Kazakhmys signs $1.5bn agreement for loan facility

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.

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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