Tashkent, Uzbekistan (UzDaily.com) — The new copper smelting complex of Almalyk Mining and Metallurgical Complex (AGMK) will be financed by German banks, according to AGMK’s press service.

During German Chancellor Olaf Scholz’s visit to Uzbekistan, a business meeting took place in Samarkand involving business circles from both countries, including the leadership of AGMK.

As a result of the forum, a loan agreement was signed between AGMK and the German banks KfW IPEX Bank and AKA. Under the agreement, the German banks will provide an initial tranche of €146 million to finance the construction of the new copper smelting complex.

It is worth noting that the construction of the new copper smelting complex is the second phase of the "Yoshlik" project, which is estimated to cost US$1 billion, while the budget for the first phase was US$4.8 billion.

The expected production capacity of the new plant, which will be integrated with AGMK’s existing facilities in Almalyk, will be 300,000 tons of cathode copper and 1.8 million tons of sulfuric acid per year.

In the second phase, AGMK plans to increase its smelting capacities. Until the completion of construction, the complex will focus on the sale of copper concentrate.