Uzbekistan Builds Critical Metals Processing Clusters by 2030

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan holds an investment portfolio in critical materials worth approximately US$2 billion, covering 25 types of strategic raw materials, and intends in the coming years to establish new production clusters for the deep processing of technology metals.

That was the message from First Deputy Minister of Mining Industry and Geology of Uzbekistan Feruza Khamidova, delivering a keynote address at the critical raw materials panel session during the fifth Tashkent International Investment Forum.

Khamidova opened her remarks with a central proposition: the government views critical minerals not merely as a national resource but as the foundation of sustainable supply chains, both domestically and on global markets. This approach underpins the logic of the entire mining sector reform that Tashkent has been pursuing in recent years.

She backed her assessment of the country's potential with concrete figures: geological surveys cover only around 40% of Uzbekistan's territory, while the estimated value of already prospected mineral resources exceeds US$3 trillion. She said this gap should be seen not as a problem but as evidence of significant untapped potential for further subsoil development through proper geological exploration and the engagement of international partners.

The central institutional instrument for implementing the new strategy is the Complex of Technology Metals (CTM), established in 2024 on the initiative of the head of state.

The enterprise was designed from the outset as an integrated structure covering the full production cycle: from extraction and enrichment through to final processing and the export of finished products. This vertical integration, Khamidova said, fundamentally distinguishes the Uzbek approach from the pure raw material export model the country intends to leave behind. CTM is already supplying metals in compliance with international standards to the United States, Japan, South Korea, and a number of other countries.

The story of tungsten illustrates the pace CTM can achieve with adequate support. Eight years ago, Uzbekistan was forced to import tungsten concentrate. In 2026, the enterprise will reach an output of 500 tonnes of the material. "This is not fiction — this is reality," Khamidova said in response to sceptical questions about the feasibility of more ambitious long-term plans.

The Uzbekistan 2030 development strategy envisages the creation of two large production clusters. In Navoiy region, a specialised technology metals processing cluster with capacity of up to 4,000 tonnes per year will be established over the next four years. In Tashkent region, a filament cluster with raw material processing capacity of up to 2.5 tonnes per year is planned.

Both projects are being built on a full production cycle principle — from raw material to finished product. Ministry calculations indicate that this depth of processing will increase the value of end products by two to three times compared with unprocessed raw materials, while simultaneously creating jobs and developing infrastructure in the country's more remote regions.

Regulatory reform is proceeding in parallel with the creation of new production capacity. A new subsoil law aligned with international standards has been developed, introducing clear licensing and resource management principles, minimising regulatory uncertainty for investors, and incentivising investment through tax reforms and a review of earlier geological survey results.

Khamidova said the aim of these measures is not merely to attract capital but to build trust between the state and business on the basis of transparent and stable rules.

Financing a programme of this scale requires a combination of capital sources. The state has already allocated US$220 million through the Reconstruction and Development Fund, sending investors a clear signal that the government is prepared to share risk at the most challenging, pre-investment stage of project development.

Several months ago, CTM ran a competitive selection process among banks for corporate financing, with five financial institutions submitting proposals. Khamidova said the terms proved favourable — low interest rates and direct lending without intermediation by local banks — and a corresponding credit agreement is expected to be signed at the forum.

In parallel, the enterprise is steadily building a system of long-term offtake contracts. Khamidova regards this instrument as key to unlocking project finance: confirmed long-term demand transforms CTM into a borrower with predictable cash flows, which materially reduces the perceived credit risk for international financing organisations. "If an enterprise has such contracts, that is a significant advantage: it means stable revenue and, for a lender, low risk," she said.

Khamidova did not avoid difficult questions. She acknowledged that CTM's two-year track record currently limits access to classical project finance with its standard requirements regarding financial history, audit, and engineering ratings. She noted, however, that the enterprise's youth does not imply unreliability: CTM enjoys direct state support, is demonstrating real production growth, and has a clear development roadmap. "Financial organisations and banks should not be afraid of our enterprise," the first deputy minister said, expressing confidence that CTM will secure full project financing in the near term.

Uzbekistan's strategic goal, in Khamidova's closing argument, remains unchanged: the country aims to become not merely a reliable raw material supplier but a regional hub for the enrichment, processing, and production of high-value critical materials products, organically integrated into global supply chains.

To achieve this goal, the government is inviting international investors, financial institutions, and technology partners to cooperate on mutually beneficial terms, with guarantees of state support and long-term predictability of the business environment.