Analysis of External Commodity Turnover of Mining Sector of Kazakhstan

Abstract

The creation and expansion of mineral resource complex is one of the main prerequisites for the successful growth of the economy. Mineral resources are a source of economic prosperity and progress for many countries of the world. As an example of this postulate is the modern history of the Republic of Kazakhstan. Kazakhstan is rich in mineral resources, including chrome, coal, copper, gold, iron ore, wolfram, and zinc. The economy is still closely linked with the other economies of the former Soviet Union and especially with the Russian Federation. However, since independence in 1991, foreign trade has been redirected toward markets outside the former Soviet Union. Nowadays, Kazakhstan takes one of the leading positions for the variety of mineral resources. Firstly, Kazakhstan has an abundant supply of accessible mineral and fossil fuel resources. Development of petroleum, natural gas, and mineral extraction has attracted most of the over $40 billion in foreign investment in Kazakhstan since 1993 and accounts for some 57% of the nation's industrial output (or approximately 13% of gross domestic product). Secondly, according to some estimates, Kazakhstan has the second largest uranium, chromium, lead, and zinc reserves, the third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal, iron, and gold. This study seeks to provide a survey of the state of knowledge regarding mineral trade. I would like to focus only on Kazakhstan’s foreign trade in mineral resources. The increase in price volatility and worries about the impact of rapidly growing but unstable mineral exports on the economic growth of developing countries have created a sustained interest in mineral trade flows and policies.