Copper miner Kazakhmys has agreed a USD 1.5 billion loan facility with state run China Development Bank for the development of its Aktogay copper project, finalizing an agreement first secured in June.

The facility which is on top of an existing USD 2.7 billion loan from China two years ago to fund the development of its Greenfield Bozshakol copper project and a series of mid sized projects is made of two agreements and will be available to be drawn down over a three year period.

The feasibility study for Aktogay, a large but relatively low-grade copper project set to cost up to USD 2 billion, has begun and is expected to be completed by the end of next year.

Analyst Charles Cooper at Oriel Securities said that "Aktogay will contribute around 100,000 tonnes per annum of copper in concentrate over a 40 year mine life but will require a hefty USD 1.5 to USD 1.9 billion of capex, making the project one of the most expensive greenfield growth projects globally adding the funding deal was nonetheless positive for the miner.”

(Sourced from Thomson Reuters)