# Korea expands critical mineral refining pact with Uzbekistan *Seoul prepares to sign downstream smelting agreements during bilateral talks Sept. 14, targeting Chinese dominance in processing tungsten, molybdenum and rare metals.* **Published:** September 12, 2026 **By:** So-yeon Jung **Section:** Energy & Critical Minerals — South Korea **Format:** Policy Tracker **Confidence:** high **Source:** https://eastasiabrief.com/energy-minerals/korea-expands-critical-mineral-refining-pact-uzbekistan-248 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Korea and Uzbekistan upgrade critical minerals pact from raw extraction to local smelting - KEXIM commits $500 million to a $3 billion regional facility via Supply Chain Stabilization Fund - Bilateral summit opens Sept. 14 in Seoul followed by C5+1 Seoul Declaration Sept. 16 ![Workers oversee automated critical mineral refining and ingot production inside an industrial processing facility near a seaport. (AI-generated image)](https://eastasiabrief.com/media/2026-09-11-8e73a980ab5e.webp) *Workers oversee automated critical mineral refining and ingot production inside an industrial processing facility near a seaport. (AI-generated image)* South Korea's presidential office announced Sept. 11, 2026, that Seoul will host the inaugural Korea-Central Asia Summit next week to formalize downstream critical mineral refining and processing partnerships. The multilateral summit convenes heads of state from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. Uzbek President Shavkat Mirziyoyev arrives first on Sept. 13 for a state visit, presidential officials said. Financing for the joint processing push rests on a $500 million commitment from the Export-Import Bank of Korea. The capital anchors a wider regional credit platform targeting up to $3 billion by 2029. The financing framework, organized alongside the Asian Development Bank, finances mining, extraction, smelting and manufacturing across Central Asia. Korea seeks secured supply quotas for molybdenum, tungsten and rare earth elements, trade officials said. South Korean battery and semiconductor manufacturers depend on China for over 80% of their refined rare metals. The bilateral partnership aims to bypass that processing bottleneck by constructing high-purity chemical refineries within Uzbekistan. Refining raw minerals at the mine site addresses a chronic vulnerability across East Asian supply chains. While resource extraction occurs globally, Chinese industrial smelters process roughly 70% of the world's strategic intermediate mineral compounds. The bilateral initiative expands a foundational agreement signed in Tashkent on June 14, 2024. That accord granted South Korean resource firms exclusive development rights over newly surveyed commercial mineral deposits, the industry ministry said. The 2024 agreement also funded technical expansion at the Korea-Uzbekistan Rare Metals Center in Chirchiq. The state facility operates pilot furnaces to test industrial smelting techniques on local tungsten and molybdenum concentrates. Uzbek mining firms previously exported unrefined ores to Chinese facilities for beneficiation — the mechanical process of separating usable ore from waste rock — and final smelting. That export route left domestic producers with low-margin raw ore returns. Converting concentrates into high-purity metals inside Uzbekistan cuts outbound freight tonnage by up to 90%. Slashing cargo volume offsets heavy transport tariffs across Central Asia's landlocked rail routes to Pacific seaports, logistics planners said. The Export-Import Bank of Korea funded its portion through South Korea's statutory Supply Chain Stabilization Fund. The government established the 11 trillion won ($8.2 billion) financing vehicle in 2024 to support secure mineral procurement. Bank Chairman Hwang Ki-yeon signed the multilateral platform protocol at the Asian Development Bank annual meeting in Samarkand on May 3. The mechanism pairs commercial loans with sovereign risk insurance and technical assistance grants. South Korea's high-tech manufacturing sector requires continuous supplies of refractory metals — elements with high thermal resistance used extensively in advanced microchips, displays and turbine blades. Uzbekistan holds some of the world's largest known reserves. Domestic processing plants in South Korea face steep electricity tariffs and stringent carbon regulations that restrict primary metallurgical smelting. Locating chemical refining infrastructure near Uzbek deposits utilizes lower-cost domestic power networks, corporate researchers said. State enterprise Almalyk Mining and Metallurgical Complex serves as the primary industrial anchor for Uzbek mineral production. The combine produces substantial copper and molybdenum, but requires advanced purification technology to supply semiconductor fabricators. The Ministry of Trade, Industry and Energy has supported joint engineering projects through official development assistance. Those grants financed high-vacuum sintering furnaces and chemical precipitation columns for the Chirchiq engineering laboratory. Scaling up those pilot production units requires commercial equity alongside development bank co-financing. South Korean non-ferrous metal producers are currently assessing joint ventures to co-invest in commercial refining facilities, industry representatives said. President Mirziyoyev and his South Korean counterpart will hold bilateral summit talks on the afternoon of Sept. 14 in Seoul. The two governments intend to sign binding implementation contracts for local processing facilities, officials said. The multilateral Korea-Central Asia Summit will convene on Sept. 16 to conclude the diplomatic mission. Leaders from all six member states plan to adopt the Seoul Declaration, establishing long-term critical mineral trade protocols. The presidential office did not publish specific site allocations, corporate equity structures or finalized production quotas for the joint refining facilities. Total commercial capital expenditures for the upcoming projects also remain unannounced. Bilateral working committees from Seoul and Tashkent will conclude final wording on the industrial agreements before the summit opens on Sept. 14. Ministry officials schedule formal contract reviews before the fourth quarter concludes. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Korea-Uzbekistan smelting alliance | cuts semiconductor tungsten and molybdenum refining reliance on China below 80% | loses primary smelting fees as Central Asian unrefined concentrates stay local | gains potential non-China source for electronic-grade rare metals | establishes Central Asian processing route bypassing Chinese metallurgical choke points | ## In this story - **Companies:** Almalyk Mining and Metallurgical Complex, Export-Import Bank of Korea - **Exposed:** Asian Development Bank - **Policy:** Economic Security, Trade Agreements, Subsidies - **Impact:** Supply Chain, Capex, Compliance ## Primary sources 1. motie.go.kr 2. kmria.or.kr 3. chosun.com 4. unjournal.co.kr 5. newsis.com --- Cite as: East Asia Brief, "Korea expands critical mineral refining pact with Uzbekistan," September 12, 2026. https://eastasiabrief.com/energy-minerals/korea-expands-critical-mineral-refining-pact-uzbekistan-248