TASHKENT

Germany’s industrial engineering concern ThyssenKrupp AG plans to supply high technology and energy-efficient equipment for a mining complex that extracts iron ore in the Tebinbulak deposit in northwestern Uzbekistan.

A 50 million euro agreement of intent was signed between ThyssenKrupp AG and Enter Engineering, the largest engineering, procurement and construction contractor in Central Asia and Russia.

The agreement relates to “Enter Engineering’s exclusive role as a construction partner in building an integrated mining metallurgical complex on the Tebinbulak iron ore deposit,” the company said in a statement.

The two parties also signed an agreement to start preparatory works on the project, including a contract for the supply of high-tech equipment, its design, supervision during installation and commissioning at the facility.

Tebinbulak deposit is located in the Karauzyak district of Karakalpakstan, in the northwest part of Uzbekistan covering 5.2 square kilometres, its predicted life cycle is 27 years.

The innovative and efficient High-Pressure Grinding Roll (HPGR) technology will be used to help process up to 60 million tonnes of iron ore per year, whilst reducing energy consumption.

“We are delighted to partner with a leading global company such as ThyssenKrupp. We will create a high-quality raw material base for the domestic metallurgical industry by applying German standards,” Bakhtiyor Fazylov, Enter Engineering’s head, said.

“This project also embodies all the goals Enter Engineering strives for: protecting Uzbekistan’s national interests in the international market, supporting the interests of domestic consumers, and creating jobs.”

The implementation period for Enter Engineering’s construction role is two years with the plant launch anticipated for September 2023.
The project is significant for Uzbekistan because of its multiplier effect as apart from creating new jobs in remote areas, it will help develop domestic iron ore to provide the country’s existing metallurgical complexes with raw materials.

The resource-rich Central Asian nation of 34 million is led by Shavkat Mirziyoyev, who took over as president in late 2016 following the death of veteran leader Islam Karimov, who had run Uzbekistan with an iron fist for 27 years.

Since 2016, Mirziyoyev has unveiled an ambitious economic reform programme, opened up the country to foreign trade and investment and scrapped monetary and other administrative burdens for business. Uzbekistan has also set up a judicial panel for foreign investors under the country’s Supreme Court to better protect their interests and created an Anti-Corruption Committee.

“Since 2016, the reform process in Uzbekistan has already yielded remarkable results, and this project will help to develop our countries’ close cooperation even further,” Thilo Klinner, Germany’s ambassador to Uzbekistan, was quoted by local media as saying.

Enter Engineering is involved in a variety of projects in Uzbekistan’s energy, chemical, and transport sectors. One of the projects is Uzbekistan’s first gas-to-liquids (GTL) plant construction that is expected to be launched by the end of this year.