Source: Kazakh Invest
- Indicator Results
- Investment amount, thousand US dollars 88 556
- NPV of the Project thousand, US dollars 332 269
- IRR, % 46,6%
- IBITDA yield, % 30%
- Payback period, years 6,6
- Discounted payback period, years - - 7,0
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)
Potential markets:
Russia, China
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.
Reserves of the Drozhilovskoye field
| Reserves, million tons | Metals, thousand tons | Content, % | |||||
| Mo | W | Li | Mo | W | Li | ||
| Proven | 140 | 263 | 64,3 | 0,19 | 0,05 | ||
| Calculated | 131 | 77,5 | 88,3 | 121 | 0,06 | 0,03 | 0,45 |
| Assumed | 300 | 150 | 150 | – | 0,05 | 0,05 | |