Products
The entire volume of lime products is planned to be sold on the domestic market. From 2025, it is planned to annually produce 49 thousand tons of quicklime of the 1st grade and 21 thousand tons of slaked lime.
Project
The project provides for the construction of a plant for the production of lime with a capacity of 120 thousand tons per year on its own raw material base in the Abay region. Construction will be carried out on a land plot with an area of 7 hectares, provided for a long-term lease (until 2052) by the akimat of the Zharma district of the Abay region.
Company
JV Holding Kazakcement LLP is engaged in the production and sale of activated mineral powder MP1 and limestone stone, has a license for the exploration and production of limestone (reserves 50 million tons) and clay (reserves 8 million tons) at the Ortabulak field in the Zharma district of the Abay region.
Market
- According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, in 2022, 932 thousand tons of lime were produced. The average annual growth rate of production volumes for the period 2018-2022 reached 1.3%.
- In 2022, imports of quicklime in value terms amounted to USD 16 million. The average annual growth rate of lime imports in physical terms for the period 2018-2022 amounted to 12.9%. Imports of slaked lime amounted to USD 2.1 million. The average annual growth rate of lime imports in physical terms for the period 2018-2022 amounted to 9.8%. The share of imports in total consumption increased from 13.4% in 2018 to 19.3% in 2022.
- In 2022, the export of quicklime decreased by 52% compared to 2021. The average annual rate of decline in lime imports in physical terms for the period 2018-2022. amounted to 24.9%.
- Experience of the Initiator and own raw material base. The initiator has an established client base: Todini Costrucioni Generali S.p.A. LLC, KazGer LLP, Yarus LLP, Silikat LLP, etc. The implementation of the new Project will expand the list of products. In addition, the availability of a license until 2052 for the exploration and production of limestone and clay at the Ortabulak deposit will reduce production costs and ensure the proper quality of products at a competitive price.
- Favorable production location. In the region there are large backbone metallurgical plants - consumers of lime. The Abay region also has a developed transport infrastructure, which creates conditions for high-quality and timely delivery of the Company's products to consumers throughout the country.
For the implementation of the Project, financing in the amount of 15,708 thousand US dollars is required (at the rate of 449.2 tenge):
- 70% (USD 10,996 thousand) - debt financing (subject to collateral);
- 30% (USD 4,712 thousand) – investor participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.
