Source: Kazakh Invest
- Indicator Results
- Investment amount, thousand US dollars 298 600
- NPV of the Project thousand, US dollars 163 693
- IRR, % 22,5%
- IBITDA yield, % 31-53%
- Payback period, years 7,9
- Discounted payback period, years - - 10,3
Project description
This investment project provides for the construction of an industrial complex for the extraction and enrichment of copper ore at the Batalinskoye and Krasnoarmeyskoye deposits in the Kostanay region. The project provides for the production of copper concentrate (KM-3 brand) with a volume of 150 thousand tons per year, with subsequent processing at the copper plant of Kazzinc LLP in Ustkamenogorsk and sale to end consumers. The project is expected to create 31 permanent jobs.
Location:
The Batalinskoye and Krasnoarmeyskoye fields are located not far from each other in the Denisovsky district of the Kostanay region.
Commercial products and capacity:
Copper concentrate (KM-3 grades) with a volume of 150 thousand tons per year.
Sales market:
non-ferrous metal processing plants in neighboring countries, China and Europe
Market prerequisites
Growing demand
The total volume of refined copper production in 2019 amounted to 24.6 million tons, which is 2% higher than the previous year, 2018. There is a stable increase in production for 2015-2019. According to EMIS forecasts, the consumption and production of refined copper will grow from 2020 to 2029 with a CAGR of 2.1%.
Price growth
According to Bloomberg’s forecast, there will be a shortage of supply in the copper market in the medium and long term. It is expected that copper prices will increase from 2021 to 2024 from $ 5.8 thousand to $ 6.8 thousand per ton.
Export potential
Kazakhstan borders with China – the world’s largest importer of copper products, which provides a short transport shoulder for exports. In 2019, the volume of copper consumption in China was 34% higher than the volume produced in the country. According to EMIS analysts, in the forecast period, copper consumption in China will grow faster than production volumes. Thus, by 2029, the internal.
