15th Apr 2014 09:30
LONDON (Alliance News) - Kazakhmys PLC Tuesday said it has completed an agreement to buy the Koksay project from CCC Mining Construction BV for USD260 million in cash.
The Kazakhstan-focused copper producer said the Koksay deposit will be the company's third major growth project and the payment includes a USD65 million deferred consideration to be paid during 2015.
The Koksay deposit has a total resource of approximately 3.4 million tonnes of copper, with an average grade of 0.48%. There are by-products of gold, silver and molybdenum.
The project is at scoping stage and has an estimated mine life of over 20 years with average annual production of around 80,000 tonnes of copper cathode equivalent, 60,000 ounces of gold, 400,000 ounces of silver and 1,000 tonnes of molybdenum in concentrate.
"The acquisition is in keeping with our strategy of production dominated by low cost, open pit, long life mines. Koksay will provide a sound return for shareholders, and local benefit through employment and economic growth," Chief Executive Oleg Novachuk said in a statement.
Kazakhmys shares were up 0.9% to 242.90 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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