ASTANA (TCA) — Development Bank of Kazakhstan (DBK), a subsidiary of the National Managing Holding Baiterek, on March 2 said it has opened a credit line for YDD Corporation LLP in the amount of up to KZT 24.120 billion for a period of 11 years for construction of the first stage of a plant for the production of ferrosilicon in the city of Karaganda with a production capacity of 96,000 tons per year.
The total cost of the project is 34.150 billion tenge, the borrower’s own participation in the project financing is KZT 10 billion 030 million. DBK provides the company with borrowed funds in the national currency within the framework of the State Program of Industrial and Innovative Development of Kazakhstan for 2015-2019.
The financing provided by the Bank will be used for construction and installation works, including the construction of buildings and structures (warehouses, workshops, hulls, heat exchangers, gas cleaning plant, distribution chamber, fire fighting pool, laboratory and other facilities), as well as purchase, supply and installation of equipment.
The first stage of the plant with a production capacity of 96,000 tons per year is planned to be commissioned in the first half of 2019.
The output will be ferrosilicon — an alloy of iron and silicon, used for smelting various types of steel. The bulk of ferrosilicon produced at the enterprise will be exported. The largest importing countries of this ferroalloy are currently Japan, South Korea, the European Union and the United States.
“The planned annual output of the plant will lead Kazakhstan to TOP-9 of the world’s largest ferrosilicon producers. According to forecasts of international agencies, steel prices, and, hence, ferrosilicon prices will rise. Experts base their conclusions on the increase in the world pace of construction of rail, automobile, gas mains and the production of electric cars, as well as the growth in the number of industrial projects and a number of other factors, “Yerlan Nigmatulin, the shareholder of YDD Corporation LLP, said.
Construction of the plant is carried out near Karaganda CHPP-3, which will reduce the cost of electricity, the share of which reaches 50% in the cost structure of ferrosilicon production. The raw materials for the future plant necessary for the production of ferrosilicon are quartzite, limestone, coal and scale, deposits with reserves of which are located in Karaganda region, the region of the project.
“The project economy is attractive for investments. The main raw material for the production of ferrosilicon will be supplied to the future plant at a fixed price for a long time. There are contracts for the sale of finished products. The resources necessary for production are localized in our country. The share of Kazakhstan content in the Project is over 90%. The social effect is that up to 1500 workplaces will be created for the period of the plant’s construction, and after the start-up, a staff of about 550 people will be formed,” said Bakhytzhan Omarov, Senior Banker of the DBK’s Customer Service Department.
