EU includes Kazakh graphite deposit in strategic initiatives list, estimates capex at $62-$344 mln

ALMATY. June 4 (Interfax) - The European Union has granted strategic project status to the exploration and development of the Sarytogan graphite deposit in Kazakhstan's Karaganda region, the Kazakh Ministry of Industry and Construction said.

Granting this status means the European Commission has initiated the process of attracting investment for the project's development. According to estimates, the total capital expenditures are defined in the range of $62 million-$344 million.

"The Sarytogan project is seen as a key element in strengthening the industrial partnership between the European Union and Kazakhstan, as well as part of the pan-European strategy to ensure sustainable supplies of critical materials for the EU's green and digital transition," the ministry said following intergovernmental talks at the 15th Astana Mining & Metallurgy Congress (AMM 2025).

The European Commission also expressed readiness to support the Kazakh enterprise in concluding offtake contracts with European partners.

The Sarytogan deposit is located in an industrial mineral extraction area and is connected by highway to the city of Karaganda (190 km) and Kazakhstan's capital, Astana (390 km). The deposit contains two major graphitized zones - Central and Northern - identified during exploration.

In August 2024, the European Bank for Reconstruction and Development (EBRD) acquired a 17.36% stake in Sarytogan Graphite Limited, which is developing the deposit. The EBRD said that the investment of 5 million Australian dollars (3 million euros) in the purchase of 17.36% of the company's shares will help finance the Sarytogan Graphite development program, which includes the preparation of a feasibility study and replenishment of working capital.

The project aligns with the EBRD's new strategy in the mining sector, which supports the exploration, development, production and processing of metals and minerals necessary for the transition to green technologies and the introduction of new technologies. It also corresponds to the strategic partnership between the EU and Kazakhstan in the field of raw materials, batteries and renewable hydrogen.

According to the Sarytogan Graphite website, the company has received an investment of 5 million Australian dollars from the EBRD.

According to information on the website, the company owns 100% of the Sarytogan Graphite Project in Kazakhstan. The Sarytogan deposit was first explored in the 1980s, and in 2018, Sarytogan's wholly owned subsidiary Ushtogan LLP (licensed in August 2018 and extended in June 2022) resumed exploration at the site.

In August 2024, Sarytogan Graphite completed the preliminary feasibility study for the project, which envisions phased development in four stages with an annual production capacity of 50,000 tonnes during the first 60 years of mine operation. This enabled the company to announce a probable ore reserve of 8.6 million tonnes with a total graphite carbon content of 30%. The initial ore reserve accounts for only 4% of the total mineral resource. The company has begun preparatory work for the final feasibility study, including trial mining of 20 tonnes of ore for equipment testing and sample creation for clients.

The project's strategic location places the company between the largest battery manufacturers in Europe and China.