Commercial Chromite Production Launched
Today, the ceremonial opening of a new ore mining and processing works took place at the Voskhod chromite deposit in Aktyubinsk Oblast, Kazakhstan. The ceremony was dedicated to the Forum of Border Regions of Russia and Kazakhstan being held in Aktobe with the participation of the Presidents of the two countries. Dmitry Medvedev and Nursultan Nazarbayev announced the launch of the new works during a call-in show held for Khromtau.
This event marks the successful finalisation of a large Russo-Kazakh investment project. The competitive advantages of the Voskhod deposit are the high quality of ore, simplicity of the production, transportation and processing cycle, and guaranteed demand for the product. With the achievement of its design capacity of 1,200,000 tonnes of chromite per year in 2009, the works will enter the world’s top three suppliers of chrome concentrate.
The Voskhod project is one of the first transactions to finance chromite deposits internationally. The EDB, acting as arranger, secured the participation of WestLB AG and Bayerische Hypo- und Vereinsbank AG in this transaction in December 2006. Project Finance named the Voskhod project Europe’s best financial transaction in the mining sector in 2006. The total amount of the transaction is $120 million, including $60 million provided by the EDB for ten years. In February 2008, the EDB discharged all its financing obligations under the project in full compliance with the schedule.
This project will assist the economic growth of Russia and Kazakhstan, and promote mutual goods turnover and investments. The development effect will be achieved through sustainable supply of raw materials for stainless steel production to the metal industry. About 400 jobs will be created, and a material contribution will be made to the development of social and economic infrastructure in Aktyubinsk Oblast. For these reasons, the Government of Kazakhstan included the project in its 30 Corporate Leaders of Kazakhstan programme.
It is expected that up to 40% (350,00 tonnes) of chrome concentrate annually will be shipped to Russian companies including the Tikhvin Ferroalloys Works. Annual product flows under the project will total about $40-50 million.