Enter Engineering and thyssenkrupp AG have signed an Agreement of Intent that could see the engineering procurement and construction (EPC) contractor take the exclusive role as construction partner in building an integrated mining metallurgical complex at the Tebinbulak iron ore deposit in Uzbekistan.

The pact, worth €50 million ($58 million), comes on top of a signed agreement for the start of preparatory work on the project, including a contract for the supply of equipment, its design, supervision during installation and commissioning at the facility.

The high pressure grinding roll (HPGR) technology will be used to help process up to 60 Mt/y of iron ore, according to the EPC firm.

The implementation period for Enter Engineering’s construction role is two years with the plant launch anticipated for September 2023.

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.”

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, added: “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 Tebinbulak 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 development of infrastructure, creation of service enterprises and an increase in trade between countries.

Tebinbulak is located in the Karauzyak district of Karakalpakstan, in the north-west part of Uzbekistan. The field covers 5.2 sq.km and comes with a predicted mine life of 27 years.

Cooperation between Enter Engineering and thyssenkrupp is supported at a high inter-governmental level, with the agreement signing ceremony attended by Alisher Sultanov, Uzbekistan’s Minister of Energy.