Kazakhstan's Qarmet plans further $1.5 bln investment in coal and iron ore mining

ASTANA. Aug 14 (Interfax) - Kazakhstan's Qarmet steel company, formerly ArcelorMittal Temirtau, plans a further $1.5 billion investment in coal and iron ore mining, the Kazakh president's press office said.

During his working visit to the Karaganda Region, President Kassym-Jomart Tokayev toured the Qarmet metallurgical plant in Temirtau, where he was briefed on plans to expand the plant's capacity and make additional investments.

Qarmet's new investor and board chairman, Andrei Lavrentiyev, and CEO Vadim Basin said ongoing and upcoming projects total over $3.5 billion.

"Additional investments include $500 million for the coal department and $978 million for the iron ore department," according to the president's press service.

The plant is also undertaking extensive repairs, including renovating over 100 buildings, replacing 50,000 square meters of roofing, and major renovations for 120 sanitary and hygienic facilities.

"The projects have stabilized the plant's operations. By 2028, we aim to increase production to 5 million tonnes of crude steel, 9 million tonnes of coal, and 5 million tonnes of iron ore concentrate, an 66% increase compared to 2023 levels," Lavrentiyev said.

The plant currently employs over 34,000 workers. Last year, it produced 2.9 million tonnes of finished products, with 2.1 million tonnes exported to countries including Russia, China, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Georgia, Azerbaijan, and Afghanistan.

"The situation at the plant has improved significantly. However, we must continue our efforts," Tokayev said.

The president also emphasized the importance of transitioning the plant to natural gas, which will reduce its environmental impact by 30% initially.

International conglomerate ArcelorMittal had owned Kazakhstan's largest metallurgical plant, ArcelorMittal Temirtau, since the 1990s. In the second half of 2023, Kazakhstan's authorities terminated their partnership with ArcelorMittal due to repeated accidents resulting in worker fatalities. The new investor for the former ArcelorMittal assets, including ArcelorMittal Temirtau and the Aktau pipe plant, is Andrei Lavrentiyev, co-owner of the Kazakh automaker Allur, who acquired them for $286 million. The investor has committed to investing over $3 billion in the plant's operations.