China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. Signs KZT 4.5 Billion Copper Plant Agreement in Kazakhstan

en.Wedoany.com Reported - On October 19, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC) signed the "Preparation Work Commencement Agreement" for the 300,000-ton-per-year copper smelter project with Kazakhstan Mining and Smelting LLP through its controlled subsidiary NFC Kazakhstan. The maximum amount of the agreement is KZT 4.5212 billion (excluding VAT). The agreement takes effect upon signature by both parties, and the contractor will carry out preliminary work including engineering mobilization, surveying, site preparation, temporary facilities construction, and basic design.

Under the agreement, NFC Kazakhstan is responsible for the preliminary organization of the construction site, and the scope of temporary facilities construction includes construction camps, utility facilities, site fencing, and on-site security facilities. Basic design work is also included in the scope of this agreement, and the contractor will commence the relevant work as agreed.

The owner will pay the advance payment stipulated in the agreement in tenge. After the formal construction contract is signed by both parties, the advance payment will be credited toward the construction contract price, and the subsequent contract will replace this agreement. If the formal construction contract is not signed and the preparation work agreement is terminated, NFC Kazakhstan may only retain the actual costs already incurred and substantiated by vouchers within the maximum amount, and the remaining advance payment shall be refunded to the owner. The agreement also grants the owner the right to terminate the preparation work, and both parties may adjust or extend the relevant arrangements based on subsequent negotiations.

The general agreement for the copper smelter project was signed on June 3, 2024, with an original contract amount of approximately USD 1.414 billion. According to the previously determined division of work, NFC is responsible for project design and procurement, while NFC Kazakhstan undertakes construction. This preparation work agreement is a preliminary implementation arrangement under the existing project cooperation framework, and the formal construction contract will continue to be negotiated and signed by both parties.