Eurasian Resources Group (ERG) and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (NFC China) have signed an engineering, procurement, and construction (EPC) contract to construct a special coke plant at JSC Shubarkol Komir, in Kazakhstan’s Karaganda Region. The new 400 000 tpy plant will produce a reducing agent that is key to the production of ferroalloys.

Under the EPC contract, the plant will be constructed on a turnkey basis and is scheduled to be put into operation in 2023. Investments in the project will total approximately KZT 40 billion.

Ruslan Mulyukbayev, CEO of ERG Capital Projects, the group’s company responsible for developing and implementing large scale investment projects in Kazakhstan, comments:

“The new plant will enable JSC Shubarkol Komir to manufacture a high value-added product and cut the imports of reducing agents significantly. In addition, it should help increase local content in ferrochrome production and meet ERG’s needs by supplying a domestically manufactured product. The plant will use state-of-the-art technological solutions and automation that are fully compliant with all national standards. We plan to create 120 new jobs.”

Qin Junman,President of NFC, comments:

“The signing of the EPC contract marks another milestone in the long-term cooperation between NFC and ERG. I am fully confident that, with our good track record of successful implementation of a number world-class projects in Kazakhstan, including ERG’s state-of-the-art Aluminium Smelter Project, we will be able to deliver another exemplary project of Sino-Kazakh cooperation within schedule, with good quality, and with international HSE standard.”

In addition to 400 000 t of special coke, the new plant will produce more than 70 000 tpy of coal tar and oil from Shubarkol Komir’s coal. ERG is also exploring the possibility of exporting these products.

The new enterprise will use technological solutions to enable safe and environmentally friendly production, as well as to increase electricity, heat, and water conservation. Its ventilation system will be equipped with air purifiers. All water used in the production process, as well as the contaminated wastewater, will be treated and supplied to the water recycling system.

The construction of the plant forms part of the import substitution programme launched by the government of Kazakhstan.

JSC Shubarkol Komir is already home to a special coke plant with a capacity of over 200 000 tpy that was built and put into operation in 2005. This type of enterprise remains unique in Kazakhstan. The company has implemented a project to equip the plant with the newest, most efficient system for tar removal from coke oven gas, a process which involves five-stages of treatment.