Page 9 - RusRPTAug24

bne August 2024 Companies & Markets I 9
Uzbekistan's AGMK announces $15bn expansion to drive up copper cathode output
Mokhi Sultanova in Tashkent
Uzbekistan's state-controlled Almalyk Mining and Metals Combine (AGMK) on June 27 announced it will implement a $15bn expansion programme to raise copper cathode output to 400,000 tonnes/year from its current 148,000 tonnes/year.
At the same time, Uzbekistan's Cabinet of Ministers said the government plans to create a copper industry cluster over coming years.
AGMK, a copper, zinc, silver and gold producer, said it would borrow most of the funds it would require for the expansion from local and foreign banks, while it would also receive $1bn from a state development fund.
Copper is vital to the global energy transition. It is used in both the power and construction industries. Prices for the commodity this week hit record highs as speculative buying focused on possible tight supply in the future.
The AGMK programme would include upgrading and expanding the company’s mining and ore processing facilities, as well as the construction of a new smelter, the company said.
AGMK inked a deal last year with Germany's KfW IPEX-Bank to arrange $2.55bn in loans, Reuters noted.
"The development of the copper industry cluster represents
a pivotal step in Uzbekistan's industrial strategy," the
Minister of Industry and Infrastructure Development said. "By enhancing our processing capabilities and fostering a conducive environment for investors, we aim to position Uzbekistan as a regional hub for high-value copper products."
Key objectives in the document include raising the copper raw material processing rate to 80% to boost exports of finished and semi-finished copper products.
“By enhancing our processing capabilities and fostering a conducive environment for investors, we aim
to position Uzbekistan as a regional hub for high-value copper products”
Markets are speculating copper could be in short supply as the energy transition gathers pace.
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