AGMK continues development of its capacities

Almalyk Mining and Metallurgy Combine (AGMK) and Navoi Mining and Metallurgy Combine (NGMK) are dominating enterprises in the industry. Each company actively carries out investment projects on expanding capacities along with mining and processing raw materials.

Non-ferrous metallurgy of Uzbekistan concentrated at Angren-Almalyk mining industrial district. The most significant enterprise in this region is AGMK.

Resource base of the AGMK are Kalmakyr copper- porphyry field and Sary-Cheku copper-molybdenum field (Tashkent region), as well as Uch-Kulach lead-zinc- barium field (Jizzakh region). The enterprise produces refined copper, metal zinc, lead concentrate and other products. Share of AGMK in production of silver makes up 90% and gold production – 20% in Uzbekistan.

In July 2010, the enterprise is planning fully launch ore mining and processing complex Khandiza. Total cost of the project is US$147 million and it includes ore processing complex with the capacity f 650,000 tonnes of ore a year and underground mine at Khandiza field.

Production capacities of the complex will be up to 5,000 tonnes of copper concentrate, 20 tonnes of lead concentrate and 60,000 tonnes of zinc concentrate a year. The project was financed due to own resource for US$46.5 million, loan of Fund for Reconstruction and Development of Uzbekistan for US$60 million and loans of local banks for US$40 million. The feasibility study of the project was developed with participation of Russian Institute Mehanobr Inginiring (Saint Petersburg).

The company will also start implementation of investment project “Expansion and reconstruction of Sary-Cheku field”, which was included into programme on modernization, technical and technological re-equipment of AGMK capacities for 2009-2015. The company plans to spend US23.5 million for this project, of which over US$21 million will be spent to purchase equipment. The project implementation will allow to increase ore mining in this field stage-by-stage.

The plant plans to mine 2 million tonnes of ore this year, 2.5 million tonnes in 2011, 3 million tonnes in 2012, 4 million tonnes in 2013, 4.8 million tonnes n 2014 and 5 million tonnes in 2015. Besides, the metal content in ore will also increase: copper from 0.365 to 0.45% and molybdenum from 0.0034 to 0.0035%.

It is planned to carry out following volumes of overburden operations: 4,000 cubic meters in 2010, 3,000 cubic meters in 2011, 2,500 cubic meters in 2012, 2,000 cubic meters in 2013-2015. The production of precious metals will increase.

The company will purchase necessary mining transport equipment to achieve this goal, including drilling equipment.

According to AFS-Research data, net income of AGMK made up 27.757 billion soums in 2009 against 20.004 billion soums of net loss in 2008. In line with accounting balance of the company, net revenue from goods realization rose from 727.984 billion soums in 2008 to 887.576 billion soums in 2009.

AFS-Research analysts underlined that successful operation of metallurgy industry of Uzbekistan is important factor for development of Uzbekistan’s economy as it ensure its diversification, create jobs and strengthens export potential.

Analysts of AFS-Research used reports of media, Internet resources and statistic data of the State Statistic Committees, results of analysis and calculations of AFS-Research analysts in this report.

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