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Kazyna supports idea of organizing ferrous scrap recycling market in Kazakhstan

Almaty, June 12, 2008

Kazyna state fund supports the idea of organizing a ferrous scrap recycling market in Kazakhstan, Victor Temirbaev, deputy managing director of Kazyna Sustainable Growth Fund, said during the first international conference "New Methods and Technologies for the Mining Industry of Kazakhstan" in Almaty on Wednesday.

"The use of metal scrap as feedstock for the manufacturing of ferrous metal products has a number of advantages over the traditional blast-furnace and steel-making processes. Metal scrap recycling will help considerably reduce the capital expenses needed to organize such processes," he said. Such production processes consume less energy and are more environmentally friendly, he added.

Temirbaev said that the domestic metallurgical companies should use local metal scrap, but it does not happen today. He provided some official data. Thus, in 2003 Kazakhstan exported 1 million tons of scrap metal, in 2007 the exports came as high as 2.5 million tons.

"On the one hand, our metal scrap is exported and does not work for us. On the other hand, we import 1.2 million tons of products made of ferrous metal to the amount exceeding $1.5 billion. Thus, the export is higher than import," he said.

According to Temirbaev, there are few plants in Kazakhstan that can use ferrous metal scrap in their production.

"There are only two plants: Arcelor Mittal Steel Temirtau which consumes about 550,000 tons a year and Pavlodar's Casting which consumes about 500,000 tons a year," he said.

He believes that Kazakhstan should organize more processes for scrap recycling.

"We plan to open two plants: one in Taraz (120,000 tons a year), the other in Aktobe (500,000 tons)," Temirbaev said.

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