China Development Bank loans millions to Kazakhstan copper company
China Development Bank (CDB), one of the country's three policy banks, has signed two agreements with Kazak copper giant Kazakhmys PLC, granting the mine and refinery operator 1.34 billion U.S. dollars and 1 billion yuan (158 million U.S. dollars) for a new project.
According to the agreements signed on Friday in Urumqi, capital city of northwest China's Xinjiang Uygur autonomous region, both the loans, with a term of 15 years, will be used to fund development of a new mine in Aktogay, east Kazakhstan.
Oleg Novachuk, chief executive officer of Kazakhmys PLC, said the loans secured funding for the project.
Mining equipment would be introduced from China and part of the production would also be exported to China, said Novachuk.
Cheng Yongxu, deputy chief of the CDB Xinjiang branch, said a loan integrating U.S. dollars and yuan helped to avoid currency exchange loss for both parties, and also provided convenience for Chinese companies to export equipment and participate in the mine's construction.
Listed in London and Hong Kong, Kazakhmys PLC is the largest copper producer in Kazakhstan, with profits of 1.45 billion U.S. dollars in 2010.