Kazakhstan's only calcium carbide plant halts production due to high electricity costs

ASTANA. June 24 (Interfax) - Kazakhstan's Temirtau ElectroMetallurgical Plant JSC (TEMP), the only calcium carbide plant in the CIS, has suspended operations due to high electricity tariffs.

The company told Interfax that electricity tariffs, which account for 36% of unit costs, were mostly behind its losses.

"Electricity tariffs have consistently exceeded 30 tenge per kWh since January 2025. To compete with foreign producers (China, Iran) and avoid losses, electricity tariffs should not be above 13-15 tenge per kWh," TEMP CEO Arystanbek Tupeyev said.

The plant has been at a standstill since March 2025. It has idled a carbide furnace and had to lay off staff with only auxiliary workshops now operating. "With production halted, we'll have to make deeper staff 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.

Kazakhstan's Industry and Construction Ministry said many energy-intensive enterprises faced 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. Alternative support measures are being explored. "The issue of subsidizing electricity tariffs remains open and requires further consideration with authorized bodies," the Industry and Trade Ministry said.

Calcium carbide is used for the production of acetylene, synthetic rubber and other essential industrial materials as well as fertilizers and to remove impurities from metals. 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.

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 CIS countries.