MINEX Forum

Tag: Navoi Mining

  • Concerns Raised Over Ernst & Young Advisory’s Compliance in Navoi Mining Audit Procurement

    Concerns Raised Over Ernst & Young Advisory’s Compliance in Navoi Mining Audit Procurement

    The Agency for Industrial Cooperation and Public Procurement has responded to Anhor.uz’s inquiry regarding procurement number 7081330 by the Navoi Mining and Metallurgy Combinat (NGMK) for an audit of its procurement system and forensic evaluation of anti-corruption mechanisms. This inquiry was prompted by questions from the Association of Public Procurement Participants about the compliance of the winning bidder with established qualification requirements.

    In April 2026, NGMK announced a procurement for a forensic evaluation for the year 2025. The winner was identified as Ernst & Young Advisory, which proposed to carry out the work for 1.16 billion sums, including VAT. One of the requirements in the technical specifications was that the contractor must be a current auditing organisation listed in the relevant register of the Ministry of Economy and Finance. The Association raised concerns about whether the winning company met this requirement, as Ernst & Young Advisory operates as a separate legal entity.

    In response to the inquiry, the Agency stated that it would not consider conducting an audit of this procurement, citing existing regulations that stipulate that compliance with public procurement legislation and internal audits should be conducted by the relevant services of the state customer itself. The Agency recommended that inquiries regarding procurement number 7081330 be directed to the internal audit or compliance service of NGMK.

    Regarding the legality of Ernst & Young Advisory’s participation in the procurement, the Agency did not provide a direct answer about the company’s compliance with the specific requirement of the technical specifications. Instead, it referred to provisions of the Public Procurement Law that regulate the requirements for participants and the responsibilities of the procurement commission. Specifically, the state customer and the procurement commission are responsible for ensuring that the procedure for determining the contractor complies with legal requirements, as well as for the justification and impartiality of decisions made.

    The Agency’s response did not conclude whether Ernst & Young Advisory had the necessary status as an auditing organisation at the time of its participation in the procurement. The Association of Public Procurement Participants noted that merely having founders from an auditing organisation or belonging to an international network does not automatically confer the corresponding status to another legal entity.

    When asked whether such circumstances were sufficient to meet the qualification requirements, the Agency referred to Article 36 of the Public Procurement Law, which outlines requirements for the participant’s resources, their right to enter into contracts, absence of tax debts, insolvency procedures, and being listed among unscrupulous contractors. However, the Agency’s response did not provide a direct assessment of Ernst & Young Advisory’s compliance with the requirement for the status of an auditing organisation.

    The Agency also clarified that it lacks the authority to conduct internal or unscheduled audits of the procurement. According to Article 75 of the Public Procurement Law, state control in this area is carried out by the Accounts Chamber, the General Prosecutor’s Office, the Anti-Corruption Agency, the Ministry of Economy and Finance, and the Committee for Competition Development and Consumer Rights Protection. Consequently, the Agency refrained from providing a legal assessment of the disputed procurement and directed the inquiry to the internal audit or compliance service of NGMK.

  • Uzbekistan Moves Forward With Landmark UzNIF IPO in London as Navoi Mining Listing Slows

    Uzbekistan Moves Forward With Landmark UzNIF IPO in London as Navoi Mining Listing Slows

    Uzbekistan is preparing to launch its first-ever initial public offering in London, with the national investment fund UzNIF expected to proceed ahead of other major state-owned companies, according to people familiar with the matter. The offering — planned for both London and Tashkent — could begin as early as the first quarter of next year, marking a significant milestone in the country’s push to attract foreign capital.

    Work on the parallel IPO of Navoi Mining & Metallurgical Co., one of the world’s largest gold producers, has slowed, the sources said. Despite an April presidential decree calling for Navoi to list in London by the end of this year, officials now view that timeline as unlikely given ongoing internal discussions and the strategic sensitivity of the company.

    The IPO programme is a central component of President Shavkat Mirziyoyev’s broad privatization agenda aimed at deepening capital markets and drawing international investors. The April decree outlined an ambitious listing calendar for state-owned assets, while several private firms — including fintech platform Uzum and logistics operator Centrum — are also weighing public offerings. Uzbekistan’s debut listing in London is expected to establish a valuation benchmark for future issuers.

    UzNIF, managed by Franklin Templeton, has already chosen banks to arrange its IPO and has undergone a portfolio restructuring to improve its investor appeal. The fund’s holdings have been streamlined from 18 to 15 companies after the government reclaimed stakes in Uzbekistan Post, Uzbekistan Airports, and two regional lenders. In exchange, UzNIF received additional shares in existing portfolio companies and a 30% stake in Uzpromstroybank, the country’s second-largest bank. These adjustments lifted total assets under management to $1.93 billion, according to official data.

    A Franklin Templeton representative confirmed that UzNIF continues to target a first-half listing, noting that an update of the fund’s net asset value will be completed soon. Uzbekistan’s Ministry of Economy and Finance and the Presidential Office declined to comment.

    Meanwhile, the Navoi Mining IPO has encountered major concerns within the government, particularly over the potential impact on state revenue. Navoi is strategically vital: gold accounts for roughly 80% of Uzbekistan’s foreign reserves, and the company’s dividends — $1.7 billion in 2024 alone — contribute about 7.5% of annual government income. In the first half of 2025, Navoi’s profits nearly doubled to $1.5 billion as gold prices surged to record highs.

    Officials worry that taking the company public could reduce its dividend flows. President Mirziyoyev is expected to decide on the final timeline, but has not yet indicated when — or if — the sale will move forward. Navoi Mining has been working with Citigroup, JPMorgan, and Morgan Stanley on the potential offering and is seeking a valuation of around $20 billion including debt.

    At a recent conference in Tashkent, UzAssets CEO Bobur Abdinazarov said the state must carefully evaluate “optimal timing and market conditions,” noting that some major banks expect gold to reach between $5,000 and $6,000 an ounce.

    Market analysts say the government is likely to proceed cautiously. “Navoi is the crown jewel of Uzbekistan — strategically and politically — so they’ll likely keep it for later, when market depth and valuation visibility improve,” said Luis Saenz of Roemer Capital. “UzNIF, on the other hand, fits better as an earlier test case: it’s a cleaner, forward-looking growth story with less sensitivity, and it helps build the track record.”

  • Uzbekistan’s Navoi Mining Targets $20 Billion Valuation in Potential London–Tashkent IPO

    Uzbekistan’s Navoi Mining Targets $20 Billion Valuation in Potential London–Tashkent IPO

    Navoi Mining & Metallurgical Co. (NMMC), one of the world’s largest gold producers, has selected Citigroup, Morgan Stanley, and JPMorgan Chase to lead a possible dual listing in London and Tashkent, according to sources familiar with the matter. The Uzbekistan state-backed miner is eyeing a valuation of around $20 billion, including debt, buoyed by a near-30% surge in gold prices this year.

    The company is considering issuing London-listed global depositary receipts alongside a domestic listing in line with an April presidential decree requiring state-backed firms to go public both locally and internationally. NMMC is also working with Rothschild & Co. as an IPO adviser.

    The planned share sale, which could involve 10% to 15% of the government’s stake, forms part of Uzbekistan’s broader privatization drive. The same decree also calls for an IPO of 25% of the $1.7 billion national investment fund, UzNIF. Officials are still weighing which offering to launch first.

    Gold prices have roughly doubled over the past three years, hitting a record above $3,500 an ounce in April, driven by central bank purchases, investor demand, and heightened geopolitical risk. The rally has lifted mining stocks globally, with Newmont Corp. and Barrick Gold Corp. among those benefiting.

    NMMC, the world’s fourth-largest gold miner, produced 3.1 million ounces of gold last year, generating $7.4 billion in revenue and $4 billion in operating profit, according to its annual report.

    For London, the IPO could provide a much-needed boost after the exchange suffered its weakest first half for new listings in nearly 30 years. The city has long been a preferred destination for mining and emerging market listings.

    No final decision has been made on the offering’s timing or structure, and representatives for NMMC, the banks, and Rothschild declined to comment.

  • Navoi Mining and Metallurgical Combine Expands Capacity at Zarmitan Mine in Uzbekistan

    Navoi Mining and Metallurgical Combine Expands Capacity at Zarmitan Mine in Uzbekistan

    Navoi Mining and Metallurgical Combine (NMMC) has announced the expansion of its operations at the Zarmitan mine, part of its Southern Mining Department. Earlier this May, the company launched a new skip shaft at the site, as reported by the news agency Uza.

    NMMC has been implementing an investment project titled “Development of Lower Horizons of the Mining Complex Based on the Deposits of the Zarmitan Gold Ore Zone” for several years. Mine Construction Alliance s.r.o. was selected as the contractor for the construction of the vertical mine shaft. The same company is also responsible for deepening the “Main” shaft at Zarmitan.

    The shaft, with a diameter of 6.5 meters, has been extended to a depth of 1,000 meters. Ore extracted from various underground levels of the mine will now be lifted to the surface using the new shaft and then sent for processing at the fourth hydrometallurgical plant. Estimates indicate that up to 1.4 million tons of gold-bearing ore will pass through the facility annually.

    The annual economic impact of the skip shaft’s launch is projected at 19.2 billion UZS. Notably, the company expects to save on fuel costs for dump trucks, which would have otherwise spent more time transporting raw materials.

    The mine shaft is equipped with various automation systems, with all operations managed from a central control panel. NMMC claims that this project marks a significant breakthrough for Uzbekistan’s mining and metallurgical sector, highlighting advanced engineering and digital solutions.

  • Navoi Mining and Metallurgical Combine Produces Gold Worth $2.2 Billion in Q1 2025

    Navoi Mining and Metallurgical Combine Produces Gold Worth $2.2 Billion in Q1 2025

    In the first quarter of 2025, the Navoi Mining and Metallurgical Combine (NMMC) produced goods worth 27.8 trillion Uzbek soums (approx. $2.2 billion), according to the company’s press service.

    From January to March, NMMC extracted 753,500 ounces of gold. The combine also invested $118.4 million under its investment program and created nearly 700 new jobs. Through cost optimization efforts, the company managed to reduce production costs by 786 billion soums.

    During the reporting period, the combine completed the feasibility study for operations at the Muruntau deposit. This project aims to increase ore supply to the second hydrometallurgical plant to 60 million tonnes.

    In addition, over 100 units of equipment were acquired to support development at the Kokpatas and Daugyztau deposits.

    Previously, Kursiv Uzbekistan reported that NMMC received the highest rating for its anti-corruption performance.

  • Navoi Mining and Metallurgical Company Debuts $1 Billion Eurobonds, Signifying Uzbekistan’s Economic Transformation

    Navoi Mining and Metallurgical Company Debuts $1 Billion Eurobonds, Signifying Uzbekistan’s Economic Transformation

    Navoi Mining and Metallurgical Company (NMMC), Uzbekistan’s largest gold producer, successfully issued its debut $1 billion Eurobonds, marking a breakthrough for both the company and the country in global markets. The issuance aligns with Uzbekistan’s modernization goals, reflecting NMMC’s internationalization and commitment to sustainable, transparent practices. According to Eugene Antonov, NMMC’s deputy CEO, the funds will drive operational improvements, corporate governance, and environmental sustainability, bolstering NMMC’s role in Uzbekistan’s economy and solidifying its position among global gold producers.

  • Orano is investing up to $500 million in uranium mining in Uzbekistan

    Orano is investing up to $500 million in uranium mining in Uzbekistan

    French company Orano has expressed its intention to invest up to $500 million in uranium mining and processing in Uzbekistan, as revealed by the Minister of Mining Industry and Geology, Bobir Islamov. He mentioned the existence of a strategic partnership agreement between Uzbekistan and Orano. Currently, the French company is conducting geological exploration, and by the end of this year, a preliminary technical and economic justification for the project will be prepared.

    Islamov explained that the strategic agreement includes the exploration of two additional sites in the Tamdyn district of the Navoi region. The final decision regarding these sites will depend on the results of the technical and economic analysis. However, Islamov expressed optimism about the progress of the project.

    The minister emphasized that current uranium production volumes have already secured markets. As the production of nuclear fuel increases, Uzbekistan will consider expanding its exports based on market conditions.

    “When it comes to uranium, our prices are tied to global prices. If the price rises, our delivery costs increase as well,” stated the minister.

    Islamov highlighted the growth in uranium exports to various destinations this year, underscoring the importance of diversifying supply sources. In 2022, Uzbekistan increased uranium exports to the European Union by 2.71 times, reaching 441 tons.

    During a visit to Samarkand, French President Emmanuel Macron announced that Orano, in collaboration with the local joint venture Nurlikum Mining, had initiated a pilot project for uranium mining. President Shavkat Mirziyoyev expressed his support for the expansion of geological exploration for uranium deposits with Orano.

    Prior to Macron’s visit, Bloomberg reported that his objective in visiting Uzbekistan and Kazakhstan was to discuss the expansion of uranium supplies, as France considers Central Asia as an alternative to Russian nuclear fuel.

    In November 2022, the State Committee of Geology, Navoi Mining, and Orano signed a tripartite agreement to expand uranium mining and processing. Uzbekistan aims to follow the French model in the “nuclear fuel value chain.” Orano has stated its readiness to invest “several hundred million euros.”