MILLING AND LOADING COMPLEX COMMISSIONED
24.12.2010SUNKAR RESOURCES PLC
("Sunkar" or the "Company")
MILLING AND LOADING COMPLEX COMMISSIONED
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Sunkar Resources plc (AIM:SKR) is pleased to announce that the first of two lines of its Milling and Loading Complex (“MLC”) at the Chilisai site was officially commissioned on 21 December 2010. The plant has received all official approvals and passed authorities’ inspections, and the Deed of Commissioning, the approval required to run an industrial installation in Kazakhstan, has been duly executed. Once completed, the MLC has a production capacity of 200,000 tonnes of Direct Application Rock (“DAR”) per annum.
The Chilisai MLC and DAR project was recently included into the Kazakhstan Government Support Program for Accelerated Industrial Development (the “Program”), and the official switch-on ceremony was conducted during a live teleconference by the Government of Kazakhstan. Among 8 distinguished projects, the Chilisai MLC was selected for switch-on during the teleconference, a country wide event organised by the Government to raise public awareness of the Program’s progress and broadcast on all major national television channels.
21 December 2010 was designated as “Industrial Day” in Kazakhstan. 80 new industrial plants were commissioned countrywide within the Program. The President of Republic of Kazakhstan, Nursultan Nazarbayev and members of the Government attended the live teleconference presenting the most important new industrial projects.
During the teleconference, Nurdin Damitov, Director of Sunkar Resources and General Director of Temir Service LLP, reported to the President of Kazakhstan:
“This project has a goal to increase food security of the country. We have conducted field trials and obtained the following results: grain yield increased by 30%, and oil crops by 50%. Prices for our Direct Application Rock will be very competitive with those of other manufacturers”.
In congratulating the Chilisai DAR project team, President Nazarbayev specifically emphasised the importance of phosphate fertilizers for agriculture in the country.
A recording of the teleconference can be seen using the following link: http://kaztrk.kz/rus/news/news.php?SECTION_ID=97&ELEMENT_ID=48940.
Nurdin Damitov, Director Corporate Affairs, Sunkar Resources plc commented:
“It was an honour for Sunkar Resources plc that the Chilisai DAR Milling and Loading Complex was selected for switch-on during the Governmental media event with the participation of the President of the Republic of Kazakhstan. It signifies the importance of Chilisai DAR and the Chilisai Phosphate Fertilizer Project for the local community and the country.”
Commissioning of the DAR plant is the start of the development of an integrated Phosphate Fertilizer Project at Chilisai.
Sunkar intends to announce the preliminary results of its Bankable Feasibility Study for the Chilisai Phosphate Fertilizer Project shortly, in early January 2011.
For further information please contact:
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Sunkar Resources plc |
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Serikjan Utegen, CEO |
Tel: +44 20 7930 8678 |
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Donald Sinclair, CFO |
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Canaccord Genuity Limited |
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Andrew Chubb |
Tel: +44 20 7050 6500 |
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Bhavesh Patel |
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GMP Securities Europe LLP |
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Andrew Young |
Tel: +44 20 7647 2800 |
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Bankside Consultants |
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Simon Rothschild |
Tel: +44 20 7367 8888 |
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Louise Mason |
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Editors Notes
Sunkar Resources plc
Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the nearby North Caspian oil and gas fields and regional long-term marginal priced gas.
The Chilisai Phosphate Rock Deposit is ideally located on a transportation hub that spans the agricultural markets from Western Europe through to China.
Kazakhstan Government Support Program for Accelerated Industrial Development (the “Program”)
In accordance with the wishes of the President the Program started on 1st January 2010. The main goals of the Program are national economy diversification, development of hi-tech and high added value industries, increase of non-raw-material exports, and facilitation of small and medium-sized businesses. In the first year of the Program being implemented, 152 industrial plants were introduced with investment totalling more than USD 5 billion (72 plants were commissioned in the first half of 2010). These projects created 24 thousand jobs. In his speech, the President noted that the strategy has started to bring benefits: at the end of the 2010 the GDP increased by 7%, industrial production – by 10%, manufacturing sector – by 19%.