BAKU, Azerbaijan, November 2. Growing global demand for gallium, germanium, rhenium, beryllium, and tantalum is creating additional incentives for Kazakhstan to develop and modernize its production facilities.
This was stated in BCG's study titled "Why Critical Mineral Shortages Are a CEO Issue."
"The findings of the study are particularly relevant to Kazakhstan, given the specific characteristics of its mineral resource base. Gallium, germanium, rhenium, beryllium, and tantalum are by-products of Kazakhstan's metallurgical production. Although their contribution to export revenues remains relatively small, the importance and value of these minerals for global supply chains are disproportionately greater. Kazakhstan's strategic role in this segment is determined not so much by production volumes as by the importance of the industries whose production chains could be disrupted even by a minor shortage of these raw materials. Growing global demand for these minerals creates additional incentives to develop and modernize the country's production facilities," said Mikhail Moguchev, Managing Director and Partner at BCG.
According to him, given the specific nature of by-product production of so-called "mosquito minerals," output could be increased not so much through the construction of new production facilities as by tapping the potential to recover by-products at existing copper, zinc, alumina, and uranium operations, as well as developing technologies to extract them from accumulated mining and metallurgical waste.
The study notes that companies often begin assessing risks by analyzing the composition of the materials they use, which primarily directs their attention to metals with high consumption volumes, such as copper and lithium. So-called "mosquito minerals" are often left out of this analysis.
Although the market for these minerals is extremely small, major production chains across a wide range of industries depend on them. Shortages can disrupt production even at companies that do not purchase these minerals directly. As a result, leading global companies are seeking to identify such dependencies and strengthen the resilience of their supply chains.
The study gives two examples.
The global gallium market is worth less than $350 million annually, with production totaling only around 900 tonnes. However, according to BCG estimates, the production of end products worth approximately $3.5 trillion depends on gallium supplies.
The global market for primary arsenic stands at around $50 million. However, one producer accounts for approximately 60% of supplies of ultra-high-purity arsenic, which is used in 5G and 6G communications infrastructure, optical systems in data centers, radar systems, and defense electronics.
"Gallium, germanium, and arsenic are extracted as by-products of the mining and processing of other raw materials. Therefore, their supply volumes are determined primarily by conditions in the markets for the main metals. Even a sharp increase in prices for 'mosquito minerals' will not necessarily lead to higher production," the BCG study says.
