Uzbekistan takes measures on realizing investment project “Construction of under-ground mine at the minefield Kayragach”. On 26 February, 2013, state leader signed corresponding Resolution of Cabinet of Ministers of the Republic of Uzbekistan.

These measures directed to provide for implementation of retired capacity on mining gold ore of Semguran mine and support level of load of reprocessing production capacity of Angren gold mining plant of Open Joint-Stock Company Almalyk mining-and-smelting plant.

Document points out that technical-economical basis of investment project “Construction of underground mining at the minefield Kayragach” is worked out with total amount of investment 30,56 million US dollars and its expertise in authorized bodies was carried out.

The sources of financing in realization of project “Construction of underground mining at the minefield Kayragach” are the own means of Almalyk mining-and-smelting plant, including facilities of special investment accounts, in the amount equivalent to 10,59 million US dollars.

Loan of Fund for reconstruction and development of the Republic of Uzbekistan at the amount 6,72 million US dollars will be another source of financing. This loan will be refinanced through Ipoteka-bank and is granted with the term to 7 years, including two year privileged period with interest rate of 4 percent annual, including margin of refinancing bank at the amount 1 percent annual.

Loan of Ipoteka-bank in national currency at the amount of equivalent to 13,25 million US dollars which is allotted to 7 years term including two-year privileged period with interest rate non-exceeding refinancing rate of Central Bank of the Republic of Uzbekistan is also considered as a source of financing.

In line with the resolution Almalyk mining-and-smelting plant is the borrower and executive body responsible to in-time and full-range realization of project, as well as purposeful and effective application of attracted loans.

Expenses related to pay off attracted loans and their services will be carried out by own means of Almalyk mining-and-smelting plant, including special investment account.

Thus, materials, transport facilities, equipment and component parts to them, not-produced in the Republic of Uzbekistan, being imported by Almalyk mining-and-smelting plant within a framework of realization of mentioned project, due to list approved by Cabinet of Ministers of the Republic of Uzbekistan are free from customs payments (excluding customs fees) until November 1, 2014.

Within a framework of project “Construction of underground mining at the minefield Kayragach” Almalyk mining-and-smelting plant decided to carry out construction installment works by own capacity, if necessary, with the attraction of specialized construction-installment and other organization of Uzbekistan to perform subcontract works based on direct agreements.

The object is planned to put into exploitation in 2014.

Reservoir of gold-content mining of Kayragach minefield has right location: 25 km away from the minefield is the Angren gold mining plant, and 75 km away – copper plant of Almalyk mining-and-smelting plant that allow to conduct their reprocessing until receiving finished product without a big additional expenses.

UzReport reported earlier that project on construction underground mining at the Kayragach minefield is enlisted to the program of modernization, technical and technological re-equipment of production of Almalyk mining-and-smelting plant for 2012-2015.

Targeted tasks of this program are:

- implementation retired capacity on producing non-ferrous and precious metals through expanding raw-materials base of plant;

- implementation of leading technologies of concentrates reprocessing, complex extraction of useful components, increasing of volumes of outlet of sulfuric acid through utilization of gas wastes of metallurgical production with the use of modern chemical and energetic equipment;

- providing for contingence of available mining and reprocessing production capacity, as well as raising level of loading of metallurgical processing;

- development of export potential.

Almalyk mining-and-smelting plant is one of the largest mining and metallurgical company in Uzbekistan. Production capacity of plant is based on stores of group of copper-porphyry, lead-zinc and gold-silver minefields located in the territory of Tashkent, Jizzah, Namangan and Surhandarya provinces.

Plant consists of 8 ore-mining companies, 5 ore-processing plants, 2 metallurgical plants, sulfuric productions, construction-mechanic and lime plants, auto transport administration and other subdivisions. (Source: IA Uzreport.uz).