Prime agency reported quoting source at Uzkimyosanoat that Citic and Uzkimyosanoat signed a corresponding memorandum of cooperation.

The project cost is US$50 million. The project will increase production of the Uzbek plant by 1.5 times to 150,000 tonnes of soda ash a year. The project will be implemented within three years.

Expansion of the plant’s capacities will be carried out due to increasing of limestone mining at Jamansay deposit and technical salt at Barsakelmas deposit in Karakalpakstan, which are resource base of the Kungrad Soda Plant.

In line with the memorandum, the Chinese company will develop feasibility study of the project in the first half of 2012 and after that the sides will discuss further project implementation.

It is expected that the project will be implemented due to loans of China ExImBank and resources of the Uzbek side.

Kungrad Soda Plant is only enterprise on production of soda ash in Central Asia. The enterprise was commissioned in August 2006 by China’s Citic Pacific Ltd. and Uzkimyosanoat. Total project cost was US$100 million.

In line with contract, Citic Pacific Ltd. designed and constructed technical part of the plant on “on turnkey” basis with the cost of US$32.3 million. China Industrial-Commercial Bank financed technological part of the project under insurance coverage of China Export-Credit Insurance Corporation (90% of the contract) and loan of Uzpromstroytbank (10% of contract) under the guarantee of the Uzbekistan Government.

The project capacity of the enterprise is 100,000 tonnes of ash soda a year. The main raw material for construction of soda ash is sodium chloride (salt) and limestone.

All main raw materials for production are produced in Uzbekistan. The sodium chloride is mined at Barsakelmes deposit, located 53km away from Kungrad Soda Plant and limestone at Jamansay limestone deposit, developed at 250 km away from the plant. According to geologists, the approved reserves of these raw materials can satisfy demand of the plant for over 100 years.