Displaying items by tag: Kyrgyzstan
Kyrgyzstan: The state-owned Bishkek heat and power plant has secured a US$437,000 contract to supply its waste ash and slag to two cement plants in Kemin, Chüy Region. The cement producers party to the contract will be responsible for extraction and transport, commencing in August 2024.
The Bishkek heat and power plant has previously invested US$280,000 in clearing its waste dump. The government says that it has also received interest from a China-based autoclave aerated concrete blocks producer in its waste.
Update on Kyrgyzstan, January 2024
03 January 2024Kyrgyzstan had a couple of prominent stories in the press towards the end of December 2023 with news of a new plant and continuing data showing that cement production has grown.
The Chüy project was first announced by the government in mid-2022 when it signed an investment agreement with a consortium comprising representatives from Terek-Tash and ZENIT. More information on the unit emerged this week when the Russian-Kyrgyz Development Fund revealed that it made a loan of US$45m towards the scheme based in the northern Chüy region of the country. The plan is to build a 1.7Mt/yr plant with a budget of US$160m. Equipment to build the plant is reportedly being sourced from companies in China and Russia. Special features of the project include a waste heat recovery unit and the use of ash from the Bishkek Thermal Power Plant in the production process. The plant is expected to be launched in 2024.
Graph 1: Cement production in Kyrgyzstan, 2018 - 2023. Source: National Statistical Committee of the Kyrgyz Republic.
One reason why the government might be keen to build a new plant is because cement production has mostly grown in each of the past five years, with the exception of 2020, when the Covid-19 pandemic began. In 2022 it increased by 7% year-on-year to 2.7Mt and the latest data from the National Statistical Committee indicates that it rose by 11% year-on-year to 2.6Mt in the 11 months to the end of November 2023. If this rate held in December 2023 then it looks likely that the country will have produced just under 3Mt in 2023. At the same time the country’s exports of cement have also been falling. In November 2023 the government of Kazakhstan’s Jambyl Region said that it had found investors to support construction of a railway line between the locale and Kyrgyzstan due to a ‘building boom’ in the latter country.
Earlier in 2023 the Eurasian Development Bank (EDB) said it had earmarked US$48m for the modernisation of equipment at the Kant Cement plant, operated by Kazakhstan-based United Cement Group (UCG), also in Chüy region. The plant is the biggest in Kyrgyzstan, running five wet process production lines, according to the Global Cement Directory 2023. The EDB linked its investment to a hydroelectric project in the country that it is also funding, pointing out that such structures require lots of cement and concrete. This follows a previous upgrade project by owner Kazakhstan-based United Cement Group (UCG) at the plant from 2021 to March 2023. This involved efficiency and environmental gains such as installing bag filters and converting a cement grinding mill to a closed circuit. China-based and CNBM subsidiary China Triumph International Engineering was the lead project partner. In early December 2023 UCG announced that it had signed another contract with China Triumph International Engineering over the summer to build a new dry production line at the site with a clinker capacity of 0.8Mt/yr. At the time of the announcement it said that preparation of the construction site had started and that work had begun on installing a pile foundation.
Finally, one more Kyrgyz news story of note in recent months was the announcement in October 2023 that the government had effectively nationalised the Kurmentinsky Cement plant in Issyk-Kul Region. The reason why it had done so was unusual because it said that a 93% share in the company running the plant had been transferred to the State Property Management Agency following the death of its former owner. The former owner was one Kamchybek Kolbaev, an organised crime boss who had been listed on the US Department of State Transnational Organized Crime Rewards Program and was reportedly killed by state security services in early October 2023. The remaining shares in the plant have been passed to its workers and the government further said that it intends to upgrade the site.
The cement sector in Kyrgyzstan is modest and in need of modernisation. It appears to be having a resurgence at the moment though with production mounting and at least two major plant projects underway. The country is in a compelling position economically and geopolitically given its membership of the Russia-backed Commonwealth of Independent States (CIS) and its proximity to China. Various projects backed by the latter’s Belt and Road Initiative, both underway and forthcoming, would certainly appear to benefit from more efficient local cement production and higher volumes.
Upcoming 1.7Mt/yr Chüy cement plant to cost US$160m
02 January 2024Kyrgyzstan: Central Asia Economic Outlook News has reported that the upcoming Chüy cement plant will have a capacity of 1.7Mt/yr and cost US$160m in total. The Russian-Kyrgyz Development Fund will contribute US$45m towards the costs of the project. When operational, the Chüy cement plant will use waste ash from the nearby Bishkek power plant in its cement production. Investors expect the facility to generate 650 new local jobs and to increase Chüy Region’s trade with neighbouring Russia.
Planned railway to support Kazakh cement exports to Kyrgyzstan
21 November 2023Kazakhstan/Kyrgyzstan: The government of Kazakhstan’s Jambyl Region says that investors have come forward to support construction of a proposed railway between the region and Kyrgyzstan. Central Asia News has reported that a major cement plant construction project is underway in Jambyl Region. Regional governor Yerbol Karashukeyev said that Kyrgyzstan is undergoing a ‘building boom,’ including in the major market of Bishkek, 20km from the border with Jambyl Region.
Karashukeyev said “In view of the rapid development of the market in Kyrgyzstan and the production of large volumes of construction materials in Kazakhstan, it is worth developing cooperation.”
Government to inspect Sinji-Pirim Cement's Sinji-Pirim cement plant over smoke emissions
18 July 2023Kyrgyzstan: The Ministry of Natural Resources, Environment and Technical Supervision has requested an inspection of Sinji-Pirim's Sinji-Pirim cement plant in Osh Region's Aravan District. Central Asia News has reported that a video emerged on social media showing smoke rising from pipes at the plant on 6 July 2023.
Sinji-Pirim Cement has operated the Sinji-Pirim cement plant since March 2018.
Kyrgyz cement production rises to 2.67Mt in 2022
24 February 2023Kyrgyzstan: Cement companies produced 2.67Mt of cement nationally in 2022, up by 7.1% year-on-year from 2021 levels, local press has reported. The Eurasian Economic Commission noted that only Armenia outstripped Kyrgyz cement production growth regionally, with an 18% rise to 1.07Mt.
Kyrgyzstan's 10-month exports drop in 2022
12 January 2023Kyrgyzstan: Cement producers exported 574,500t of cement during the first 10 months of 2022, down by 4.7% year-on-year from 10-month 2021 levels. Central Asia News has reported that cement prices fell by 13% to US$42/t. In value, exports fell by 17% to US$24.2m. Neighbouring Uzbekistan was the major recipient of Kyrgyz cement exports.
Agreement to build new Kyrgyz plant
07 September 2022Kyrgyzstan: A new cement plant project has been announced for Kyrgyzstan’s Chuy region. The country’s Ministry of Economy and Commerce said that a signing ceremony for an Investment Agreement to implement the project was held between the Cabinet of Ministers of Kyrgyzstan and a consortium comprising representatives from Terek-Tash and ZENIT on 6 September 2022. When built, the plant will have a capacity of 1.5Mt/yr with a total investment cost of around US$150m.
Tajik cement production falls in first half of 2022
17 August 2022Tajikistan: Cement production fell by 7% year-on-year to 2Mt in the first half of 2022 from 2.16Mt in the same period in 2021. The Avesta News Agency reports no reason for the decline but it noted that the construction sector had grown so far in 2022. The country’s cement industry exports around 1.5Mt/yr to neighbouring countries including Afghanistan, Uzbekistan and Kyrgyzstan.
Kant Cement begins development of new limestone mine
18 July 2022Kyrgyzstan: Kant Cement has begun excavating the Severnaya Gryada limestone deposit near to its Kant cement plant. The producer says that the limestone has a higher purity than that from its existing Agalatas mine. It therefore expects the Kant plant to reduce its raw materials consumption and eliminate a part of its dust emissions. Kant Cement currently replaces a part of the limestone in the plant’s cement production with 65,000t/yr of fly ash.