Kazakhstan, — ranked 6th globally in mineral diversity — has long prioritised geological exploration and mining investments. However, recent budget allocations indicate a continuing conservative government spending on these sectors relying on private investment. According to government data, private investments in geology over the past five years amounted to $1 billion.
In the latest budget for 2025-2027 Kazakhstan’s Ministry of Industry and Construction has laid out its financial commitments to the mining industry and geological exploration.
The budget documentation reveals a target of achieving 82% local content in procurement of works and services by mining complex subsoil users, indicating a continued push toward developing domestic mining services capabilities.
Key Budget Programs and Subprograms
1. Budget Program 089: Ensuring Rational and Comprehensive Use of Subsoil and Increasing Geological Study of the Territory of the Republic of Kazakhstan
- 2023: 10,186,675 thousand KZT ≈ $22,637,056 USD
- 2024: 9,715,419 thousand KZT ≈ $21,589,820 USD
- 2025: 9,715,446 thousand KZT ≈ $21,589,880 USD
- 2026: 9,974,344 thousand KZT ≈ $22,165,209 USD
- 2027: 10,241,033 thousand KZT ≈ $22,757,851 USD
2. Subprogram 102: Regional, Geological Survey, Prospecting, Evaluation, and Exploration Works
- 2023: 8,166,541 thousand KZT ≈ $18,147,869 USD
- 2024: 7,636,507 thousand KZT ≈ $16,970,016 USD
- 2025: 7,636,507 thousand KZT ≈ $16,970,016 USD
- 2026: 7,865,602 thousand KZT ≈ $17,479,116 USD
- 2027: 8,463,564 thousand KZT ≈ $18,807,920 USD
3. Subprogram 103: Monitoring Mineral Resources and Groundwater
- 2023: 576,749 thousand KZT ≈ $1,281,664 USD
- 2024: 765,125 thousand KZT ≈ $1,700,278 USD
- 2025: 727,732 thousand KZT ≈ $1,617,182 USD
- 2026: 788,079 thousand KZT ≈ $1,751,287 USD
- 2027: 614,485 thousand KZT ≈ $1,365,522 USD
A Slight Dip in Geological Exploration spending
The budget document for 2025-2027 reveals a negligent increase in spending on geological exploration and mining development. While the 2026 and 2027 figures show a slight recovery, the overall trend remains downward compared to the 2023 allocation. The most significant reduction was between 2023 and 2024, reflecting a nearly 5% cut in government expenditure on geological surveys and subsoil monitoring.
The geological exploration budget for 2025, primarily focuses on enhancing the country’s geological knowledge base and improving mineral resource management, will see 9.7 billion tenge ($19 million) directed toward comprehensive subsurface studies and increasing geological coverage. A smaller portion, 257.8 million tenge, has been earmarked for applied research through the U.M. Akhmedsafin Institute.
Local Content Development
Mining industry experts suggest that while the geological exploration budget is conservative, the broader industrial development initiatives and focus on local content development could help strengthen the country’s mining ecosystem. However, there are concerns about whether the current level of investment in geological exploration will be sufficient to maintain Kazakhstan’s competitive position in the global mining sector.
The ministry’s overall budget shows a declining trend from 646.8 billion tenge in 2025 to 406.8 billion tenge in 2027, raising questions about long-term funding stability for geological programs. This comes at a time when many resource-rich nations are increasing their investments in geological surveys and mineral exploration to secure their positions in critical mineral supply chains.
Comparison with Other Major Mining Jurisdictions
The allocation represents a concerning trend in Kazakhstan’s commitment to geological exploration, especially when compared to peer jurisdictions.
- Australia: The Australian government increased its funding for geological surveys in 2024, with an annual budget exceeding AUD $225m million ($156 million), reinforcing its position as a leading mining destination.
- Canada: The Canadian government committed CAD 1.5 billion ($1.05 billion USD) in 2024 to critical mineral exploration, focusing on lithium, nickel, and rare earth elements.
- Chile: As a major copper and lithium producer, Chile continues to expand geological exploration funding, securing over $832 million USD in government-led initiatives.
For a country positioning itself as a major mining jurisdiction, Kazakhstan’s geological exploration budget seems insufficient to drive significant new discoveries. This could impact the pipeline of future mining projects.
The government emphasises “increasing geological knowledge” and “attracting foreign investment” as priorities, with goals to expand explored territories to 2,247,100 km² by 2027, up from 2,038,100 km² in 2025 and ensure 100% open electronic access to geological information, according to the ministry’s stated objectives. However, industry experts question whether these goals can be met with the current funding levels.
Broader Industrial Development Context
The geological exploration budget sits within a larger industrial development framework, where the ministry has allocated 37.8 billion tenge ($83.6 million) for overall industrial development. This includes significant funding for manufacturing projects through the Development Bank of Kazakhstan and support for various industrial initiatives.
A notable element of the industrial strategy is the allocation of 1 billion tenge ($1,9 million) for the modernisation of Zhezkazganredmet, aimed at improving the processing of metallurgical waste and rare metals production, indicating some attention to mineral processing capabilities despite the limited exploration budget.
Future Implications
The ministry’s budget document outlines plans to achieve full digitalisation of geological information access, suggesting a focus on maximising the utility of existing data rather than generating new geological knowledge through field exploration. While this approach might yield short-term efficiencies, industry experts warn that it could lead to a discovery gap in the medium to long term. The reduced investment in new geological surveys might particularly impact the exploration for critical minerals, which are becoming increasingly important in the global transition to green energy.
The conservative government spending on geological exploration raises several concerns:
- Declining Mineral Discovery Rates: Reduced funding for geological surveys may lead to fewer mineral discoveries, limiting the country’s ability to replenish its mineral reserves.
- Decreased Foreign Investment: International mining companies prioritize jurisdictions with strong geological knowledge and governmental support. Lower exploration funding could make Kazakhstan less attractive for foreign investors.
- Risk to Economic Diversification: The Kazakh government has emphasized economic diversification, but lower spending on mining research contradicts this goal.
Looking Ahead
Kazakhstan’s mining sector faces both challenges and opportunities in the coming years. On the one hand, declining ore grades, aging infrastructure, bureaucratic delays, increasing environmental and water scarcity concerns, and the need for greater technological innovation pose significant hurdles. On the other hand, the global demand for critical minerals like copper, lithium, steel and rare earth elements presents a major opportunity for Kazakhstan to expand its mining industry and become a key supplier to the global economy.
The ministry’s overall budget shows a declining trend, suggesting that unless there’s a significant policy shift, geological exploration funding might remain constrained in the medium term.
As global demand for minerals continues to grow, particularly for critical minerals essential to the energy transition, Kazakhstan’s decision to maintain a relatively modest geological exploration budget might need reassessment. The country’s rich mineral endowment and strategic location position it well for mining sector growth, but realising this potential may require more substantial investment in basic geological work.
To fully capitalise on these opportunities, Kazakhstan needs to:
- Increase investment in geological exploration: Discovering new deposits is crucial for sustaining the mining industry in the long term.
- Promote technological innovation: Adopting advanced mining techniques and investing in research and development can improve efficiency, reduce environmental impact, and unlock new resources.
- Strengthen the regulatory framework: A clear, transparent, and stable regulatory environment is essential for attracting both domestic and foreign investment.
- Develop human capital: Investing in education and training programs can ensure that Kazakhstan has a skilled workforce to support the mining industry.
By strategically allocating resources and addressing these key challenges, Kazakhstan can solidify its position as a major player in the global mining industry and drive economic growth for years to come.
Kazakhstan’s mining sector has long been a pillar of its economy, but declining government and private spending on geological exploration could threaten future growth. While global competitors increase spending to enhance their mining sectors, Kazakhstan’s budget cuts raise questions about the country’s long-term strategy in the global mineral market. Without renewed investment in exploration and subsoil research, the nation risks falling behind in the race to secure its position as a top-tier mining jurisdiction.
MINEX Kazakhstan Mining & Exploration Forum, returns to Astana on 9-10 April 2025, with a sharp focus on geological exploration investment and development strategies.
The Forum arrives at a critical juncture for Kazakhstan’s mining sector. Recent government budget figures show geological exploration funding will remain at 9.71 billion KZT ($21.5 million USD) for 2025, significantly below peer jurisdictions like Australia ($156 million) and Canada ($1.05 billion). This backdrop sets the stage for crucial discussions on private sector participation and innovative funding approaches in geological exploration.
“With Kazakhstan aiming to expand its explored territories to 2,247,100 km² by 2027, the need for increased investment and technological innovation in geological exploration has never been more pressing,” states the forum organising committee. “MINEX Kazakhstan 2025 will serve as a vital platform for addressing these challenges and identifying new opportunities.”
The two-day forum will feature targeted sessions on:
- Public-private partnerships in geological exploration
- Digital transformation of exploration activities
- Critical minerals development
- Sustainable mining practices
- Investment frameworks and opportunities
Call to Action: Shape Kazakhstan’s Mining Future
MINEX Kazakhstan 2025 is accepting proposals for:
- Technical presentations on exploration projects and technologies
- Case studies of successful exploration programs
- Panel discussions on funding mechanisms
- Innovation showcases
Limited premium spaces are available for companies showcasing:
- Exploration technologies and services
- Digital solutions
- Laboratory and analytical services
- Environmental management systems
For the mining community, this forum represents a unique opportunity to influence the future direction of Kazakhstan’s geological exploration sector. With the government emphasising digital access to geological information and modernization of mining operations, industry participation in these discussions is crucial.
Registration Information
Early registration is now open with special rates for mining companies, service providers, and academic institutions.
For participation details, visit https://2025.minexkazakhstan.com/registration/ or contact: kz@minexforum.com
Join us this April in Astana to contribute to the development of Kazakhstan’s mining sector. Together, we can address the exploration funding gap and unlock the country’s rich mineral potential.
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