Products

 Annual capacity:

• 100 thousand tons of quicklime; 
• 345.6 thousand pieces of silicate bricks;
• 6,912 sq. m of paving and curb tiles.

Project

The investment project (hereinafter referred to as the "Project") envisages the creation of a cluster for the production of building materials at one of the limestone deposits located in the Kurchum, Shemonaikhinsky and Glubokovsky districts of the Eastern Kazakhstan region. The sales market of the products is the Republic of Kazakhstan. The target groups for the sale of products are construction organisations, enterprises of the mining and metallurgical cluster and the population of the Republic of Kazakhstan.

Initiator

Akimat of the East Kazakhstan region.

Market

In 2020, global lime production will reach 420 million tonnes and the global market will be worth 20 850,38 mlrd tenge. Fortune Business Insights forecasts that the global lime market will grow from 21 221,89 mlrd tenge in 2021 to 25 394,68 mlrd tenge in 2028. The average annual growth rate of the market will be 2.6% over the period 2021-2028.

Investment attractiveness of the project:

 The amount of investments–4 136 mln. tenge

NPV -4 930 mln. tenge

 IRR –32,5%

The payback period of the Project is 4.8 years

What is the attractiveness of the project? 

• The availability of its own raw material base will reduce production, manufacturing and transport costs and ensure proper quality control of the plant's products. The initiator is an underground user on the basis of a contract for the industrial extraction of limestone in the areas of the carbonate (limestone) deposit. 
• High quality limestone. The limestone in the deposit contains an average of 96-98% carbonates, which makes it possible to use raw materials for the production of lime and building materials without additional costly purification.
• Stable demand for products. The volume of construction work in the East Kazakhstan region shows a positive trend (CAGR for 2016-2020 9.2%). The average volume of the construction market in the region will reach USD 131,358 mlrd. tenge in 2016-2020.

Investment proposal

The project requires financing in the amount of 4 136 mln. tenge, of which

70% (2 895 mln. tenge) - debt financing with collateral;

30% (1 240 mln. tenge) - investor equity.

The proposed financing structure and state support measures are indicative, the final structure of financing and participation in the project will be determined based on the results of joint negotiations with the investor.