Korea, Kazakhstan sign critical minerals partnership deal

Diplomacy

Published: 12 Jun. 2024, 19:49 Updated: 13 Jun. 2024, 00:28

Korea, Kazakhstan sign critical minerals partnership deal

President Yoon Suk Yeol, right, and Kazakh President Kassym-Jomart Tokayev inspect an honor guard during an official welcoming ceremony at the presidential palace in Astana, Kazakhstan, Wednesday, ahead of their bilateral summit. [JOINT PRESS CORPS]

Korea and Kazakhstan agreed to work together on a stable supply chain for critical minerals, allowing for cooperation from development to final use, as the two countries' leaders held a bilateral summit on Wednesday.

President Yoon Suk Yeol and Kazakh President Kassym-Jomart Tokayev held a summit at the presidential palace in Astana during the Korean leader's three-day state visit to Kazakhstan, a part of a weeklong trip to Central Asia.

The two sides issued a joint statement as they discussed ways to strengthen their strategic partnership and economic security, signing a series of memorandums of understanding (MOU) and agreements.

This included an MOU on a critical minerals supply chain partnership, which allows for comprehensive cooperation that enables opportunities for joint exploration, development and commercialization.

Kazakhstan, with its abundant gas and mineral resources, is known to be rich in uranium, chromium, titanium and other rare earth metals needed by Korea's semiconductor and battery industries.

The presidential office said that this has institutionalized a means to enhance cooperation with Kazakhstan in all stages of mineral development, including mining and refinement, giving Korean companies an edge in access to the resources.

President Yoon Suk Yeol, left, and Kazakh President Kassym-Jomart Tokayev shake hands at their bilateral summit at the presidential palace in Astana, Kazakhstan, Wednesday. [JOINT PRESS CORPS]

"Our two countries agreed to strengthen the critical mineral supply chain by combining Kazakhstan's abundant mineral resources with Korea's advanced technology," Yoon said in a joint press briefing after their summit. "We decided to develop partnerships across the entire cycle, including the exploration, mining and smelting of key minerals."

Other MOUs included joint mining for lithium deposits and technology cooperation for rare metals.

SK ecoplant and the Korea Institute of Geoscience and Mineral Resources signed an MOU with Kazakh authorities on the joint exploration of lithium mines in Kazakhstan.

The two countries also decided to cooperate on power plant modernization and renewable energy. Yoon said Korean companies will be able to take part in projects related to Kazakhstan's power production and industrial development.

He highlighted there would be more opportunities for Korean companies entering the Kazakh market to partake in energy and infrastructure projects. This includes the signing of MOUs on electric power and gas fields.

Hyundai Engineering signed an MOU with Kazakh state-run oil and gas company KazMunayGas for an oil, gas and petrochemical field project in Kazakhstan.

Regarding cooperation in the infrastructure field, Yoon said he asked for Tokayev's "special interest" so that Korean companies could participate and contribute to major national projects promoted by Kazakhstan, such as gas processing plants.

Tokayev in turn endorsed Yoon's "K-Silk Road Cooperation Initiative," Korea's new diplomatic strategy for Central Asia, and a proposal to hold a South Korea-Central Asia summit in Seoul next year with five countries from the region.

Kazakhstan also reiterated its support for North Korea's denuclearization. Once holding the fourth-largest nuclear arsenal in the world, Kazakhstan voluntarily gave up its Soviet-era nuclear weapons in the years after gaining independence in 1991.

Yoon said that the two countries agreed to partake in international efforts to "condemn North Korea's nuclear and missile development" and to block any sources of illegal funding for its weapons program.

Other areas discussed included expanding cooperation in the aviation sector, including the resumption of direct flights between the capitals of the two countries, academic and student exchanges, expanding Korean language education and participation in tourism and sporting events.

President Yoon Suk Yeol speaks during a Korea-Kazakhstan business forum in Astana, Kazakhstan, Wednesday. [JOINT PRESS CORPS]

Yoon and Tokayev attended a signing ceremony for 11 MOUs.

Another 24 MOUs and agreements were signed during a Korea-Kazakhstan business forum at a hotel in Astana later that day attended by about 300 government and business representatives from the two countries.

The deals covered sectors including critical minerals, energy and power plants, trade, infrastructure, finance and new industries.

"Korea, as a manufacturing powerhouse, will be a key partner in Kazakhstan's 'manufacturing development strategy," Yoon said at the forum, adding that he "expects industrial cooperation between the two countries to expand beyond automobiles to the larger manufacturing industry."

Yoon and first lady Kim Keon Hee arrived in Kazakhstan Tuesday after wrapping a trip to Turkmenistan as part of their three-country Central Asia tour.

Later that evening, Yoon met some 120 overseas Koreans in Kazakhstan, home to some 120,000 Koryoin, or ethnic Koreans of the former Soviet Union.

The presidential couple will depart for Uzbekistan, the last leg of their six-day tour that began Monday, on Thursday.

Korean President Yoon Suk Yeol, left, and first lady Kim Keon Hee, hold Turkmenistan’s national dog breed, a Central Asian shepherd known as the Alabai, in a commemorative photograph with Turkmen President Serdar Berdimuhamedov, right, and his wife at a state banquet held at a hotel in Ashgabat on Monday. [JOINT PRESS CORPS]

BY SARAH KIM [kim.sarah@joongang.co.kr]