The report underlined that Uzbekistan has significant reserves of other metals, including precious and rare one such as silver, molybdenum, bismuth, tungsten, lithium and others. This allows metallurgy industry to open new opportunities for creating perspective productions.
South Korea’s Shindong Resources Co. Ltd and Luxon Energy Holdings Ltd and State Committee on Geology and Mineral Resources of Uzbekistan are planning to create two ventures in Uzbekistan on developing tungsten deposits in Samarkand region with total cost of US$80 million.
It is planned to create joint venture on developing Sautbai and Yahton tungsten deposits with Shindong Resources with the cost of US$30 million. Within the project, it is planned to hold exploration works at deposit wings in order to expand resource base.
Luxon Energy Holdings will found joint venture on rehabilitation of tungsten development at the Ingichka deposit with the cost of US$50 million.
Shindong Enercom and State Committee on Geology and Mineral Resources of Uzbekistan signed agreement on action programme for creation of the joint venture at Shavazsay deposit in Tashkent region in order to organize lithium-ion battery for US$50 million.
State Committee on Geology and Mineral Resources and NeoPLANT inked an agreement on implementation of the project on production of technical silicon on the base of Uz-Kor Silicon JV with the cost of US$7 million. The production capacities will be placed at the Navoi free industrial and economic zone.
Oxus Gold has started a five-year drilling programme within the licence area of its 50% owned Amantaytau Goldfields (AGF) joint venture in Uzbekistan. Aggregate potential of territory, licenced to AGF, is about 24 million ounces of gold and 480 million ounces of silver.
The total budget for the five-year programme is approximately US$22 million, of which US$2.5 million has been committed from current cash resources to be spent during the remainder of 2010. Oxus Gold plc signed an agreement with Chinese investors’ consortium to attract financial resources for US$185 million.
The consortium includes Baiyin Non-Ferrous Group Co Ltd, CITIC Construction Co Ltd, Chang Xin Yuan Su (Tianjin) Equity Investment Fund Management LP. The consortium will invest US$85 million in Oxus Gold through equity purchase. The investors will be able to purchase shares for US$20 million in exchange of investments for US$80 million. Oxus Gold plc is planning to direct investments to projects in Uzbekistan. In particular, the investments will be used to develop gold production at AGF. The designed capacity of the enterprise on processing oxidized ores makes up 1 million tonnes a year and gold production – 6.3 tonnes of gold.
The AGF founders are Oxus Gold plc (50%) and the State Committee on Geology and Mineral Resources of Uzbekistan (40%) and Navoi Mining and Metallurgy Combine (10%).
AFS-Research analysts believe that successful functioning of metallurgy industry of Uzbekistan is important factor for sustainable Uzbek economy in conditions of global economic crisis as it ensures its diversification, creates new jobs and increase gold-currency reserves of Uzbekistan.
Vycheslav Luchkin,
Senior financial analyst of AFS-Research
AFS–Research is investment company, rendering wide-scale services in capital markets. The main directions of the company’s activity are investment analytics, investment-banking services and investment consulting. Web-site of the organization: www.afs-research.com.