Products
Sales volumes upon reaching full design capacity in 2026 will be as follows:
- aluminum ingots – 6,300 tonnes;
- copper bars – 6,300 tonnes.
Project
This investment project envisages the construction of a plant for the processing of non-ferrous scrap and the production of metal bars with a capacity of 12,600 tonnes per year in the city of UstKamenogorsk, East Kazakhstan Oblast. To implement the Project, the Initiator has acquired a production base with a total area of 6 thousand sq. m with an adjacent land plot (6.9389 ha) in the city of Ust-Kamenogorsk, East Kazakhstan Oblast. The site is connected to engineering communication networks and a developed road transport and logistics infrastructure. The Company has signed contracts for the supply and installation of equipment, as well as construction and installation works at the production base are in progress.
Project Initiator
The Project initiator, KAZMETALEXPORT LLP was founded in 2023 to implement the Project for the processing of non-ferrous scrap and the production of metal bars.
Market Overview
- Over 2018-2022, the global market for metal scrap processing grew from 527 million tonnes to 710 million tonnes at a CAGR of 7,8%. The market was shared between ferrous (52%) and nonferrous (48%) metals. According to Technavio, the global market will reach 1,051 million tonnes by 2027 with a CAGR of 8.5% (2023-2027) as a result of growing urbanization and demand for waste processing services in big cities.
- In 2022, 3,638 tonnes of secondary aluminum were produced in Kazakhstan with a CAGR of 3.2% (2017-2022).
- As of 2022, the total output of copper-based alloys amounted to 4,657 tonnes in Kazakhstan.
- Advantageous location. To implement the Project, the Initiator acquired a production base with an adjacent land plot in the city of Ust-Kamenogorsk. The site has in the immediate vicinity A-3 nationwide-significance highway (25 km), railway stations UstKamenogorsk (15 km), Oskemen-1 (18 km) and Novo-UstKamenogorsk (22 km). More than 54 enterprises in the region specializing in the sale of scrap metal will supply the raw materials required.
- State support. As prescribed by the Kazakhstan Environmental Code, gathering scrap ferrous and non-ferrous metals at landfills is prohibited. Waste owners are obliged to go into safe waste management themselves or ensure safe waste management by transferring waste to businesses involved in waste management operations. To increase the load on local enterprises experiencing a shortage of scrap, the ban on exports of nonferrous and ferrous metal wastes and scrap was extended for 6 months from 7 November 2023, by order of the Minister of Industry and Construction dated 18 October 2023.
The Project requires investment of 6,890 thousand USD (at the rate of 449.2 tenge), of which:
- 70% (4,823 thousand USD) - debt financing subject to collateral;
- 30% (2,067 thousand USD) – investor participation.
