Uzbekistan to launch production of mining equipment

The resolution was adopted to create local import-replacing production of mining equipment, meet demand in spare parts for used and newly produced equipment.

In line with the resolution, Almalyk Mining and Metallurgy Combine and Scientific-production enterprise “Electroplasma equipment and systems” (Russia) signed a contract on organization of the shop on electroslag remelting with supply of equipment on turnkey bases. The deal was reached in the result of direct talks between sides and the contact sum is US$7.69 million.

The government approved feasibility study of the investment project “Organization of production of mining equipment” with total investments of US$28.8 million.

The project will be financed due to own resources of AGMK for US$14 million (including resources of special investment accounts) and loan of Ipoteka Bank for US$14.8 million.

The bank will issue loan for seven years, including three-year grace period. The interest rate is 6% APR.

The Government allowed, as an exception, Ipoteka Bank to sign an agreement with AGMK for US$14.8 million within the implementation of the project and not to use normative on maximum risk on one debtor or group of affiliated debtors.

The resolution said that AGMK is a debtor and an executor within the project, as well as responsible for targeted use of the credit.

It said that AGMK will repay the credit and interest rates due to own resources, including special investment accounts.

AGMK also was allowed to carry out construction and assembly works with own forces within the project.