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Kazakhstan's bauxite producer to temporarily suspend extraction

Business Materials 15 April 2020 14:56 (UTC +04:00)
Kazakhstan's bauxite producer to temporarily suspend extraction

BAKU, Azerbaijan, Apr.15

By Nargiz Sadikhova - Trend:

Eurasian Resources Group (ERG), one of the world’s leading producers of diversified natural resources operating in Kazakhstan, has decided to shut down its Torgai Bauxite Mine operations for three months, Trend reports with reference to ERG.

The company said that the COVID-19 pandemic significantly affected global economy, including metals market.

“The fall in the price of aluminum was a result of a price decrease of its main raw material, i.e. commercial alumina, which is produced at the Pavlodar aluminum plant. The bauxite for the plant is supplied by two ore departments of the Kostanay region: Torgai and Krasnooktyabrsky mine administrations. However, today the share of the Torgai Bauxite Mine Administration’s share in annual shipments to Pavlodar’s enterprise is only 3.4 percent,” the company said.

The company said that in order to provide for uninterrupted operation of the Pavlodar aluminum plant, its reserves will be replenished by Krasnooktyabrsky mine administration. The report also said that the decision to suspend the operation of the Torgai Bauxite Mine Administration is among the mechanisms to battle the situation with lowered goods prices.

“In no case are we closing this branch, we are only suspending production for a certain period. Work will be continued on reclamation and shipment of previously mined bauxite,” the company said.

On March 15, 2020, Kazakhstan’s President Kassym Jomart Tokayev signed a decree introducing an emergency state in Kazakhstan due to the coronavirus outbreak, which came in force from 08:00 (GMT +6) on March 16 and was to last till 08:00 April 15, 2020.

On Apr. 14, 2020 by a decree of Kazakhstan's president the emergency state period in Kazakhstan was extended till May 1, 2020.

Total number of confirmed coronavirus cases in Kazakhstan has reached 1,275. The first two cases of coronavirus infection were detected in Kazakhstan among those who arrived in Almaty city from Germany on March 13, 2020.

The World Health Organization (WHO) declared COVID-19 a pandemic on March 11. Some sources claim the coronavirus outbreak started as early as November 2019.

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