Cabinet of Ministers issued a resolution “On measures on realization of investment project “Construction underground mine at Qayragach field”.

The document was adopted in order compensate the outgoing production capacity of gold ore mine at Semguran field and keep the load level of processing capacity Angren gold extraction plant of Almalyk Mining and Metallurgy Combine (AGMK).

According to the resolution, the feasibility study with total investments for US$30.56 million was developed within the project and approved by the authorized bodies.

The resolution said that AGMK will direct US$10.59 million of own resources to implementation of the project, including resources at special investment accounts.

At the same time, Fund for Reconstruction and Development (FRDU) will provide US$6.72 million to project implementation. The FRDU loan will be refinanced by Ipoteka Bank. The loan is allotted for seven years with two year grace period with interest rate of 4% APR, including margin of refinancing bank at the size of 1% APR.

Ipoteka Bank will also issue credit for US$13.25 million. The loan will be allocated for seven years with two year grace period under interest rate, which does not exceed refinancing rate of Central Bank of Uzbekistan (now 12% APR).

AGMK is a borrower and executive body, responsible for implementation of the project and targeted use of credit resources. The company will cover expenses related to repayment of loans due to own resources.

The Government of Uzbekistan exempted AGMK from customs payments for imported material, vehicles, equipment and spare parts, which are not produced in Uzbekistan, within the project till 1 November 2014.