The loan was issued for seven years with three-year grace period. The interest rate on loan was not disclosed.

The load will be used to realize projects on modernization of Baisun and Shargun coal deposits. Total cost of the project is US$15 million.

Shargunkomir open joint-stock company owns both coal deposits and its shareholders will finance other part of the projects. Shargunkomir announced tender in mid-August 2009 to purchase equipment. It is expected that the results will be announced in October 2009.

The projects will allow the enterprises to increase coal production twice to 200,000 tonnes a year within 2009-2010.

British consortium - SAB Energy, Shadella Inc.and M. Metal&Co - acquired 41.57% share for US$1.6 million in Shargunkomir in January 2006. Government of Uzbekistan possesses 51% share, including 26% transferred to Uzbekugo for management. Employees hold 7.43% share.

Total explored reserves of Baisun and Shargun coal mines makes up 45.8 million tonnes.

Uzbekugol also mines coal at Angren lignite mine in Tashkent region. Uzbekistan consumes about 4 million tonnes of coal annually, of which 3 million consumed by enterprises of Uzbekenergo, electricity producer.