China Eximbank agrees to finance Massalsky Mining and Processing Plant Construction Project (Linked to Project ID#53932)

On May 14, 2017, during President of Kazakhstan Nursultan Nazarbayev's state visit to China, Massalsky Mining and Processing Plant LLP and China National Technical Import and Export Corporation (CNTIC) signed two agreements for the construction of a mining and metallurgical complex at the Massalskoe titanium magnetite deposit in the Akmola Region. The planned complex would cover the entire value chain, from ore extraction to the production of high-quality steel grades. C1 and C2 reserves at the Massalskoe deposit amount to 729 million tonnes. Massalsky Mining and Processing Plant LLP and the Export-Import Bank of China also signed a framework loan agreement to finance the project. The project was expected to cost approximately $1.3 billion USD. In 2017, a feasibility study was performed on the construction site and was approved by Tau-Ken Samruk (a holding company for the Kazakhstani government's stakes in some of the country's largest metals and mining companies). As of 2018, China Eximbank funds had not yet been approved or released, and Tau-Ken Samruk described the site as under design development, with an estimated completion year of 2025. The plant would allow Kazakhstan to produce high-quality steel, which it currently imports 1.5 million tonnes of annually. The plant was planned to have an annual capacity of 940,000 tonnes. The project was expected to create 7,000 jobs. Germany Trade & Invest has reported that China Eximbank was to provide a $1.190 billion USD export credit for the project, while Tau-Ken Samruk will provide $210 million USD. No other identified sources substantiated this claim. The Massalskoe iron ore deposit is located in the Zharkain District of Akmola Region, 16 km east of the Priishimskaya railway station of Yessil-Arkalyk highway, the north-western part of Central Kazakhstan, the so-called Yessil (Ishim) part located on the border of Kazakh Hummocks with Turgay lowlands

Additional details

“Massalsky Mining and Processing Plant” LLP is a subsidiary of “Tau-Ken Samruk” National Mining Company” JSC, a national operator of mining assets in Kazakhstan (see "About Us"). The Masalsky Mining and Processing Plant Construction Project is linked to Project ID#53932, which captures a series of agreements signed between Kazakhstan and China.

Number of official sources

10

Number of total sources

17