Barsakelmes Salt Flats. Photo: uznews.uz
An industrial zone for salt processing, the Kungrad Salt Free Zone, will be established at the Barsakelmes deposit in Karakalpakstan, a sovereign republic within Uzbekistan. The project plans to attract major foreign companies as investors, according to a presidential decree by Shavkat Mirziyoyev reported by Gazeta.uz.
The decree instructs negotiations with potential investors, including Germany’s K+S, China National Salt Industry, and India’s Tata Chemicals. By 2030, the zone is expected to attract up to $200 million in investments, with at least $50 million projected for 2026. Officials are also tasked with developing new export markets.
The industrial zone will be located in the Kungrad district, near the village of Ustyurt. The Karakalpakstan government, together with Uzbekistan’s Ministry of Construction and Housing and Communal Services and other agencies, must prepare a master plan for the industrial site by the end of this year.
In the first phase, spanning the next two years, enterprises within the Kungrad Salt Free Zone will occupy 50 hectares, with the zone expanding to 200 hectares in the future.
Companies implementing projects in the zone will receive five-year resident status in the Nukus Free Economic Zone, granting tax and customs benefits. Investors adopting advanced technologies and establishing specialist retraining centers will receive compensation from the government for worker training. Educational institutions will be granted state-owned facilities for up to five years, and salaries for engineers and technologists will be paid from the State Employment Support Fund.
By April 1 next year, the Agency for Strategic Development and Reforms, together with the Ministry of Foreign Affairs, must engage a leading global expert under a long-term contract to implement high-tech projects in Karakalpakstan.
The decree also approves additional exploration and development of new salt deposits at Kungrad, with research results to be made publicly available.
As of 2011, the proven reserves of table salt at Barsakelmes exceeded 130 million tons.
