Kazakhstan and Russia signed intergovernmental agreement to produce mineral fertilizers
Kazakhstan and Russia signed an intergovernmental agreement to implement a project of “Mineral and chemical company “EuroChem” JSC which stipulates construction and operation of a plant for production of mineral fertilizers in Zhambyl region, Strategy2050.kz informs.
The project involves development of deposits of the Karatau phosphorite basin in Kazakhstan and construction of a new mineral fertilizers plant. The total cost of the project is $1.2 billion.
“This chemical enterprise will provide an opportunity to create at least 1200 new jobs in Zhambyl region, as well as give a tangible impetus to development of the agriculture and construction industry. It will contribute to improving food security, increasing Kazakhstan’s export potential and strengthen significantly integration business links between Kazakhstan and Russia”, commented Yermek Kosherbayev, the Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Russia.
The forthcoming chemical industrial complex will be spared the key disadvantages of traditional phosphorus production – waste in the form of phosphogypsum, which will improve utilization of natural resources and preserve the region’s ecology. In addition, the project will bring long-term social and economic benefits to all its participants.
“The signed intergovernmental agreement will open a new phase in implementation of the strategic investment project. It will allow to expand the existing production and commence construction of a new plant with a capacity of at least 1 million tons of mineral fertilizers and industrial products per year using the best technologies available in the chemical industry. The construction of the plant is planned to be completed by 2025”, said Minister of Industry and Trade of the Russian Federation Denis Manturov.
This project was included in the National Industrialization Map, and April 2019 has seen a start of construction of a gas pipeline in Sarysu district with a capacity of 110 thousand cubic meters per hour to cover the plant’s production needs. The investment project will be implemented by a subsidiary of “Mineral and chemical company “EuroChem” JSC in Kazakhstan - “EuroChem-Karatau” LLP.
To date, “EuroChem” has already successfully completed the first stage of the project which included exploration and start of development of the phosphorite deposit, commissioning of a mining complex with an annual capacity of 640 thousand tons of phosphorite flour.
“Trade and economic relations between our countries have clear positive dynamics, and the signed agreement is another consistent step to deepen our integration. Despite the pandemic, which makes certain adjustments to our plans, the implementation of our project in Kazakhstan will continue. We appreciate the support and openness shown by our Kazakh partners, and we also thank the Russian side for the unequivocal support”, said Igor Nechayev, CEO of “EuroChem”.
According to the specialists of “KAZAKH INVEST”, the products planned for production are often used by farmers in Kazakhstan as fertilizers as well as feed additives in poultry and livestock production.
“High-quality mineral fertilizers (dicalcium phosphate, potassium sulfate, monoammonium phosphate and monocalcium phosphate) are in high demand among Kazakh farmers. Today, consumers in Kazakhstan use 100% imported products. Import substitution will allow farmers to buy fertilizers and feed additives at an affordable price, which, in turn, will have a positive impact on the pricing and quality of agricultural products”, said Dilyara Tektigulova, Project Manager at “KAZAKH INVEST”.
According to investors, in addition to covering the needs of the domestic market, it is planned to export products with high added value to the Russian Federation, as well as China, Central and South-East Asia, and the Middle East.
For reference: “EuroChem” is one of the world's leading producers of mineral fertilizers. The company provides farmers with new innovative fertilizers that they need to increase the yield and quality of crops, and follows the principles of sustainable development. The company's production assets are located on four continents, and its sales and distribution network operates worldwide. The total number of employees exceeds 20 thousand people.
“EuroChem” has been present in Kazakhstan since 2008, when it acquired the state stake in “Sary-TAS” JSC. In 2009, “EuroChem-Fertilizers” LLP started working in Zhanatas, Sarysu district, Zhambyl region, and in 2013, “EuroChem-Karatau” LLP was established.