EuroChem launches mining operations in Kazakhstan

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EuroChem, one of the world's largest fertilizer companies, announced the launch of drilling and blasting operations at its phosphate rock development project in Kazakhstan. The large-scale development of the phosphate rock deposit is carried out by Kazakhstan-based EuroChem-Fertilizers LLP.

The initial production capacity will amount to approximately 640,000 tonnes of phosphate ore per year with first production expected to come on stream in 2014. The initial phase of the project represents investments of approximately $120 million.

The Kok-Djon deposit, located in Kazakhstan’s Jambyl Region, is a key part of EuroChem’s upstream raw material strategy. The company is currently 75% self-sufficient in phosphate rock, the main raw material used in the production of phosphate-based fertilizers, and aims to bridge this gap by further increasing its resource base.

EuroChem’s commitment to the region is also expected to play center stage in addressing socio-economic issues in the Jambyl District. This is particularly the case in the towns of Karatau and Zhanatas where EuroChem plans to promote the development of regional infrastructure by assisting with the upgrade and construction of social facilities.

“EuroChem will contribute to the further development of our region”, noted Kanat Bozumbayev, Akim of Jambyl District. “We already see changes in Zhanatas. Thanks to the support of such a dedicated partner, the local children and youth center, a kindergarten, a school, as well as apartments have already been restored. Furthermore, we are working closely with EuroChem on employment issues and how best to address the company’s future staffing needs. This collaboration is expected to greatly reduce the net migration outflow from the region.

“EuroChem is deeply committed to the Jambyl region and has already contributed over $10 million dollars to help solve some of the most pressing social issues,” stressed Erakulan Shakittovich Muryagaliev, General Director of EuroChem Fertilizers LLP.

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