INVESTMENT PROJECTS OF KOSTANAY REGION Kostanay February 2017 Production of hot briquetted iron Purpose and idea of the project: establishment of production of metallized product with iron content of not less than 90% Applicant: JSC “SSPGO” Implementation period: 2018-2020 Project location: Rudniy city Sales market: China, CIS New jobs: 570 Total project cost: 968 million USD Required investments: 822.8 million USD Production capacity: 1.8 million ton per year Current status: market research concludes HBI market. Data collection and negotiations on the implementation of feasibility study with Metallurgical Corporation of China in progress Capacity expansion of ore-smelting complex Purpose and idea of the project: increase of commercial production, construction of high-grade concentrate facility: DOP-2. The project assumes the production of high-quality iron ore concentrate with iron content of 69% Applicant: JSC “SSGPO” Implementation period: 2010-2019 Project location: Rudniy city New jobs: 719 Total project cost: 198 million USD Required investments: 198 million USD Payback period: 5-7 years Production capacity: 7 million ton of concentrate per year Current state: part of project works is completed. The first stage of the project documentation has passed state examination. Started the construction of zero-cycle secondary crushing body, transshipment nodes caisson coarse crusher housing, tunnel conveyors Construction roasting machine Purpose and idea of the project: production of high-quality iron ore pellets Applicant: JSC SSGPO Start of implementation: 2018 Project location: Kostanay region, Rudny city New jobs: 310 Total cost of the project: 246 million USD Required investments: 246 million USD Payback period: 5-7 years Production capacity: 5 million ton per year of high quality iron ore pellets with an iron content of 67%. Current status: Testing of raw materials is completed. Service provider of development of feasibility study is defined Development of molybdenum-tungsten deposit with the construction of mining and processing complex annual capacity of 5 million ton of ore mining and further processing Purpose and idea of the project: development of molybdenum- tungsten deposit with the construction of mining and processing complex annual capacity of 5 million ton of ore mining and further processing Applicant: JV "Kazakhstan-Russian Mining Company" LLC Start of implementation: 2017 Project location: Denisovsky district New jobs: 863 Project total cost: 90.9 million USD Required investment: 63.35 million USD Expected results: creation of a complete cycle of industrial production of molybdenum and tungsten concentrates Payback period: 4.2 years Production capacity: 14,074 ton of molybdenum and 3,397 ton of tungsten concentrates per year Documentation available: signed permits, conducted exploration, estimates in progress Current status: investors search in progress Construction of microcalcite production plant Purpose and idea of the project: microcalcite production in Kostanay region Applicant: “KazCalcite” LLC Implementation period: May– November 2017 Project location: Denisovsky district, v. Komarovka Infrastructure and resources: water supply pipe - 296 m, heat supply system - 207 m, power lines 2294.5 m (1780 m air cable and 514.5 m), access road - 245.0 m; gas pipe line - 628 m. Sales market: Kazakhstan New jobs: 20 Total project cost: 2.03 million USD Required investments: 1.42 million USD Payback period: 5 years Production capacity : 30 thousand ton per year Current status: project for construction of the facility has been developed. There are state approval for construction and contract for the supply of equipment supply with “EurAsiaGlobalEguipment” LLC Exploration of polymetallic ores on Bisembaevsk deposit in Kostanay region Purpose and idea of the project: exploration works within the Contract Area for the purpose of confirmation and approval of ore reserves in National Reserves Committee of the Republic of Kazakhstan Applicant: “Bisembayevskoe PRP” LLC Implementation period: 2012-2018 Project location: Denisovsky district, 50 km from Zhitikara city New jobs: 50 Project total cost: 22.5 million USD Financing scheme: private investment, including FDI Current status: there is a contract for subsoil use Development Orlovsky deposit of brown coal Purpose and idea of the project: extraction of brown coal Applicant: “Tobol-Tagam” LLC Implementation period: 2016-2019 Project location: Amangeldinsky district, 55 km from Derzhavinsk station New jobs: 1 000 Project total cost : 176.5 million USD Financing scheme: financial institutions funding, private investment, including direct foreign investments Required investment: 15.8 million USD Current status: there is a contract for subsoil use Mining and processing of kaolin, quartz-feldspar ore Purpose and idea of the project: designing and construction of the Payback period: 5 years open pits for development of the deposit, designing and construction Production capacity: facing products – 26M sq. m., glass – 20M sq. of the processing facility for mined ore and production of feldspar, m, cardboard and gypsum wallboard - 700 thousand ton, aluminum - quartz, kaolinic and other commercial products 500 thousand ton, cement – 2.6M ton, bricks – 50M pcs. and other Applicant: “NEGS Geosphere” LLC types of products Implementation period: 2015-2045 Documentation available: work program as well as financial and economic model in accordance with the contract for subsurface Project location: Denisovskiy district resources management right, reports on completed exploration, Advantages: this project will solve the problems of mineral resources reports on technology of complex raw materials enrichment, development for construction industry by producing ceramic, glass business plans and other product. The project is focused on replacement of up to Current status: completed detailed exploration of deposits, reserves 85-90 % of import with the similar products made in the Republic of have been approved, investors search in progress Kazakhstan Infrastructure and resources: the distance to the railway station is 25 km, asphalt roads are available, power lines 200 and 500 go through the area, gas pipeline "Bukhara-Ural" is 3 km away from the deposit, proximity to the settlements with well-developed infrastructure for extraction and processing of mineral raw materials (Zhitikara city, Rudny city, Lisakovsk cities) Sales market: the Republic of Kazakhstan is 65-80 %, export 20-35 % New jobs: up to 2.5 thousand new highly productive jobs are planned Project total cost: 45 million USD Required investment: 42.3 million USD Expected results: it is reasonable to build facing products (ceramic tiles, ceramic granite), glass, facing brick, tiling, packing materials, mineral fertilizers production plants at the unique deposit Construction of 48 MW Wind Power station Purpose and idea of the project: construction of a wind power plant Production capacity: according to preliminary project data the with the capacity of 48 MW using wind potential nearby Arkalyk city following parameters can be defined: annual power output is 143 million kW/h, number of hours of set capacity use is 2,483 Applicant: "KazWind Energy" LLC Documentation available: the scheme of power supply has been Implementation period: 2016-2019 developed by "Energy System Researches" LLP, international Project location: Arkalyk city company "8.2 Consulting AG" (Germany) was attracted as a Advantages: high wind potential, proximity to the substation of JSC consultant "KEGOK" Current status: feasibility study has been developed, there is a land Infrastructure and resources: the selected area has a high wind plot potential which has been confirmed by annual wind measurements at a high of 50 m Sales market: Unified Power System of Kazakhstan, Kostanay region New jobs: 50 Project total cost: 120.0 million USD Financing scheme: development institution funds, private investments, 15% of the company's own funds Required investment: 120.0 million USD Expected results: implementation of the project solve the problem of power shortages and reliability of regional power supply, create new jobs, increase export potential of the region and will have a positive effect on the economy of the region, improve regional environment, increase tax revenues to the budget Payback period: 5 -7 years Construction of 1.5 mW wind power plant The purpose and idea of the project: power supply of nearby settlements Applicant: LLP "AlatauEnergoLimited“ Implementation period: 2017-2019 Project location: Sarykol District, v. Krasnoznamenskoe Infrastructure and resources: close proximity to the existing overhead power lines Sales market: Sarykol district New jobs: 15 Общая стоимость проекта: 2.5 million USD Required investments: 2.5 million USD Production capacity: 5 million kW/h. Current status: Land plot of 3 hectares has been granted. There is design and estimate study. Waste disposal recycling with the release of valuable fractions Purpose and idea of the project: creating technological conditions for sustainable development of the domestic large-scale specialized recycling industry and production of rubber products Applicant: "KIO" LLC Implementation period: 2017-2019 Project location: Rudny city Infrastructure and resources: land and infrastructure facility (railway line with access to the highways of the country and abroad, all communications available, three workshop area of 1635 square meters) Sales market: CIS, EU New jobs: 30 Project total cost: 3.2 million