Kazakhstan Potash Corporation (ASX:KPC) has signed the turnkey Engineering, Procurement and Construction contract with China’s CITIC Construction Co., Ltd (CITICC) for the Zhilyanskoye Potash Project in Kazakhstan.
Under the contract, CITICC will be responsible for the design, planning, procurement, construction and subsequent transfer of the project.
The design production capacity under the EPC Agreement will be 1.2 million tons per year of potassium chloride (KCL) fertilisers.
KPC and CITICC have agreed a provisional amount of US$550 million under the EPC Agreement with the final figure adjustment in accordance with the result of the blueprint design work.
With the signing of the EPC agreement, the company can now move on concluding the financing arrangements with ICBC and CITIIC.
The EPC contract follows the Framework Agreement reached in December 2014 between the company, CITICC, the Industrial & Commercial Bank of China Limited (ICBC) and the Ministry of Investment and Development of the Republic of Kazakhstan (MID) in relation to the KPC Potash Production Base Project.
Zhilyanskoe is located in the Aktobe Province, in the north western region of Kazakhstan.
This places it close to significant infrastructure, including railway and road networks connecting Asia and Europe, an international airport, high voltage power lines and high pressure oil and gas pipelines.
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