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ZARAFSHAN-NEWMONT JOINT VENTURE RECEIVES $105 MILLION IN EBRD-LED FINANCING FOR ITS GOLD PROJECT IN UZBEKISTAN

 LONDON, Nov. 16 /PRNewswire/ -- The Zarafshan-Newmont Joint Venture today signed final agreements with a consortium of international lenders for $105 million in project financing for a gold-producing project in the Republic of Uzbekistan, it was announced by Tulkun Shayakubov, chairman of the joint venture.
 "The joint venture in which Newmont Mining Corp. of the United States has a 50 percent interest is Uzbekistan's first major mining project with a foreign company and has received the first financing of its type in Uzbekistan," said Shayakubov, who also is the chairman of the State Committee of Geology and Mineral Resources of the Republic of Uzbekistan.
 "The financing received today is a clear signal that the international business and banking communities regard the Republic of Uzbekistan as desirable for foreign investment -- investment that will lead to profitable return," he added.
 The credit facility for $105 million was finalized with a consortium of international lenders, arranged by the European Bank for Reconstruction and Development and Barclays Bank PLC. The Zarafshan- Newmont Joint Venture project is the first financing by the EBRD in the Republic of Uzbekistan. EBRD's portion amounts to $52.5 million. The remaining $52.5 million came from commercial lenders in the United States, England, Switzerland, Germany, France, and Austria. Total capital costs of the joint-venture project, including working capital and financing, are estimated at $150 million.
 The parties to the joint venture recently obtained the right to acquire a minimum of 30 million tons of additional low grade ore with gold content of no less than 1.09 grams per ton. As a result, total throughput will be 60 million tons of ore with a gold content of no less than 1.59 grams per ton and 160 million tons of ore with a gold content of no less than 1.09 grams per ton. This additional material increases the joint venture's total reserves to approximately 8.7 million ounces of gold. The joint venture will produce a minimum of 5.0 million ounces of gold over a 16-year period from ore stockpiled from the Muruntau mine in the Republic of Uzbekistan. The gold will be produced by heap- leaching using technology supplied by Newmont Mining.
 Production is scheduled for early 1995. Current stockpiles of gold ore will provide an average annual production of some 310,000 ounces over approximately 16 years, with production in the earlier period being above 450,000 ounces a year. The joint venture will sell its gold in international markets.
 The Republic of Uzbekistan was the second-largest producer of gold in the former Soviet Union, after Russia, and is currently the eighth- largest producer of gold in the world.
 The Zarafshan-Newmont Joint Venture was finalized after only 27 months of discussions and planning. In addition to Newmont Mining, the other joint venture partners from the Republic of Uzbekistan are the State Committee of Geology and Mineral Resources of the Republic of Uzbekistan and the Navoi Mining and Metallurgical Combinat. Each such partner has a 25 percent interest in the joint venture.
 -0- 11/16/93
 /CONTACT: Newmont Mining, 303-837-5977/
 (NEM)


CO: Newmont Mining Corp. ST: Colorado IN: MNG SU: JVN

JL-LS -- LA047 -- 5198 11/16/93 18:16 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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