The start of production is planned for 2024. Upon reaching the design capacity in 2025, the production parameters are as follows: • Potassium chloride – 94 thousand tons.
Within the framework of the Project, it is planned to build a plant for the production of potash fertilizers at the Satimola deposit in the Akzhaik district of the West Kazakhstan region. The following tasks are solved within the framework of the Project:
- creation of own production of potash fertilizers;
- deepening industrialization and increasing the volume of Kazakhstani production, import substitution;
- creation of about 200 additional jobs in the region with the involvement of the local population.
ChK SRPMR Ltd. was established in 2020 to implement the Project for the construction of a potash fertilizer plant at the Satimola deposit.
- According to IFA forecasts, the average annual growth rate of demand for potash fertilizers in 2025-26 is expected to be will be 1.8%. It is expected that between 2021 and 2026 annual growth in global fertilizer demand will remain at around 1%. Global population growth and trade tensions between China and the US will be key drivers of growth in demand for mineral fertilizers in the near term.
- Currently, the market for potash fertilizers in the Republic of Kazakhstan has significant potential for development, since local production volumes are not able to cover domestic demand: the deficit level for the period 2017-2021 reached 95%.
- Use of modern production technologies. The company plans to use in-situ leaching for potash production. The choice of the method is due to the morphological structure of the potassium deposits at the deposit, environmental and economic benefits, including lower capital costs compared to the traditional mine method of extraction.
- Availability of infrastructure and own resource base. Engineering infrastructure (water supply, power supply, power lines, rotational camp, cellular communication) is connected to the land plot. The presence of its own raw material base will reduce the cost of production, ensuring the proper quality of products at a competitive price. The initiator plans to develop its own deposits to provide a resource base. An application has been submitted for a license to extract minerals from the Satimola deposit. According to the data of the Initiator, the field is explored with the volume of approved reserves according to the State Reserves Committee of the Republic of Kazakhstan (2011) of 525 million tons.
To implement the Project, funding in the amount of USD 83,268 thousand is required, including:
- 70% (USD 58,120 thousand) – debt financing (subject to collateral);
- from 30% (USD 24,908 thousand) - investor participation.