Korean Shindong Resources to sign memorandum with Uzbek State Committee for Geology and Mineral Resources
Uzbekistan, Tashkent, June 10 / Trend D. Azizov /
Korean Shindong Resources Co. Ltd. plans to sign a memorandum with the Uzbek State Committee for Geology and Mineral Resources to develop the Uchkuduk tungsten deposit in Navoi late this year, the corporation's representatives said during a Uzbek-Korean Business Council meeting this week in Tashkent.
Uzbekistan was reported to have adopted a program to develop tungsten deposits in 2007-2013, with a total tungsten production of 2,700 tons.
Plans include creating two joint ventures with the Korean Shindong Resources Co. Ltd. and the Luxon Energy Holdings Ltd. to develop tungsten deposits in Samarkand worth $80 million within an Uzbek State Committee for Geology and Mineral Resources program in 2010.
The joint venture with Luxon Energy Holdings Ltd. will work to restore tungsten production at the Ingichki deposit, which is worth $50 million.
The joint venture with Shindong Resources Co. Ltd. will develop Sautbay and Yahton deposits worth roughly $30 million.
Uzbekistan announced a tender to select a foreign partner to create a joint venture on a parity basis to extract tungsten at Ingichki in July 2008. However, the tender was canceled as tungsten prices dropped on the global market in late 2008.
The founding documents of the two joint ventures will be signed late this year.