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. Last Updated: 07/27/2016

ShalkiyaZinc Eyes $150M Loan

ShalkiyaZinc, owner of Kazakhstan's largest zinc deposit, said Monday that it expected to arrange up to $150 million in debt finance from Barclays Capital to fund expansion of a mine and construction of an ore-processing plant.

ShalkiyaZinc, which raised $102 million in December placing one-quarter of its stock in London, said in a statement that it expected to open the plant in 2010. It will have capacity to process 4 million tons per year of lead-zinc ore.

The company has also appointed Barclays Capital, the investment banking division of Barclays Bank, as financial adviser to the project. It appointed SRK Consulting Group as independent project manager and Russia's Mekhanobr Engineering as a consultant.

ShalkiyaZinc owns the Shalkiya deposit in southern Kazakhstan, which holds about 30 percent of the Central Asian country's total zinc reserves. The metal is used mainly to protect steel from rusting.

"Through the proposed expansion of the Shalkiya mine and construction of the new processing plant, the company intends to significantly increase production from our current resource base," ShalkiyaZinc chairman Marat Sarkytbayev said.

The company previously said it planned to triple output by 2010. It sold 13,700 tons of zinc concentrate containing 6,200 tons of the metal in the first six months of 2007.