Steel production at the Velikhovskoye field in the Aktobe region

Источник: Kazakh Invest

  • Indicator Results
  • Investment amount, thousand US dollars 550 727
  • NPV of the Project thousand, US dollars 421 198
  • IRR, % 25,9%
  • IBITDA yield, % 38%
  • Payback period, years 6,8
  • Discounted payback period, years - - 8,8

Project description:

The project provides for the construction of a complex for the production of steel, through the enrichment and processing of iron-containing ores extracted at the Velekhovskoye Yuzhnoye deposit in the Aktobe region.


low-alloy structural steel, carbon structural steel, high-quality carbon structural steel

Sales market:

Kazakhstan, Russia, China

Market prerequisites:

Stable demand for steel.

The high rates of historical production growth and the strategic importance of further development of industries using steel as a raw material create a steady demand for the products produced within the framework of the Project.

Further growth in demand for steel.

According to the forecasts of the International Steel Association, global demand for steel and steel products will increase by 1.8% and 0.7% in 2018 and 2019, respectively.

Potential for import substitution and export of steel.

The presence of a trade deficit over the past few years indicates a good potential for import substitution and the presence of stable demand for steel in the domestic market of Kazakhstan. Also, due to the geographical proximity of such major global steel consumers as the Russian Federation and China, there is a good export potential for the supply of products to these countries.

JORC Resource Counting

Type Category Board.
Tonnage, t Average
content Fe (%)
resources, body – I
Calculated 16 112 851 680.80 20.91 /
resources < 30% Fe
Calculated 16 4 455 263.52 20.86 /
resources, body – I
Assumed. 16 344 762 786.56 20.02
resources, body – II
Assumed. 16 9 829 786.72 20.18
resources < 30% Fe
Assumed. 16 17,570,097.36 $ 19.59
resources > 30% Fe
Assumed. twenty 4 991 815.92 41.00
Total 494 461 430.88 20.43