Kazakhstan Potash Corporation Limited vision is to be a large potash producer globally through the development of its Kazakhstan Potash Projects via the utilisation of the Framework Cooperation Agreement under the auspices of the Chinese and Kazakhstan Governments. The Framework Agreement is part of the Chinese Government ‘One belt, One Road’ initiative. Under the terms of the Framework Agreement, the Company plans to build a potash production base (Potash Project) in Kazakhstan within 10 years and achieve, on a staged basis, potash fertiliser production capacity of over 7 million tonnes per annum in order to meet China and Kazakhstan agriculture markets’ demand.
The of One Belt, One Road initiative being driven by China’s government is looking for new channels to sustain its appetite for growth at a time when developing neighbours are experiencing rapidly rising demand. At the heart of One Belt, One Road lies the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe, as well as a maritime road that links China’s port facilities with the African coast, pushing up through the Suez Canal into the Mediterranean.
The overall project aims to redirect the country’s domestic overcapacity and capital for regional infrastructure development to improve trade and relations with ASEAN, Central Asian and European countries. (see http://en.xinfinance.com/html/OBAOR/index.shtml)
The Framework Agreement which KPC is party to is a major part of the One Belt, One Road initiative between the governments of China and Kazakhstan.