Billions in investments planned to boost geological exploration in Karakalpakstan

Next year, $5 billion in investments are scheduled to be attracted to Karakalpakstan. These funds will be directed towards developing various sectors of the economy, including industry, raw material processing, and agriculture, which is expected to lead to the creation of a large number of new jobs.

At a meeting dedicated to the socio-economic development of Karakalpakstan, President Shavkat Mirziyoyev drew attention to the lack of up-to-date data regarding existing reserves of geological raw materials. Currently, research covers only approximately 20% of the region's territory. Due to increasing interest from investors, the goal has been set to intensify geological exploration and conduct a reassessment of deposits.

Project Examples and Investments

As an illustration, the President mentioned the 'Urusoy' deposit in the Karauzyak district. A Chinese investor invested $33 million in this project using modern technologies. As a result, gold reserves amounting to 4 tons were discovered on a 200-hectare site, which has already provided employment for 320 people.

Within one month, it was ordered to resolve issues raised by investors and to create a cluster specializing in gold mining and processing that will provide employment for a thousand people. Additionally, a comprehensive geological exploration program and a revision of deposit reserve estimates are planned.

Projects for processing other types of raw materials are also foreseen. At the 'Borsakelmas' deposit in the Kungrad district, 1 million tons of technical salt are realized annually without any processing. At the 'Kuskanatau' deposit in the Bozatau district, the possibility of establishing the processing of mirabilite to produce up to 45 thousand tons of sodium sulfate annually, as well as obtaining magnesium sulfate from astrakhanite, is being considered.

Another project concerns the quartzite deposit in the Beruniy district. A German company plans to invest $30 million to begin producing crystalline silicon and enter the export market with an annual turnover of $25 million. The cost of such raw material on the world market is about $5.5 thousand per ton.

Various plans have also been prepared for other sectors. Projects worth $150 million are planned in the Amudaryo, Beruniy, Takhtakupyr, Kegeyli, and Turtkul districts in the textile and leather industries.

In Nukus, Nukus, and Karauzyak districts, projects in electrical engineering are planned for $200 million. In the Karauzyak, Bozatau, and Beruniy districts, the production of energy-efficient building materials is planned for $100 million. An additional $120 million is allocated for the production of automotive components in Nukus.

Pharmaceutical projects worth $50 million will be implemented in Nukus, Kanlykul, Kegeyli, Chimbay, and Bozatau districts. In the Takhtakupyr district, a joint project with the Italian company Bonifica Ferrarizi worth $50 million will start, where tomatoes and grains will be grown and processed on an area of 2,000 hectares for subsequent export to Europe.

Presentations for potential investors will take place in the respective districts until October 15. Regional heads have been instructed to attract investors and launch projects that contribute to creating 2–3 thousand high-paying jobs. The task of forming specific projects following the 'raw material – finished product – export' scheme has also been set to simultaneously increase employment and added value in the region.

It was previously reported that training according to the British vocational education program Pearson BTEC has started in Nukus. The technical college will also train specialists for a new industrial zone valued at $40 million.

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podrobno.uzSeptember 18, 18:12

Production facilities worth hundreds of millions of dollars launched in Karakalpakstan

A solemn event took place in the Republic of Karakalpakstan, where President Shavkat Mirziyoyev participated in the launch of new production facilities and the start of major initiatives. Significant growth has occurred thanks to the creation of favorable conditions for business and investment in the region: the gross regional product increased from 8.5 trillion soums in 2016 to over 54 trillion soums at the beginning of the current year.

The private sector now accounts for 66 percent of production, and the number of operating enterprises has grown 2.5 times, reaching 26,500 units. Over the past nine years, more than 5 billion dollars in investments have been attracted to the economy of Karakalpakstan, and by the end of the current year, foreign investment is expected to reach 2.5 billion dollars. The number of operating foreign and joint ventures has increased 2.2 times to 271.

Launch and commencement of new projects

During the ceremony, 11 projects with a total value of 592 million dollars were officially commissioned, and construction has also started on 47 new initiatives, which will cost 7 billion dollars and provide 8,000 high-paying jobs.

Two wind power plants with a total capacity of 300 megawatts and an energy storage system with a capacity of 100 megawatts began operating in Karauziak district. In Nukus, Sheikh Khalifa Hospital with 100 beds was opened, built with assistance from the United Arab Emirates for 27 million dollars, creating 80 jobs. Additionally, the Karakalpak Scientific and Practical Medical Academy began its activities in the region's capital, designed to improve the qualifications of local specialists.

In Tahiatash district, the first stage of the modular intelligent computing center for the 'Linkwise' enterprise, valued at 150 million dollars, was launched. Nukus' transport infrastructure has been developed through the 'SAPSAN TRANS NO‘KIS' company project worth 20 million dollars; 25 buses and electric buses have already been delivered under this project, and another 75 electric buses are planned to arrive by the end of the year.

Directions of new construction projects

New construction plans cover sectors such as energy, transport, industry, medicine, services, and the digital economy. In Kungrad district, with the participation of the Saudi company 'ACWA', the active phase of building a large wind power plant with a capacity of 1.5 gigawatts has begun, which will cost 2.6 billion dollars. This project includes laying 1,500 kilometers of high-voltage lines and constructing three 500-kilovolt substations.

In Chimbay district, jointly with investors from the Republic of Korea, the country's first production of 3 million cubic meters of biogas annually from chicory root processing has started. To improve transport links, with the support of the Asian Development Bank, work has begun on the 92-kilometer section of the A-380 'Guzar – Bukhara – Nukus – Beyneu' highway, costing 233 million dollars. A project was also signed with the European Bank for Reconstruction and Development for the purchase of 112 electric buses for Nukus.

In Kungrad and Tahiatash districts, Chinese partners are implementing large projects to create data centers for artificial intelligence and digital currency production totaling 2.281 billion dollars; a similar data center is also planned to be built in Takhtakupyr district. In Nukus, construction has started on a waste thermal treatment plant for electricity generation. Gold mining will begin at the 'Zengibobo' deposit, a project estimated at 20 million dollars. A large shopping center is planned for construction in Amudaryo district for 15 million dollars.

Jointly with Indian partners, a medical university and a high-tech clinic are being established based on public-private partnerships. Turkish investors plan to build a shopping and entertainment complex in Nukus on the banks of the 'Dustlik' canal, costing 103 million dollars. Furthermore, in the region's capital, a residential complex 'New Uzbekistan' covering an area of 270 hectares, designed for 30,000 residents, will begin construction.

Previously, President Shavkat Mirziyoyev visited the Karakalpak Scientific and Practical Medical Academy, which was established as a basic center for retraining medical personnel using advanced technologies and international standards.