China Development Bank Lends to Kazakhstan Copper Company
Monday 19 December 2011
URUMQI (Xinhua) – 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 US $1.34 billion and 1 billion yuan ($158 million) for a new project.
- The China Development Bank Tower in Shanghai
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 in 2010.
The China Development Bank was established in March 1994 to provide development oriented finance for government projects of national priority. It is under the direct jurisdiction of the State Council or the People’s Central Government. At present, it has 35 branches and 1 representative offices across the country. The bank provides financing for national projects such as infrastructure, basic industries, energy and transportation. The main objective as a state financial institution is to support the macroeconomic policies of the central government and to support national economic development and strategic structural changes in the economy.