Aluminium of Kazakhstan boosts investment in expansion projects 10% in 2016
PAVLODAR. July 18 (Interfax) - Aluminium of Kazakhstan, a Eurasian Resources Group (ERG) company, plans to invest $50 million in the development of production in 2016, or 10% more compared to the previous year, company's President Armand Esenzhulov said.
"The funds are being invested in the expansion of the mining operations, primarily at Krasnooktyabrsk Mining Unit, and modernization of equipment at Aluminium of Kazakhstan," Esenzhulov said.
Krasnooktyabrsk Bauxite Mining Department in Kostanai region annually produces about 4 million tonnes of ore. Based on the proven reserves, we expect the mine to remain in operation for 50 more years. "Simultaneously, we will be doing exploration and prospecting work to increase the proven reserves," he said.
Turgai bauxite mine (Kostanay region), which marks its 60th anniversary this year, has annual production capacity of about 350,000 tonnes of ore. "For the next five years the mining will continue, but after that period we will start land reclamation, which is stipulated in the mining contract," he added.
Aluminium of Kazakhstan annually delivers 1 million tonnes of alumina to Russian UC Rusal , out of total production of 1.5 million tonnes.
Aluminium of Kazakhstan operates the Pavlodar aluminum plant, TETS-1 Power Plant, Krasnooktybrsk and Torgai mining units in Kostanai Region and the Keregetas limestone mine in Pavlodar Region.
ERG is a leading diversified mining and smelting group with fully integrated mining, processing, energy production, and logistical and marketing operations. ERG owns Eurasian Natural Resources Corp and controls assets in Kazakhstan, Europe, Africa and Brazil. The Kazakh government has a 40% stake in ERG and the remaining shares are held by private investors Alexander Mashkevich, Patokh Shodiyev and Alizhan Ibragimov.
Eurasian Group manages ERG production assets in Kazakhstan: KazChrome, Aluminium of Kazakhstan, SSGPO, Eurasian Energy Corporation, coal producer Shubarkol Komir and transportation group TransCom.
