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Uzbek Economic Court decides to liquidate gold mining joint venture

Business Materials 6 February 2013 20:39 (UTC +04:00)

Uzbekistan, Tashkent, Feb. 6 / Trend, D. Azizov /

The Navoi Economic Court granted a request from creditors to recognize Uzbek-British JV "Amantaytau Goldfields" as a bankrupt last Friday and to begin its liquidation process, a source close to the joint venture told Trend on Monday.

The interlocutor said that according to established procedures, the court has three months to organize the liquidation of the enterprise. This period may be extended if necessary by court decision.

The Economic Court began considering the claim in September of 2012.
It was previously reported that in January 2011, the Uzbek government initiated a procedure of the voluntary liquidation of the joint venture. However, an extraordinary shareholders' meeting did not occur because representatives of the British shareholder failed to come.

British Oxus Gold plc. is a co-founder of the joint venture. It issued a statement in March 2012 that it was ready to bring action against the Uzbek government to the International Court of Arbitration if the country does not agree to set a fair price for a package of shares of the British company in the joint venture. In the future, the British company declared force majeure at the joint venture.

"Amantaytau Goldfields" joint venture, founded by British Oxus resources Corp. - 50 percent, the Uzbek State Committee for Geology and Mineral Resources - 40 percent and Navoi Mining and Metallurgical Combine - 10 percent, has a license to develop "Amantaytau" fields with recoverable reserves of 3.2 million ounces of gold and additional stocks valued over 3 million ounces.

It also has licenses for four gold deposits, the largest of which - "Uzunbulak" with recoverable reserves of 230,000 ounces and "High Voltage" - 600,000 ounces of gold.

The joint venture was put into operation during first stage of development of a gold processing plant worth $ 31 million in December 2003.

Oxide ore processing capacity is 1 million tons of ore per year, while gold production - 6.3 tons.

Oxus resources Corp. is a wholly owned subsidiary of the British Oxus Gold Plc., established in 1996 to work in the mining industry in Central Asia.

The British company has recently tried to attract financial resources for the construction of the second stage of gold processing plant for sulphide ore processing of "Amantaytau Goldfields" joint venture. However, these efforts were not successful.

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