JSC Development Bank of Kazakhstan (a subsidiary of the Baiterek National Managing Holding, hereinafter – DBK or the Bank) and JSC Qarmet have signed an agreement to open a credit line for the construction of a modern coke oven battery complex.
JSC Qarmet is the largest mining and metallurgical enterprise in Kazakhstan with a fully integrated production cycle – from iron ore and coal mining to finished rolled steel products. As a systemically important industrial giant, the company employs more than 35,000 people and is the largest employer in the Karaganda region. The plant’s operations have a direct impact on related sectors – from mechanical engineering to construction – forming a significant share of the country’s non-commodity exports.
The construction of new coke oven batteries will become a key element of the company’s large-scale modernisation programme. The project, with a capacity of 1.5 million tonnes of coke per year, provides for the construction of two new batteries to replace worn-out facilities.
This is not merely a production upgrade but a strategically important step towards reducing the cost of finished products and strengthening the plant’s raw-material security. Coke oven batteries are effectively the “heart” of the metallurgical process, producing the essential fuel and reducing agent required for pig iron smelting in blast furnaces.
According to Qarmet, the implementation of the project will enable the company to maintain its target coke production level of 2.5 million tonnes per annum (from 2029 onwards) to support pig iron output and ensure the stability of its steelmaking operations.
The total cost of the project amounts to USD 435 million. DBK will provide financing of up to USD 337 million. The loan is denominated in Chinese yuan with a maturity of 13 years, underscoring the Bank’s commitment to diversifying currency risks and attracting long-term investment into the real sector of the economy.
“DBK is contributing to the deep technological renovation of a systemically important enterprise for the country. The new facilities will enable Qarmet to fully eliminate its dependence on imported coke by 2029. Furthermore, the project has a strong environmental component: the new units will be equipped with advanced gas-cleaning systems, which is essential for improving air quality in the region and fulfilling the company’s environmental commitments,” said Marat Yelibayev, Chairman of the Management Board of DBK.
The project designer, equipment supplier and contractor for construction, installation and commissioning works will be Acre Coking & Refractory Engineering Consulting Corporation (Dalian), MCC – one of China’s largest state-owned engineering corporations. The company has delivered more than 1,000 engineering and consulting projects worldwide, including over 130 executed on an EPC (Engineering, Procurement and Construction) basis.
