Source: Kazakh Invest
- Indicator Results
- Investment amount, thousand US dollars 58 400
- NPV of the Project thousand, US dollars 95 000
- IRR, % 46%
- IBITDA yield, %
- Payback period, years 4
- Discounted payback period, years - -
Project
Launch of mining and processing of copper ores at the Sayak deposit and production of cathode copper and copper concentrates.
Company
The project operator, Advanced Mining Technologies LLP, has licenses for the extraction of minerals at the Sayak deposit in the Karaganda region. The ultimate beneficiary is Commonwealth American Partners L.P. (through LLP “First Eurasian Mining”), a company with 20 years of experience in the oil and metallurgical industries in the world.
Market
In 2020, the global copper market is valued at $145.5 billion, with an expected CAGR of 2% over the next decade. By 2028, global copper production is expected to reach 28.7 million tons (up from 21.4 million tons in 2019). The Asia-Pacific region (including China and India) is the largest market for copper, where demand for copper was 17.3 million tons last year alone. It is expected that by 2021 the demand for copper in the region will increase to 18 million tons, and global consumption – 25.2 million tons.
What is the attraction of the project?
The company has reached an agreement with international partners (including Glencore, Trafigura, Traxys, Noble Group, etc.). Kazakhstan has 37 million tons of copper reserves (8th place in terms of reserves or 4.7% of the total reserves in the world). To date, 55 copper deposits have been registered in the State Balance of Natural Resources of Kazakhstan, mainly in the Karaganda and East Kazakhstan regions.
Investment proposal
It is proposed to sell a stake in the company for $58.4 million to launch the production of cathode copper in Kazakhstan. The determination of the share will be reached in the course of negotiations.
