BAKU, Azerbaijan, Nov. 15
Trend:
Kazakhstan and Russia have agreed on the construction and operation of the fertilizer plant in the Kazakh Zhambyl region, Trend reports referring to a correspondent of Kazinform news agency.
The MP’s of the Parliament of the Republic of Kazakhstan approved the draft law “On ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the implementation of the “Construction and operation of a plant for the production of mineral fertilizers” project”.
The agreement provides for the creation of the necessary investment and regulatory conditions to ensure the construction and operation of an innovative chemical complex with a full production cycle from the extraction of phosphate raw materials to the production of export-oriented products – mineral fertilizers and associated industrial products.
The first stage of the project, which involved the production of phosphorites (up to 660,000 tons per year) and the construction of a medium crushing and fine grinding unit with a capacity of 640,000 tons per year, is completed. The total investments amounted to $126 million. At the moment, 550 new jobs have been created.
The second stage includes the construction of an innovative chemical complex for the production of mineral fertilizers and industrial products, with a production capacity of at least 1 million tons of products per year. Currently, $138.7 million have been invested within the framework of advanced stage II financing.
“The agreement provides for exemption from corporate income tax, value added tax and property and land tax. Also, reimbursement of costs for the construction of a bypass road, construction and reconstruction of railway infrastructure, and subsidizing 50 percent of the company's expenses for the payment of services of the main railway network, locomotive traction and freight and commercial work,” the Minister of Industry and Infrastructure Development of the Republic of Kazakhstan Beibut Atamkulov said.