Kazakhmys secures US$1.5bn Aktogay loan

Finance

Copper wire is one of Kazakhmys key products

Publishing Date: 16 Dec 2011 11:54am GMT
Author: Mining Journal

Kazakhmys plc has secured the US$1.5 billion loan facility from China Development Bank Corp (CDB) to develop its Aktogay copper project in Kazakhstan.

A memorandum of understanding for the debt was first signed in June.

Two agreements have been signed, the first for up to US$1.34 billion and the second for RMB1 billion (US$158 million), with a maturity of 15 years from the first date of drawing.

Funds will be available to be drawn over a three-year period, following the completion of a feasibility study on the project, expected by the end of calendar 2012.

The project would produce approximately 100,000t/y of copper with first metal due in 2014.

The company already has existing loan facilities with CDB of US$2.7 billion, for the development of the Bozshakol project and other mid-sized projects.

Kazakhmys chief executive Oleg Novachuk said: “We have now secured funding for all of our current growth projects.”

He added: “Our strong regional relationships with Samruk-Kazyna and the China Development Bank have allowed us to put together funding for the largest mining investment programme in Kazakhstan, which will deliver additional production of around 60% of current output.”