Investment Projects

Construction of a complex for the production of barite concentrate in the Mangystau region

  • Indicator Results
  • Investment amount, thousand US dollars 14 123
  • NPV of the Project thousand, US dollars 14 999
  • IRR, % 32,5%
  • IBITDA yield, % 34-41%
  • Payback period, years 5,0
  • Discounted payback period, years - - 6,1

Project description:

The project provides for the construction of a complex for the extraction of barite-celestine ores and their processing for the production of a weighting agent for drilling fluids of barite concentrate. The extraction of barite-celestine ores and its processing will be carried out at the Severny Aurtas deposit.

Products:

Barite-celestine carbonate weighting agent ("UBCC"), carbonate weighting agent and filler ("UNK")

Stocks:

3,579 thousand tons (category C1)

Annual production capacity:

200 thousand tons of ore per year;

  • UBCC – 186 thousand tons;
  • UNK – 14 thousand tons.
Market prerequisites:

The presence of a rich resource base.

The Aurtas deposit, located in the Mangistau region, is a large deposit of barite ores with a balance reserve of 3.5 million tons of ores. At the same time, ore reserves may increase during additional geological exploration of the area during mining operations.

Favorable location.

The geographical proximity of the Aurtas field to the oil and gas fields of western Kazakhstan and to the Caspian Sea and the ports of Aktau and Kuryk provides an advantageous logistical advantage in the delivery of final products to both domestic and foreign consumers.

Development of the oil and gas industry of the Republic of Kazakhstan.

Over the past four years, the volume of purchases of the entire oil and gas market in Kazakhstan has increased by an average of 20% per year. The total volume of purchases of oilfield services at the end of 2018 amounted to US $ 8.26 billion, which is 15.5% more than in 2017 (US $ 7.15 billion).

Lack of competition in foreign markets and export potential.

According to the analysis of competitors in foreign markets in Turkmenistan, Russia, Azerbaijan and Saudi Arabia, the extraction and processing of barite is insufficient or completely absent to meet domestic demand.


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