Rare Earths: a Rare Opportunity for Kazakhstan by Pavel Pribylovsky and That Gives Us a Competitive Particularly Coming out of East Advantage.” Asia

-13°C / -16°C WEDNESDAY, FEBRUARY 26, 2014 No 4 (47) www.astanatimes.com Expanded Government Meeting Reviews Astana Urges Nuclear Progress on Kazakhstan 2050 Strategy, Test Ban Treaty Entry Efforts to Sustain High Economic Growth into Force at Int’l volatility in world markets, Ka- zakhstan’s economy grew by 6 Conference percent in 2013. This year, howev- By Anuar Fazylov so far. Addendum II to the treaty er, will be challenging, he said, and lists more than 40 countries with concerted action will be needed to NaYaRiT, MeXiCO – Kazakh- nuclear weapons or nuclear en- meet those challenges. stan’s delegation at a major inter- ergy capabilities on whose sig- “In October 2013, I gave 33 or- national conference in Mexico on natures and ratifications the entry ders, only 11 of which were fully Feb. 13-14 urged that the Compre- into force of the treaty depends. executed,” Nazarbayev said. “The hensive Nuclear Test-Ban Treaty vassilenko said Kazakhstan government and the National Bank (CTBT) enter into force as soon as was not only promoting the have not proposed steps to at- possible, calling such a ban an im- CTBT entry into force, but also tract resources from development portant step toward global nuclear working to support this process institutions, pension funds and disarmament. by highlighting the plight of nu- financial organisations for public- “We believe that one of the most clear weapons testing survivors private partnership projects. Prac- important steps toward that goal in Kazakhstan and elsewhere. tically nothing has been done to [of global nuclear disarmament] Furthering this goal is Presi- reduce the shadow economy; there would be the entry into force of dent Nursultan Nazarbayev’s is no clear vision in replenishing of the Comprehensive Nuclear Test initiative, the ATOM Project, local government revenue sources; Ban Treaty,” Roman vassilenko, an education and online petition agriculture and many more ar- ambassador-at-large at Kazakh- campaign. It seeks to galvanise eas were not attended to, without stan’s Ministry of Foreign Af- global public opinion toward which there is no proper fulfilment fairs, told representatives of 140 action against nuclear weapons of instructions given in my state- countries and dozens of interna- testing and ultimately nuclear of-the-nation address.” tional organisations at the second weapons themselves. The correction of the tenge ex- International Conference on the The first international Confer- change rate announced by the Na- Humanitarian Impact of Nuclear ence on the Humanitarian Impact tional Bank three days prior will Weapons, held in Nuevo vallarta, of Nuclear Weapons, with the ensure 6 percent economic growth, Nayarit, Mexico. “And we would participation of 130 countries and the main indicator in the achieve- like to urge, yet again, the eight numerous international bodies, ment of all major goals and tasks, countries on whose signature and was organised and hosted by Nor- the President said, and, given the ratification its entry into force de- way in Oslo in March 2013. The trends in the global economy and pends to do so promptly.” conferences focus on highlighting the domestic situation, preventive China, Egypt, Iran, India, Is- the humanitarian consequences measures are very important for rael, the Democratic People’s of nuclear weapons use, either in maintaining macroeconomic and Republic of Korea (DPRK), war or in testing, and seek to cre- social stability. Pakistan and the United States ate global momentum toward nu- The economy and the people have yet to sign and/or ratify the clear disarmament through such a must be supported, Nazarbayev treaty, which has been signed by focus. said. The government should en- 183 countries and ratified by 161 Continued on Page A8 sure stable prices for basic essen- tials, fuel and medicines, and pre- vent shortages of products and the President NursultanNazarbayev held several meetings recently instructing the government and regional akims to keep a unfair growth of monopolists’ tar- close watch over the economic situation and do what is necessary to mitigate the consequences of the tenge devaluation for iffs. He instructed the government Brazilian Ambassador the population. to raise public employees’ monthly By Julia Mager needs to be done to implement the socioeconomic development plans in wages by 10 percent from April and Rysty Alibekova 1, primarily for those working in Kazakhstan 2050 Strategy at the Feb. light of the Feb. 11 readjustment of education, science, health care, Upbeat About Ties ASTANA – President Nursul- 14 government meeting as ministers the tenge exchange rate. culture, sports and social welfare. tan Nazarbayev reviewed what still reviewed the economic situation and The President stressed that amid Continued on Page A4 with Kazakhstan By Jan Furst Carvalho, who also serves as his country’s top envoy to Kyrgyzstan ASTANA – Thousands of kilom- and Turkmenistan, has had a long National Bank Denies Small Banks’ Insolvency Rumours, eters, eight time zones and tens of diplomatic career that has taken him degrees Celsius on a thermometer to New York, Moscow, Bonn, Mex- Prosecutors Say Perpetrators Found separate Brazil and Kazakhstan, ico and, most recently, London and By Merey Kabiden at the briefing to mitigate concerns According to Kelimbetov, all tion, the deposits of individuals in but the newly appointed ambassa- Paris. And he has been able to master that had been swirling as a result Kazakhstan-based banks have suf- any currency are guaranteed by the dor of Brazil in Astana in a recent the languages of most of the places he ASTANA – Kazakhstan’s Na- of mobile text messages about the ficient funds both in national and state. interview noted numerous similari- has served, including English, Span- tional Bank held a briefing on Feb. financial conditions of the banks. foreign currencies. And if neces- Following the wave of text mes- ties between the two countries and ish and French. He is now brushing 18 to deny rumours of the alleged “The National Bank confirms sary, the National Bank will pro- sages that spread the misleading a good number of reasons to be up on his Russian and is already able imminent bankruptcy of three sec- that this information is false, spec- vide appropriate liquidity support information indicating the immi- optimistic about the future of rela- to handle basic conversations. His ond-tier banks. ulative and misleading and is tar- to banks. nent bankruptcy all three banks is- tions in areas ranging from trade next language is going to be Kazakh, Bank Chairman Kairat Kelim- geted at destabilising the country’s Kelimbetov also noted that in ac- sued a joint statement. and economy to cultural exchanges. he told The Astana Times. betov issued an official statement banking system,” Kelimbetov said. cordance with the country’s legisla- Continued on Page A2 Ambassador Demétrio Bueno Continued on Page A3 Rare Earths: A Rare Opportunity for Kazakhstan By Pavel Pribylovsky and that gives us a competitive particularly coming out of East advantage.” Asia. The global market for rare earth It is not only Kazakh industry Economic growth “is not com- elements used in the production of experts, however, who are opti- ing from mature economies cell phones, flat screens, electric mistic. Jack Lifton, a founding where everyone has a cellphone cars and other technology is val- principal of Technology Met- and a car,” said Lifton. “Econom- ued at $3-5 billion and demand is als Research LLC, senior editor ic growth is driven by consumer expected to double by 2020. And at InvestorIntel and one of the demand in East Asia. China, In- some say Kazakhstan is in a prime world’s leading authorities on dia, Korea, the Indonesian archi- position to capitalise on this rising rare earth elements agreed that pelago – that’s two billion people global market. Kazakhstan could be in a strong without a cell phone.” Rare earth elements (Rees), or position to capture significant Lifton notes that there is no sin- rare earths for short, are divided market share. gle market for rare earths. Rather, into two subgroups – Heavy Rare “Kazakhstan already produces there are multiple specialty mar- earths (HRees) and Light Rare uranium. A lot of it. They should kets that are highly susceptible earths (LRees). Both are com- to advances in technology and monly produced from uranium be able to recover heavy earth from uranium residue,” said Lift- shifts in consumer demand. Even tailings, byproducts of uranium though they often come from the mining. And Kazakhstan happens on. “After all, it is not about the pounds in the ground but about same ore concentrate and some- to be the world’s largest uranium times have overlapping end us- producer. our access to these pounds in the ground. If you can extract ers, the markets for rare earths are “According to our estimates,” very distinct.The two billion con- and separate elements economi- said vladimir shkolnik, chair- sumers in East Asia whose even- cally, it’s practical. Otherwise, man of the board of Kazakhstan’s tual economic status will allow it’s not.” state-owned company Kazatom- them to acquire a smartphone are If Kazakhstan can produce large prom, one of the most significant the end-users of rare earths. Given volumes of rare earth elements, producers of nonfuel mineral that fact, it is not a surprise that commodities in the country, “Ka- says Lifton, who consults, writes global demand for Rees is fore- zakhstan’s resource base is rich in and lectures on the market funda- Vladimir Shkolnik, chairman of the board of Kazatomprom (r), and Toru Furihata, representative director and senior casted to double by the year 2020. managing executive officer of Sumitomo Corporation (l), cut the ribbon to symbolically open a new SARECO plant in heavy earths.

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