• LLP QAZKALI produces complex NPK fertilizers using granulation and chemical processing under acidic conditions, certified Kazakhstani products with high added value.
• Utilizes local raw materials including potassium chloride (aiming for full import substitution), phosphates, and nitrates.
• Offers a broad range of NPK formulations tailored for potatoes, fruits, cereals, vegetables, often enhanced with sulfur and magnesium.

Role of ABCON Group

• ABCON Group has played a pivotal role in the development and execution of the QAZKALI fertilizer production project.
• Engaged from the early stage, ABCON conducted a comprehensive feasibility study assessing technical and economic viability.
• Provided expert geological design services ensuring optimal use of Kazakhstan’s mineral deposits, aligned with local geology and compliant with regulations.
• Served as Project Management Consultant (PMC) through the entire project design and implementation, expertly coordinating engineering and procurement, managing quality assurance, overseeing budgets and timelines, and ensuring adherence to industry best practices and certification standards.
• ABCON’s involvement was instrumental in mitigating risks and enabling on-time, on-budget delivery of production facilities.
• This role affirms ABCON’s significant and ongoing contribution, supporting LLP QAZKALI’s commitment to quality fertilizer production that fosters Kazakhstan’s industrial growth and economic development.

Technology and Plant Details

• The plant employs advanced Sahut-Conreur compaction-granulation technology, highly automated and environmentally friendly.
• Operating approx. 6800-7400 hours annually in two shifts, with around 1850 kW power; building size 175m x 55m x 19m including storage.
• Production process includes raw material crushing, mixing, compaction, crushing, screening, anti-caking treatment, and packaging.

Business Model and Growth Plan

• Provides integrated support spanning production, logistics, marketing, financing, and investment facilitation.
• Stage 1 (starting 2022): Plant installation and ramp-up with initial capacity 20 to 100 tons/hour, targeting 150,000 to 2 million tons/year; $10–30 million investment; 100–200 new jobs; expected launch mid-2023 subject to infrastructure availability.
• Stage 2: Development of local potassium deposits for complete import substitution; mining and processing plant construction; investment up to $300 million; 300+ new jobs; achieving full domestic NPK fertilizer production cycle.

Global Fertilizer Market Overview

• Fertilizer prices surged significantly in 2021 and 2022, risking reduced usage and lower crop yields, potentially raising global food prices.
• World population will surpass 9 billion by 2050, with over 70% urbanization, increasing fertilizer demand amid diminishing arable land.
• The fertilizer market was valued over $190 billion in 2020, with projected 2.6% CAGR through 2030.
• Russian fertilizer exports are shifting from Europe and the USA to Asia and Latin America.
• Potash exports are dominated by Canada, Russia, and Belarus (60%+), with sanctions and restrictions tightening supply, heavily impacting Brazil and India.

Potassium Deposit Development

• Targets potassium chloride production from sylvinite ore using flotation and halurgic methods.
• Key deposit: Zhilyanskoye near Aktobe, holding 1.1 billion tons of potassium salts with 8–18.6% potassium oxide.
• Feasibility study supports underground mining for 600,000 tons potassium chloride and 1.2 million tons potassium magnesium sulfate annually.
• Other deposits include Satimola and Chelkar (licenses in progress); some projects terminated.

Global Fertilizer Industry and Price Trends

• Major fertilizer importers: Brazil, India, USA, China.
• Leading global producers: Yara (Norway), Nutrien (Canada), CF Industries and Mosaic (USA), Belaruskali (Belarus), PhosAgro, EuroChem, Uralkali, and Acron (Russia).
• Prices remain elevated due to higher natural gas costs (nitrogen fertilizers), increased demand and export restrictions (phosphates), and sanctions impacting potash supply.
• Canada plans to expand potash production to offset Belarusian and Russian supply losses, requiring 1-2 years ramp-up.

Logistics and Market Reach

• Raw materials sourced from Europe and CIS countries; products supplied globally including Australia, Africa, USA, Asia, and Latin America.
• Transportation managed via vessels and railways.
• Trade data highlights key fertilizer and grain importers and exporters involving Russia, Ukraine, Belarus, Brazil, USA, China, India, and EU countries.