ENRC to increase program of capital investments from $3.6 bn. to $6.9 bn.

/INTERFAX-KAZAKHSTAN, Almaty, 22, 08/ - Kazakhstan primary holding Eurasian Natural Resources Corporation (ENRC) increased the program of capital investments from $3.6 bn. to $6.9 bn., established before, is said in the ENRC message, disseminated on Friday. According to the message, this decision was made on August of current year by the Board of directors of ENRC. The message explains that capital costs of the holding have been increased at the expense of the range of supplementary projects, which were established by the Board of directors and will be executed during several forthcoming years. "These projects will support the strategy of the group growth, in particular will increase and improve the current assets in Kazakhstan" - is said in the message. "Majority constructions will be presented in 2010 - 2012. The first place is taken by electrolysis plant, first phase of which reached advanced project production capacity. Today the second phase is under work with extra capacity of 125 th. tones" - - is said in the message. Approved expanded investment program includes some weighty new projects. In particularly, on ferroalloy subdivision of the holding: construction of new furnaces in Aksu and Aktyubinsk plants and expanding of pits. "It is expected to increase the annual chrome production by more than 600 tones by 2013. It is supplementary increase of production compared to earlier announced 200 th. tones and will result in closing of current old production objects with capacity of 270 th. tones a year" - is said in the message. This project is supposed to lead to considerable economy of applied materials and will increase production. Installation of modern melting furnace is also supposed to lead to good influences on environment and safety of labor compared to current production. Besides, the program includes finishing construction of second plant on pellets production, which is supposed to be effective in initial 6 months of 2009 and also finishing construction of concentrating mill on Don ore- dressing and processing enterprise. By iron ore the program provides gradual increasing of mining and capacity on iron-ore concentrate production by 9 m. tones a year by 2012 and also construction of two plants on metallize product production with capacity of 2.8 m. tones and section on pellets production with capacity of 5 m. a year. The construction is planned to start in the second half year of 2008 and by the current estimation to finish by 2012. By alumina and aluminum subdivision, the further alumina production increasing by 200 th. tones a year by 2010 at the expense of growth of annual production to 1.8 m. tones a year. "It should allow alumina and aluminum subdivision to provide the needs of electrolysis plant in alumina for sale on external market at lower than 1 m. tones a year" - is said in the message. Besides, ENRC will construct the plant on caustic soda production with capacity of 400 th. tones a year and also the plant on anode production. Two projects are expected to launch by 2010. ENRC plans to increase production capacity of electrolysis plant by 125 th. tones of aluminum by 2010 (second phase). Construction of supplementary energy capacity constructions in 1200 MV, new turbine and generator are included in energy subdivision. New generator is expected to increase joint capacities on energy production by 325 MV by 2011. Along with this, expansion of coal production by 5 m. tones a year is planned. The message reminded that March 2008 ENRC logistics subdivision was granted state tender for construction of 300 km. of Korgas-Zhetygen railway in south-eastern Kazakhstan (project the gate in China). Concession of ENRC for construction and management of railway will last 28 years. New railway will contribute to the growth of cargo traffic between Kazakhstan and China to 30 m. tones a year. The term of construction is estimated in 4 years and investments will make $910 m. ENRC is fully integrated group in the sphere of production and dressing of minerals with own energy and transport enterprises. ENRC consolidated assets of such companies as Kazchrome, Kazakhstan aluminum, Kazakhstan electrolysis plant, Zhayremskiy mining and processing plant, Sokolovo-Sarbayskiy mining and processing integrated works, Euroasian Energy Corporation and also ENRC Logistics and ENRC Marketing & Sales. Beginning April the company owns majority holding of Serovskiy ferroalloy plant and its affiliated companies. [2008-08-22]