26th Jul 2018 10:30
LONDON (Alliance News) - KAZ Minerals PLC on Thursday said copper production rose in the first half of 2018 supported by strong volumes at Aktogay mine.
The Kazakhstan-focused miner said its first half production rose 18% to 139,600 tonnes of copper from 118,000 tonnes in the same period in 2017. This included a step-up in the second quarter to 72,300 tonnes from 65,9000 tonnes in the first quarter.
KAZ highlighted that the result was driven by higher throughput at Aktogay, which more than doubled in the first half of 2018 to 60,500 tonnes of copper from 33,000 tonnes produced a year earlier.
The average copper grade processed in the sulphide concentrator reduced, however, to 0.6% during the period from 0.8% in the prior year, but remained significantly above the reserve grade of 0.3%.
Ore extraction of 19.1 million tonnes was 47% higher than in the first half of 2017 as additional sulphide ore was extracted to feed the ramp up of the concentrator.
Looking ahead, the company said it expects higher average ore throughput levels at the sulphide concentrator in the second half of the year to offset a reduction in average copper grade.
Copper production was 4% lower year-on-year at Bozshakol mine due to the planned mill relining, KAZ said. Output fell to 49,800 tonnes in the first half of the year from 52,000 tonnes of copper produced a year earlier.
Meanwhile, at East Region & Bozymchak, copper production declined 11% to 29,300 tonnes from 33,000 tonnes, due to lower grades at Orlovsky mine and reduced processing volumes. The Bozymchak mine in Kyrgyzstan continued to operate at its full design capacity, the company said, and contributed 3,700 tonnes of copper production in the first half of 2018, in line with the prior year.
Total interim copper production from Aktogay represents strong progress towards the full-year guidance range of 110,000 - 130,000 tonnes. This leaves KAZ on track for its full-year copper production guidance of 270,000 to 300,000 tonnes from three of its copper production mines.
"In the first half of 2018 the group delivered a strong operational performance, with the Aktogay sulphide concentrator achieving design throughput capacity for a sustained period," said Chief Executive Anderw Southam.
Shares in KAZ were trading 1.5% higher on Thursday at 837.80 pence each.
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