Azernews.Az

The Uzbek Almalyk Mining and Metallurgical Combine will implement a project on the zinc plant reconstruction worth $25.7 million until late 2014.

The Cabinet of Ministers apporeved a relevant resolution on 'Measures on the implementation of the investment project "Zinc plant reconstruction', the feasibility study and its funding.

The project will be financed by Almalyk's own funds worth $ 9.3 million and Uzbek Mortgage Bank's loan worth $16.4 million.

The loan will be delivered to Almalyk Mining and Metallurgical Combine for seven years, including a three-year grace period at an interest rate of six percent per annum. The costs associated with paying off the loan and its servicing will be covered by the combine's own funds.

The Almalyk Mining and Metallurgical Combine is the borrower and the executive body responsible for the implementation of the project, appropriate and efficient use of the drawn loan.

As an exception, the combine is entitled to carry out the building-installation work by using its own funds as part of this project, and if necessary - to attract specialized building and other organizations of the republic on the basis of direct contracts for subcontracting operations.

Almalyk MMC is the only copper producer in Uzbekistan and one of the largest manufacturers of non-ferrous metals in Central Asia. The AMMC accounts for nearly 90% of silver production and 20% of gold production in the country. The plant is composed of two mining companies, two processing plants and two metallurgical plants.

The total production volume is estimated at more than $ 300 million a year. The combine exports about 60 percent of its output.

The plant is entitled to develop copper-molybdenum and lead-zinc ore fields in Almalyk town (Tashkent region). The copper-porphyry ore Kalmakyr and Sari-Cheku fields (Tashkent region) and lead-zinc-barite ore Uch-Kulach field (Djizzak) are the raw material base.