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

Kazakhstan’s Temirtau ElectroMetallurgical Plant JSC (TEMP), the sole calcium carbide producer in the CIS, has halted operations due to soaring electricity tariffs.

Source: Interfax

The company informed Interfax that electricity costs, which constitute 36% of unit expenses, were primarily responsible for its financial losses.

TEMP asserts that it can resume production at any moment if conditions improve but is seeking subsidized electricity rates to regain profitability.

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}

Kazakhstan’s Industry and Construction Ministry acknowledged that many energy-intensive businesses are experiencing similar challenges, prompting a re-evaluation of industrial tariff policies. The ministry has called on the Energy Ministry to take action but has been cautioned that preferential tariffs could disrupt the energy market and impose financial burdens on other stakeholders.

Calcium carbide is essential for producing acetylene, synthetic rubber, and various vital industrial materials, as well as fertilizers and for removing impurities from metals. TEMP previously manufactured ferroalloys and calcium carbide using manganese ore and limestone sourced from its own quarries. However, after depleting these resources, the company has been compelled to procure feedstock from third-party suppliers.

The issue of subsidizing electricity tariffs remains open and requires further consideration with authorized bodies

^{the Industry and Trade Ministry}

TEMP commenced operations with its first workshop in 1942 and began calcium carbide production in 1943. The plant has an annual capacity of 25,000 tonnes. In 2024, it produced 22,000 tonnes, with 5,000 tonnes generated in early 2025, primarily for export to CIS nations.