Wednesday, 19 June

Attracting foreign investment and implementing cutting-edge technologies are essential for maintaining competitiveness in the mining sector. Given that only a fraction of the metals mined in Central Asia are processed locally, the future of the mining industry in the region is tied to the establishment of “industrial hubs,” technology parks, and free economic zones. The session will offer a platform to showcase projects aimed at developing value-added production in Central Asian countries and to discuss the prospects for international trade and economic relations.

The strategic location of Central Asia and the abundance of valuable natural resources make the region attractive to investors. The region’s economy boomed in the early 2000s but experienced a sharp decline between 2014 and 2016 due to falling global oil prices. The history of investment in the mining industry is also mixed. An early surge in foreign investment gave way to a mass exodus due to resource nationalism. In present days, the so-called “critical materials” are becoming the “new oil” for the transition to a green economy. However, the production of these materials will require investment and long-term commitments on the part of investors, as well as national policy in the field of subsoil use. What are the national plans of the Central Asian countries for the development of the mineral resources sector? What advantages do states offer to attract foreign direct investment in projects for the exploration, production and processing of minerals?

The global shift from hydrocarbons to renewable energy sources has significantly propelled international cooperation in the realms of geological exploration, production, processing, and the establishment of supply chains for uranium and materials crucial for green energy technologies. This session aims to facilitate discussions on tangible actions and showcase examples of how international collaboration is expanding in unlocking critical raw materials potential across Central Asia. It will focus on partnership programs with the European Union, the United States, Canada, the United Kingdom, China, the Middle East, and other nations to develop international supply chains metals essential for the energy transition.

Due to faster warming than in other regions of the world, subsoil users in Central Asia will have to implement climate change and water management strategies much earlier. According to Harvard University studies, energy diversification is key to effectively addressing climate change and meeting the region’s growing energy demand. Energy resources account for approximately 30% of the total operating costs of mining enterprises. Companies can reduce energy consumption at existing facilities by 15-20% through effective energy management programs and achieve 50% energy savings in the design of new mines. Water is widely used in both underground and surface mining, about 40% in ore processing, about 40% in tailings dams and about 20% in dust control. To ensure the sustainability of mining and processing across the region, mining enterprises must develop water and climate management programs and integrate best available practices and technologies.  To encourage investment in renewable energy sources, local governments should provide long-term assurances and extended planning timelines.