17th Feb 2014 07:51
LONDON (Alliance News) - Kazakhmys PLC Monday said it will raise the salaries of its operational staff in Kazakhstan by up to 10% from April 1 to protect them from some of the recent devaluation in the Tenge.
In a statement, the company said the decision to raise the salaries comes after talks with the Government of Kazakhstan. It has been agreed that salaries at major exporting companies will have a managed increase in order to protect workers from some of the impact of the 20% devaluation in the country's currencies, the company said.
Kazakhmys said it will provide more in the expected impact of the currency decline as well as its cost targets for 2014 when it puts out its 2013 results on February 27.
The company's shares rose sharply February 11 after the National Bank of Kazakhstan effectively devalued the tenge, saying it would only intervene in the forex market to support the tenge at KZT185 to the US dollar - a 19% devaluation from the previous day's rate.
That was deemed helpful for Kazakhmys as about 60% of its costs are generated in the country.
By Steve McGrath; [email protected]; @stevemcgrath1
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