New Ferroalloy Plant to be built in Karaganda
A new ferroalloy plant will be built in Karaganda, the industrial center of Kazakhstan. The project is financed and realized as part of the state industrial and innovative development program. The annual output of the export-oriented enterprise will help Kazakhstan be among the world’s nine largest producers of ferrosilicon.
BOLAT ZHAMISHEV, CHAIRMAN, DEVELOPMENT BANK OF KAZAKHSTAN:
- We will finance the first stage of the plant’s construction. There will be two furnaces. The production will amount to 96,000 tonnes of ferroalloys a year. The project is worth 34 billion tenge. The loan amounts to 24 billion tenge and the loan’s term is 11 years. It is financed as part of the State Program of Industrial-Innovative Development. The project is very promising. There is high profitability. It is expected that the income will allow the plant to finance the second and third stages of construction.
Commissioning of the first part of the plant is scheduled for next year. According to the spokespeople of the project implementers, the region has all the necessary supplies for production of ferrosilicon, specifically, quartzite, limestone, coal and dross. The main raw materials will be supplied to the plant at a fixed price, which is designed for a long period. Kazakhstan’s local content in the project will amount to over 90%.
ERLAN NIGMATULIN, SHAREHOLDER, YDD CORPORATION:
- An increase in output is expected at the second and third stages. The plant will produce 144,000 tonnes of ferrosilicon per year at the second stage and 240,000 tonnes of ferrosilicon per year at the third stage. This will allow Kazakhstan to become the worlds’ fifth largest producer of ferrosilicon. Our plant has a good contracting work going on. We have off-take contracts for sale of finished products with an international trader.
According to the project participants, the plant will become one of the most environmentally friendly factories in Kazakhstan. For example, a gas cleaning system will be installed which will process the industrial dust into a component used for production of cement.