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Development of product production with a high share of added value

29 April 2022, 9:32 1534

Due to the rapid development of the green economy, the increase in the production of electric vehicles, household appliances and the development of renewable energy sources, global demand for copper is expected to grow by 40 percent by 2030. This, in turn, necessitates the processing of copper cathodes produced by the Almalyk Mining and Metallurgical Complex and transition to the production of high value-added products with the creation of multi-level production chains. Proceeds from the sale of copper are currently approximately $2.5 billion. With an increase in copper production to 500 thousand tons by 2028, this figure, taking into account related industries, can reach $8-9 billion.

Therefore, on June 24, 2021, Shavkat Miromonovich Mirziyoyev, the President of the country signed the Resolution “On additional measures for the development of the mining and metallurgical industry and related industries”, which provides for the creation of a scientific and technological cluster for the production of copper products and finished products with high added value in related industries. Within its framework, a new system of interaction between science and production will be established based on international best practices for the development of an interconnected system of design and engineering services, research and development work, transfer of modern technologies, introduction of innovations and digital technologies, as well as improvement of existing ones.

To develop the concept for the cluster development, a leading foreign consulting company Hatch from Canada was involved, together with which work was arranged to determine the position of Uzbekistan in the international market for the production of finished copper products. In addition to preparing proposals for the development of the production of high value-added products, the foreign company will study the possibilities of maximizing the production of the main raw material for the copper cluster - copper, as well as identify specific measures necessary to attract capital and technology.

At the same time, Almalyk MMC JSC is already successfully working to increase the volume of production of high value-added products by creating multi-level chains. Thus, on the basis of the Scientific and Production Association for the Production of Rare Metals and Hard Alloys (NPO PRMiTS), the implementation of projects for the development of the production of 3 new types of products based on copper in the amount $13.0 million has been started. Copper strips and sheets, wire rod from copper alloys (bronze and brass), spherical powder from copper and its alloys (bronze and brass) shall be produced here. Annually, 11.0 thousand tons of copper and 4.0 thousand tons of zinc will be processed with the production of export-oriented products in the amount $134.0 million US dollars, as well as the localization of copper alloys in the amount 1.4 trillion UZS. It is expected to create 125 new jobs. In addition, in 2022-2023 NPO PRMiTS plans to develop another nine new types of finished products from rare metals. Such as bushings and dies made of hard alloys, electrodes based on tungsten-copper alloys, end tools, etc.

There are also promising projects for the Angren Pipe Plant, which is also included in the Copper Cluster Development Program. Here, in 2022-2023, 5 investment projects will be implemented for a total of $13.96 million. It is planned to master 4 new types of products: capillary pipes, copper lugs, alloy fittings and straight pipes with a diameter 25 to 42 mm, as well as to increase the production capacity of copper pipes from the current 8 thousand to 20 thousand tons. Thus, the volume of production of value-added products only in this division of the plant by 2025 will amount to more than 1.4 trillion UZS.

In addition, as part of the implementation of the investment mega-project "Development of the Yoshlik I deposit" at the Almalyk MMC, it is planned to build the country's largest machine-building plant for the production of new types of mining and metallurgical equipment and spare parts. The commissioning of this unique enterprise, with a project cost $500 million, is expected in 2024. It is predicted that the new plant, designed to produce 35 new types of mining and metallurgical equipment, will be able to employ about 2,000 people. As a result, the volume of value-added products will be expanded, including for the needs of other industrial enterprises of the Republic of Uzbekistan.

All this will enable the plant to receive additional profit not only through the production of copper, but also through the production of a variety of export-oriented products with high added value and will increase the competitiveness and rating of the enterprise in the foreign market.

Jasur TOKHTAEV,

Head of Cluster Development Service for Copper Industry "Almalyk MMC" JSC

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