Critical minerals in Central Asia

Policy considerations

1. Enhance geological mapping through renewed exploration and the harmonisation of reserve reporting

Governments of Central Asian countries could consider scaling up their subsoil exploration projects to provide domestic companies and potential investors with better visibility on the types of minerals present and the scale of available reserves. Governments could also consider providing more exploration licences to foreign companies and creating joint ventures for soil exploration.

The mineral reserves reporting systems should be harmonised, not only with CRIRSCO member countries but within Central Asia as well:

• Kazakhstan, which is already a CRIRSCO member, could finalise its transition to CRIRSCO reporting standards and completely phase out the GKZ system in favour of the KAZRC system.

• The Kyrgyz Republic and Uzbekistan could finalise their transition to CRIRSCO standards; while the Kyrgyz Republic is already a CRIRSCO membership candidate, Uzbekistan could consider going in the same direction.

• Tajikistan and Turkmenistan could consider starting the transition towards CRIRSCO reporting standards.

Kazakhstan, Tajikistan, Turkmenistan and Uzbekistan could also consider publishing official lists containing minerals they consider as critical and/or strategic for their economies. The Kyrgyz Republic already has such a list.

2. Clarify legislation and rules to potential investors

Governments could consider providing investors with clear guidance on legislation and rules touching upon mining revenue taxation and environmental and social standards. This would avoid future misunderstandings and disagreements between investors and governments, leading to less litigations and fewer project terminations. Fuller, clearer and more systematic provision of information and guidance in this respect will allow governments to attract foreign investment more easily and lead to better informed co-operation between different parties involved in the mining process.

3. Promote the implementation of OECD and other international RBC standards to enhance the mining sector’s transparency

Governments could continue adopting and raising awareness of relevant OECD RBC standards, such as the OECD Guidelines for Multinational Enterprises for Responsible Business Conduct and the OECD Due Diligence Guidance for Responsible Mineral Supply Chains from Conflict-Affected and High-Risk Areas. Tajikistan, Turkmenistan and Uzbekistan, who are not yet EITI members, could consider starting to implement EITI standards in their respective mining sectors. Risks related to illicit mining, under‑regulated artisanal and small‑scale mining, potential conflict‑affected tantalum and gold flows, and the concentration of ownership and control in large SOEs mean that further advances in transparency, independent oversight and supply‑chain due diligence are needed for RBC standards to translate into consistent practice on the ground.

4. Strengthen labour rights and protections in the mining sector

Governments could consider enhancing their labour protection frameworks through several measures:

• Enhancing overall safety oversight.

• Promoting transparency around incident reporting.

• Providing the inspection authorities with capacity and a mandate for unannounced inspections.

• Providing clearer minimum requirements for operational safety measures, supported by proportionate enforcement.

• Making complaint and grievance mechanisms more accessible and effective.

Uzbekistan in particular could consider easing the restrictions on trade union organisations, notably by making it easier for trade unions to operate outside of the Federation of Trade Unions of Uzbekistan.

5. Enhance local community involvement in mining projects

Governments could consider requiring mining companies to take into account the results of public hearings and ensure that companies continue the dialogue beyond the early stages of mining projects. In Kazakhstan and the Kyrgyz Republic, governments could promote and ensure the involvement of local communities during the negotiations on Community Development Agreements. In Tajikistan, Turkmenistan and Uzbekistan, governments could consider introducing mechanisms of public dialogue between mining companies, local public authorities and local communities around mining projects, which would allow for better information about the projects’ risks and potential impacts and better consideration of local communities’ needs.

6. Integrate mining- and critical-mineral-specific ecological targets in strategies and development plans

Stronger integration of climate considerations into mining governance will allow to align critical mineral expansion with national and regional climate goals. Governments could therefore consider setting more sector-specific targets in their national strategies and plans, notably for the mining sector, which:

• Is highly GHG-emissive.

• Has a considerable negative impact on the quality of water resources.

• Poses additional risks through challenges linked to waste and tailings storage and management.

Following Kazakhstan’s example, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan could consider setting GHG emissions reduction targets for the largest emitting mining companies.

6. Address legislative gaps to align with BEPS international tax standards

To counter BEPS practices, governments could consider:

• Strengthening anti-BEPS provisions in their tax legislation to better align with international standards. This includes embedding clear rules on transfer pricing, interest limitation and the taxation of indirect transfers in primary legislation, allowing tax administrations to more effectively address base-eroding arrangements.

• Implementing reforms in a transparent and prospective manner while maintaining legal certainty for investors. Governments should ensure that stabilisation clauses in investment agreements do not prevent the adoption of bona fide anti-avoidance measures aligned with recognised international standards.

• Strengthening tax transparency and international co-operation, including the effective use of transfer pricing documentation and information-exchange mechanisms. Continued investment in tax administration capacity, particularly in international taxation, transfer pricing and extractive industries, is essential. Participation in initiatives such as the Global Forum on Transparency and Exchange of Information for Tax Purposes can further support these efforts.