Uzbekistan, Tashkent, Nov 20 /Trend D.Azizov/
The Uzbek Cabinet of Ministers has approved a feasibility study of an investment project to modernise the JSC Almalyk oxygen plant worth more than $29 million, a source in government circles told Trend on Tuesday, referring to a government decision.
The feasibility study which is a part of a comprehensive programme of the plant's modernisation programme is being developed by Uztyazhpromproekt institute.
Almalyk Mining signed a contract with Red Mountain Energy Corporation (USA) for the development of a working and technical documentation for the technological part of the project, supply of equipment, installation, supervision and execution of commissioning with a total value of $19.8 million.
Sources of funding for the project include the plant's own funds to $7.2 million and credit from the Fund for Reconstruction and Development of Uzbekistan (FRDU), refinanced through Mortgage Banking of $19 million. FRDU credit is granted for a period of seven years with a two year grace period.
The project will provide technical oxygen for existing and newly introduced capacities. Almalyk Mining will be released from customs duties on materials, equipment and spare parts, including technical and planning documents not produced in the country until October 1, 2014 in the frame of the project. In addition Red Mountain Energy Corporation is exempt from income tax.
Almalyk MMC is the only copper producer in Uzbekistan and one of the largest producers of nonferrous metals in Central Asia. The share of AMMC accounts for about 90 per cent of silver production and 20 per cent of gold in the country. The plant composition consists of two mining companies, two processing and two metallurgical plants with their own infrastructure.
The raw material source of AMMC is the copper-porphyry ores of Kalmakyr and Sarah-Ceku (Tashkent region) and the deposit of lead-zinc-barite ore of Uch-kulaks (Djizzak).