AMMC to invest $250 million to expand production of non-ferrous and precious metals

According to the document, AMMC will invest $250 million in the project to expand the production of non-ferrous and precious metals.

In 2020-2024, it is planned to carry out the first stage of exploration and mining-capital works with the construction of a quarry, design, equipment supply, construction of objects of a copper processing plant No. 3 with an annual production and processing capacity of 60 million tons of ore, as well as infrastructure.

At the second stage (in 2022-2028), it is planned to design, supply and build metallurgical complex facilities with an annual output of up to 290 thousand tons of cathode copper, 38 tons of gold and 203 tons of silver.

As sources of financing for the project, AMMC’s own funds in the amount of $250 million, funds of the Reconstruction and Development Fund allocated to the AMMC’s authorized capital through an additional issue of shares in the amount of up to $1 billion, acquired taking into account the concluded contracts under the project, as well as syndicated loan funds from a consortium of domestic and international financial institutions, to be attracted in 2021 (after developing a feasibility study and confirming the final cost of the project), have been identified.

Renaissance Heavy Industries LLC (Russia) is involved as a general contractor for the construction of a copper processing plant No. 3 on a turnkey basis (EPC). 

Under the project, investment bank and consultant agreements with Renaissance Heavy Industries and other import contracts as an exception are not subject to mandatory examination and registration at the Center for Comprehensive Expertise of Projects and Import Contracts under the Ministry of Economic Development and Poverty Reduction.