MINEX Forum

Website: Asia.com

  • Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazatomprom Signs Major Uranium Sale Agreement with China

    Kazakhstan-based Kazatomprom, the world’s largest uranium miner, announced on Tuesday that it has finalized a significant agreement with CNNC Overseas and China National Uranium Corporation for the sale of natural uranium concentrates. The cumulative value of this transaction, combined with previous deals with these Chinese entities, represents over 50% of Kazatomprom’s total asset book value.

    While the company did not disclose the volume of the uranium involved, it stated that the deal will require approval from shareholders at a meeting scheduled for November 15.

  • NMMC Celebrates Historic Eurobond Issuance with London Stock Exchange Closing Bell

    NMMC Celebrates Historic Eurobond Issuance with London Stock Exchange Closing Bell

    October 11, 2024 – Navoi Mining and Metallurgical Company (NMMC) announced the successful pricing of its inaugural US$1 billion dual-tranche Notes offering. The offering comprises US$500 million in 4-year notes at 6.70% and US$500 million in 7-year notes at 6.95%.

    This landmark transaction represents several key achievements:

    • Largest order book for an issuer from Uzbekistan since the sovereign debut in 2019: The offering peaked at US$5.5 billion, representing an oversubscription of more than 5.5 times. This demonstrates strong investor confidence in NMMC and its future prospects.
    • Significant issuance size: This is one of the largest corporate Notes deals from the CIS since July 2020 and the largest ever from Uzbekistan after the sovereign.
    • First in the sector: This marks the first global debt capital markets issuance from a gold mining company since June 2023 and the first for a non-investment grade gold mining company since October 2021.
    • Tightest premium to sovereign: NMMC achieved a premium of only 20bps and 7.5bps on the 4-year and 7-year tranches, respectively, the tightest achieved by a quasi-sovereign from Uzbekistan.

    Prior to the transaction, NMMC obtained its first-ever credit ratings, with its standalone credit profile confirmed at a level above sovereign: bb+ by S&P and bb by Fitch, both capped at the sovereign level of BB-.

    The offering was announced on October 4th, followed by a successful three-day hybrid investor roadshow reaching over 150 investors globally.

    “This Notes issue is a unique transaction, both in terms of volume and coupon rate,” said Eugene Antonov, NMMC First Deputy CEO and Chief Transformation Officer. “Strong investor demand reaffirms NMMC’s leading position in the mining industry and culminates years of transformative changes. We are pursuing ambitious goals to become a truly global mining company and will continue delivering returns for our investors.”

    Jakhongir Khasanov, Deputy General Director and Chief Financial Officer, added, “This milestone signifies the beginning of a long and fruitful relationship with the global investor community. The strong interest in our Notes offering highlights NMMC’s financial stability and resilience. We remain committed to investing in the future and driving sustainable growth.”

    NMMC intends to use the net proceeds for general corporate purposes, including capital expenditure, debt repayment, working capital, and operational expenses. This issuance allows NMMC to refinance existing debt at more attractive rates and longer tenors while establishing benchmarks for future Notes placements.

    About NMMC

    Navoi Mining and Metallurgical Company is a leading mining company in Uzbekistan, engaged in the exploration, extraction, and processing of gold, uranium, and other minerals. NMMC operates the world-renowned Muruntau gold mine, one of the largest gold mines globally.

  • UK Export Finance Supports First Deal in Uzbekistan with €12.6 Million Loan Guarantee for Almalyk Mining

    UK Export Finance Supports First Deal in Uzbekistan with €12.6 Million Loan Guarantee for Almalyk Mining

    UK Export Finance (UKEF) has secured its first deal in Uzbekistan, providing a €12.6 million loan guarantee to Almalyk Mining and Metallurgical Complex (AMMC), one of Central Asia’s largest copper producers. The loan will support the refinancing of AMMC’s purchase of advanced automated machinery from Weir, a subsidiary of the Scottish multinational. This order, placed in 2022, helps Almalyk in enhancing its copper production capabilities.

    The UKEF guarantee, issued through an international bank, is aimed at promoting UK exports and strengthening economic ties between the UK and Uzbekistan. Total UK-Uzbekistan trade amounted to £381 million in 2023, with specialized machinery ranking as the fourth most traded commodity. The machinery supplied by Weir will be instrumental for AMMC, as copper plays a crucial role in sectors such as construction, renewable energy, and electric vehicles.

    UKEF has earmarked up to £4 billion to support future projects in Uzbekistan, with a focus on clean and sustainable technologies. Tim Reid, UKEF CEO, expressed optimism for further strengthening trade relations between the two nations. The recent appointment of Sevara Madgazieva as UKEF’s representative in Tashkent highlights the agency’s commitment to backing projects that contribute to Uzbekistan’s economic diversification.

  • Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    Mongolia’s Long-Delayed Uranium Project by Orano Could Begin Production by 2030

    French state-controlled mining company Orano SA announced that its long-awaited uranium project in Mongolia, the Zuuvch Ovoo mine, could begin production by 2030, following five years of construction. The project’s future hinges on the signing of an investment agreement, with a confirmation vote scheduled for the current session of Mongolia’s parliament.

    Orano’s representative in Mongolia, Olivier Thoumyre, revealed that the mine could become the largest in the country since Rio Tinto’s Oyu Tolgoi copper-gold project. Zuuvch Ovoo has been in development for over a decade, initially launched by Orano’s predecessor, Areva SA, in partnership with Mongolia’s state nuclear company, Mon-Atom.

    The global demand for uranium is on the rise as countries such as China continue to build nuclear power plants, and other nations in Europe and Asia focus on nuclear energy as part of their strategies to reduce carbon emissions. This growing demand positions Mongolia to potentially become a key player in the uranium market, according to Thoumyre, who spoke at an industry event in Nalaikh, near Ulaanbaatar.

    The reappointment of Prime Minister Oyun-Erdene Luvsannamsrai in July has provided a sense of stability, encouraging continued negotiations between the Mongolian government and Orano. Discussions on the project’s terms, which began a year ago, have remained active, Thoumyre added.

  • Kyrgyzstan Begins Development of Major Titanomagnetite Deposit

    Kyrgyzstan Begins Development of Major Titanomagnetite Deposit

    During a working trip to the Issyk-Kul region, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic and the Head of the Presidential Administration, Akylbek Japarov, participated in a significant event – the laying of a capsule symbolizing the start of the development of Kyrgyzstan’s largest titanomagnetite deposit, Kyzyl-Ompol, located in the Tash-Bulak area.

    The Head of the Cabinet of Ministers emphasized that the development of this valuable resource will be undertaken by the state, and the sources of financing for the project will be determined.

    “This is a very important event for Kyrgyzstan. The Kyzyl-Ompol deposit contains millions of tons of titanomagnetite. Titanium is a valuable metal used in various industries, including medicine, aviation, and space exploration. The development of this deposit will not only increase our exports but also create new jobs, providing a stimulus for the country’s economic development,” said Akylbek Japarov.

    Japarov also highlighted the importance of an environmentally safe approach to the development of the deposit, noting that technologies ensuring the safe extraction of accompanying minerals such as uranium and thorium will be applied. These elements will be removed and transported from the site in strict accordance with international safety standards.

    After the capsule-laying ceremony, Akylbek Japarov familiarized himself with the construction progress of a small hydroelectric power plant at the Orto-Tokoy reservoir. The construction of this hydroelectric station is part of the state program to increase electricity production and create new energy sources in Kyrgyzstan.

    At the end of his working trip, the Head of the Cabinet of Ministers inspected the reconstruction of the Balykchy-Bokonbaev-Karakol road, specifically the section from Balykchy to Barskoon. The decision to inspect this road was made due to complaints from local residents about the delay in repair works.

    Akylbek Japarov expressed dissatisfaction with the pace of the road reconstruction and instructed the responsible parties to accelerate the work and ensure the quality execution of the project. He emphasized that the modernization of road infrastructure is an important step in the development of the transportation system and ensuring traffic safety. Japarov noted that he will personally monitor this issue.

  • Mawson Finland Announces Positive Drill Results in Raja and Joki Zones

    Mawson Finland Announces Positive Drill Results in Raja and Joki Zones

    Mawson Finland Limited has reported promising new drill results from the Raja and Joki zones at its Rajapalot gold-cobalt project in Finland. The results come from a total of 10 drillholes conducted as part of the Company’s 2024 winter drilling campaign. Key findings include the extension of the Raja mineral system by up to 90 meters in some areas, with notable results from drillholes PAL0347, PAL0349, and PAL0355. Among the highlights, PAL0347 recorded 5.8 meters at 2.17 g/t gold, while PAL0349 identified 3.6 meters at 1.74 g/t gold and 1007 ppm cobalt.
    CEO Noora Ahola expressed optimism about the findings, noting the potential for the Raja zone to contribute additional gold-cobalt resources. Mawson remains committed to its resource expansion goals and will continue to release further drill results in the upcoming weeks.

  • Erdene Provides Update on Bayan Khundii Gold Project and Announces Drill Results

    Erdene Provides Update on Bayan Khundii Gold Project and Announces Drill Results

    Erdene Resource Development Corp. has released results from shallow drilling at the Bayan Khundii orebody and provided an update on the Bayan Khundii Gold Project under construction. The project is being developed by Erdene Mongol LLC, a joint venture between Erdene and Mongolian Mining Corporation. Initial results from the drilling program confirmed the high-grade nature of the deposit, consistent with the reserve model for surface zones.

    Erdene’s President and CEO, Peter Akerley, highlighted that a 13,500-metre reverse circulation drilling program will begin soon, aiming to finalize the mine plan before the start of mining in Q1 2025. Exploration drilling around the Bayan Khundii pit is also completed, with results expected in the coming weeks to update the mine plan in conjunction with current gold prices.

    During Q3 2024, a total of 89 shallow diamond drill holes were completed in the high-grade zones within 15 meters of the surface. Additionally, 10 deeper holes were drilled for future mine planning. In Q4 2024, a grade control drilling program consisting of 13,500 meters will take place to refine mining plans further. The mining of Bayan Khundii is expected to start in late Q1 2025, with the mine to be operated using a leased fleet of equipment and employing nearly 90 local operators.

    Mining will focus on the Bayan Khundii pit and a satellite pit at the Dark Horse Mane deposit starting in year 3. The operation aims to produce 650,000 tonnes per annum with a 4 g/t gold grade, reaching an annual gold production of 86,900 ounces during peak years.

    Construction of an Integrated Waste Facility has begun, with tailings and waste rock to be managed in an environmentally controlled manner. Gold production is expected to ramp up over the initial 90 days of operation in 2025.

  • Anglo Asian Mining Unveils JORC-Compliant Resource Estimate for Garadag Copper Deposit

    Anglo Asian Mining Unveils JORC-Compliant Resource Estimate for Garadag Copper Deposit

    On Tuesday, Anglo Asian Mining (LON: AAZ), a leading producer of gold, silver, and copper in Azerbaijan, announced an independent JORC-compliant mineral resource estimate (MRE) for its Garadag copper deposit. The estimate was carried out by Mining Plus UK, revealing a total resource of approximately 900,000 tonnes of copperhosted within 285 million tonnes of ore, with an average grade of 0.32% copper. This includes 304,300 tonnes of copper in the indicated category, derived from 86.9 million tonnes of ore.

    The MRE, the first for the Garadag deposit, was based on 113 third-party drill holes, covering a total of 25,620 meters. To further refine the estimate, Anglo Asian is planning additional infill and extensional drilling, focusing on 26 legacy holes drilled by AzerGold that have not yet been assayed. The company also intends to explore further to gauge the full extent of the mineralization at Garadag.

    “We are excited to confirm the significant potential of the Garadag copper deposit through this independent resource estimate,” said Stephen Westhead, vice-president of Anglo Asian. He noted that the copper output from Garadag would play a crucial role in the company’s strategy to evolve into a mid-tier copper producer with multiple assets.

    Since 2021, Anglo Asian has been expanding its presence in Azerbaijan, acquiring three new copper concessions, including the large-scale Garadag porphyry deposit and the adjacent Xarxar copper deposit. In return, Anglo Asian will relinquish its rights to the Soyudlu gold mine, situated on the border of Azerbaijan’s Kelbajar district and Armenia.

    Anglo Asian’s stock saw a 3.5% increase in London trading, closing with a market capitalization of £102.82 million ($138 million).

  • Kazakhstan Launches Lithium Recovery Facility Through Battery Recycling

    Kazakhstan Launches Lithium Recovery Facility Through Battery Recycling

    In Kazakhstan, while the industrial-scale extraction of lithium is not yet fully developed, the country has started obtaining this rare metal by recycling batteries. The first facility dedicated to extracting valuable components from lithium-ion batteries has been launched at the Industrial Place business park. This new production line has a capacity of processing at least 20 tons of raw material per month, according to a report from the Almaty Social Entrepreneurship Corporation (SPK). The facility was built by the company Technic Destroy.

    The facility employs a recycling technology designed to recover lithium-containing powder, aluminum, copper, and other metals from spent batteries. The SPK estimates that 1 ton of used batteries can yield up to 250 kg of lithium, reducing the need for raw material extraction. Battery recycling is said to produce 70-80% fewer emissions compared to primary lithium mining operations.

    At present, local companies in Kazakhstan are not directly engaged in lithium extraction. The country is actively inviting foreign investors into the rare metals and rare earth industries. Earlier this year, three German companies formed a consortium to develop lithium production in Kazakhstan.

  • Surge in Chinese Companies Registered in Kazakhstan Marks Record Growth

    Surge in Chinese Companies Registered in Kazakhstan Marks Record Growth

    The number of Chinese companies registered in Kazakhstan has surged, with a 3.3% increase in August 2024 alone, as 150 new entities were added, bringing the total to 4,700 legal entities, according to the First Credit Bureau (FCB). This marks the highest monthly growth since 2022. Analysts attribute the steady rise to favorable business conditions in the region, despite a slight dip in November 2023, when the number of registered Chinese firms decreased by 20.

    Of the registered Chinese companies, more than 3,000 are currently operational, indicating strong market engagement. No other foreign partner country showed a similar increase in August. Additionally, the number of jointly owned Chinese companies rose by 2.6% month-on-month (MoM), reaching 902.

    In contrast, the number of Russian companies in Kazakhstan has been decreasing for the first time since Russia’s invasion of Ukraine in February 2022. In August, the number of registered Russian enterprises dropped by 13 compared to July, and operating Russian firms fell by 138, reducing the total to 23,500. However, joint ventures with Russian partners increased slightly by 0.6%, bringing the total to 5,000.

    According to the Bureau of National Statistics, Kazakhstan had 31,900 registered foreign companies by August, with 12.1% based in Almaty, 11.7% in Astana, and 6.7% in the Karaganda region. The largest sectors for company registration were services, wholesale and retail trade, and professional research and engineering activities.