Uzbekistan's Almalyk Mining and Metals Combine (AMMC) has announced a $15bn expansion program to increase its copper cathode production. The state-controlled enterprise plans to raise its annual output from the current 148,000 metric tons to 400,000 metric tons by 2030. This move is aimed at meeting the growing demand for copper, which is essential in the power and construction industries.
AMMC’s expansion plan includes enhancements to its mining and ore processing facilities and the construction of a new smelter. These initiatives are part of an expansion program approved by the Uzbek government in 2020.
AMMC plans to secure most of the necessary funding through loans from both local and international banks. Additionally, the company will receive $1 billion from a state development fund. As part of its financing strategy, AMMC signed an agreement last year with Germany's KfW IPEX-Bank to arrange $2.55bn in loans.
The global copper market is currently experiencing a surplus, with the International Copper Study Group forecasting a surplus of 162,000 tons for this year. Refined copper production is expected to reach 27.3 mn tons.
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