Uzbekistan, Tashkent, Sept. 23 / Trend, D. Azizov /
Uzbek Almalyk Mining and Metallurgical Combine (AMMC, in the city Almalyk of Tashkent region) will implement a project worth $25.7 million for zinc plant reconstruction that will last until late 2014, an Uzbek government resolution passed today read.
According to the Cabinet of Ministers' resolution, "Measures on the implementation of the investment project "Zinc plant reconstruction", the feasibility study of the project and its funding were approved.
According to the document, the project will be financed by Almalyk's own funds worth $ 9.3 million and Uzbek Mortgage Bank's loan worth $16.4 million.
The loan will be delivered to Almalyk Mining and Metallurgical Combine for seven years, including a three-year grace period at an interest rate of six percent per annum. The costs associated with paying off the loan and its servicing will be covered by the combine's own funds.
The Almalyk Mining and Metallurgical Combine is the borrower and the executive body responsible for the implementation of the project, appropriate and efficient use of the drawn loan.
As an exception, the combine is entitled to carry out the building-installation work by using its own funds as part of this project, and if necessary - to attract specialized building and other organizations of the republic on the basis of direct contracts for subcontracting operations.
Almalyk MMC is the only copper producer in Uzbekistan and one of the largest manufacturers of non-ferrous metals in Central Asia. The AMMC accounts for nearly 90% of silver production and 20% of gold production in the country. The plant is composed of two mining companies, two processing plants and two metallurgical plants.
The total production volume is estimated at more than $ 300 million a year. The combine exports about 60 percent of its output.
The plant is entitled to develop copper-molybdenum and lead-zinc ore fields in Almalyk town (Tashkent region). The copper-porphyry ore Kalmakyr and Sari-Cheku fields (Tashkent region) and lead-zinc-barite ore Uch-Kulach field (Djizzak) are the raw material base.
AMMC currently has several investment projects on modernization and reconstruction of existing facilities and expansion of the resource base and construction of new facilities with a total project cost of about $ 670 million.
According to the Uzbek state investment program for 2013, it is planned to use $ 140 million for this purpose this year, as well as $45.4 million at Almalyk's own expense.