Enter Engineering and thyssenkrupp AG have announced the signing of an Agreement of Intent.
The agreement, worth €50 million, relates to Enter Engineering’s exclusive role as construction partner in building an integrated mining metallurgical complex on the Tebinbulak iron ore deposit.
The two parties also signed an agreement for the start of preparatory work on the project, including a contract for the supply of high-tech equipment, its design, supervision during installation, and commissioning at the facility. The innovative high pressure grinding roll (HPGR) technology, which is highly efficient, will be used to help process up to 60 million tpy of iron ore, whilst reducing energy consumption.
Bakhtiyor Fazylov, Chairman of the Board of Directors of Enter Engineering, said:
“We are delighted to partner with a leading global company such as thyssenkrupp. Applying German standards, we will create a high-quality raw material base for the domestic metallurgical industry. 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.
Reza Poorvash, CEO thyssenkrupp Mining Technologies Europe and Asia, said:
“To date, more than 140 units of HPGR equipment have been sold in the mining industry. In the CIS countries, thyssenkrupp takes a leading position among mining companies that use this technology, in practice confirming the high quality and reliability of the German brand.”
Roman Karl, Managing Director thyssenkrupp Mining Technologies CIS, commented:
“We are delighted to partner with such a well-known company in Uzbekistan as Enter Engineering, who have a long track record of successful execution in major engineering construction projects.
“The project will use one of the most energy efficient and innovative technologies to significantly reduce energy consumption. HPGR has been used since 1985 in the cement industry, and since 1986 in the mining industry for use in the grinding process to ensure a high level of product fineness. Full integration of this technology within Industry 4.0 is also important.”
The complex is significant for Uzbekistan because of its multiplier effect. As well as creating new jobs in remote areas, it will help develop domestic iron ore to provide the country’s existing metallurgical complexes with raw materials. It will also support the development of infrastructure, creation of service enterprises, and increased trade between countries.
The Tebinbulak deposit is located in the Karauzyak district of Karakalpakstan, in the north-west part of Uzbekistan. The field covers 5.2 km2 and its predicted life cycle is 27 years.
Cooperation between Enter Engineering and thyssenkrupp is supported at a high inter-governmental level. The agreement signing ceremony was attended by Alisher Sultanov, Uzbekistan’s Minister of Energy. Sultanov’s ministry is engaged in a national effort to convert aging industries to new energy-saving technologies. Also present was the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Uzbekistan, Thilo Klinner.
“Today is a very important moment. A contract has been signed on a strategic project, which is symbolic for the upswing in the relationship between Germany and Uzbekistan. Germany, and our companies such as thyssenkrupp, are proud to be technology partners in this important endeavour.
“The processing plant is part of the Tebinbulak iron ore complex, and the project will be implemented with a leading Uzbek company Enter Engineering. 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.”