Reuters, citing
Kazakh Deputy Investment and Development Minister Mr Albert Rau reported that
Kazakhstan is seeking loans from China worth around USD 3 billion to build two
new plants to boost copper and aluminium output in the Central Asian nation.
London listed Kazakh company KAZ Minerals had announced in March it would team
up with China's Baiyin Nonferrous Metal Group to build a new smelter. The joint
venture plans to produce 300,000 tonnes of cathode copper a year, and the plant
is estimated to cost USD 1 billion. The main shareholder of Baiyin Nonferrous
Metal Group is state-owned investment company CITIC Group.ENRC Group, which
delisted from the London Stock Exchange in 2013, is looking for a separate loan
of around USD 2 billion to double its current aluminium output of 250,000
tonnes. ENRC, a large producer of ferroalloys which also produces iron ore,
alumina and aluminium, plans to double its output of aluminium by launching two
new production stages, each with a capacity of 125,000 tonnes of the metal
Mr Rau said “As a rule, the source of financing is China Exim Bank via the
state run Kazakhstan Development Bank. KAZ Minerals and its Chinese partner
were expected to complete forming their joint venture by the end of the first
half of this year. The construction of the plant will take a minimum of three
years. Building this new copper plant in Kazakhstan to process ore from the
Aktogay and Bozshakol deposits is a priority project with China. KAZ Minerals
has set its sights on the giant market of neighbouring China. We did our best
to prove to them that it would be more advantageous for them to receive cathode
copper rather than copper concentrate.”
Kazakhstan's copper production totalled 294,000 tonnes last year. Kazakhstan
wants to boost its processing of primary aluminium into manufactured articles.
Mr Rau said “Today we produce 250,000 tonnes of aluminium, but process just
30,000 to 40,000 tonnes.”
Source: steel guru