EuroChem Signs Memorandum of Understanding and Partnership with Kazakh Authorities
Astana, Kazakhstan, 4 October 2016 – EuroChem Group AG (“EuroChem” or the “Group”), a leading global agrochemical company, today announces that EuroChem’s Kazakhstan subsidiary has signed a Memorandum of Understanding and Partnership (the “Memorandum”) with the Ministry of Investments and Development of the Republic of Kazakhstan and the Akimat of the Jambyl Region of Southern Kazakhstan. The Memorandum was signed at the XIII Russia-Kazakhstan Interregional Cooperation Forum in Astana, Kazakhstan, which was attended by Nursultan Nazarbayev and Vladimir Putin, the Presidents of the Republic of Kazakhstan and the Russian Federation respectively.
Under the Memorandum, EuroChem has committed to continuing its investment in Kazakhstan as it aims to construct a fertilizer production complex near its phosphate rock mining operations in the Jambyl region and furthering its contribution to improving the local social and transport infrastructure. In turn, the Kazakh authorities, both at the state and local level, intend to facilitate a supportive legal and business environment for the seamless implementation of EuroChem’s project.
Dmitry Strezhnev, EuroChem’s CEO, commented: “The signing of the Memorandum is an important and logical step in helping us implement one of our strategic projects. The state and regional authorities of Kazakhstan have been immensely supportive of our activities here and we are pleased to be deepening our cooperation. This demonstrates that we remain committed to continuing the implementation of our project, further improving the region’s social and transport infrastructure and broadening this private-public partnership.”
EuroChem is one of the largest investors into Kazakhstan and it has been developing its phosphate rock mining and fertilizer production project in the Jambyl Region since 2013. The Group has successfully completed the first stage of this project with the production of phosphate rock up and running at full capacity of 640 KMT per annum from the beginning of this year. Alongside this, EuroChem has been investing heavily in the socio-economic development of the region, with US$18 million invested since the launch of its operations.
During the second stage of the project, EuroChem plans to further increase the production of phosphate rock up to 1.5 million metric tonnes (MMT) per year as it aims to construct a fertilizer production complex in the region with the capacity of over 1 million tonnes of potassium sulphate and dicalcium phosphate per year, as well as 1 million tonnes of by-products.