MINEX Forum

Tag: Uzbekistan

  • Navoi Gold Attracts Global Investors, Showcasing Uzbekistan’s Mining Potential Main Body:

    Navoi Gold Attracts Global Investors, Showcasing Uzbekistan’s Mining Potential Main Body:

    Uzbekistan’s mining sector took center stage as Navoi Gold orchestrated a compelling international investor meeting at its Tashkent offices, drawing significant attention from prominent global investment firms. With JP Morgan Chase Bank in Uzbekistan lending support, the event saw participation from key entities such as Eaton Vance, Colchester Global, BlueCrest Capital, Pictet, and Actia.

    Emphasizing Navoi Gold’s commitment to excellence and innovation, Chief Transformation Officer E. Antonov and Chief Financial Officer J. Khasanov provided a deep dive into the company’s resilient performance, strategic transformation initiatives, and the integration of global best practices in its operations.

    Antonov stated, “Our vision aligns with global standards, aiming not only to enhance our operational efficiency but also to contribute significantly to Uzbekistan’s economy.”

    The discourse covered crucial topics, including technological advancements in mining, sustainability initiatives, and Navoi Gold’s strategic expansion plans. Investors expressed optimism about Uzbekistan’s mining sector and the broader economic landscape, acknowledging the positive dynamics and growth potential within the country.

    Navoi Gold actively seeks global partnerships, solidifying its position as a pivotal contributor to the economic development of the region.

  • Kazakhstan-Uzbekistan cooperation discussed in Navoi

    Kazakhstan-Uzbekistan cooperation discussed in Navoi

    Ambassador of Kazakhstan to Uzbekistan Beibut Atamkulov paid a working visit to Navoi region, Uzbekistan. The meeting with activists of the Kazakh Cultural Center in Navoi took place. Then, the ambassador visited the Seitkul Aulie – Aiteke bi mausoleum and the Chachma memorial complex located in Nurata district. On May 15-16, 2024, the 380th anniversary of the outstanding statesman Aiteke bi is expected to be celebrated in Navoi region, Kazinform News Agency cites the press service of the Kazakh MFA.

    The head of the Diplomatic Mission also visited the Kazakh secondary school No. 14, founded in 1966 in Kenimekh district of the village of Terikkuduk. During the meeting the issues of educational process were discussed with the teaching staff of the school and the elders of the settlements. In 28 schools out of 36 operating in Kenimekh region, education is conducted in the Kazakh language.

    Ambassador Beibut Atamkulov held a meeting with the Khokim of Navoi region Normat Tursunov. During a meeting the issues of trade, economic, cultural and humanitarian ties with the regions of Kazakhstan were discussed.

    Particular attention was paid to the development of cooperation in chemical and mining industries, organizing mutual visits of delegations, holding a joint business forum, as well as a Youth Festival in Navoi.

    The parties also considered the possibility of establishing sister city ties between Navoi region and its administrative center of Navoi with the regions and cities of Kazakhstan, as well as developing interregional dialogue by establishing direct contacts between business circles.

    The head of the Kazakh Diplomatic Mission visited the Navoi free economic zone and got acquainted with the activities of large industrial complexes of the region as Navoi Mining and Metallurgical Plant JSC, Navoiyazot JSC, Kizilkumcement JSC and Gidro Stanko Servis LLC. Significant potential between the two countries was noted to increase the trade turnover.

  • Measures will be taken to further accelerate the deep processing of copper raw materials.

    Measures will be taken to further accelerate the deep processing of copper raw materials.

    A Presidential Decree “On measures to further accelerate the deep processing of copper raw materials in the republic” (Decree No. 77 of February 19, 2024) has been adopted.

    According to the Decree, it is permitted to make 25 percent of payments for copper raw materials purchased through exchange trading in the form of an advance, while the remaining 75 percent should be paid within 90 days after receiving the copper raw materials.

    At the same time, the amount of payments subject to installment payment for each day of providing the opportunity to pay in installments for copper raw materials is established in the following amounts:

    – for payments made within 30 days, no interest is calculated;
    – for payments made from the 31st day within 60 days, interest is calculated at a rate of 50 percent of the Central Bank’s base rate;
    – for payments made from the 61st day within 90 days, interest is calculated at the Central Bank’s base rate.

    The Decree comes into force on April 1, 2024, and its requirements do not apply to contracts concluded before April 1, 2024.

  • Uzbekistan expects to attract $7.2 billion in foreign investment

    Uzbekistan expects to attract $7.2 billion in foreign investment

    In the first quarter of 2024, Uzbekistan plans to utilize foreign investments worth $7.2 billion. The government of the republic adopted a resolution to this effect on February 14. Out of this amount, approximately $1.7 billion may be attracted by the Ministry of Energy, AGMK — $331 million, and Uzbekneftegaz JSC — $254.1 million. Among the regions, Tashkent leads with $428 million, followed by Namangan and Fergana regions with $329.4 million and $327 million respectively. According to the Central Bank of Uzbekistan, in 2023, foreign investors invested $7.2 billion in the economy of our country. Foreign investments in the republic doubled in one year. Earlier, “Kursiv” reported that last year, Uzbekistan attracted international loans worth $2.8 billion.

  • 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.”

  • France’s Strategic Pivot to Central Asia: Strengthening Ties with Uzbekistan and Shaping Regional Dynamics

    France’s Strategic Pivot to Central Asia: Strengthening Ties with Uzbekistan and Shaping Regional Dynamics

    In the wake of Uzbek President Shavkat Mirziyoyev’s visits to Paris in 2018 and 2022, French President Emmanuel Macron paid a two-day official visit to Uzbekistan on November 1 and 2. The visit holds profound symbolism, as it coincided with the 30th anniversary of the signing of the Treaty of Friendship and Cooperation between Paris and Tashkent. The visit’s importance resonated not only within Central Asia but also across Europe, given France’s substantial influence within the European Union (EU).

    The rationale behind France’s proactive efforts to bolster cooperation with Uzbekistan and the other Central Asian nations amid intense global power competition can be understood through several key factors.

    First and foremost, France is driven by its own ambition to adjust its status as a secondary actor in the strategically vital Central Asian region. The region is often viewed through a “great game” framework, with Russia striving to maintain its strong presence through organizations like the Collective Security Treaty Organization (CSTO) and the Eurasian Economic Union (EAEU), and China deeply embedding itself through the Shanghai Cooperation Organization (SCO) and the Belt and Road Initiative (BRI). France’s enhanced engagement with Central Asian countries serves as a counterbalance to ensure that no single power dominates the Eurasian region.

    Second, France is keen on intensifying cooperation with Central Asian countries, especially with Uzbekistan and Kazakhstan, to diversify its sources of energy. Recent disruptions in global energy markets, along with political tensions, have underscored the need for France to expand its energy import partners. Central Asia, with its untapped hydrocarbon reserves, offers a promising solution. Notably, Kazakhstan and Uzbekistan have significant uranium reserves, with Kazakhstan being the world’s largest producer and Uzbekistan the fifth largest. Given that approximately 70 percent of France’s electricity comes from nuclear power, deepening partnerships in the region could ensure a steady supply of uranium for French reactors.

    Third, France aims to enhance cooperation with Central Asian countries to reduce risks associated with the import of critical minerals, vital for the green energy transition. These minerals are essential in the production of a wide range of technologies, from smartphones and wind turbines to rechargeable batteries for electric vehicles. Despite being relatively underexplored, Uzbekistan and other Central Asian countries have the potential to assist France and other EU countries at large in reducing their heavy dependence on China for these essential minerals, thereby mitigating the risks associated with their technological advancement.

    At the same time, France’s deliberate efforts to step up cooperation with some Central Asian countries on a strategic level could open up various opportunities for Tashkent across political, economic, and environmental dimensions. Strengthened ties with France offer Uzbekistan a chance to diversify its international engagement and enhance its international standing, creating opportunities for collaborative diplomacy in light of recent global trends and geopolitical developments in Eurasia. Addressing crucial regional issues can foster stability not only in Central Asia but also in Afghanistan, promoting peace in the broader region. Furthermore, political cooperation with Paris can significantly support the Uzbek government’s “Uzbekistan – 2030” strategy, outlining the country’s vision for the next seven years. France’s expressed willingness to support Uzbekistan and Kazakhstan in their reform and modernization efforts aids in diversifying their international relations effectively.

    In addition to political collaboration, closer ties between Paris and Tashkent could facilitate greater economic and investment partnerships. The economic relationship between the two nations has flourished, marked by a tripling of joint ventures involving French companies in Uzbekistan. With an active project portfolio exceeding 10 billion euros, French businesses are poised to boost investments in Uzbekistan’s growing sectors. This collaboration not only promotes economic growth and job creation but also facilitates technology transfer. France’s expertise in technology, smart agriculture, and tourism can help Uzbekistan reduce its dependence on traditional industries, fostering economic diversification. Moreover, France, home to leading nuclear energy companies, can assist Uzbekistan in addressing the complexities of constructing a nuclear facility. This collaboration could promise a comprehensive and enduring partnership, contributing significantly to Uzbekistan’s energy sector.

    Beyond economic collaboration, Paris and Tashkent can join forces to tackle shared challenges related to water resources management. France’s expertise in sustainable water practices can assist Uzbekistan in efficient water use and conservation. Additionally, France can help mitigate the adverse effects of climate change by sharing green technologies and best practices. This support aids Uzbekistan in environmental conservation and sustainable development. Importantly, Paris can also mobilize public and private funding, particularly through guarantees and blending, to further increase investments for European initiatives like the Global Gateway on Water, Energy, and Climate.

    Despite all these positive rationales, there is a persistent challenge hindering enhanced cooperation between the two countries. This is the limited capacity of the Trans-Caspian Transport Route, also known as the “Middle Corridor.” which links China and Central Asia via the Caspian Sea to the Caucasus, Turkey, and Europe. In 2022, transit volumes through the Middle Corridor witnessed an impressive surge, nearly tripling compared to the previous year. This spike in trade activity has placed considerable strain on already overburdened borders, resulting in visible delays in cross-border transport operations.

    To address these challenges, France should collaborate closely with not only with Central Asian nations but also other EU countries to foster the development and prominence of the Middle Corridor. If achieved, it would reduce transit times from 38-53 days in the previous year to just 12-23 days. This would not only provide Europe with alternative optimal trade routes but also encourage the active participation of Central Asian nations in global connectivity and collaboration.

    In conclusion, France’s strategic moves in Central Asia, exemplified by Macron’s visit to Uzbekistan, are driven by a multifaceted approach, aiming to balance regional power dynamics, diversify energy sources, and ensure a stable supply of critical minerals for sustainable technological development. These efforts underscore France’s commitment to fostering cooperation and stability in the region, bearing broader implications for both Central Asia and Europe. At the same time, France’s deliberate efforts to strengthen cooperation with Uzbekistan can result in a multitude of opportunities for Tashkent. By focusing on political collaboration, economic growth, and environmental initiatives, both countries can foster mutual benefits, regional stability, and global partnerships.

    Looking ahead, the future prospects of the partnership between France and Uzbekistan are promising, offering mutual benefits in political, economic, and environmental dimensions. By leveraging each other’s strengths and addressing challenges collaboratively, both nations stand to gain significantly, contributing to regional stability, economic growth, and sustainable development in the years to come.

  • The volume of gold and foreign currency reserves in Uzbekistan has been announced

    The volume of gold and foreign currency reserves in Uzbekistan has been announced

    The gold and foreign currency reserves of Uzbekistan experienced a decline of approximately $1.65 billion in September and a cumulative decrease of $4.7 billion since the beginning of the year. As of October 1, the reserve level reached its lowest point since April 2020, standing at $31.04 billion, as reported by Trend.

    The Central Bank has disclosed updated information concerning Uzbekistan’s international currency reserves, revealing that the official reserves amounted to $31.04 billion as of October 1. This represents the lowest value observed since April 2020.

    In comparison to the preceding month, reserves witnessed a decrease of approximately $1.65 billion, with a total decline of $4.7 billion recorded since the start of the year.

    During the reporting period, the physical volume of gold increased from 12.1 million troy ounces to 12.3 million troy ounces. However, the value of gold decreased from $23.43 billion to $23.05 billion. This decline can largely be attributed to the decrease in gold prices observed in the global financial markets. For instance, the price of 1 troy ounce of gold fell from $1939 on September 1 to $1848 on September 29.

    One of the primary factors contributing to the decrease in gold prices during September is the stringent monetary policy implemented by the Federal Reserve in the United States. In such circumstances, U.S. government bonds become more alluring to potential investors, consequently diminishing interest in purchasing gold.

    According to data provided by the World Gold Council, the Central Bank of Uzbekistan sold 46 tons of gold in the first eight months of this year, while acquiring 25 tons of gold. Considering that a significant portion of the country’s reserves is stored in gold, fluctuations in the price of this precious metal exert a noteworthy impact on the overall reserve assets.

  • NGMK Revises Profit Forecast and Implements “Strict Economy Mode” Following Government Directive

    NGMK Revises Profit Forecast and Implements “Strict Economy Mode” Following Government Directive

    On October 14, 2023, the Supervisory Board of Navoi Mining and Metallurgical Combine, Uzbekistan’s largest enterprise, discussed various matters concerning NGMK’s operations, including a forecasted decline in profits for 2023. Although the board meeting took place on April 8, the news about it surfaced this month. Financial expert Otabek Bakirov was the first to draw attention to it. The Supervisory Board consists of Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov, First Deputy Advisor to the President on Industry Development, Investment, and Implementation of Foreign Trade Policy Timur Ishmetov, Advisor to the President on Socio-Political Development Ruslanbek Davletov, Director of the Agency for Management of State Assets Akmalkhon Ortikov, and Deputy Minister of Energy Akmal Zhumanazarov.

    The board meeting included a business plan for the company for 2023, which anticipates an increase in revenue from 56.6 trillion to 59.7 trillion soms. However, the plan also forecasts a decrease in net profit to 9 trillion soms ($735 million), which is nearly 6.4 trillion soms lower than in 2022 (15.39 trillion soms), as well as lower than the figures for 2021 (11.3 trillion soms) and 2020 (10 trillion soms).

    Expenses are planned at 39.9 trillion soms, including production expenses of 27.5 trillion soms. It is expected that compared to the previous year, revenue from product sales will increase by 3.1 trillion soms, reaching 59.7 trillion soms (+5.4%), while dividends paid to the government will decrease from 15.3 trillion to 7.8 trillion soms, and tax payments will decrease from 18 trillion to 17.2 trillion soms. Members of the supervisory board noted a sharp increase in expenses compared to 2022 and the cost of gold production, which is expected to lead to a decrease in net profit. Nevertheless, the board provisionally approved the business plan and tasked NGMK’s management with developing measures to optimize expenses for this year and submitting a revised business plan within two weeks. “Gazeta.uz” has sent a request to the Ministry of Economy and Finance regarding the updated business plan but has not yet received a response.

    Following the publication by financial expert Otabek Bakirov, NGMK’s press service announced that the business plan had been revised in collaboration with experts from the Ministry of Economy and Finance, taking into account gold prices on the global market, changes in the exchange rate of the som to the dollar, and a review of expenditure composition. According to the updated forecast, NGMK’s net profit in 2023 will amount to 14 trillion soms (instead of the previously projected 9 trillion soms). However, this is 1.3 trillion soms less than in 2022.

    Umidjon Kostaev, Head of the Budgeting and Controlling Department at NGMK, stated in an interview with “Gazeta.uz” that expenses are projected to increase from 28 trillion soms in 2022 to 32 trillion soms by the end of the year. Initially, the forecasted expenses in April were expected to reach 39.9 trillion soms, but they have been revised. “We calculated the expenses, coordinated them with the Cabinet of Ministers, and presented them to the supervisory board. After the business plan for 2023 is approved, it will be published on the website,” he said.

    Kostaev explained the projected 4 trillion soms increase in expenses by the rise in electricity tariffs (+25%) and gas tariffs (+38%), which he claimed are the largest expenditure items. Earlier, Minister of Energy Zhurabek Mirzamakhmudov informed “Gazeta.uz” that the energy resource tariffs for NGMK and Almalyk Mining and Metallurgical Combine (AGMK) had been increased in accordance with a government resolution, meaning these enterprises have been paying higher rates since April 2022.

    Furthermore, starting from October 1st, “Navoiyazot” has increased the price of chemical reagents, necessary for gold production, by 40%. According to Umidjon Kostaev, the changes in profit forecast, from 9 trillion to 14 trillion Uzbekistani som, were attributed to the implementation of a “strict cost-saving regime.”

    Kostaev explained that they have improved procurement processes by ordering essential goods and materials. They have also closely monitored material expenses for each process and instructed specialists to critically review and develop measures to reduce their volumes.

    The Head of Budgeting and Controlling Department also mentioned that repair works have been postponed. These measures have allowed for a significant reduction in expenses, he added.

    As a result, NGMK expects to generate an income of 64 trillion som by the end of 2023, compared to the previous forecast of 59.7 trillion som in April. Kostaev attributed this change to fluctuations in gold prices.

    The updated forecast indicates that dividend payments to the government will range from 11 to 13 trillion som, while tax payments are expected to reach 20 trillion som, compared to the earlier projection of 7.8 trillion som for dividends and 17.2 trillion som for taxes.

    Regarding the production cost of gold, Kostaev emphasized that NGMK has the lowest cost worldwide. The cost of producing one ounce of gold is $778, which is the lowest among the top 10 gold-producing companies, as highlighted by NGMK.

    However, Kostaev acknowledged the objective reasons behind the increase in production costs.

    It is worth noting that NGMK is the largest enterprise in Uzbekistan, responsible for nearly 15% of the state budget’s revenue (its share was 17.82% in 2022 and 20.1% in 2020).

    The representative of NGMK mentioned that the composition of the supervisory board has changed, and there have been no meetings involving its members since April 8th.

  • AGMK: results of production activities for the 9 months of 2023

    AGMK: results of production activities for the 9 months of 2023

    I am pleased to announce that the dedicated team of the Almalyk Mining and Metallurgical Combine has achieved remarkable success in meeting all production targets for the first nine months of this year.

    The production of goods, valued at current prices, has reached an impressive sum of 22,908,419,580,000 Uzbekistani soms, surpassing the set target by 103.1%.

    During this period, the “Kalmakyr” ore management division has achieved a mining indicator of 101.3%, with a growth rate of 104.5%. The processing of copper raw materials has been carried out at an impressive rate of 100.5%, with a growth rate of 106.2%.

    In September, the production of cathode copper reached 100.0%, and the growth rate for the production of cathode copper from our own raw materials over the nine months amounted to an impressive 102.2%. Additionally, we have successfully produced metallic zinc from our own raw materials at a rate of 101.6%.

    The extraction and processing of polymetallic ore have also been commendable, with a completion rate of 104.8% (with a growth rate of 103.5%) and 103.9% (with a growth rate of 101.6%), respectively.

    Our gold miners have excelled in fulfilling their obligations, ensuring the achievement of the forecast for the extraction of gold-bearing ore (102.8%) and its processing (103.1%).

    These impressive accomplishments can be attributed to the dedication and expertise of our esteemed structural units, including the “Kalmakyr” ore management, the copper enrichment plant, the copper enrichment plant No. 2, the “Khandiza” ore management, the Angren ore management, the Chadak ore management, the “Kauldy” mine, and the zinc and copper smelters.

    Furthermore, we have successfully completed tasks related to the production of copper vitriol, enamel wire, technical selenium, technical tellurium, palladium powder, molybdenum trioxide, and ammonium perranate.

    I commend the entire team for their hard work and commitment to excellence. We look forward to continued success as we strive to maintain our position as a leader in the mining and metallurgical industry.

  • The Uzbek Almalyk Mining and Metallurgical Complex (AGMK) will attract $2.6 billion for the construction of a new copper smelting complex

    The Uzbek Almalyk Mining and Metallurgical Complex (AGMK) will attract $2.6 billion for the construction of a new copper smelting complex

    Uzbekistan’s Almalyk Mining and Metallurgical Complex (AGMK) has announced its plans to secure a significant investment of $2.6 billion for the purpose of constructing a state-of-the-art copper smelting complex. This ambitious project aims to further enhance the complex’s capabilities and solidify its position as a leading player in the mining and metallurgical industry. The substantial investment will undoubtedly contribute to the growth and development of AGMK, allowing it to leverage advanced technology and modern infrastructure in its copper smelting operations. This significant financial commitment demonstrates the confidence and belief in AGMK’s potential to thrive in the ever-evolving global market.