaders. In his meeting with Kyrgyz President Sadyr Japarov on March 17, Síkela stated that Brussels places particular importance on interregional cooperation in rare earth metals, a topic that will feature prominently at the EU–Central Asia summit. In an interview with RFE/RL, Síkela added that European standards could be applied to mineral processing in Kyrgyzstan: “Kyrgyzstan has the potential to become a future partner in supplying Europe with critical raw materials. We are discussing how European mining standards can be used to ensure environmental and social protections.” The EU’s Global Gateway strategy has identified rare earths as one of four key areas of cooperation with Central Asia, alongside: The Trans-Caspian Transport Corridor Digital Integration Water, Energy, and Climate Change Critical Raw Materials In March 2024, the European Council approved a list of 34 essential elements, 17 of which are considered strategic. Kyrgyzstan possesses many of these. U.S. and Regional Competition At the U.S.–Central Asia Summit on September 20, 2023, Washington announced plans to diversify critical mineral supply chains and invest in new technologies for raw material extraction and processing. Analysts noted that this marked the first time critical minerals were highlighted in U.S. strategy for the region. According to the U.S. Geological Survey, 25 of the 50 rare earth elements considered vital by the U.S. are found in Kyrgyzstan in varying quantities. This was further highlighted during the first C5+1 Critical Minerals Dialogue, hosted by the U.S. State Department in February 2024, where all Central Asian countries expressed readiness to explore investment opportunities in the sector. China’s Dominance China remains the global leader in the rare earth metals industry, controlling approximately 60% of mining and 85% of processing capacity, according to National Defense magazine. At the China–Central Asia Summit in May 2023, President Xi Jinping pledged $4 billion in grants and financial support for the region, reinforcing China’s strategic interest. Kyrgyzstan’s Resource Potential Kyrgyzstan is home to a range of strategic minerals, including 16 rare earth elements at the Kuttesai II deposit in Chon-Kemin. These include molybdenum, bismuth, lead, beryllium, and others. Government estimates place total reserves at approximately 63,000 tons. The nearby Kalesai deposit is rich in beryllium. Economic analyst Iskender Sharsheev notes that global competition for rare earths is driven by the rise of high-tech industries: “Rare earth metals are essential for microchips, electric vehicles, AI hardware, and powerful magnets like neodymium. Although the market for REEs is relatively small—around $98 billion—it becomes worth trillions when value-added products are factored in. Over the past 30 years, China has acquired 98% of global REEs, consolidating control over the market.” Kyrgyzstan’s deposits were once processed at the Kyrgyz Chemical and Metallurgical Plant, which during Soviet times supplied up to 80% of the USSR’s rare earth needs. However, the plant closed in 1995 after the Kuttesai and Kalesai mines were shuttered under the PESAK program. Experts now argue that there is no technological necessity to restart the old plant. National Development Plans In January 2024, President Sadyr Japarov signed a decree launching a national project focused on the extraction of polymetals and rare earth elements. The government was tasked with: Establishing a specialized scientific-industrial cluster based on Kyrgyzgeology Conducting comprehensive geological studies using modern methods Collaborating with technology companies to modernize mining and processing Experts stress that any international agreements should include provisions for in-country processing and the development of high-tech industries. Geologist Duishenbek Kamchybekov emphasized the importance of domestic processing: “We must build a processing complex, produce the final product, and reap maximum economic benefits. Environmental monitoring must be robust, and local experts must be involved. Regardless of whether partners are from China, Russia, or Europe, we must prioritize our own national interests.” Despite both Kuttesai II and Kalesai being located within the Chon-Kemin National Nature Park, the Kyrgyz government issued a 2024 decree removing these sites from protected status to enable development. Recent Developments and Foreign Partnerships Former Prime Minister Akylbek Japarov has stated that Türkiye is interested in Kyrgyz rare earths for defense manufacturing, particularly drones. He has also promoted Kyrgyzstan’s resource potential at forums in Europe: “We have large reserves of europium, zirconium, cesium, lanthanides, and other valuable elements. For example, titanomagnetite reserves are estimated at 20 million tons, and rare earth reserves at Kuttesai II are about 60,000 tons—likely more with modern exploration.” In 2024, the Kyrgyz government allocated 1 billion soms for geological exploration. The state enterprise Kyrgyzgeology is currently surveying Kuttesai II, while Kyrgyzaltyn is exploring the Kyzyl-Ompol titanium-magnetite deposit. According to Natural Resources Minister Meder Mashiev, the development of Kuttesai is being transferred to a Chinese company, and talks have been held with a major Chinese titanium processing firm regarding Kyzyl-Ompol. Conclusion With rising global demand for rare earth elements, Kyrgyzstan stands at a strategic crossroads. It has the resources and growing international interest—but the country must ensure that extraction is accompanied by in-country value addition, environmental safeguards, and the development of local expertise. By doing so, Kyrgyzstan can become a significant player in the global supply chain for critical minerals. Refference: https://rus.azattyk.org/a/33368532.html