Narrative
Full Description
Project narrative
On May 19, 2013, China Development Bank (CDB) and Zijin Mining Group signed a loan agreement with JV Zeravshan LLC (formerly known as Zervashan Gold Company) -- a special purpose vehicle and joint venture of Zijin Mining Group Co., Ltd (70% equity stake) and the Government of Tajikistan (30% equity stake) -- worth $140 million. The proceeds from the loan were to be used for the Technological Innovation of ZGC Gold Mine in Tajikistan, a project that aimed to expand the production capacity of a gold mine in the town of Panjakent within Zarafshon in northern Tajikistan. As of March 28, 2014, the project had entered implementation and achieved the following objectives: (1) the stripping of infrastructure of Jilao open-pit mine and Taror openpit mine had been completed for over 90% and 80%, respectively; (2) the reformation of industrial pilot production processing technology of Taror oxide ore processing plant had been completed; and (3) the Jilao 10,000 tonnes processing plant project had entered into civil engineering construction and installation stage. Upon completion, the project was expected to increase the mine's production to 3.5 tonnes of gold per year.
Staff comments
1. In 1994, Zeravshan Gold Company (ZGC) was launched as a joint venture with Nelson Resources Ltd (44%) and the Tajik Government (51%) and the IFC (5%). Then, in September 2002, Avocet signed a heads of agreement to acquire the Tajik gold assets of Toronto-based Nelson Resources Ltd held through Nelson’s subsidiary, Commonwealth and British Minerals Ltd, including its 44% interest in ZGC. In November 2004, Avocet increased its equity interest in ZGC from 49% to 75%. Then, in 2007, Zijin paid $429.8 million HKD to acquire Avocet's stake. In February 2018, Zijin Mining, sold 5% of its shares in JV Zarafshon (its new name) to the Tajik government for $1.00 USD. With this, Zijin's share fell to 70% ($16,974,364 USD), while the Tajik government's share rose to 30% ($7,274,724 USD). 2. This project was one of many signed during the same visit of the President of Tajikistan to China from May 19, 2013 to May 20, 2013. The other projects were: loans worth RMB 33 million to Amonatbonk (captured via Record ID#69997), an RMB 200 million grant (captured via Record ID#40481), a loan for the reconstruction of Regar Substation (captured via Record ID#40482), loans totaling $20 million to Amonatbonk (captured via Record ID#72802), a technical cooperation agreement, a fruit inspection protocol, and a sports cooperation agreement. 3. The project is linked to another Zijing Group stake acquisition project (captured via Record ID#72389).