Bank TuranAlem Finances a Breakthrough Project03.07.2007 / Press-service
A groundbreaking ceremony of a combined project of metal making and power generation took place on July 3, 2007 in Aktobe. The facility will incorporate a metal-making unit with the capacity of 500,000 tons of metalware and a gas turbine power plant generating 180 Mw of electricity annually.
Breakthrough projects were concurrently presented that day in 9 regions, including oblasts of Aktobe, Mangistau, West Kazakhstan, North Kazakhstan, Karaganda, East Kazakhstan, Kyzylorda, Pavlodar and Almaty City.President of Kazakhstan Nursultan Nazarbaev and Prime Minister Karim Masimov have participated in the groundbreaking ceremonies from Astana through a teleconference bridge.
Bank TuranAlem lends $450 million to the project operator, SBS Steel.
Advanced metallurgic industry is a priority for Kazakhstan’s economy as it underlies machine building, industrial and civil construction and other branches of the national economy.
The republic enjoys all primary resources to foster its metallurgic industry embracing the manufacture of a broad range of metals and metalware. The country also possesses metal junk, which is a part of the raw material base in majority countries.
Meanwhile, almost all scrap metal in Kazakhstan goes for export today. The National Statistics Agency reports an export of 2,224,000 tons of scrap iron in 2005 versus 1,320,000 tons in 2003. However, unofficial data claim export of scrap iron is three times higher.
The new facility in Aktobe will be extensively using waste metal, thus its exports will be reduced.Know-how of uninterrupted production of steel alloys will be harnessed at the plant with a view to expand the range and steel grades. This will also increase capacities regardless of scrap supplies.
Apart from the metal making, the project partially clinches the problem of energy shortage in Aktobe Oblast. The facility will deliver half of electricity it generates to local consumers in the region that is now heavily dependent on Russian power suppliers.