The only producer of calcium carbide in Kazakhstan and ICS halts operations due to high electricity costs: Who’s next?Temirtau ElectroMetallurgical Plant JSC (TEMP), which has been in operation for over 80 years, has suspended its operations since March 2025 as the production has become unprofitable after an electricity tariff rise.TARIFF HIKE CRUSHES PRODUCT COMPETITIVENESSLocated in the one-industry town of Temirtau, TEMP is the only producer of calcium carbide in Kazakhstan and the CIS. The chemical was used for the production of acetylene, synthetic rubber and other essential industrial materials. TEMP used to produce ferroalloys and calcium carbide using manganese ore and limestone from its own quarries. After depleting these reserves, the company had to buy feedstock from third parties, including within Kazakhstan.The company now cites electricity costs - which account for 36% of production expenses - as the primary reason for the shutdown."Electricity tariffs in 2024 were between 15 and 35 tenge per kWh, but since January 2025 they’ve consistently exceeded 30 tenge per kWh. To compete with foreign producers (China, Iran) and avoid losses, electricity tariffs should not be above 13–15 tenge per kWh," TEMP CEP Arystanbek Tupeyev told Interfax-Kazakhstan.The shutdown has led to significant layoffs: out of 510 employees as of April 2025 only 300 were left in May. Only auxiliary workshops remain operational. "With production halted, we’ll have to make deeper workforce cuts starting July," Tupeyev said.TEMP claims it can restart production "at any time if conditions improve" but seeks subsidized electricity tariffs to restore profitability.HELP ONE, OTHERS WILL DEMAND THE SAMEKazakhstan’s Ministry of Industry and Construction confirmed that many energy-intensive enterprises face similar struggles, putting industrial tariff policy under scrutiny. The ministry has urged the Energy Ministry to intervene but was warned that preferential tariffs could destabilize the energy market and shift financial burdens to other players.Market participants may also protest if TEMP receives tariff relief, officials noted. Alternative support measures are being explored, including reduced rail transport costs via state-owned Kazakhstan Temir Zholy.WHO’S NEXT?A moratorium on electricity tariff rise was in force in Kazakhstan from 2020 to 2023. While tariffs began rising after this period, the increases remain insufficient to address longstanding issues plaguing the country's energy sector, particularly the wear-and-tear of the power generation equipment.In 2023 Kazakhstan adopted a Tariff in Exchange for Investment Program for 2023–2029. President Kassym-Jomart Tokayev said in January 2025 that the electricity tariffs in Kazakhstan were below the CIS average and demanded that the tariffs should be adjusted to market conditions to prevent supply shortages.HISTORY of TEMPFounded in 1940 by the USSR to produce synthetic rubber, TEMP launched its first workshop in 1942 and began calcium carbide output in 1943. Its annual capacity is 25,000 tonnes. The plant produced 22,000 tonnes in 2024 and 5,000 tonnes in early 2025, mostly exported to the CIS countries.The population of the city of Temirtau stood at 176,515 people as of May 1, 2025, according to the National Statistics Bureau. (ICE ALMATY)

Fonte notizia: INTERFAX