Kazakhstan has significantly increased its aluminum processing, reaching 51 thousand tons in 2023, a 20% increase from 2022 and 70% more than in 2021, according to Industry and Construction Minister Kanat Sharlapayev. The minister revealed these figures during a presentation at a government hour in the Majilis, noting the implementation of 25 agreements with major suppliers that have facilitated the provision of primary aluminum and copper to domestic processors.
Looking forward, the Ministry plans to escalate aluminum processing to 72 thousand tons in 2024, with a long-term goal to boost processing capacities to 163,000 tonnes for aluminum, 81,000 tonnes for lead, and 91,000 tonnes for copper by 2029. This ambitious initiative is part of a broader strategy to enhance the domestic metal production sector and reduce reliance on raw material exports by increasing the added value of exported products.
Current aluminum processing projects include a diverse array of production lines across the country, such as profiles by LLP “Aluminium of Kazakhstan,” radiators by multiple LLPs including “Valtherm” and “Silumin of Qazaqstan,” and window frames by Aluplant KZ LLP. These projects represent a strategic push towards diversifying Kazakhstan’s industrial output and stimulating the domestic metals industry.
To support this growth, the government has implemented systemic measures to stimulate local producers, including pricing incentives. Finished product producers can receive up to an 8% discount, and intermediate goods producers up to a 2% discount off the London Metal Exchange price.
Furthermore, the minister highlighted challenges in raw material pricing, noting disparities where domestic prices for certain products, like polypropylene, are significantly higher than those for exports. This pricing strategy affects local competitiveness, with a vast majority of Kazakh polypropylene being exported due to more favorable prices abroad.
The ongoing efforts to reform raw material supply rules are expected to launch later this year, aiming to better support Kazakhstan’s manufacturing sectors and reduce the economic impact of exporting unprocessed raw materials. This strategy aligns with the nation’s goal to bolster its industrial sector and improve the economic returns from its natural resources. 
