Kazakhstan is set to build a major new copper smelter worth $1.6 billion in the city of Balkhash, Karaganda Region, as the country moves to expand its copper production capacity.

The Kazakh government has approved an investment agreement between the Ministry of Industry and Construction and Qazaq Smelter LLP for the construction of the new facility, Sputnik Kazakhstan reports.

The project will attract 750 billion tenge ($1.6 billion) in private investment. Construction is scheduled to begin in 2027, with the plant expected to start operations in 2030.

The facility will have an annual production capacity of 300,000 tons of cathode copper, 10 tons of gold, 300 tons of silver and more than 1.5 million tons of sulfuric acid.

The project is also expected to create around 1,200 permanent jobs.

The new production capacity will help increase the country’s copper output by 1.5 times to more than 800,000 tons per year. Exports of high-value-added products are also expected to rise, with annual copper exports projected to increase from 460,000 tons to 760,000 tons.

The new plant will be equipped with modern technologies and digital solutions.