Project feasibility study on construction of underground mine approved in Uzbekistan

Business Materials 4 March 2013 17:34 (UTC +04:00)

Uzbekistan, Tashkent, March 4 /Trend D. Azizov

The government of Uzbekistan approved the feasibility study of the project on construction of underground mine at "Kayragach" ore deposit in Tashkent province with the total cost of $30.56 million.

According to the document, which was announced on Monday in country's online media outlets, the project will be realized "for the purpose of replenishment of retiring capacities on extraction of gold ore at "Semguran" mine, and maintaining the capacity level of the processing facilities of Angren Gold-extracting plant ltd. "Olmaliq MMC".

Realization of the project will provide extraction and processing of additional 80 thousand tons of gold ore. The mine should be put into operation in November 2014.

Olmaliq MMC's own assets in the amount of $10.59 million, the credit facilities of the Reconstruction and Development Fund of Uzbekistan (RDFU) in the amount of 6.72 dollars

Own assets of Olmaliq MMC in the amount of 10.59 million dollars, the credit facilities of the Reconstruction and Development Fund of Uzbekistan (RDFU) in the amount of 6.72 million and the $13.25 million credit from Uzbek "Ipotekabank" are determined as funding sources of the project.

Olmaliq MMC is determined as the recipient and the project executor.

The credit of RDFU refinanced via "Ipotekabank" is allocated for seven years including a preferential period of two years, with the interest rate of 4 percent, considering the margin of refinancing bank at 1 percent per annum.

The credit of "Ipotekabank" will be allocated in national currency (sum), for the period of seven years with preferential period of two years at the rate that should not exceed the refinancing rate of the Central bank.

Olmaliq MMC is the only copper producer in Uzbekistan, one of the largest manufacturers of non-ferrous metals in Central Asia.

The MMC accounts for nearly 90 percent of silver production and 20 percent of gold production in the country.

The combine is composed of two mining enterprises, two processing factories and two metallurgical plants with their own infrastructure.
The total volume of production is estimated at more than $300 million annually.

According to the State Committee on Geology and Mineral Resource, gold deposits have been discovered in the republic. Nine of them are being developed now.