AGMK to reconstruct crushing and milling division of its copper concentration fabric

The document was adopted in order to speed up implementation of complex programme on modernization and technical re-equipment of Almalyk Mining and Metallurgy Combine with introduction of advanced technologies on processing and enrichment of copper and molybdenum ores.

According to the document, a feasibility study of the project was developed in line with implementation of investment project. The project cost is US$128 million. The feasibility study passed all necessary expertise.

AGMK inked a contract with Tyajmash (Heavy Industry, Russia) too development of working documentation and technologic regalement of technologic part of the project, supply of equipment, assembly and execution of assembly works. The contract sum is US$73.9 million. It is expected that the project will be launched in 2014.

The project will be financed due to own resources of AGM for US$22.1 million, loan of Fund for Reconstruction and Development of Uzbekistan (FRDU) for US$73.9 million and credit of Ipoteka Bank for US$32 million.

According to the resolution, the FRDU will issue loan to AGMK for seven years, including three-year grace period. The loan will be refinanced through Ipoteka Bank. Interest rate is set at 4% APR, including margin of refinancing bank of 1% APR.

The credit of Ipoteka Bank will be allocated in national currency for seven years with two-year grace period. The interest rate will not exceed refinancing rate of the Central Bank of Uzbekistan (now 12% APR).

AGMK is a debtor and executive body, as well as responsible for implementation of the project, targeted and effective use of loans, the document said. The combine will cover all expenses related repayment of loan of FRDU.

Ministry of Finance will provide guarantee to Ipoteka Bank on liabilities of AGMK on refinanced loan of the FRDU, the resolution said.

The Government allowed AGMK not to pay customs duties on imported goods, materials, equipment and spare parts, purchased within the project.

The Government also exempted AGMK from payment of VAT and Tyjmash from income tax.

AGMK was allowed to carry out construction works within the project in parallel to development of project documentation.

AGMK said that the project in two stages. The project will allow to process up to 7.8 million tonnes of ores a year.