Uzbek State Committee on Geology plans to create two joint ventures to develop tungsten deposits in 2010
Uzbekistan, Tashkent, March 11 / Trend D. Azizov /
In 2010 the Uzbek State Committee on Geology and Mineral Resources plans to create two joint ventures with Korean Shindong Resources Co. Ltd and Luxon Energy Holdings Ltd to develop tungsten deposits in the Samarkand region worth $80 million, a source in the government said.
According to him, each of Korean companies signed the agreement with the State Committee of intent to establish a joint venture for testing of individual deposits of tungsten. The documents were signed during Uzbek President Islam Karimov's state visit to Korea in February.
In particular, it is planned to create a joint venture to restore production of tungsten in the field "Ingichki" worth $50 million with Luxon Energy Holdings ltd.
It is planned to create a joint venture to develop fields "Sautbay" and "Yahton" worth $30 million with Shindong Resources Co. Ltd. Exploration work on the flanks of deposits will be conducted to expand the existing resource base within the project.
Incorporation documents to establish two joint venture are planned to be signed during the second half of this year.
Uzbekistan approved the program to develop tungsten deposits of the Republic over 2007-2013, with total production of tungsten concentrate worth 2,700 tons.
The program is designed to fully load existing production capacities of JSC "Uzbek Industrial Complex of refractory and heat-resistant metals" processing this metal in the Republic.
A mining and processing complex with annual production of tungsten concentrate to the amount of 870 tons is planned to be constructed in the field "Yahton" in accordance with the program. Industrial reserves of the field "Yahton" hit about 5.6 million tons of C1 ore with the content of tungsten trioxide to the amount of 22,000 tons.
Industrial stocks hit 4 million tons of ore containing tungsten trioxide to the amount of 19,900 tons in Sautbay field. By 2013 it is planned to ensure annual production of 1,260 tons of tungsten concentrate.
It was planned to restore the underground mine for the extraction of tungsten ore to the amount not less than 300,000 tons per year, as well as to build a new beneficiation plant within the project.
In July 2008, Uzbekistan announced a tender to choose a foreign partner, co-founder to create a joint venture on a parity basis for the extraction of tungsten in the field "Ingichki" with a starting price of $80 million. But the tender was cancelled by late 2008 due to price-cutting for tungsten on the global market.
Extraction of tungsten has been conducted since 1941. Remaining ore reserves hit 11.6 million tons with the content of tungsten trioxide to the amount of 65,000 tons.
The plant was commissioned in 1956. In the Soviet period the plant worked for the defense industry and produced hard alloys, powders, and rolled molybdenum and tungsten. The plant got raw materials for production of molybdenum products from Almalyk Mining and Metallurgical Industrial Complex. Tungsten products are manufactured from raw materials imported from Russia. Data on the production of tungsten and molybdenum in the republic were not announced.