UZBEKUGOL TO REALIZE PROJECTS FOR US$690.5M

Uzbekugol (Uzbek coal) is planning to realize six investment projects with total cost of US$690.5 million.

The projects will be realized within the programme on development and modernization of coal industry for 2017-2021.

In particular, the company plans to realize a project “Modernization of joint stock company Shargunkumir” with the cost of US$105.5 million.

It is also planned to realize a project “Construction of Angren mine” with the preliminary cost of US$165 million.

About US$175.2 million will be invested to project “Construction of Nishbash mine”. Uzbekugol is planning to realize project “Replacement of old equipment” with the preliminary cost of US$170.2 million. It is planned to purchase mining equipment.

The company will implement the project “Support of production capacities of Uzbekugol” with the cost of US$15 million and the project “Modernization of railway transport” with the cost of US$59.6 million.

The projects will be financed due to own resources of the companies (US$87.5 million), loans of commercial banks (US$155.6 million), loans of the Fund for Reconstruction and Development of Uzbekistan (US$68.7 million) and soft loans of China to the SCO member state (378.7 million).

According to Uzbekugol, in the result, the volume of overburden will grow from 21 million cubic meters in 2016 to 27.8 million cubic meters in 2021.

The extraction of coal by the open method in 2016 reached 3.6 million tonnes, the figure will increase to 4.17 million tonnes in 2021.

The total volume of coal production will increase from 3.87 million tonnes in 2016 to 11.67 million tonnes in 2021, said Uzbekugol.

UzDaily