Kazakhstan is pushing coal chemicals as a new industrial direction, and the project with the clearest investment figure is backed by a Chinese investor. On 6 October the Energy Ministry gave an update on the sector: three large investment projects are under way, and a number of other initiatives have been included in a draft roadmap for developing the coal chemicals industry in 2026–2031. The ministry singled out a metallurgical coke plant in Karaganda region with a design capacity of 1 million tonnes a year, saying an investment agreement has already been signed with a Chinese investor.
The project itself was approved in May. The government then endorsed an investment agreement between the Energy Ministry and Kazakhstan Success Coking Energy LLP in a resolution signed by Prime Minister Olzhas Bektenov. The agreement was subsequently signed by Energy Minister Yerlan Akkenzhenov and the shareholder and chairman of the management board of Success Group. In its October overview the ministry again listed the plant first, a sign the project remains on the official priority list.
Key figures
According to the government's May statement on the Prime Minister's website, the plant will be built in the village of Dubovka in the Abai district of Karaganda region. Investment is entirely private and totals 63.5 billion tenge. Production is scheduled to start in 2029, with first-phase capacity of up to 500,000 tonnes a year; by the end of 2031 the plant is expected to reach its design output of about 1 million tonnes of metallurgical coke a year. The plant will employ up to 500 permanent staff, and building an underground mine will create another 500 jobs. Reports by Kaztag, Sputnik Kazakhstan and DKNews at the time carried the same figures.
At the signing, the ministry described the project as a full-cycle complex covering coal mining, coking, metallurgical coke production and power generation. Metallurgical coke is the main fuel and reducing agent in blast-furnace ironmaking. Kazakhstan's plan is to replace imported coke first and, once the domestic market is saturated, export the surplus.
During construction, the investor has committed to give priority to Kazakh goods, works and services. According to the ministry, it will also train local specialists and, once the plant is running, take part in social and infrastructure projects in the region.
Two more projects under way
The other two projects on the ministry's list both turn coal into diesel fuel, at 100,000 tonnes a year each. One is being carried out by Naz Dan Group in Pavlodar region, the other by Alfa Plast in Karaganda region. Both companies have been granted subsoil use licences.
What else is in the draft roadmap
The roadmap was drawn up by the Energy Ministry together with coal chemicals and coal mining companies and other stakeholders. It is still a draft, and no approval date has been given. Three projects are named in it:
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A coke-chemical cluster based on Qarmet in Karaganda region, processing up to 200,000 tonnes of tar a year, producing up to 35,000 tonnes of benzene and cleaning coke-oven gas.
A Samal Commodities project in Abai region for 300,000 tonnes of ammonia and 520,000 tonnes of urea a year.
A Kaz Nedro Resurs project in Pavlodar region for 100,000 tonnes of diesel a year based on the Sarykol deposit.
All three are still at the planning or study stage, and no investment amounts or timelines have been published.
What Chinese companies may want to watch
Kazakhstan has large coal reserves, but for a long time the coal has been sold as raw material or burned in power plants. The goal now is to turn it into coke, chemicals and fuel and keep more of the added value at home.
Based on public information, Chinese companies can take part in two main ways. One is to come in as an investor and lock in project terms through an investment agreement with the Energy Ministry, as in the coke plant case. The other is to supply engineering and equipment for coking, gas cleaning and coal-to-liquids units. Whether the roadmap projects will be opened to outside investors, and on what terms, is not yet clear.
Two caveats apply: the roadmap is still a draft and many of its initiatives are only being studied, and the detailed terms and any incentives under the coke plant's investment agreement have not been disclosed in official statements. Companies considering involvement should rely on subsequent official documents from the government and the Energy Ministry.
Sources:
Official website of the Prime Minister of Kazakhstan (May 2026), https://primeminister.kz/ru/news/v-kazaxstane-sozdadut-novoe-proizvodstvo-metallurgiceskogo-koksa-moshhnostiu-1-mln-tonn-v-god-31377
Kazinform (6 October 2026), https://www.inform.kz/ru/kakie-proekti-v-uglehimii-mogut-dat-noviy-impuls-ekonomike-kazahstana-69b3aab6
Sputnik Kazakhstan (6 October 2026), https://ru.sputnik.kz/20261006/krupneyshie-proekty-uglekhimii-kazakhstana-nazvali-v-minenergo---67338857.html
Sputnik Kazakhstan (13 May 2026), https://ru.sputnik.kz/20260513/pervyy-zavod-metallurgicheskogo-koksa-na-1-mln-tonn-postroyat-v-kazakhstane-63393429.html
Kaztag (May 2026), https://kaztag.kz/ru/news/zavod-metallurgicheskogo-koksa-za-63-5-mlrd-tenge-postroyat-v-karagandinskoy-oblasti
DKNews (May 2026), https://dknews.kz/ru/ekonomika/392897-novyy-zavod-v-karagandinskoy-oblasti-budet-vypuskat-1
Key facts
- Kazakhstan currently has three major coal chemical investment projects under implementation.
- Kazakhstan Success Coking Energy has signed an investment agreement with the Ministry of Energy of Kazakhstan.
- The metallurgical coke plant in Karaganda Region has private investment of 63.5 billion tenge and is scheduled to commence operations in 2029.
- The first phase of the metallurgical coke plant in Karaganda Region will have an annual capacity of up to 500,000 tonnes, with approximately 1 million tonnes targeted by the end of 2031.
- The “Roadmap for the Development of the Coal Chemical Industry for 2026—2031” remains a draft, and no approval date has been announced.
- Pavlodar Region and Karaganda Region each have a coal-to-diesel project with an annual capacity of 100,000 tonnes.
FAQ
Has Kazakhstan’s coal chemical industry roadmap been approved?
It remains a draft, and the Ministry of Energy of Kazakhstan has not yet announced an approval date.
When will the Karaganda metallurgical coke plant commence operations, and how will its capacity be phased?
The project is scheduled to commence operations in 2029. The first phase will have an annual capacity of up to 500,000 tonnes, with an annual capacity of approximately 1 million tonnes targeted by the end of 2031.
What is the investment scale and number of jobs at the Karaganda metallurgical coke plant?
The project company is Kazakhstan Success Coking Energy, with total private investment of 63.5 billion tenge. The plant and its supporting underground coal mine will each provide up to 500 jobs.
What are the other two major coal chemical projects?
Pavlodar Region and Karaganda Region each have a coal-to-diesel project with an annual capacity of 100,000 tonnes, implemented by Naz Dan Group and Alfa Plast, respectively. Both companies have obtained mineral rights use licenses.
Through what means can Chinese companies participate in the relevant projects?
Participation options identified in publicly available information include investment in projects and the provision of engineering and equipment support for coking, gas purification, coal-to-liquids, and other installations. It remains unclear whether the draft projects will be open to investment promotion and, if so, how it will be conducted.