COVID-19 Latest
Kazakhstan|business|May 25, 2015 / 05:23 PM
Kazakhstan seeks $3 bln in Chinese loans for copper, aluminium projects

AKIPRESS.COM - kaz minerals Kazakhstan is seeking loans from China worth around $3 billion to build two new plants to boost copper and aluminium output in the Central Asian nation, Kazakh Deputy Investment and Development Minister Albert Rau told Reuters in an interview.

London-listed Kazakh company KAZ Minerals, among the world's major copper producers, 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 $1 billion, Rau said. Kazakhstan's copper production totalled 294,000 tonnes last year.

ENRC Group, which delisted from the London Stock Exchange in 2013, is looking for a separate loan of around $2 billion to double its current aluminium output of 250,000 tonnes, he said.

"As a rule, the source of financing is China Exim Bank via (the state-run) Kazakhstan Development Bank," Rau said.

He said 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," he added.

"Building this new copper plant in Kazakhstan to process ore from the Aktogay and Bozshakol deposits is a priority project (with China)," Rau said.

KAZ Minerals has set its sights on the giant market of neighbouring China. "We ... did our best to prove to them (the Chinese) that it would be more advantageous for them to receive cathode copper rather than copper concentrate," Rau said.

The main shareholder of Baiyin Nonferrous Metal Group is state-owned investment company CITIC Group.

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, Rau said.

As part of this project, Kazakhstan wants to boost its processing of primary aluminium into manufactured articles.

"We are first and foremost interested in producing car discs and, in general, in whatever aluminium can be bashed into. Each side of the project (aluminium production and processing) is worth $1 billion."

"Today we produce 250,000 tonnes of aluminium, but process just 30,000 to 40,000 tonnes," he said. He gave no further detail.

All rights reserved

© AKIpress News Agency - 2001-2024.

Republication of any material is prohibited without a written agreement with AKIpress News Agency.

Any citation must be accompanied by a hyperlink to akipress.com.

Our address:

299/5 Chingiz Aitmatov Prosp., Bishkek, the Kyrgyz Republic

e-mail: english@akipress.org, akipressenglish@gmail.com;

Follow us:

Log in


Forgot your password? - recover

Not registered yet? - sign-up

Sign-up

I have an account - log in

Password recovery

I have an account - log in