Kazakh copper miner to take out $1.5 bln loan with China Development Bank (repeat)
Astana. June 13. INTERFAX-KAZAKHSTAN - Kazakhmys Plc, Kazakhstan's major copper miner, is taking out a $1.5-billion loan from China Development Bank (CDB) for the development of the Aktogai deposit in east Kazakhstan.
Kazakhmys CEO Oleg Novachuk and Vice Governor of the State Bank of China, Gao Jian, have signed a memorandum of understanding (MoU) in Kazakhstan's capital of Astana.
"The parties are expected to sign a loan agreement until the end of the year," the company said in a press release.
"The capital expenditure for the project is estimated at $2 billion, with $500 million contributed from Kazakhmys' own funds," said Oleg Novachuk at a press conference after the signing.
The total annual production capacity of the two projects - Aktogai and Bozshakol - is 200 tons of copper concentrate, which is projected to boost Kazakhmys' annual output by more than 60 percent.
"Currently we export 60 percent of our products to China. The loan will help further increase supplies to China," said Novachuk.
Aktogai, one of the largest copper deposits in the world, is estimated to hold 84 million tons of oxidized ore and 1.455 billion tons of sulfide ore.
Kazakhmys Plc is a leading international natural resources group listed in the UK and Kazakhstan, with significant interests in copper, gold, zinc, silver, power generation and petroleum.