Kazakhmys has signed a memorandum of understanding with the China Development Bank Corporation for a $1.5bn loan facility which is to be used for the development of the major copper project at Aktogay, East Kazakhstan.
The facility consists of two separate agreements, the first for up to $1.34bn and the second for up to RMB1.0bn (about $158m).
The funds will be available to draw down over a three year period, following the satisfactory completion of the feasibility study, which is expected to be completed by the end of 2012.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The facility, which has a final maturity of 15 years, is in addition to the existing CDB loan facilities of $2.7bn, secured in December 2009, which are being used for the development of Bozshakol and a series of mid-sized projects.
In a statement the firm said: "We have now secured funding for all of our current growth projects and management is focused on continuing to deliver the projects on time and on budget.
"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."
NR
-
How much should I have in emergency savings?When your boiler breaks or your car won’t start, you can find yourself paying a hefty bill. How much should you have in emergency savings to cover unexpected costs?
-
ISA investments by age: should I invest more in my stocks and shares ISA?Stocks and shares ISAs are a great way to grow long-term wealth, but are they overlooked compared to cash savings? We look at the average ISA investment by age and if you should have more.
