19th Oct 2007 12:56
Kazakhmys PLC19 October 2007 Kazakhmys PLC Kazakhmys PLC announces independent shareholder approval of acquisition of 18.8%stake in ENRC PLC Kazakhmys PLC (the "Company") announces that at the Extraordinary GeneralMeeting ("EGM") held today, 19 October 2007, the proposed acquisition of adirect 18.8% stake in Eurasian Natural Resources Corporation PLC ("ENRC"), waspassed by the independent shareholders. The ENRC Group is a large diversified mining and natural resources group withsignificant, high quality assets in Kazakhstan. The independent Directorsbelieve the acquisition fits well with Kazakhmys' long-term strategy of seekingto acquire interests in existing regional natural resources businesses withattractive internal and external growth prospects and that its execution willbring significant benefits to Kazakhmys and its shareholders. The acquisition is conditional on the receipt of regulatory approval from theGovernment of Kazakhstan relating to the indirect change in ownership of subsoilrights. Results of EGM Following the passing of the resolution put to shareholders at the EGM today(the "Resolution"), two copies of the Resolution have been lodged today with theUK Listing Authority for publication in accordance with the Listing Rules. Voting on the Resolution was as follows: Votes For Votes Against Total Votes CastResolution Number of % of Total Number of % of Total Votes Cast Votes Cast Votes Cast Votes CastTo authorisethe acquisitionby the Companyof the entireissued share 112,849,151 97.9 2,425,002 2.1 115,274,153capital ofKazakhmysEurasia B.V. Save for the votes withheld by certain members of the management of the Company(as further described below), the total number of votes withheld was 645,637. Avote withheld does not constitute a vote and is therefore not taken into accountwhen calculating the proportion of the votes cast 'for' and 'against' aresolution. As set out in the circular to shareholders dated 1 October 2007, by virtue ofhis related party status, Mr Vladimir Kim was required to abstain from voting atthe EGM. In addition, each of Messrs Novachuk, Ogay and Ni (and his immediatefamily) and their associates voluntarily agreed to abstain from voting at theEGM thereby (when taken with Mr Kim's holding) reducing the total number ofvotes able to be cast at the EGM from 470,033,865 to 205,634,995. - ends - For further information please contact: Kazakhmys PLCJohn Smelt, Head of Corporate CommunicationsTel: +44 20 7901 7882Mob: +44 787 964 2675 Sergei Stephantsov, Investor Relations ManagerTel: +44 20 7901 7814 FinsburyZoe WattTel: +44 20 7251 3801 Notes to Editors: Kazakhmys PLCKazakhmys PLC is the largest copper producer in Kazakhstan and one of theleading copper producers in the world. Kazakhmys is a fully integrated copperproducer from mining ore through to the production of finished copper cathodeand rod. The Group produces significant volumes of other metals as by-products,including zinc, silver and gold. Existing operations include 19 open pit andunderground mines, 8 concentrators, two copper smelting and refining complexes,a copper rod plant, a zinc plant and a precious metals refinery. Production isbacked by a captive power supply and significant rail infrastructure. Kazakhmysalso owns MKM, a copper products fabrication company in Germany, and has Goldand Petroleum Divisions with assets in Kazakhstan and Central Asia. The Group'sstrategic aim is to diversify and participate in the development of thesignificant natural resource opportunities in Central Asia. ENRC GroupENRC is a privately owned natural resources company with fully integratedmining, processing, energy and transport operations in Kazakhstan. ENRC'soperations, spread throughout Kazakhstan, are principally comprised ofvertically integrated ferroalloy, iron ore and alumina businesses which employover 60,000 people and generated estimated revenues of approximately US$3billion in 2006. ENRC benefits from high operating margins as its operations andgrowth profile are underpinned by relatively low costs of production at thecompany's major operations and it has access to a captive energy supply andin-house logistics and transportation operation. ENRC's operations are comprised of: •Kazchrome, whose principal activities include the extraction and sale of chrome ore as well as the production and supply of high quality ferroalloys to steel-makers worldwide. It is one of the top three ferrochrome producers in the CIS, based on volume of chrome (as of 2006) and is ranked in the lowest cost quartile amongst global ferrochrome producers. Kazchrome is 98.30 per cent owned by ENRC; •SSGPO, which is a significant CIS iron ore producer with sizable reserves estimated to be in the region of 1.5 billion tonnes which would ensure a mine life of approximately 40 years. It is a low cost producer which produces iron ore pellets and iron ore concentrates. SSGPO is 98.14 per cent owned by ENRC; •Aluminium of Kazakhstan, which is Kazakhstan's largest producer of alumina and a substantial producer globally. Aluminium of Kazakhstan also has its own bauxite reserve. Aluminium of Kazakhstan is 96.59 per cent owned by ENRC; •Kazakhstan Aluminium Smelter, which is due to start production in late 2007 with an anticipated initial capacity of 60,000 tonnes of aluminium per annum which is expected to increase to 250,000 tonnes by 2011. The smelter will be 100 per cent owned by ENRC; •EEC, which operates an open pit coal mine and is Kazakhstan's largest electricity supplier, with a 2,155MW capacity, providing approximately 16 per cent of the country's current installed capacity. EEC is 99.11 per cent owned by ENRC; and •Other divisions including ENRC Logistics (100 per cent owned by ENRC, a transportation and logistics company); ENRC Marketing (100 per cent owned by ENRC, the trading and marketing arm of ENRC) and Zhairemskiy GOK (99.83 per cent owned by ENRC, a producer of manganese, ferromanganese and barite). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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