Kazakh Gold Producer Seeks to Raise $130 Million to Develop Mine

JSC AK Altynalmas, a Kazakh gold mining company, plans to raise as much as $130 million in bank loans to develop a mine producing about 100,000 ounces a year.

The funding is needed to begin work on the Pustynnoye site in Karaganda region after the company “completes a feasibility study by the start of the fall,” said Chief Executive Officer Diyar Kanashev. “We work with Eurasian Development Bank, Eurasian Bank, UniCredit SpA, VTB” and other lenders.

The closely held JSC AK Altynalmas began gold output at its Akbakai plant in Zhambyl region from July 2011 after investing about $100 million in bank loans, Kanashev told reporters in Almaty, declining to name the company’s shareholders.

The company plans to produce about 45,000 ounces of gold this year and more than 100,000 ounces next year at Akbakai, he said. The Pustynnoye project will help the company to reach total output of 200,000 ounces of gold in 2014, Kanashev said. The company will invest as much as $40 million of its own funds to build a second phase of the Akbakai plant by 2014, he said.

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