China Investment in Potash Fertilizer Industry in Kazakhstan

Kazakhstan said on Sunday that it will take the lead in the global potash fertilizer market through its multibillion-dollar investment in China.

Kazakhstan has always been known for its oil and metal reserves, and now, as China expands to other global resources, including fertilizers, Kazakhstan has begun to develop into other resource areas.

“This will be a huge project. At present, the global potash demand will reach 45 million tons, and by 2025, 7 million tons will come from Kazakhstan.”

The Industrial and Commercial Bank of China and the Chinese CITIC Group have signed relevant treaties with the Kazakhstan Government and Kazakhstan Potash Corp. The Chinese Premier Li Keqiang who visited Kazakhstan and the Kazakhstani Prime Minister Karim Masiuvv attended the signing ceremony of the relevant treaty, which is part of the Sino-Kazakhstan bilateral economic contract. China will invest a total of US$14 billion in Kazakhstan through economic contracts.

Kazakhstan’s Minister of Investment and Development Aset Isekeshev stated that China will invest 3.8 billion U.S. dollars in Kazakhstan’s potassium carbonate reserves and potash fertilizer production, and will increase the current annual output of 1 million tons to 7 million tons.

Kazakh Potash Corp. is currently controlled by a Chinese businessman and the company will build two potash plants from 2015 to 2016 with an expected increase of 5,000 jobs.

China is Kazakhstan’s main exporter and its second largest foreign trade partner. Kazakhstan is China’s second largest trading partner in the former Soviet Union.