Products

Design capacity: 1,385 tons of products per year.

Project

 Under the project, the Irtysh Chemical and Metallurgical Plant will be modernised in order to expand the production of rare metal products. The design capacity of the plant will be 1,385 tonnes of products per year.

Company

DINATRON -KAZAKHSTANLTD LLP is a specially created company, part of DINATRON HOLDING, operating on the basis of the Irtysh Chemical and Metallurgical Plant, which has been leading its history in the production of rare and rare earth metals since 1958. The company's goal is to create a new modern complex for the production of rare metals and products made from them, including metallurgical facilities with the following operations 

forging, sheet rolling and tube rolling.

Market

• The dynamics of titanium sponge production in 2016-2020 showed a steady positive trend. The production volume of this product increased from 170 thousand tonnes in 2016 to 210 thousand tonnes in 2020 with a CAGR of 5.4%. In 2020, China was the leading producer of titanium sponge with a volume of 107 thousand tonnes. Kazakhstan ranked fourth in this indicator with a volume of 15 thousand tonnes. 
• According to 360 Research Reports, the titanium products market is expected to continue its positive trend with a CAGR of 1.3% until 2026.

Investment attractiveness of the project:

The amount of investments is 102 590,6 mln. tenge

NPV –39 554,6 mln. tenge

IRR –19,7% 

The payback period of the Project is 9.08 years

What is the attractiveness of the project? 

Import substitution expansion of production. There are no enterprises in the Republic of Kazakhstan that manufacture high-quality products from rare non-ferrous metals. The implementation of the project will enable more intensive processing and production of high-quality finished products - ingots, powders, bars, wires, tubes, shaped products from niobium, tantalum, zirconium, titanium and their alloys, which will further satisfy domestic demand for these types of products. 

Developed infrastructure. The plant is located 70 km from Ust-Kamenogorsk, in the village of Pervomaisky, at an ecologically safe distance from large settlements. The territory of the plant is located in the immediate vicinity of the motorway leading to Ust-Kamenogorsk, and also

has its own railway entrance. 

An investment proposal. 

The Project requires financing in the amount of 102 590,6 mln. tenge, of which:

• 70% (71 814,7 mln. tenge) – debt financing (if collateral is available);
• from 30% (30 778,7 mln. tenge) – investor participation

The proposed financing structure and government 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.