Kazakhstan to build $1.6 bln copper smelter in Balkhash by 2030

ASTANA. July 30 (Interfax) - Kazakhstan's government has approved an investment agreement with Qazaq Smelter LLP for the construction of a copper smelter in the city of Balkhash, the Karaganda region, with private investment of 750 billion tenge or $1.6 billion at the current rate, Prime Minister Olzhas Bektenov's press service said.

Bektenov signed a resolution on the matter on Thursday.

Construction is set to begin in 2027, with commissioning for 2030.

"The plant will have annual capacity of 300,000 tonnes of cathode copper, 10 tonnes of gold, 300 tonnes of silver and more than 1.5 million tonnes of sulfuric acid," the press service said.

The project is expected to create about 1,200 jobs.

By the time the plant starts operations, 90% of staff, including management, will be Kazakh citizens, with the figure targeted to rise to 95% within five years. The investor also commits to training 50 students at educational institutions in the Karaganda region.

The project will boost Kazakhstan's copper production by roughly 50% to more than 800,000 tonnes per year, with high-value-added exports rising from 460,000 to 760,000 tonnes of copper annually, the government said.

Kazakhstan's manufacturing output rose 9.8% in the first half of 2026, with 232,000 tonnes of cathode copper produced in the period.

Qazaq Smelter LLP, established in June 2026, is a Kazakh company created specifically for the Balkhash copper smelter project.

Kazakhstan first announced plans in 2023 to begin developing new copper deposits from 2027 and build two copper smelters.

In June 2024, KAZ Minerals signed an agreement to build a 300,000-tonne copper plant in the Abay region, with estimated investment of $1.5 billion. The project involves KAZ Minerals Smelting as the client, China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. as engineering and procurement services provider, and NFC Kazakhstan as construction and commissioning contractor.

Feedstock will come from copper concentrate from the Bozshakol and Aktogay mines and processing plants of Vostoktsvetmet, all part of KAZ Minerals. The project, which will create more than 1,000 jobs, is expected to be commissioned by the end of 2028.