BAKU, Azerbaijan, October 19. EuroChem international chemical company may be deprived of a contract for subsoil use in case of failure to fulfill obligations for the construction of a plant for the production of mineral fertilizers in the Zhambyl region, Minister of Industry and Infrastructural Development of Kazakhstan Kairbek Uskenbayev said during his visit to the region, Trend reports citing the ministry.
The investment project of EuroChem 'Construction of a plant for the production of mineral fertilizers and the development of deposits of the Karatau Phosphorite-Bearing basin' is being implemented under agreements between the governments of Kazakhstan and Russia.
At the first stage of the project, EuroChem invested $126 million in the implementation of the mining complex, the adjustment of phosphorite mining without enrichment and the construction of the first stage of the chemical complex for ore processing. Currently, the company employs almost 550 workers. The company mined and sold 613,000 tons of ore in 2021.
At the second stage of the project, it's planned to create a production of finished products with a capacity of up to 1 million tons per year. To date, an additional $138.7 million has been invested in design and survey work, as well as the construction of a power supply, water supply, treatment facilities and a raw material warehouse for the production of dicalcium phosphate.
General Director of the EuroChem-Fertilizers enterprise (part of EuroChem) Igor Georgiadi promised that as a result of the implementation of the second stage of the investment project in Kazakhstan, fertilizers with a high content of nutrients would be produced from local ore.
During the discussion of the company's development plans, Uskenbayev emphasized that President Kassym-Jomart Tokayev had set the task for the provision of farmers with Kazakh-made fertilizers at 100 percent.
"Due to the unstable geopolitical situation in the world, there is a shortage of mineral fertilizers. President Tokyaev instructed to pay special attention to the development of the agrochemical sector to maintain sustainable agriculture and reduce the impact of external factors on the country's food security," he said.
He recalled that EuroChem undertook to build a plant and ensure not only ore mining but also the production of finished products.
"This is a priority issue. The fulfillment of obligations under the project will be checked in six months. If no progress is found, the issue of terminating the contract for subsoil use will be initiated," Uskenbayev said.