UZEX trades 24,500 tonnes of kaolin in 2011

The cost of unconcentrated kaolin, which is highly demanded, was in the average at 8,150 soums per tonne (February), 11,100 soums (April) to 11,154 soums in May. Main buyers of local kaolin are construction companies, enterprises producing china and ceramic dishes. Uzbekko’mir (Uzbek coal) are main seller of kaolin through UZEX.

Uzbekistan has rich reserves of preliminary and secondary kaolin. Explored reserves of kaolin in Uzbekistan focused in largest Angren coal, fireproof clay and kaolin mine. The reserves of the secondary kaolin make up 382.4 million tonnes. The preliminary and secondary kaolin are used in production of cement and ceramic products.

In 1998, Germany’s PAB Bautzen commissioned plant on production of enriched kaolin with the capacity of 200,000 tonnes a year at Angren mine. The construction of the plant with the cost of 65.5 million Deutsche Marks was Kaolin, an Uzbek-German venture. The founders of the joint venture were KulKoni (51% stake) and Uzbekko’mir OJSC (49%).

In autumn 1999, KulKoni due to financial problems handed over its rights in the assets of the venture to PAB Bautzen. The share of PAB Bautzen was 44% and Uzbekko’mir at 56% during announcement of bankruptcy.

The project was financed due to loan of Berliner Bank at the volume of 57 million Deutsche Marks under the guarantee of the Government of Uzbekistan and refinanced through National Bank of Uzbekistan for Foreign Economic Activity. The loan was issued for 9.5 years, including two year of grace period, under the 6.8% APR. The company paid 50% of loan, when its bankruptcy was announced.

The plant could enter planned markets in Europe. The venture supplied kaolin to Central Asia and Middle East countries at the volume of 10,000-12,000 tonnes a year.

In March 2007, the economic court of Tashkent region announced Kaolin JV as bankrupt. External management was introduced at the enterprise and the liquidation process was undertaken.

The court decision was adopted in connection with non-fulfillment of liabilities of the venture on repayment of foreign loans, which were attracted under the government guarantees, for creation of capacities

In spring 2009, the government announced auction to sell 184 bankrupt enterprises, including Kaolin JV. On the base of the venture, Angren-Kaolin LLC has been founded and it is currently managed by National Bank of Uzbekistan for Foreign Economic Activity (as main creditor of the venture). The venture rehabilitated production and it started to produce kaolin in middle of 2009.

Currently, Angren-Kaolin LLC produces high quality of kaolin for production of cellulose-paper products, china, sanitary engineering, earthenware products and ceramic goods.