Azerbaijani Investment Company Prepared to Sanction Investment for Metallurgical Plant

Business Materials 21 August 2008 18:28 (UTC +04:00)

Azerbaijan, Baku, 21 August / Trend corr. I.Khalilova / The Observation Council of the Azerbaijani Investment Company (AIC) Open Joint Stock Company (OJSC) is going to make an investment decision on project of construction of a metallurgical plant in Ganja city, Heydar Babayev, the Azerbaijani Minister for Economic Development and the chairman of the Observation Council of the AIC, said. To realize this project, in June 2008 the AIC signed a memorandum with Det.Al Holding Limited co on participation in financing of the construction.

"A meeting of the Observation Council will be held at the end of August and it is expected to examine two or three projects. One of them is connected with Det.Al co, whose preparedness for the said period is being determined," the Minister said.

According to the minister, the investment company is expected to hold maximum 10% of lump capital invested by founders in the project.

In accordance with the project, capacity of the Ganja plant, which will be included in the complex of the Dashkesen ore-dressing and processing enterprise (Daskesan Filizsaflasdirma Open Joint Stock Company), will make up 1mln tons of steel ingots.

The project implies reconstruction of Daskesan Filizsaflasdirma, including enrichment and production section. The enterprise was established on the base of the Dashkesan ore-dressing and processing enterprise.

Det.Al Holding Limited is included in Det.Al Ltd. Group, which purchased 99.22% of shares of Daskesan Filizsaflasdirma at investment competition. The company was obliged to invest $235.1mln in development of the enterprise within three years. The investment program assumes combination of ore and production concentrates with pipe outputs, construction profiles and other metallic products, use of new technology and opening of new jobs. After restoration, the enterprise will produce 650,000 tons of production, including 57%-59% of concentrates. Soon, output of metal will rise to 64%-67% through the construction of new reduction and steel plant. Capacity of the plant will make up 500,000 tons.

Construction of steel-smelting and aluminum factories in Ganja began in March 2008. Noble Group and Det.Al Limited, its partner in the country, are investors of this project.

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