1. French minister visits Uzbekistan

2. Uzbeks cancel $478 mln. sale of copper

3. Chinese vice-premiere visits Tashkent

4. Uzbek foreign minister to arrive in Moscow

5. Uzbekistan seeks Turkmen support for Afghan meeting

6. Central Asian economic summit cancelled

7. Next CIS summit set for October

The Almalyk sale was perceived as the most important for Uzbekistan's privatisation programme, which kicked off last December. The government is to offer 269 other projects by 2001 but Abdukadyrov said these, too, would probably have to wait. "In today's circumstances, we must reconsider our ambitious privatisation plans," he said. Abdukadyrov said the government still hoped to sell the combine and would hire an international consultant such as Chase Manhattan or Arthur Andersen to conduct the sale.

The metals plant is one of Uzbekistan's most important assets and last year produced 90,000 tonnes of copper, 68.5 tonnes of silver and 13 tonnes of gold. Daewoo Corp.<03810.KS>, Glencore AG and a consortium of Siemens AG, Thyssen AG and Svedala were earlier named as potential buyers. Uzbekistan tried to accelerate sell-offs due to a desperate need for hard currency spurred by shrinking revenues from the desert nation's key exports, gold and cotton.

The Uzbek budget envisaged 1999 privatisation revenues of $300 million, of which the Almalyk sale was to contribute $178, Abdukadyrov said. But so far only one enterprise, a chemical plant, had been sold. The Almalyk plant sale has run into snags before and the government had extended the deadline for the bids. Analysts have said the price tag was unrealistic. They said Uzbekistan's isolationist economic policies and poor democratic record had fostered frosty relations with the West, scaring away many potential investors they said.

Foreign companies have largely shunned the Central Asian nation of 24 million since 1996, when strict foreign exchange controls were introduced, limiting the ability to repatriate profits. "In today's circumstances, we must reconsider our ambitious privatisation plans," Abdukadyrov said. "The Almalyk plant tender has demonstrated our lack of experience in privatisation." The Almalyk plant has been perceived as the key to Uzbekistan's privatisation programme, but the government has already once been forced to extend the deadline for the bids. Analysts have said the price tag was unrealistic.

Abdukadyrov did not say when the plant could be offered for sale again. Plans to sell stakes in 269 other enterprises to foreign investors are also likely to be postponed due to lack of investor interest, he said. The Almalyk plant, located near the capital Tashkent, produced almost 90,000 tonnes of copper in 1998 with total base metals exports of $131 million. The combine also produced 68.7 tonnes of silver and 13 tonnes of gold last year.