UNEARTHING OPPORTUNITY

A HISTORICAL PERSPECTIVE ON MINERAL WEALTH

 

Tajikistan is a country defined by mountains, and beneath those mountains lies a remarkable geological wealth. More than 400 mineral deposits have been identified across its territory, containing around 70 different minerals. Gold, silver, antimony, tungsten, molybdenum, and rare earth elements form the backbone of this resource base, while industrial minerals such as marble, gypsum, and quartz are also abundant.

 

This endowment has been recognized since Soviet times, when extensive geological surveys mapped much of the country’s mineral wealth. During that era, exploration and extraction were centrally planned and large mines were brought into operation, but much of the sector remained underdeveloped after independence due to limited infrastructure, capital constraints, and the complex geography of the country.

 

Gold and antimony stand out as particularly strategic. Tajikistan is estimated to hold nearly 430 tonnes of gold reserves, concentrated in Sughd Province and in the Pamir mountains. Yet it is in antimony that the country plays a truly global role. Tajikistan today produces roughly one quarter of the world’s supply of this critical metal, making it the second-largest producer after China.

 

Antimony has historically been used in cosmetics, but in modern industry it is indispensable for flame retardants, solar panels, semiconductors, and advanced military alloys. This long legacy provides a strong foundation for growth, but the opportunity now lies in modernization, deep processing, and improved governance to unlock far greater value.

 

POLICIES AND STRATEGIES FOR SECTOR DEVELOPMENT

 

The government of Tajikistan has placed the mining sector at the heart of its industrial strategy. The Ministry of Industry and New Technologies, under the consistent support of the government, is driving reforms that aim to simplify licensing, attract foreign capital, and encourage downstream processing.

 

Mining already accounts for more than one fifth of industrial output, with over three hundred companies and around thirteen thousand workers active in the sector. In 2022, mineral exports reached close to 900 million dollars, with precious metals alone accounting for more than half a billion dollars. These numbers demonstrate both the scale and the potential of the sector, which has been growing in importance as global commodity prices strengthen.

 

Regulatory reforms are creating a more transparent and investor-friendly environment. The government has introduced a “Unified Window” to simplify licensing procedures, and production sharing agreements are increasingly used to attract international partners. Laws governing subsoil use, precious metals, and taxation have been revised to provide greater clarity.

 

The government is also committed to embedding the principles of transparency through its participation in the Extractive Industries Transparency Initiative. This requires regular disclosure of revenues, licenses, and beneficial ownership, strengthening confidence among both domestic and international investors. At the same time, the state promotes the development of industrial clusters and technoparks, offering infrastructure, tax relief, and streamlined services. The Sughd Free Economic Zone is a leading example, providing duty-free imports of raw materials and tax-free exports for companies that operate within its territory. International cooperation is another cornerstone of policy.

 

Joint ventures with partners from China, Iran, and European countries are already modernizing mines and introducing advanced processing technology. Negotiations with the European Union on an Enhanced Partnership Agreement underline Tajikistan’s ambition to integrate more deeply into global value chains, not only for mining but also for energy, transport, and digital sectors.

 

ANTIMONY, GOLD, AND THE RACE FOR CRITICAL MINERALS

 

At the center of international attention is antimony. With global supply chains under strain following China’s decision to restrict exports, Tajikistan has emerged as a critical supplier. The Anzob mining and concentration facility processes ore from the Hissar range, which contains more than six million tonnes of ore and nearly two hundred thousand tonnes of antimony reserves.

 

Other deposits are spread across the mountainous terrain, and new exploration continues to reveal additional potential. The European Union now sources more than half of its antimony imports from Tajikistan, a figure that highlights the country’s growing strategic importance. Rising prices and geopolitical competition mean that investment in antimony projects is not only commercially attractive but also geopolitically relevant.

 

Gold remains the most visible symbol of Tajikistan’s mining sector. The Zarafshon joint venture in Panjakent, operated with Chinese partner Zijin Mining, is the country’s largest gold producer. Global gold prices have risen steadily in recent years, giving additional weight to Tajikistan’s reserves and encouraging exploration in new areas. Estimates suggest that untapped reserves still hold enormous potential, and further investment in refining and downstream processing could transform Tajikistan into a larger player in regional gold markets.

 

Beyond these two flagship minerals, Tajikistan possesses a wide spectrum of other resources. Silver deposits in the Bolshoy Kanimansur region have attracted interest from European companies. The country also holds tungsten, molybdenum, copper, lead, zinc, bismuth, and even rare earth elements such as strontium, gallium, and germanium.

 

Building materials, including high-quality marble and decorative stones, are already exported and could support further industrial diversification. The breadth of resources is such that Tajikistan could evolve into a hub for multiple supply chains linked to the energy transition, digital technologies, and infrastructure development.

 

INVESTMENT CLIMATE AND INTERNATIONAL PARTNERSHIPS

 

The government understands that mineral wealth alone does not guarantee prosperity. Its strategy is therefore aimed at creating a stable and transparent investment climate. Simplified administrative procedures, protection of investor rights, and the development of modern infrastructure are key pillars. Education and training programs are being expanded to build the skilled workforce that modern mining and processing demand.

 

The entry of major Chinese firms has already transformed parts of the industry, bringing in both capital and expertise. Processing plants, enrichment facilities, and new underground infrastructure have been established with foreign assistance.

 

But the government is also encouraging diversification of partners to include Europe, the Gulf, and North America. For investors, this opens a window to enter projects that are both commercially viable and strategically significant. The focus on environmental and social standards, including the introduction of green technologies and stronger oversight mechanisms, is another sign that Tajikistan is aligning itself with international best practices.

 

The outlook for Tajikistan’s mining sector is one of growth, diversification, and increasing integration into the global economy. With rich reserves, a government committed to reform, and global demand for critical minerals accelerating, the conditions for investment have rarely been more favorable.

 

The next phase of development will emphasize deep processing, cluster development, and integration into strategic supply chains, particularly in antimony and rare earths. Gold will continue to provide a solid foundation, while silver, tungsten, molybdenum, and decorative stones offer opportunities for diversification.

 

For forward-looking investors, Tajikistan represents both a commercial opportunity and a strategic partnership at the heart of Central Asia. With the right combination of technology, capital, and long-term vision, the country’s mining sector can become a cornerstone of sustainable industrial growth and a reliable contributor to the global supply of critical resources.

 

INDUSTRIAL DEVELOPMENT AS NATIONAL PRIORITY

 

President Emomali Rahmon has designated 2022–2026 as the “Years of Industrial Development,” placing industry at the center of Tajikistan’s economic agenda. The initiative is designed to accelerate the transformation from a largely resource-dependent economy to one anchored in a diversified manufacturing base that can drive employment, expand exports, and strengthen resilience. By declaring a multi-year period focused exclusively on industrialization, the government has signaled both political will and long-term commitment to this priority.

 

This direction is firmly embedded within the National Development Strategy to 2030 (NDS-2030), the overarching policy framework guiding all ministries and state programs. The strategy is structured around four pillars: energy security, connectivity, food security, and productive employment. Industrial expansion is positioned not as an isolated objective but as a cross-cutting lever that supports each pillar. Domestic manufacturing reduces import dependence and improves food security; new industrial corridors strengthen regional connectivity; and job creation across industrial enterprises contributes directly to the country’s employment goals. By aligning sectoral reforms to these national priorities, the push for industrialization gains coherence across government institutions, budget allocations, and legislative action.

 

In this way, Tajikistan’s industrial policy is not symbolic—it is anchored in the country’s highest-level strategic framework and designed to deliver concrete outcomes.

 

MOMENTUM & MACRO DATA

 

The impact of these policies is increasingly visible in national statistics. Between January and August 2025, industrial enterprises together with private entrepreneurs produced goods worth 40.2 billion somoni, almost 10 billion somoni more than in the same period of 2024. Adjusted for comparable prices, this equates to robust growth of around 23 percent, underlining that the reforms are translating into real output.

 

The expansion spans multiple subsectors. Mining remains the fastest-growing branch, reflecting both new investment and high global demand. Manufacturing, while advancing at a steadier pace, still posted growth of more than six percent, contributing nearly half of total industrial output in the first quarter of 2025. The energy sector is also strengthening, with electricity, gas, and steam production rising by 11 percent in the first eight months of the year, while water and waste services grew by 7.5 percent. This balance across subsectors demonstrates that growth is not narrowly concentrated but distributed across the industrial economy.

 

The geographic spread is equally significant. The Sughd region has emerged as the powerhouse of Tajik industry, accounting for more than 60 percent of total industrial production in early 2025. The region benefits from its strong transport links, concentration of industrial enterprises, and active Free Economic Zone. Khatlon Province and the capital, Dushanbe, are also expanding their industrial output, highlighting that growth is occurring nationwide rather than being confined to one region. Taken together, these results confirm that Tajikistan’s industrial sector is on an upward trajectory. Industry is emerging as a dynamic pillar of the economy, supported by government reforms, rising private investment, and the systematic efforts underway during the “Years of Industrial Development.”

 

FREE ECONOMIC ZONES (FEZS)

 

The country operates five FEZs designed to provide favorable conditions for both domestic and foreign investors. The Sughd FEZ, created in 2009, has become a flagship location for industrial activity. Spanning more than 300 hectares in the Khujand area, it offers companies significant tax exemptions, duty-free import of equipment and raw materials, and free repatriation of profits. Goods produced in the FEZ for export are exempt from taxes and customs duties, apart from minor clearance fees. The legal framework allows flexibility in designating zones for industrial, commercial, service, or research purposes, ensuring they can adapt to investor needs.

These zones are more than administrative constructs—they serve as industrial clusters that concentrate infrastructure, labor, and logistics in one place. They are intended to accelerate the adoption of modern technologies, improve productivity, and establish Tajikistan as a competitive manufacturing location within Central Asia.

 

Licensing and Regulatory Streamlining. In parallel, the government has worked to simplify administrative procedures. A “Unified Window” or one-stop shop has been introduced to handle licensing for industrial and extractive projects, reducing bureaucratic steps and shortening approval timelines. This is part of a wider modernization of laws covering subsoil rights, taxation, and production-sharing agreements. By reducing red tape, clarifying obligations, and enhancing investor protections, Tajikistan is working to create a more predictable and transparent business environment. Together, these measures reflect a clear strategy: lower barriers to entry, provide fiscal incentives, ensure legal certainty, and support industrial investors through every stage of the project cycle.

 

DELIVERING RESULTS AND FUTURE OUTLOOK

 

The government’s targets are ambitious but achievable. Industrial output is projected to double by 2026, creating as many as half a million new jobs. These forward-looking goals build on a solid base of recent achievements. Between 2019 and 2024, total industrial production nearly doubled from 27 billion to 53 billion somoni. Over this period, more than 2,000 new enterprises were established and 74,000 jobs created. In 2024 alone, some 740 new companies entered the market, generating 20,000 employment opportunities.

 

These statistics demonstrate that Tajikistan’s industrial expansion is already underway. Factories are opening, new companies are being registered, and thousands of workers are entering the industrial workforce. For international investors, the opportunity lies in joining a sector that is not only growing rapidly but also underpinned by government commitment and long-term strategic planning.

 

With the advantages of Free Economic Zones, simplified regulations, and strong state backing, Tajikistan is creating an industrial environment designed for success. The focus on value addition—moving from raw materials to processed goods and manufactured products—means that future growth will be deeper and more sustainable. This shift promises higher margins for investors, stronger export capacity for the country, and greater resilience for the economy as a whole.