17th Jun 2014 09:49
17 June 2014
KAZAKHMYS PLC COMPLETES ACQUISITION OF THIRD MAJOR GROWTH PROJECT
Kazakhmys PLC confirms that it has completed the acquisition of Koksay, first announced on 27 February 2014. Koksay is the Group's third major growth project.
As previously announced, the purchase price is $260 million in cash, of which $65 million is deferred. Of the deferred consideration, $30 million is payable on 1 January 2015 and $35 million on 31 July 2015. The second instalment is subject to confirmation of reserves.
The Koksay deposit is in south eastern Kazakhstan around 234 kilometres from Almaty and is well located for existing infrastructure. The mine has a total resource of approximately 3.4 MT 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 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate.
For further information please contact:
Kazakhmys PLC | |||
John Smelt | Corporate Communications, London | Tel: +44 20 7901 7882 | |
Maria Babkina | Corporate Communications, London | Tel: +44 20 7901 7849 | |
Irene Burton | Financial Analyst, London | Tel: +44 20 7901 7814 | |
Maksut Zhapabayev | Corporate Communications, Almaty | Tel: +77 27 2440 353 | |
Instinctif Partners | |||
David Simonson | Tel: +44 20 7457 2020 | ||
Anca Spiridon | Tel: +44 20 7457 2020 | ||
Hill & Knowlton Hong Kong |
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K W Lam | Tel: +852 2894 6321 | ||
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Notes to Editors
Kazakhmys PLC is a leading international natural resources group. It is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines, 7 concentrators and acopper smelter. Kazakhmys Mining has a full range of facilities enabling it to process ore extracted through to finished metal. Total copper cathode equivalent output from own ore was 294 kt in 2013. The Group has two major copper projects under construction.
Kazakhmys Mining produces significant volumes of other metals, including zinc, silver and gold. In 2013, it produced 134 kt of zinc in concentrate. The Group is amongst the largest global silver producers with output of 14 Moz in 2013.
Kazakhmys Power operates three captive power stations which supply electricity to Kazakhmys Mining and third parties. In 2013, net power generated by captive power stations was 5,723 GWh.
The Group is listed on the London Stock Exchange, the Kazakhstan Stock Exchange and the Hong Kong Stock Exchange. It had revenues from continuing operations of $3.1 billion in 2013 and a GroupEBITDA of $1.1 billion. The Group employs around 56,000 people, principally in Kazakhstan.
In February 2014, the Group announced plans for a potential restructuring of its business in order to improve profitability and cash returns.
Related Shares:
KAZ.L