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. Last Updated: 07/27/2016

Oxus Plans Uzbek Operations

TASHKENT, Uzbekistan -- British-based mining company Oxus Resources Corp. plans to build a $140 million factory to produce zinc, lead and copper concentrates in Uzbekistan, a senior company official said Tuesday.

"We have just completed pre-feasibility studies. Construction will hopefully start in the fourth quarter of 1999 to be completed by the end of 2001," Executive Vice President and Director Richard Wilkins said.

In December last year, Oxus and the Uzbek government signed a contract on the development of the former Soviet state's Khandiza deposits of nonferrous metals. Wilkins said the concentrates would be produced by its joint venture with the Uzbek government, in which Oxus would hold no less than 50 percent.

He did not say who would finance factory construction, but promised to arrange financing by the third quarter of 1999 before the start of construction.

He said Khandiza, 350 kilometers southeast of the Uzbek capital, Tashkent, has total reserves of 11 million metric tons of ores, including 1.2 million tons of zinc, 470,000 tons of lead and 154,000 tons of copper.

The factory, with a maximum projected annual capacity of processing one million tons of ore, is expected to run for 12 years, Wilkins said.

Besides nonferrous metals, Khandiza holds gold, concentration of which is estimated at as much as 0.6 grams per ton, and silver with concentration of 172 grams per ton.