(Kitco News) – Russian bank VEB.RF (VEB) announced today the signing of a loan agreement with the Uzbek Almalyk Mining and Metallurgical Plant JSC (AMMC), pursuant to which VEB will provide a loan to AMMC in the amount of EUR 712 million.
According to the bank’s statement, this loan will be used to finance the construction of a copper processing plant (MOF-3) with a capacity of 60 million tonnes of ore per year in Almalyk, Uzbekistan.
The funds will be used to pay for Russian equipment and services within the framework of the project, as well as to cover part of the costs associated with its implementation, VEB added.
AMMC plans to increase the volume of ore processing to 160 million tonnes per year, which will allow it to increase the output of cathode copper to 400 thousand tonnes per year by 2028. In addition, AMMC will produce about 270 tonnes of silver and 50 tonnes of gold per year by 2028.
“Construction of MOF-3 is by far the largest project in Uzbekistan implemented with the financial support of VEB.RF,” the bank said in a press-release.
AMMC is the only copper producer in Uzbekistan, which also accounts for about 90 percent of silver and 20 percent of gold production in the republic. AMMC annually mines over 40 million tonnes of ore, from which it is extracting more than 15 chemical elements.