The Kazakh prime minister's website reported on 26 June that Deputy Prime Minister and National Economy Minister Serik Zhumangarin had met the top managers of leading Chinese industrial and agribusiness groups in Urumqi. The talks took place at the local office of the QazTrade trade policy development centre.
Coal chemicals first. China Pingmei Shenma Holding Group, one of China's largest groups in coal mining, coal chemistry and new materials, is considering a modern full-cycle coal-chemicals complex in Kazakhstan with investment of up to USD 1.5 billion, built around deep coal processing and high-value products, and it calls the country its key investment base in Central Asia. Zhumangarin backed the idea, invited the Chinese side to visit soon, said Kazakhstan was ready to accompany the project, and offered to work out financing with the Baiterek holding and the Development Bank, with Abai Region ready to offer sites. After the talks Pingmei Shenma and QazTrade signed a memorandum on strategic cooperation in developing coal resources and the coal-chemicals industry.
Then farming. Xinjiang Zhongxinjian Animal Husbandry works in biotechnology, livestock, veterinary vaccines, feed and deep processing of farm products. The two sides discussed moving veterinary drug production technology to Kazakhstan, irrigation, and growing high-protein corn. The company also presented its project in the Khorgos SEZ, growing feed corn and building a corn-processing park with a capacity of 1 million tonnes a year, saying it had studied the market through cooperation with the state company Prodcorporation.
Zhumangarin suggested Abai Region as a base for joint farming and processing projects. Kazakhstan also proposed a package: a laboratory working to Chinese standards, better export rules, and border logistics infrastructure. He said that after the World Organisation for Animal Health lifted the last veterinary restrictions, Kazakhstan has more room to export livestock products, but what it wants to sell is processed finished goods, not live animals.
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The sides agreed to keep refining the projects, prepare roadmaps and arrange visits by specialists, to move the ideas towards implementation.
A memorandum is not an investment agreement, and "up to USD 1.5 billion" is the ceiling the Chinese company is considering, not an agreed sum. The announcement names no source of financing, no site decision and no timetable.
Source: Website of the Prime Minister of the Republic of Kazakhstan, https://primeminister.kz/ru/news/investicii-v-ugleximiiu-i-novye-proekty-v-apk-serik-zumangarin-provel-peregovory-s-krupneisimi-korporaciiami-kitaia-31568
Key facts
- Deputy Prime Minister and Minister of National Economy of Kazakhstan Zhumangarin held talks in Urumqi with the management of leading Chinese industrial and agricultural enterprises.
- Pingmei Shenma is considering building in Kazakhstan a modern coal chemical complex covering the full industrial chain, with investment of up to US$1.5 billion.
- The Kazakh side proposed Abai Region as a site for the coal chemical project and will study financing options with Baiterek Holding and the Development Bank of Kazakhstan.
- Pingmei Shenma and QazTrade signed a memorandum of strategic cooperation on coal resource development and coal chemical industry development.
- CITIC Construction Animal Husbandry grows feed corn in the Khorgos Special Economic Zone and is building a corn deep-processing industrial park with an annual processing capacity of 1 million tonnes.
- The two sides agreed to continue refining the projects, prepare a cooperation roadmap, and arrange mutual visits of experts.
FAQ
How much does Pingmei Shenma plan to invest in Kazakhstan?
Reports say Pingmei Shenma is considering building in Kazakhstan a coal chemical complex with investment of up to US$1.5 billion. However, the US$1.5 billion is the upper limit under consideration by the Chinese side, not a finalized amount, and the two sides have not yet made a final investment decision.
Where might these projects be located?
The Kazakh side proposed that the coal chemical complex be located in Abai Region, and Zhumangarin also proposed Abai Region as a base for cooperation in agriculture and deep processing.
Have the two sides signed a binding investment agreement?
No. Pingmei Shenma and QazTrade only signed a memorandum of strategic cooperation on coal resource development and coal chemical industry development; the two sides agreed to continue refining the projects and prepare a cooperation roadmap.
In what form does the Kazakh side want livestock products to be exported?
Zhumangarin said that Kazakhstan has more room for livestock product exports, but the Kazakh side wants deep-processed finished products, not exports of live animals.
What key information has not yet been disclosed?
The reports did not disclose the projects' sources of funding, locations, or timelines.