AGMK to direct US$420m to development of Yoshlik II deposit
15/08/2017 21:15
AGMK to direct US$420m to development of Yoshlik II deposit
15/08/2017 21:15
Tashkent, Uzbekistan (UzDaily.com) -- Almalyk Mining and Metallurgy Combine (AGMK) will invest US$420 million to implement an investment project “Development of the Yoshlik II field”.
On 15 August 2017, President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On additional measures for further development of Almalyk Mining and Metallurgy Combine”.
Uzbek President agreed with the proposal on implementation of the investment project "Development of the Yoshlik II field" with a total provisional value equivalent to US$420.0 million.
The resolution said that the field will be developed on underground method. It is expected that about 2 million tonnes of ores will be mined a year. The deposit will reach its designed capacity in 2023.
Within the framework of the investment project, motor roads, 35/6 kV double-circuit transmission lines, substations, loading and unloading trestles, a compressor station and other engineering infrastructure facilities will be built.
The project will be financed due to own funds of AGMK, including funds from special investment accounts, loans from the Fund for Reconstruction and Development of Uzbekistan (FRDU), Ipoteka Bank and Asaka Bank.
According to the resolution of the President, the FRDU will allocate at least US$350 million to finance the project. The loan will be granted for a period of 15 years, including a grace period of 6 years, with an interest rate of 2.0 percent per annum, including the margin of the refinancing bank – Ipoteka Bank at the rate of 0.25 percent per annum.
The loan will be used to finance contracts with foreign and domestic suppliers for purchase of mining and transportation equipment, machinery, vehicles, components, spare parts and materials, attracting specialized foreign companies for construction, installation, mining and capital design works.
Credits of Ipoteka Bank and Asaka Bank in national currency are issued for 10 years with a four-year grace period at the refinancing rate of the Central Bank of the Republic of Uzbekistan.
The bank loans will be used to finance contracts for the purchase of mining and transport equipment, machinery, vehicles, components, spare parts and materials produced in the country, as well as construction and installation works performed by domestic contractors.
Uzbek President granted tax and customs privileges for the participants of this project.
Last week the President of Uzbekistan Shavkat Mirziyoyev launched a project on development of the Yoshlik I field (formerly Dalneye). The project will be implemented in 2017-2028 in two stages.
The first stage will be implemented in 2017-2021 and envisages development of the “Central” mine of the Yoshlik I deposit. In the first stage, stripping and mining and capital works will be carried out. An infrastructure will also be created.
The second stage will be implemented in 2019-2028. The project envisages construction of a complex of processing, smelting, associated and auxiliary facilities with a processing capacity of 23 million tonnes of ore a year with continuation of overburden and mining operations.
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