KAZAKHSTAN – Agreement on potash development

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Written by ASIA Miner News

Kazakhstan Potash Corporation (KPC) is set to benefit from a framework co-operation agreement signed recently in Astana. The company believes the agreement will help it to build a potash production base in Kazakhstan within 10 years and achieve annual potash fertiliser production capacity of more than 7 million tonnes in order to meet China and Kazakhstan agriculture markets’ demand.
The four party agreement was signed in the presence of the Chinese Premier Li Keqiang during the 2nd China-Kazakhstan Regular Prime Ministers’ Meeting and the 13th meeting of the Council of Heads of State of the Shanghai Cooperation Organization Member States. Also present at the signing were Kazakh Prime Minister Karim Massimov, KPC, CITIC Construction Co (CITICC), the Industrial & Commercial Bank of China Limited (ICBC) and the Ministry of Investment and Development of the Republic of Kazakhstan (MID).

As the functioning authority for investment and development in Kazakhstan, MID will support the development of the potash project and, within its capability stipulated by the legislation of Kazakhstan, has the right to provide comprehensive assistance and investment preferences during the project implementation.

ICBC, which is the world’s largest bank by assets, intends to provide financing and financial support to the potash project. It will bring its corporate capability and related advantages to the development of the project. Funding from ICBC will be determined in consultation with KPC and its partners and will take the form of various types of financing options.

CITICC is a wholly-owned subsidiary of CITIC Ltd, a Chinese conglomerate with businesses across various sectors, for instance, finance, securities, mining, resources, and agriculture, as well as seven listed subsidiaries in China and Hong Kong. CITICC will be the EPC partner to the project. It is a world-renowned engineering company, particularly in the area of the construction of potash production bases, in which it has deep experience and a proven team of technical experts. CITICC already has presence in Central Asia via the Dekhkanabad potash project in Uzbekistan, which brings valuable knowledge and experience to KPC’s project. Further to this, the broader CITIC Group will bring its corporate advantages and synergies in assisting CITICC performing its role.

So as to strengthen mutual cooperation and enhance mutual understanding between the parties and to work effectively, a working group will be established to coordinate and communicate all related work.