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Uzbekistan seeks Korean involvement in Khandiza polymetallic deposit(Interfax News Agency Via Thomson Dialog NewsEdge)TASHKENT. April 25 (Interfax) - Uzbekistan plans to involve Korea Resources (Kores) as an investor in the development of the Khandiza polymetallic deposit in the Surkhandarya region, the exclusive rights to which have already been granted to UK-based Oxus Gold. The Khandiza project is on a list of projects proposed for implementation with direct South Korean investment and financial cooperation in the presidential decree setting out priority measures for implementation of agreements reached at an Uzbek-Korean summit in late March. An appendix to the April 11 decree states that the Korean company will invest $75 million in the project, which will be carried out in2006-2007. The State Geology and Mineral Resources Committee and the Economics Ministry will be responsible for the project. A source at Oxus Gold's office in Uzbekistan told Interfax that he had no information about this decree and Kores' possible participation in the Khandiza project. "We met with Korean companies, including with representatives of Kores, several times at the suggestion of the Uzbek side," he said. "But we unequivocally said that we have to opportunity for Kores to participate as an investor in this project," he said. Oxus Gold is prepared to discuss the issue of Korean companies' participation only as suppliers of production equipment or buyers of nonferrous metals, he said. Independent analysts said Uzbekistan is aggressively foisting Korean partners on Oxus in the project to develop Khandiza. But the Mineral Resources Committee denies this. "Without the agreement of Oxus Gold, other foreign investors can be involved in this project," a senior official at the committee said. He said the Committee and Oxus subsidiary Marakand Minerals Ltd. have an agreement to form a joint venture to develop Khandiza on aparity basis. "The British company can agree on the participation of another foreign partner in this project, but only at the expense of its 50%stake," he said. The "government cannot refuse the company to which it has granted exclusive rights to explore and develop the Khandiza deposit," he said. Nonetheless, a joint venture for Khandiza has not been created yet. "In August of last year we submitted to the Uzbek side all documents for signing an agreement on the creation of the JV, and then - nothing," the Oxus source said. Marakand Minerals has said it plans to create a joint venture by the end of 2006 for the $71-million project to explore and develop the Khandiza polymetallic ore deposit in Uzbekistan's Surkhandarya region. Marakand Minerals said the project had been included in its 2006 investment budget and that the deposit should go on stream late 2007 or early 2008. A project feasibility study says that a facility capable of processing 650,000 tonnes of ore per year will be built and that themine will have a life of at least 15 years. Marakand Minerals will finance the project itself. It has so far raised around $8 million on the AIM. Oxus owns 81.6% of Marakand Minerals, set up especially for the Khandiza project. Earlier it was thought that Marakand Minerals would sign a concession agreement with the Uzbek government. Khandiza contains a proven resource of 14.4 million tonnes of ore with an average content of 7.24% for zinc, 3.5% for lead, 0.86% forcopper, 134 g/t for silver and 0.38 g/t for gold. The ore also contains selenium, cadmium and indium. Oxus Gold Plc. was set up in 1996 for mining projects in Central Asia. It and the Uzbek government signed an agreement on the Khandiza project in 1996. The government granted Oxus the exclusive right to explore and mine the field in September 2003. Vp pr |