Kazakhstan, EU expand co-op in rare earth metals

Two agreements - on cooperation in the development of rare earth metals projects and on credit guarantees for the Development Bank of Kazakhstan from the European Investment Bank, have been signed following negotiations between Deputy Prime Minister - Minister of Foreign Affairs of Kazakhstan Murat Nurtleu and European Commissioner for International Partnerships Jozef Sikela in Astana, Report informs.

Jozef Sikela arrived in Kazakhstan as part of his tour of Central Asia. The first agreement, worth 3 million euros, aims to strengthen cooperation between the EU and Central Asia in the field of critically important rare earth materials. The agreement, implemented by the European Bank for Reconstruction and Development, will help identify joint projects in the development of these resources.

"Thanks to this agreement, we will promote advanced mining technologies and sustainable standards, creating a win-win situation: Europe gets reliable supplies, while Kazakhstan strengthens its mining sector, promotes innovation, and creates skilled jobs," said the European Commissioner.

He noted that modern economies are heavily dependent on essential minerals for clean technologies and digital devices, which require more than 50 different types of raw materials for production.

"Europe needs these critical raw materials to modernize its economy, and Kazakhstan with its vast reserves is a natural partner," Sikela added.

However, efficient market connections are needed to supply these resources.

"That's why our mutual cooperation is strongly focused on infrastructure, and the Trans-Caspian Transport Corridor is a turning point. It can reduce transit time between Europe and Asia to 15 days or even less, opening new opportunities for trade and investment throughout the region," he said.

The signed loan agreement for 200 million euros between the European Investment Bank (EIB) and the Development Bank of Kazakhstan (DBK) also includes an EU guarantee of 18 million euros. This financing will help support investments in sustainable transport and renewable energy sources in line with the objectives of the Global Gateway strategy's flagship programs for the Trans-Caspian Transport Corridor, the European Commissioner noted.

"This financial agreement will contribute to the accelerated development of connectivity, expansion of renewable energy infrastructure, and further integration of Kazakhstan into the Trans-Caspian Transport Corridor - a key component of the Global Gateway strategy," he said.