Uzkimyosanoat started to develop preliminary feasibility study of the project on expansion of production at the Kungrad Soda Plant, Gazeta.uz reported.

In the end of 2012 and early 2013, Uzkimyosanoat will start modernization of the plant’s capacities. The project will be realized within three years. The preliminary cost of the project is US$50 million.

The expansion of capacities of the plant will be carried out due to raising limestone production at Jamansay field and technical salt at Barsakelmes field in Karakalpakstan. The annual demand of these raw materials makes up 153,000 tonnes of limestone, 160,000 tonnes of salt and 1,000 tonnes of ammonia.

Kungrad Soda Plant is only enterprise on production of soda ash in Central Asia. The enterprise was commissioned in August 2006 by China’s Citic Pacific Ltd. and Uzkimyosanoat. Total project cost was US$100 million.

In line with contract, Citic Pacific Ltd. designed and constructed technical part of the plant on “on turnkey” basis with the cost of US$32.3 million. China Industrial-Commercial Bank financed technological part of the project under insurance coverage of China Export-Credit Insurance Corporation (90% of the contract) and loan of Uzpromstroytbank (10% of contract) under the guarantee of the Uzbekistan Government.

General construction works were executed by local insurance companies due to own resources of Uzkimyosanoat. The project capacity of the enterprise is 100,000 tonnes of ash soda a year. The main raw material for construction of soda ash is sodium chloride (salt) and limestone.

All main raw materials for production are produced in Uzbekistan. The sodium chloride is mined at Barsakelmes deposit, located 53km away from Kungrad Soda Plant and limestone at Jamansay limestone deposit, developed at 250 km away from the plant. According to geologists, the approved reserves of these raw materials can satisfy demand of the plant for over 100 years.

At necessity, these reserves can be expanded. Another component of production is ammonia, which is supplied by enterprises of Uzkimyosanoat – Maxam-Chirchiq (Chirchiq city) and Navoiazot (Navoi city). For last three years, Kungrad Soda Plant increased exports by five times.

According to targeted figures of industrial development of Uzbekistan for 2011-2015, the production volume of soda ash in Uzbekistan will reach 95,000 tonnes this year. According to forecast, the plant will reach its designed capacity (100,000 tonnes) in 2012.