Reuters reported that Kazakhmys agreed to borrow USD 1.5 billion loan from China Development Bank to help develop a large copper deposit in eastern Kazakhstan.

Officials said that the loan, to be disbursed by the end of this year will enable Kazakhmys to develop the Aktogay copper field in eastern Kazakhstan without selling a stake in the deposit to China's Jinchuan Group Limited.

Kazakhmys had earlier announced plans to sell 49% of the Aktogay deposit to Jinchuan Group, China's largest nickel producer and third biggest copper producer.

The Aktogay deposit contains an estimated 5 million tonnes of copper. Kazakhmys has said investment of around USD 2 billion will be required to bring the field into operation at an annual rate of 100,000 tonnes of copper in concentrate from 2015.

Mr Oleg Novachuk CEO of Kazakhmys and Mr Gao Jian VP of China Development Bank signed MoU on the loan during President Mr Hu Jintao's visit to the Kazakh capital Astana.

Kazakhmys secured a separate loan of USD 2.7 billion from China Development Bank in 2009 around USD 2 billion of which will be used to develop another major Kazakh copper deposit, Bozshakol. Kazakhmys produced 303,000 tonnes of copper cathode from its own concentrate last year down from 320,400 tonnes in 2009.

The company operates 17 mines, 10 processing plants and two copper smelters in Kazakhstan one in the city of Zhezkazgan and the other in the city of Balkhash.

(Sourced from Reuters)