In line with JORC classification, the deposit has 14.4 million tonnes of ore with content of 134 g per tonne of silver, 7.24 g per tonne of zinc, 3.5 g per tonne of lead, 0.86 g per tonne of copper and 0.38 g per tonne of gold. The ore also contains selenium, cadmium and indium. At current prices at the world markets, the deposit’s reserves are evaluated at US$4.5 billion.

In August 2006, the presidential decree “On effective use of mineral resource base of polymetal ores at Khandiza deposit handed over exclusive right to development of polymetallic deposit to Almalyk Mining and Metallurgy Combine. Earlier, Britain’s Oxus Gold held this right. In the second half of 2007, the combine started to develop deposit. The project cost is US$147 million.

The project is financed due to own resources for US$46.5 million, loan of the Fund for Reconstruction and Development of Uzbekistan for US$60 million and loans of the Uzbek banks for US$40 million. The feasibility study of the project was developed by Russian institute Mehanobrinjunering (Saint Petersburg).

The design capacity of ore mining and processing complex is 650,000 tonnes of ore a year. According to the information service of AGMK, the production capacities of ore mining and processing complex can make up 6,000 tonnes of copper concentrate, 20,000 tonnes of lean concentrate and 60 tonnes of zinc concentrate a year.

Member of the State Expert Group on control over and commissioning to exploitation of ore mining and processing complex Khandiza Anatoliy Varavin said that the complex will include decomposition and flotation department, reagent area, concentrate dehydration unit, and others. The administrative complex and bunker for ores were constructed. The line on ore supply to main corpus for further decomposition was launched and three water reservoirs with the volume of 1,000 cubic meters each were installed, he added. Varavin said that all works are conducted strictly on schedule.

It is planned that the complex will be commissioned this year and it will reach designed capacity by the end of 2011.

The works on installation of four mills at the decomposition and flotation department is underway now and it will be completed soon. AGMK said over 20 cells of floatation equipment with the volume of 16 cubic meters for flotation of lead and zinc concentrate, 16 cells of floatation equipment with the volume of 3,2 cubic meters for separation of copper-lead concentrate to copper and lead were installed. The equipment is connected with pipelines with installation of Grak pumps.

Anatoliy Varavin said the work on installation of blower and compressor is completed. Almost all equipment were installed. The company is waiting for supply four cells of flotation equipment with the capacity of 3.2 cubic meters. Zeromax GmbH is implementing all works in line with the contract. Construction of other necessary objects and infrastructure are also underway. One of them is Kenguzar-Debadan road with the extension of 33 km, which is strategic object for AGMK. Besides, the construction of six bridges through this road and 49 mudflow holding equipment are underway. The construction of underground mine was constructed at the deposit in December 2009.

Earlier, it was planned to launch Khandiza ore mining and processing complex at the end of 2009. But the terms were shifted due to problems with project financing. Swiss Zeromax GmbH acted as general contractor of the complex construction. The launch of the complex will allow AGMK to load zinc capacities with own raw materials by 50%. Currently, AGMK’s zinc production with the capacity of 125,000 tonnes fully works on tolling scheme with Russia.

Almalyk Mining and Metallurgy Combine OJSC is the largest producer of copper in Central Asia and it has right to develop several copper- molybdenic and lead-zinc deposits in Tashkent, Jizzakh and Namangan regions of Uzbekistan. The enterprise produces purified copper (cathode), including copper concentrate based on tolling and due to processing of scrap, metal zinc, lead concentrate and other products. Share of AGMK in production of silver is 90% and gold – 20% in Uzbekistan.

AGMK now has four ore mills – copper, lead-zinc and two gold producing. The enterprise has eight ore mining enterprises and two metallurgy plants. Khandiza ore mining and processing complex will become the fifth plant.