Azerbaijani Investment Company Ready to Sanction Investments in Two Projects

Business Materials 13 September 2008 12:24 (UTC +04:00)

Azerbaijan, Baku, 13 September / Trend corr. I.Khalilova /"The Supervisory Board of the Azerbaijani Investment Company (AIC) JSC is about to take a decision at the upcoming meeting on the project to construct a metallurgical works in Ganja City and establish the joint investment organization with the Kuwait Financial House (KFH)," Anar Akhundov, Executive Director of the company, said.

"We plan to purchase to 10% share in the metallurgical works, but the investment amount has still being discussed," Akhundov said.

In June 2008, AIC has signed a memorandum with the Det.Al Holding Limited company on intentions to participate in financing of construction.

Under the project, the capacity of the Ganja based plant, which enters into the Dashkasan ore mining and processing enterprise (Daskesan Filizsaflasdirma), will comprise 1mln ton of steel ingot-casting method. Project envisages reconstruction of the Daskesan Filizsaflasdirma including production and enrichment section. The enterprise was built on the ground of the Dashkasan ore mining and processing enterprise.

Det.Al Holding Limited enters into the Det.Al Ltd. Group. Det.Al Holding Limited has purchased 99.22% shares in the Daskesan Filizsaflasdirma at the investment competition. Company assumed an obligation to invest $235.1mln to develop the enterprise within three years. The investment program envisages combining ore and concentrating production to manufacture tubes, construction profiles and other metallurgical productions. The enterprise is expected to produce 650,000 tons production including 57-59% concentrating production after restructuring. The metal production will be increased by 64-67% soon. Plant's capacity is 500,000 tons.

Construction of the new steel and aluminum complexes in Ganja was commenced at early March in 2008. The project is invested by Noble Group and its partner in the country Det.Al Limited.

The second project envisages establishment of an investment organization with AIC and KFH shares. The investment company's share in the project is expected on 25% rate.

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