Aluminum   $ 2.1505 kg        |         Cobalt   $ 33.420 kg        |         Copper   $ 8.2940 kg        |         Gallium   $ 222.80 kg        |         Gold   $ 61736.51 kg        |         Indium   $ 284.50 kg        |         Iridium   $ 144678.36 kg        |         Iron Ore   $ 0.1083 kg        |         Lead   $ 2.1718 kg        |         Lithium   $ 29.821 kg        |         Molybdenum   $ 58.750 kg        |         Neodymium   $ 82.608 kg        |         Nickel   $ 20.616 kg        |         Palladium   $ 40303.53 kg        |         Platinum   $ 30972.89 kg        |         Rhodium   $ 131818.06 kg        |         Ruthenium   $ 14950.10 kg        |         Silver   $ 778.87 kg        |         Steel Rebar   $ 0.5063 kg        |         Tellurium   $ 73.354 kg        |         Tin   $ 25.497 kg        |         Uranium   $ 128.42 kg        |         Zinc   $ 2.3825 kg        |         

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Source: Kazakh Invest

  • Indicator Results
  • Investment amount, thousand US dollars 8 314
  • NPV of the Project thousand, US dollars 9 909
  • IRR, % 32,5%
  • IBITDA yield, %
  • Payback period, years 4,8
  • Discounted payback period, years - -

Products

Annual capacity:

  • 100 thousand tons of quicklime;
  • 345.6 thousand pieces of silicate bricks;
  • 6,912 sq. m of paving and curb tiles.

Project

This investment project (hereinafter referred to as the “Project”) plans to create a cluster for the production of building materials based on the limestone deposit “Baiterek”, located in the Shieli district of the Kyzylorda region. The product sales market is the Republic of Kazakhstan. Target groups for the sale of products are construction organizations, enterprises of the mining and metallurgical cluster and the population of the Republic of Kazakhstan. The start of production is scheduled for the 4th quarter of 2022, and the output to the design capacity in 2029.

Company

The initiator is Tabigi Tas Kyzylorda LLP, whose main activity is the extraction of limestone, gypsum and chalk. The initiator has the right to extract limestone at the deposit until 2035.

Market

  • In 2020, the indicators of global lime production reached a volume of 420 million tons, and the volume of the world market was at the level of 41.93 billion US dollars. According to Fortune Business Insights forecasts, the global lime market will grow from $42.64 billion in 2021 to $51.04 billion in 2028. The average annual growth rate of the market will be 2.6% for the period 2021-2028.

What is the attractiveness of the project?

  • The presence of its own raw material base will reduce production costs, production costs and transportation costs, as well as ensure proper quality control of the Plant’s products. The initiator is a subsurface user on the basis of a contract for the commercial extraction of limestones at the sites of the carbonate (limestone) deposits “Baiterek 1”, “Baiterek 2”, “Baiterek 3” until 2035.
  • High quality limestone. The limestone of the Bayterek deposit contains an average of 96-98% carbonates, which makes it possible to use raw materials for the production of lime and building materials without additional expensive cleaning.
  • Stable demand for products. The volume of construction works in the Kyzylorda region shows positive dynamics (CAGR for 2016-2020 9.2%). The average volume of the construction market in the region reached 264 million US dollars for the period 2016-2020.

Investment offer

The Project requires financing in the amount of 8,314 thousand US dollars, including:

  • 70% (5,820 thousand US dollars) – debt financing in the presence of collateral;
  • from 30% (2,494 thousand US dollars) – investor participation.

The proposed financing structure and measures of state support are indicative, the final structure of financing and participation in the Project will be determined based on the results of joint negotiations with the investor.