The subsidiary of Baiterek NMH JSC, Development Bank of Kazakhstan JSC, opened a credit line to Qaz Carbon LLP in the amount of 9 billion 24 million tenge for a period of 7 years for the construction of a coal enrichment plant and the modernization of the existing foundry in Karaganda.
The total project cost is 12 billion tenge, while 3 billion tenge of own funds, including foreign investments, have already been invested. DBK provides Qaz Carbon LLP with borrowed funds within the framework of the State program of industrial and innovative development of the Republic of Kazakhstan for 2015-2019.
Construction plans were discussed at a press briefing in the DBK office, where shareholders of Qaz Carbon LLP Erlan Nigmatulin, David Kemertelidze and Chairman of the Board of DBK Abay Sarkulov took part.
The financing provided by the Bank will be directed to the construction and installation works of the new processing plant, the purchase, supply and installation of equipment.
The launch of the processing plant is scheduled for 2021. The output will be coal concentrate, the main consumer of which will be the Karaganda Ferroalloy Plant of YDD Corporation LLP. Also, part of the production is planned to be exported, the rest of the products will be used as raw materials for the company's own needs.
Thanks to new technologies of automation and electronics, the entire enrichment process will be controlled by the operator from the production control center.
- For coal enrichment, the so-called wet enrichment technology will be applied. This technology of coal enrichment will maximize the extraction of minerals from the total rock mass of raw materials. The entire enrichment process takes place in a closed cycle, without the use of chemicals, which leads to a clean environmental impact and significantly increases the environmental friendliness of the project as a whole. A high degree of automation of production processes at the processing plant allows us to monitor compliance with production technology and the quality of finished products. The factory capacity will be 300 tons per hour or 1,800,000 tons per year., - Erlan Nigmatulin said, answering journalists' questions.
The raw material for the future plant necessary for the production of coal concentrate is coal of the Karaganda region. At present, design and estimate documentation has been developed, and also, since April of the current year, construction and installation works of the concentration plant are underway.
- Today we have sufficient experience in implementing large investment projects in Kazakhstan. Therefore, having studied the needs of the near and far abroad market, as well as the domestic market, we started implementing new projects. In practice, we were convinced that Kazakhstan has not only a unique investment climate, but also a huge raw material base for creating products with high added value, - noted David Kemertelidze.
It should be noted that in the DBK portfolio, the mining and metallurgical industry occupies 31% and this industry has a good socio-economic effect, this includes job creation and tax deductions. At the same time, the Bank, adhering to the principles of sustainable development, welcomes the desire of the shareholders responsible for the sustainable development of the region to use unique equipment for the processing of coal waste, which will reduce the environmental impact of production and will positively affect the environmental situation in the region. The project also passed a state environmental review for an “Environmental Impact Assessment”.
- The implementation of this project will contribute to the fulfillment of direct orders of the head of state - this is attracting investments, increasing labor productivity in the manufacturing industry, during the implementation of the project it is planned to create about 110 new permanent jobs and more than 500 people will be attracted for the construction period. And what is also important - the ability of the factory to export its products, which will also help to contribute to the development of the export potential of our country, - stressed in turn Abay Sarkulov.
The second part of the funding will be used to modernize the existing foundry. The project aims to increase existing capacities for the production of steel and cast iron products. It should be noted that with the arrival of new investors in 2018, including foreign ones, a large-scale modernization of the plant was launched.
The main activities of the plant are the production of pig-iron and steel products, the production of coke and semi-coke. In general, the company produces more than 900 items of steel and cast iron products. The annual design capacity of the existing plant is 120 thousand tons of pig-iron and steel products.
As a result, over two years of active work to modernize the plant, investors have already invested more than 8 billion tenge of private investment. 1216 jobs created. The average salary in the company is 245 thousand tenge. In 2019, taxes paid to the state in the amount of
2.1 billion tenge.
The implementation of new projects of Qaz Carbon LLP will give a significant impetus to the diversification of the regional economy and increase labor productivity through the transfer of technology of the latest generation.