Public policy intervention is crucial for developing critical mineral sectors in Eurasia according to Peline Atamer, Head of Programme, OECD. The OECD emphasized the need for stable and predictable regulatory frameworks, sector-specific policies, and measures to mitigate environmental and social impacts. Partnerships between importers and exporters can drive the green transition by ensuring shared benefits and risk mitigation.

Henry Sanderson, Executive Editor, Benchmark Mineral Intelligence discussed the long history of clean energy technologies and the current dominance of China in battery production. He highlighted the need for the West to catch up by focusing on specific segments of the supply chain, leveraging diverse businesses to weather commodity price downturns, and utilizing renewable energy. The cost of electric vehicles remains a significant barrier to mass market adoption.

Dr. Mark Robinson, Executive Director from the Extractive Industries Transparency Initiative (EITI) emphasised the importance of transparency and good governance in mineral supply chains. EITI works to ensure that contracts between governments and companies are public, and beneficial ownership is disclosed to reduce corruption risks. This transparency is crucial for generating trust and ensuring that resource revenues benefit local communities.

Mongolia: Munkhbileg Namsrai, Director of the Mineral Resources Research, Planning, and Economic Department, National Geological Survey of Mongolia presented Mongolia’s potential in critical minerals, highlighting the country’s dependence on mineral sources for its economy. Mongolia is investing in geological studies and aims to develop its critical mineral resources to become a significant player in the global supply chain.

Kazakhstan: Maxim Kononov, First Deputy Executive Director, The Association of Mining and Metallurgical Enterprises of Kazakhstan, discussed the development of the mining industry in Kazakhstan, including updates on mining legislation, digitalisation of procedures, and tax incentives aimed at boosting mineral processing. Kazakhstan has identified numerous critical raw material deposits and is working on national standards and legal definitions for rare minerals.

Kazakhstan Chamber of Mines: Ruslan Baimishev, President, KCM outlined the current investment climate in Kazakhstan’s mining sector, highlighting industry reforms, tax policy issues, and the need for a balanced and fair tax burden. The chamber supports preserving the conceptual foundations of recent reforms and improving sectoral regulation.

Competition and Geopolitics: The increasing competition for Eurasian resources, particularly from Chinese companies, poses significant challenges. Ensuring a balanced approach to deal allocation and maintaining stability in supply chains is critical.

Environmental and Social Impacts: Mitigating environmental and social impacts is a key area of focus. Transparency and accountability in policy design are essential to promote the sector while ensuring benefits for local communities.

Technological Innovation: Innovations in battery technology, such as sodium-ion batteries, and improvements in recycling rates are expected to play a significant role in the future of critical mineral supply chains.

Energy Costs: High energy costs in Europe and the UK are a significant barrier to manufacturing and increasing the competitiveness of electric vehicles. Reducing energy costs is essential for developing sustainable supply chains.

Managing political risk is a significant challenge. IFC and EBRD use mechanisms like B-loan syndication and MIGA guarantees to mitigate these risks. UKEF also provides guarantees to banks, which helps in managing political risks associated with projects in Eurasia.

Artem Volynets, Chairman and CEO of ACG Metals, discussed the importance of structuring deals that create value for both parties. He highlighted a transaction in Turkey where flexibility and alignment of interests between the buyer and seller were crucial. ACG Metals uses a mix of equity, debt, and prepayments from offtakes to finance their projects.

Natalia Lacorzana, Head of Natural Resources, European Bank for Reconstruction and Development (EBRD) presented a case study on Tümad, a Turkish mining company. EBRD provided $90 million in project finance, emphasising the importance of strong project teams, local community engagement, and comprehensive economic inclusion programs. The project also focused on environmental sustainability, including dry stacking of waste and renewable energy integration. She also discussed the Junior Mining Program (JUMP), which supports early-stage mining companies. The program aims to help these companies advance their projects and eventually attract further investment and construction finance.

Namrata Thapar, Global Head, Metals & Mining, International Finance Corporation discussed the Oyu Tolgoi copper-gold mine in Mongolia. IFC played a critical role in raising $4.4 billion through project finance, ensuring environmental and social compliance, and managing political risks. The project involved complex financing structures, including B-loan syndication and MIGA guarantees.

Christopher Allum, Senior Business Origination Officer, UK Export Finance, explained how UKEF provides commercial debt financing through guarantees to banks. He highlighted the Almalyk Mining project in Uzbekistan, where UKEF supported the purchase of high-tech mining equipment from a Scottish company. UKEF also introduced a new critical minerals support product to ensure the UK’s supply of critical minerals.

Ayuna Nechaeva, Head of Europe, Primary Markets, London Stock Exchange discussed how companies from Central Asia, such as Navoi Mining and Metallurgical Company in Uzbekistan, have successfully raised funds through the London Stock Exchange. She emphasised the importance of good governance, ESG compliance, and the ability to meet public market expectations for transparency and sustainability.

Alexander Keepin, Partner, Simmons & Simmons presented a keynote “The impact of the FCA Listing Reforms for companies considering a listing in London”. The London Stock Exchange has reformed its listing rules to become more competitive globally. This includes simplifying listing categories, removing certain requirements (like the three-year track record), and streamlining continuing obligations. The emphasis is on ensuring that corporate governance policies are not just tick-box exercises but are deeply ingrained in the company’s culture and operations. These changes aim to attract a wider range of companies, including those from emerging markets like Kazakhstan.

Aray Seitova, Acting Regulation Officer, Astana International Exchange discussed the exchange’s approach to corporate governance, which includes a light approach for issuers from equivalent stock exchanges and a flexible approach based on instrument type. AIX, operating within the Astana International Financial Centre (AIFC), is designed to connect Kazakhstan with the global capital market. The AIX (Astana International Exchange) operates under an independent legal framework based on English common law and has high corporate governance standards consistent with those of developed financial markets. AIX balances the promotion of high corporate governance principles with the flexibility required for emerging markets, allowing issuers to comply with regulatory requirements without excessive burden. This includes flexible approaches for different types of issuers and a focus on education rather than punishment to improve compliance.

Roger Barker, Director of Policy and Corporate Governance, Institute of Directors, discussed the importance of good governance and the role of directors in ensuring that companies operate responsibly. Independent directors play a vital role in ensuring good governance, providing oversight, and asking critical questions. They act as a check and balance on management and represent the interests of minority shareholders and stakeholders. The Institute of Directors (IOD) plays a crucial role in training directors and promoting good governance practices.

The panel discussed the challenges of navigating complex governance issues, particularly in state-owned enterprises. Eric Rasmussen, Independent Director of Adriatic Metals | Electrum Discovery Corporation, shared his experience of working with companies in the mining industry and emphasised the importance of having a strong moral compass and being able to navigate complex problems.

Oliver Richards, Head of Critical Minerals and Mining (International), UK Department for Business and Trade highlighted the UK’s new industrial strategy, which focuses on driving growth in key sectors such as automotive, aerospace, and clean energy. He also mentioned the UK’s national wealth fund, which brings together existing capital and new sources of capital to invest in projects. The UK is also working with countries in Central Asia, including Kazakhstan, to develop partnerships and support commercial projects.

Han Ilhan, Executive Board Member, TETHYS: Trans-Eurasian Gateway presented the value proposition of Uzbekistan in terms of critical raw materials. He introduced the company TMK, which is a fully integrated company that uses its mining assets to develop metal and end products that are sold to developed nations. TMK has a strong vision and mission to become a global hub for critical raw materials and is committed to providing financing for its projects.

Aziz Nazar, Deputy Minister of Industry and New Technologies of the Republic of Tajikistan presented the country’s investment opportunities in the mining sector. Tajikistan has a rich mineral deposit base, with over 800 deposits and occurrences, and is home to Central Asia’s largest silver deposits. The country has a strong focus on green energy and has implemented measures to develop new deposits, including the creation of a national center for the study of strategic resources.

The follow-up discussion touched on the challenges of accessing critical raw materials in Central Asia.

Financial Challenges: The traditional financing models may not be sufficient for critical mineral projects due to their complex economics and supply risks. There is a need for innovative financing solutions and government support to crowd in private capital.

Technological and R&D Needs: Developing critical minerals often requires advanced technologies and R&D, particularly for byproducts like gallium and germanium. Uzbekistan’s TMK is investing in R&D and plans to build a nanoanalytical laboratory to support these efforts.

Market Focus: There is a suggestion to focus on investing in copper and zinc smelting in Central Asia, as these processes can produce critical raw materials as byproducts, potentially making the region a hub for such activities.

Azamat Kasymbekov, Principal Banker, European Bank for Reconstruction and Development discussed the EBRD Junior Mining Program, which aims to support early-stage mining projects in the region. The program provides a dedicated equity facility to support projects from defined and certified mineral resources to project construction.

Geological surveys play a critical role in unlocking the mineral potential of the region. Nikki Smith, International Digital Lead, British Geological Survey, emphasised the importance of geological surveys in unlocking opportunities for mineral investment. She discussed the role of a geological survey organization in providing authoritative data and knowledge to support decision-making.

Despite the vast mineral resources, the investment climate in Mongolia and Central Asia faces several challenges. Investors are often sceptical due to historical regulatory issues and environmental concerns. James Williams, Senior Resource Geologist, SRK Consulting (UK) and Arthur Brusentsov, Senior Consultant, SRK Consulting (Kazakhstan) discussed the role of a geological survey organization in providing authoritative data and knowledge to support decision-making.

Bilguun Tumurbaatar, Advisor, Mongolian National Mining Association from the Mongolian National Mining Association discussed the importance of advancing geological exploration in Mongolia. He highlighted the country’s vast potential for critical and rare earth elements and the need for investment to unlock this potential.  Mongolia’s mining sector is the backbone of its economy, accounting for 25% of GDP and 75% of foreign direct investment. The government has a 30-year vision to develop and diversify the economy, with a focus on supporting mega projects. Despite significant achievements in geological mapping, 95.6% of Mongolia remains unexplored, offering substantial potential for discovering critical and rare earth elements. To address this, Mongolia is working to create a more investor-friendly environment by stabilizing legislation and offering tax benefits. The proposed Mongolian Mining Investment Fund, which could be listed on the London Stock Exchange and the TSX Venture Exchange, aims to reduce risk for individual investors and attract global participants.

The panel discussion brought together David Mackenzie, Chief Executive Officer, Chaarat Gold Holdings, and Pini Althaus, Chief Executive Officer, Cove Capital. They discuss the key enablers for accelerating project development in the region, including:

Geological Potential and Government Support: The region is underexplored, but recent geological survey work and government fiscal reforms are making it more attractive for investors Active engagement from governments in streamlining regulations and providing incentives is crucial for attracting investment.

Stakeholder Management and Collaboration: Partnerships between governments, international organisations, and private companies are vital for knowledge transfer, technology development, and responsible mining practices.

Building local expertise: Investing in education and training programs to develop local expertise in mining and critical minerals is essential for long-term sustainable development.

Technological Knowledge Transfer: Companies are focusing on building vertically integrated supply chains and transferring technological knowledge to local communities. This includes training programs and partnerships with local universities to develop internal expertise in critical minerals.

US and International Support: The US and other Western countries are providing significant support for critical mineral development in Central Asia. Agreements and conferences, such as the C5+1 conference, are facilitating collaboration and easing the path for Western companies to enter the market.

The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) plays a pivotal role in ensuring transparency, materiality, and competence in mineral resource reporting. Established in the late 1990s, CRIRSCO aims to standardize definitions and reporting templates to facilitate global comparisons and investor confidence. Ed Sides, Deputy Chairperson of CRIRSCO, highlighted the organisation’s mission to harmonize reporting standards globally, ensuring everyone “compares apples with apples.” He emphasized the core principles of transparency, materiality, and competence, which underpin CRIRSCO’s efforts to combat market abuse and promote ethical reporting.

Nikolai Yenshin, Deputy Chairman of the Executive Committee, Professional Association of Independent Experts of the Subsoil of Kazakhstan (PONEN) showcased Kazakhstan’s journey in adopting the KAZRC code, a CRIRSCO-aligned framework. Kazakhstan’s integration of the KAZRC code into its subsoil and subsoil use code has been a significant achievement, providing legal recognition and ensuring enforceable standards across the national geological and mining sector. This initiative has led to the acceptance of over 100 KAZRC-compliant reports, demonstrating the efficiency and transparency of the reporting process under the new standards. He also discussed initiatives aimed at improving reporting quality, including the Qualified for Mineral Reporting (QMR) process and the establishment of a comprehensive guideline for preparing KAZRC-compliant reports.

Tracey Laight, Principal Resource Geologist, SLR Consulting, discussed the practical application of CRIRSCO codes in Central Asia, particularly in Kazakhstan. KAZRC code has been incorporated into the Republic of Kazakhstan’s Subsoil and Subsoil Use Code, giving it legal authority and ensuring its enforceability across the country’s geological and mining sectors. Updated in 2021 to align with the CRIRSCO 2019 framework, the KAZRC code reflects best practices in the industry. From January 1, 2024, the KAZRC code became mandatory for all new exploration and mining licenses. It requires reports to be prepared by competent persons and ensures alignment with international standards, a critical factor in attracting foreign investment to Kazakhstan’s mining sector.

Eimear Deady, Senior Mineral Resources Geologist, British Geological Survey presented on the United Nations Framework Classification for Resources (UNFC) as a complementary system to CRIRSCO, focusing on a broader range of resources and incorporating environmental and socio-economic considerations. Emily highlighted the growing importance of UNFC in government policy and planning, particularly in the context of the EU’s Critical Raw Materials Act. She also discussed the role of International Centres of Excellence on Sustainable Resource Management (ICE-SRM) in promoting UNFC and providing training.

The panel discussion highlighted the benefits and challenges of having multiple CRIRSCO codes. Dr. Mike Armitage, Mining Industry Consultant and Director, MACL noted that while the existence of various codes can be confusing, each code serves a specific purpose and is often tailored to local regulatory and linguistic needs. Ed Sides agreed, emphasising that the core definitions are consistent across codes, but the detail and presentation may vary to accommodate local frameworks. Nikolai Yenshin added that having a local code like KAZRC facilitates easier communication and reporting for companies seeking international financing. The panel also discussed the importance of communicating risk and timelines effectively, particularly in the context of sustainable development and permitting processes. In conclusion, the adoption and implementation of international reporting standards like CRIRSCO and UNFC are vital for Central Asia’s mining sector to attract foreign investment, ensure transparency, and align with global best practices. While challenges exist, the region’s progress in standardizing reporting codes and integrating ESG considerations positions it for sustainable development and increased investor confidence.