BAKU, Azerbaijan, May 29
By Ilkin Seyfaddini - Trend:
Almalyk Mining and Metallurgical Complex will invest $250 million in a project to expand production of non-ferrous and precious metals at its deposits, Trend reports citing the Cabinet of Ministers of Uzbekistan.
Within the first stage of the project, it is planned to carry out the first phase of geological exploration and mining and capital works in 2020-2024 including construction of an open pit, design, equipment supply, construction of facilities of copper processing plant № 3 with annual production and processing capacity of 60 million tons of ore, as well as infrastructure facilities.
In addition, in the period from 2021 through 2025, the second stage of design, delivery and construction of metallurgical facilities will be completed, bringing the annual output to 290,000 tons of copper cathode, 38 tons of gold and 203 tons of silver.
The sources of financing of the project are Almalyk Mining and Metallurgical Complex own funds amounting to $250 million (including $35 million in 2020); funds from Reconstruction and Development Fund of Uzbekistan in the amount of up to $1 billion; and funds from a syndicated loan of a consortium of domestic and international financial institutions, which are to be raised from 2021 following the feasibility study and confirmation of the final project cost.
The general contractor for the construction of copper processing plant № 3 on a turnkey basis is Renaissance Heavy Industries LLC (Russia).
Responsibility for the timely and high-quality implementation of the project, as well as for the targeted and efficient use of the funds and the syndicated loan raised rests with Almalyk Mining and Metallurgical Complex and SFI Management Group.
By 2027, it is planned to mine 23 million tons of ore at the Yoshlik I deposit. Capital investments in the investment project, which was launched in March 2017 by a presidential decree, will amount to $1.7 billion. On March 2017, the president of Uzbekistan signed another resolution, which approved the participation of Turkish company Renaissance Holding in the project.
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