Investment Projects - Extraction and processing of rare metal ores of the Drozhilovsky deposit

Project Description:

Extraction and processing of rare metal ores from the Drozhilovsky deposit in the Kostanay region

Marketable products and production volume for the entire Project implementation period:

• lithium concentrate-2490 thousand tons (lithium-149 thousand tons) molybdenum
• trioxide-176.6 thousand tons (molybdenum – 118.3 thousand tons)
• artificial scheelite-62.26 thousand tons (tungsten trioxide-48.6 thousand tons)

Market prerequisites:

Growing demand for rare metals - Global demand for tungsten is projected to grow over the next 10 years (CAGR 5.3%), since tungsten is very much in demand for the further development of the manufacturing and automotive industries. Lithium consumption will also increase significantly − lithium batteries are widely used in the growing market of electronic devices and electric vehicles.

Rising metal prices - Over the past three years, the average price of lithium oxides has increased 2.5 times due to rapidly growing demand. Average prices for molybdenum oxide increased by 20% over the same period. Currently, prices for tungsten derivatives are rising again.

Availability of raw materials - Kazakhstan is in the first place in terms of tungsten reserves (63% of world reserves). There are significant reserves of molybdenum and lithium.