Almalyk MMC copper expansion: export-credit and bank financing, and a 48 billion soum environmental compensation demand
- At the Angren ore-management plant, worn treatment equipment meant that wastewater, in the article's words, "effectively turns into waste and is discharged into the Angren River". Spot.uz
Almalyk Mining and Metallurgical Complex is expanding its Yoshlik I copper project with foreign bank financing, including a US$ 2.55 billion KfW IPEX-Bank mandate and a UK Export Finance guarantee. In April 2026 the environmental regulator demanded 48 billion soums in compensation after an Ecopolice raid in which it named hazardous waste stored in the open and wastewater discharged into the Angren River.
National Committee on Ecology and Climate Change, after an Ecopolice raid; payment status not reported. Separate financing: US$ 2.55 billion KfW IPEX-Bank mandate (2023).
Status As of April 2026: the National Committee on Ecology and Climate Change demanded 48 billion soums in compensation and issued 20 mandatory orders; payment status and AMMC's response are not reported.
- KfW IPEX-Bank — Mandated to work with AMMC on raising US$ 2.55 billion AMMC
- Weir (UK) — Supplier of the automated machinery whose purchase the UKEF-guaranteed loan refinanced UK Government (UK Export Finance)
- Fund for Reconstruction and Development of Uzbekistan — Lender of US$ 350 million for Yoshlik II Trend
- AMMC — Faces a demand for 48 billion soums and 20 mandatory orders Spot.uz
What happened
On 7 November 2023 the Almalyk Mining and Metallurgical Complex (AMMC) and KfW IPEX-Bank GmbH, a wholly owned subsidiary of KfW, agreed to work together on raising US$ 2.55 billion for the "Development of 'Yoshlik I' deposit" project, described as expanding the copper smelting complex. The AMMC page names no export credit agency and makes no environmental statements.
On 2 October 2024 UK Export Finance guaranteed a €12.6 million loan from an unnamed international bank to AMMC, to refinance automated machinery bought from Weir (UK). It was UKEF's first deal in Uzbekistan. The release gives no environmental or social classification.
On 16 January 2025 the presidential press secretary, Sherzod Asadov, said AMMC should issue US$ 1 billion in Eurobonds in 2025, out of US$ 2.1 billion planned across leading mining and metallurgy companies (Interfax); whether the bond was issued was not confirmed. An earlier project, Yoshlik II, was approved on 17 August 2017 at a cost of US$ 420 million, including a US$ 350 million loan from the Fund for Reconstruction and Development of Uzbekistan (Trend).
Spot.uz reported on 9 April 2026 that, after an Ecopolice raid, the National Committee on Ecology and Climate Change demanded "additional compensation in the amount of 48 billion soums" and issued 20 mandatory orders. The violations named were hazardous waste "stored on open sites", which the article says harms soil and groundwater, and, at the Angren ore-management plant, worn treatment equipment so that "wastewater effectively turns into waste and is discharged into the Angren River" (translated from Russian). The article gives no volumes or concentrations, and no AMMC response is reported.
- 2017Yoshlik II approved at US$ 420 million, including a US$ 350 million state fund loan (17 Aug)
- 2023AMMC and KfW IPEX-Bank agree to work on raising US$ 2.55 billion for Yoshlik I (7 Nov)
- 2024UKEF guarantees a €12.6 million loan to AMMC (2 Oct)
- 2025Presidential press secretary: AMMC should issue US$ 1 billion in Eurobonds (16 Jan)
- 2026National Committee on Ecology and Climate Change demands 48 bn soums and issues 20 mandatory orders (reported 9 Apr)
What was said
“UK businesses are more interested than ever in bringing their goods and services to this vibrant economy”
“additional compensation in the amount of 48 billion soums”
“wastewater effectively turns into waste and is discharged into the Angren River”
“should issue $1 billion in Eurobonds”
How it looked
Shown
- A US$ 2.55 billion financing mandate for expanding the copper smelting complex, with no environmental statementAMMC, 9 November 2023 · AMMC
- UKEF's first deal in Uzbekistan, a €12.6 million guarantee, with no environmental classification statedUK Export Finance, 2 October 2024 · UK Government (UK Export Finance)
Recorded
- National Committee on Ecology and Climate Change demanded 48 billion soums in compensation and issued 20 mandatory orders after an Ecopolice raid (April 2026).
- Hazardous waste was stored on open sites; wastewater from the Angren ore-management plant was discharged into the Angren River (regulator findings reported by Spot.uz).
- The AMMC release on the KfW IPEX-Bank mandate contains no environmental statements; the UKEF release gives no environmental or social classification.
- Yoshlik II (2017): US$ 420 million, including a US$ 350 million loan from the Fund for Reconstruction and Development of Uzbekistan.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- uk-export-finance (2024-10-02): UK businesses are more interested than ever in bringing their goods and services to this vibrant economy (chief executive Tim Reid). · UK Government (UK Export Finance)
In court and with insurers
Lawsuits and rulings
- 2026–OngoingUZS 48bn compensation demandedCompensation demand and mandatory orders against AMMCNational Committee on Ecology and Climate Change (Ecopolice) · Administrative · National Committee on Ecology and Climate Change → Almalyk Mining and Metallurgical Complex (AMMC)
After an Ecopolice raid, reported 9 April 2026, the Committee demanded 48 billion soums in additional compensation and issued 20 mandatory orders over hazardous waste stored on open sites and wastewater discharged into the Angren River. No court involvement is reported. Spot.uz
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Money
- None on record Environmental compensation demanded by the regulator, April 2026 — 48 billion soums; whether it was paid is not reported.
- None on record UKEF-guaranteed loan to AMMC — €12.6 million.
Record
- Not disclosed Not disclosed: the legal basis of the 48 billion soum demand, emission figures for AMMC and AMMC's response; Spot.uz states none of them.
- Not disclosed Not disclosed: payment status of the 48 billion soum compensation.
- Not disclosed Not disclosed: environmental or social classification of the UKEF-guaranteed deal; the KfW IPEX-Bank release names no export credit agency.
- Not disclosed Not disclosed: whether the 2025 Eurobond issue took place.
- Not disclosed Not disclosed: volumes or concentrations of the hazardous waste and wastewater.
Did the harm stop?
Not stated. The regulator issued 20 mandatory orders in April 2026.
Who paid?
Not stated. Whether AMMC paid the 48 billion soum compensation is not reported.
Sources
Company or project
- KfW IPEX-Bank GmbH and AMMCAMMC · 2023-11-09
Government and regulators
- UKEF enters Uzbekistan markets with €12.6 million dealUK Government (UK Export Finance) · 2024-10-02
Press and investigations
- AMMC should issue $1 bn in Eurobonds in 2025Interfax · 2025-01-16
- AMMC Yoshlik II projectTrend · 2017-08-17
- AMMC: environmental violations, 48 bn soum compensation (in Russian)Spot.uz · 2026-04-09
Connected cases
- Hidroituango dam and the Ríos Vivos defenders (Colombia) Colombia · 2016–2022
- KfW IPEX-Bank (Bank) — here: Mandated to work with AMMC on raising US$ 2.55 billion; there: Lender in the 2018 package
- Sakhalin-2: 2006 approval revocation, Gazprom stake purchase, 2009 damage-claim settlement and lender exits Russia · 2005–2009
- UK Export Finance (ECGD) (Public authority) — here: Guaranteed a €12.6 million loan to AMMC; there: Application (ECGD) withdrawn in 2008