Products
Upon reaching full design capacity in 2026, the following sales volumes are planned: nickel sulphate - 29,701 tonnes; cobalt sulphate - 1,824 tonnes. The Company is planning to export 100% of its product to China.
Project
This investment project envisages the development and production of nickel and cobalt ore at the Kempirsai group of fields, as well as the construction of a nickel and cobalt sulphate production plant. The Project Initiator holds licenses Nos. 67, 68, 69, 70, 71, 72, 73, 74 and 75-ML from 26 June 2023 to produce solid minerals for 25 years at 9 of the Kempirsai group fields, as well as six-year licenses Nos. 2051, 2052, 2053, 2054, 2055, 2056, 2057 and 2058-EL from 26 June 2023 to develop solid minerals at the remaining 2 fields and 6 nearby sites.
Current Project status:
- The Company has carried out laboratory research into nickel-cobalt ore processing at the Kempirsai group of fields.
- The Project is included in the Ministry of Industry and Construction integrated industrialization chart.
The Project Initiator is KazMetalGroup LLP, which was founded in 2017 to implement the Project.
Market
- Global cobalt consumption increased from 135 thousand tonnes to 187 thousand tonnes in 2018-2022, with CAGR at 8.5%. Cobalt demand is expected to grow solidly due to the accelerated transition to electric vehicles.
- In 2022, global consumption of refined nickel was at 3,008 thousand tonnes. According to the EIU, this figure will reach 3,585 thousand tonnes by 2025, which is 19.2% higher than in 2022. The long-term demand for nickel will be supported by state reforms aimed at ensuring sustained access to electric battery feedstock.
- Initiator experience. KazMetalGroup LLP is a subsidiary of KazProm Concern LLP, which has over 20 years of experience in the mining sector. The Concern's employees have implemented such projects as construction of a sulfuric acid plant, construction of a hydro-metallurgical plant for processing of rare metals, construction of a number of plants for production of construction materials. The Concern's employees also carry out work on stripping, development and processing of ores at mineral deposits.
- Own raw materials base and advantageous location. The availability of mining and exploration licenses guarantees the required product quality within the framework of the Project at a competitive price. To build the plant, the Initiator is planning to acquire a long-term lease for a 300 ha site in Kargali District of Aktobe Oblast, 10 km from the fields.
- State support. The Project is included in the integrated industrialization chart and recognized as an investment priority project and eligible for state concessions, such as tax breaks, subsidies and reduced-rate borrowing.
The Project requires investment of 277,000 thousand USD (at the rate of 449.2 tenge), of which:
- 70% (193,900 thousand USD) - debt financing subject to collateral;
- 30% (83,100 thousand USD) – investor participation.
