Production Summary 6 mths & Q2 ended 30 June 2010

RNS Number : 1177Q

Kazakhmys PLC

29 July 2010

 

 

29 July 2010

 

Kazakhmys PLC Production Summary for Six Months and the Second Quarter Ended 30 June 2010

 

l Production of copper cathode ahead of target at 164.3 kt

§ Consistency of output at all stages of production

§ Ore output and grades in line with target

§ Recovery rates remain sound

§ Some benefit from a reduction of work in progress

 

l By-product output was strong in H1

§ Zinc in concentrate production of 80.9 kt ahead of target due to an increase in grade and recovery rates

§ Gold in ore mined doubled compared to H1 2009, with output from Abyz mine

§ Production of 62.4 koz was slightly affected by timing of metal processing

§ Silver production of 6,697 koz is on track to meet full year target

 

l Kazakhmys Power

§ Net power generated in H1 2010 of 5,373 GWh, a 43% increase compared to H1 2009

§ Realised tariff achieved of 4.56 KZT/kWh in H1 2010 compared to 2.84 KZT/kWh in H1 2009

 

 

Oleg Novachuk, Chief Executive Officer, said: "Our operations have delivered a solid performance in the first six months of 2010. Mining, processing and smelting have all met, or exceeded targets, and we remain on track for our anticipated annual production of at least 300 kt of copper cathode. Customer demand remains firm for our metals and our objective will be to maintain our operational consistency in the second half of 2010."

 

 

For further information please contact:

 

Kazakhmys PLC
John Smelt	Head of Corporate Communications	Tel: +44 20 7901 7882 Tel: +44 78 7964 2675
Irene Burton	Financial Analyst	Tel: +44 20 7901 7814
Zulfira Mukhamedyarovа	Senior Manager - Media Relations	Tel: +77 27 266 3317
Merlin
David Simonson		Tel: +44 20 7726 8400
Tom Randell		Tel: +44 20 7726 8400
Leonid Fink		Tel: +44 20 7726 8400

 

REGISTERED OFFICE

6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL.

Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver, power generation and petroleum.

 

It is the largest copper producer in Kazakhstan and one of the top ten worldwide with 16 operating mines, 10 concentrators and 2 copper smelters. Kazakhmys Copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent produced in 2009 from own ore was 320 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure.

 

Kazakhmys Copper produces significant volumes of other metals, including zinc, silver and gold. In 2009, it produced 149 thousand tonnes of zinc in concentrate. The Group is in the top ten largest silver producers in the world (17 million ounces produced in 2009).

 

Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes new development and exploration opportunities. Kazakhmys Gold has measured and indicated gold equivalent resources of 2.5 million ounces. The Group produced 182 thousand ounces of gold in 2009.

 

Kazakhmys Power has a 50% interest in the coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW.

 

Kazakhmys Petroleum is continuing its work programme at the East Akzhar exploration block, located on the eastern fringe of the Caspian depression, which was acquired in April 2007.

 

The Group is part of the FTSE-100 index of companies listed on the London Stock Exchange and is also listed on the Kazakhstan Stock Exchange (KASE). It had revenues of $3.7 billion in 2009 with EBITDA of $1.6 billion. The Group employs some 62,000 people, principally in Kazakhstan. The Group's strategic aim is to optimise its current operations, deliver its major growth projects and to diversify and participate in the development of the significant natural resource opportunities in Central Asia.

 

Copper Summary

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	16,236	16,013	8,335	7,901	8,253
Average copper grade	%	1.14	1.19	1.12	1.15	1.18
Copper in concentrate	'000 t	170.6	178.4	89.6	81.0	91.0
own concentrate	'000 t	169.4	178.4	88.4	81.0	91.0
purchased concentrate	'000 t	1.2	-	1.2	-	-
Copper cathode equivalent production 1	'000 t	165.1	173.8	86.7	78.4	88.2
own concentrate	'000 t	164.3	170.1	85.9	78.4	88.2
purchased concentrate	'000 t	0.8	3.7	0.8	-	-
tolling concentrate	'000 t	-	-	-	-	-
Copper rod	'000 t	17.9	4.7	8.9	9.0	2.6

1Includes copper sold in concentrate and cathode converted into rod.

 

Ore output was 16.2 million tonnes in H1 2010, representing a slight increase from H1 2009. This improvement was led by a more than doubling of output in the Karaganda Region. The region contributed 8% of total mined metal output in H1 2010, compared to 3% in H1 2009. This increase more than offset a decline in output in the Zhezkazgan Region. 

 

The average grade of copper in ore was 1.14%, compared to 1.19% in 2009. This decrease was due to a decline in grade at two high grade mines in the East Region and a general slight decline in grade in the Zhezkazgan region.

 

The combination of higher volume and lower grade is in line with the guidance set out at the time of our 2009 annual results. Overall, these factors led to a 3% decline in metal in ore mined.

 

The production of copper in own concentrate, of 169.4 kt in H1 2010, was 5% below the level achieved in H1 2009. This decrease reflects the 3% reduction in metal in ore mined, as well as the additional copper in concentrate, produced in H1 2009, from previously stockpiled ore.

 

Copper in concentrate output in Q2 2010 increased by 9%, on the previous quarter, to 88.4 kt. This increase was due to greater metal in ore mined and processed during the quarter. In general, the recovery rates at the concentrators are continuing to run at, or above, the improved rates seen in 2009.

 

H1 2010 cathode production, of 164.3 kt, was only 3% below H1 2009. The 5% decrease in copper in concentrate was offset by the processing of work in progress, which was carried over from 2009.

 

Copper Summary

Copper cathode equivalent production in Q2 2010 was 10% higher than in Q1 2010 and reflects the increase in own copper in concentrate production during the quarter.

 

The refurbished Zhezkazgan furnace was successfully commissioned at the end of May 2010 with both furnaces operating in June. In early July, the second furnace was suspended pending a full maintenance programme. With one suspended furnace, the current smelting capacity matches the Group's own concentrate production and is operating at full capacity. In the medium term, the Group will require a return of all furnaces in order to match the output from the new growth projects.

 

Copper rod production was 17.9 kt in H1 2010, which is consistent with the guidance of 10% from annual 2010 cathode production being converted to rod. This increase from 2009 is due to stronger demand from the Chinese market and higher margins being achieved on rod sales compared to 2009.

 

By-products Summary

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Zinc in concentrate	'000 t	80.9	76.4	41.4	39.5	36.6
Zinc metal	'000 t	-	8.6	-	-	-
Average zinc grade	%	4.56	4.04	4.37	4.74	3.82
Silver	'000 oz	6,697	9,147	3,570	3,127	4,709
own production1	'000 oz	6,697	9,145	3,570	3,127	4,708
tolling2	'000 oz	-	1.6	-	-	0.6
Average silver grade	g/tonne	20.06	20.41	19.70	20.44	19.04
Gold	'000 oz	67.1	73.2	30.8	36.3	42.9
own production1	'000 oz	62.4	67.9	29.4	33.0	38.9
tolling2	'000 oz	4.7	5.3	1.4	3.3	4.0
Average gold grade	g/tonne	0.78	0.61	0.77	0.80	0.55

1 Includes slimes from purchased concentrate.

2 Represents tolled materials provided via third parties.

 

Zinc by-product

 

Zinc in concentrate production during H1 2010 was 6% higher year-on-year, benefiting from increased grades of zinc bearing ore in the East Region. There was also an increase in overall recovery rate achieved during H1 2010 to 72%, compared to 66% in H1 2009.

 

Zinc in concentrate production in Q2 2010 was 5% ahead of Q1 2010, due to the timing of receipts of material processed by third parties.

 

Silver by-product

 

Production of silver from own material in H1 2010 was 27% below the level achieved in H1 2009. There was a similar level of metal mined compared to 2009, but in H1 2009 there was a significant release of material from stockpiled ore and work in progress, which contributed around 25% of the silver production figure in H1 2009.

 

Q2 2010 production of silver was higher than Q1 2010 due to the timing of the receipt of material processed by third parties.

 

Gold by-product

 

Gold metal in mined ore increased by 57% in H1 2010 compared to H1 2009. This significant increase was due to the contribution from gold rich ore at the Abyz mine, in the Karaganda Region, where stripping work was undertaken during H1 2009. However, the production of gold in concentrate and gold metal in H1 2010 was 1% and 8%, respectively, below the comparative period in 2009, due to the processing of stockpiled ore and the release of work in progress during H1 2009. The production of gold metal in Q2 2010 was impacted by an increase in work in progress at the end of the quarter.

 

 

 

 

Kazakhmys Copper Review by Region

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	11,299	11,961	5,871	5,428	6,053
Average copper grade	%	0.85	0.87	0.83	0.86	0.87
Copper concentrate	'000 t	233.0	249.8	117.7	115.3	121.8
Copper in concentrate	'000 t	85.8	91.1	44.2	41.6	45.9
Copper cathodes1	'000 t	63.3	55.6	35.0	28.3	24.5
own concentrate	'000 t	63.3	55.6	35.0	28.3	24.5
purchased concentrate	'000 t	-	-	-	-	-
tolling2	'000 t	-	-	-	-	-
Copper rod	'000 t	17.9	4.7	8.9	9.0	2.6

1 Includes copper used to produce copper rod.

2 Represents tolled materials provided via third parties.

 

Ore extraction of 11,299 kt during the first six months of 2010 was 6% below the comparative period. A 17% increase in output at Zhomart mine and a 6% increase at South mine was more than offset by a lower contribution from North mine, where extensive stripping work took place in Q1 2010. Extraction at North mine restarted in Q2 2010 and will be gradually ramped up in the second half of the year. Once fully ramped up, production from North mine will be at a slightly lower level than was achieved during 2009, due to the depletion of the Taskora open pit at the end of 2009.

 

Production of copper in concentrate, of 85.8 kt in H1 2010, declined by 6% compared to H1 2009. An improvement in recovery rates at the Complex's concentrators helped to offset the 8% reduction in metal mined. 

 

Copper cathode production of 63.3 kt in H1 2010 was 14% higher than the comparative period. In H1 2009, there were some direct sales of copper in concentrate to customers, and higher volumes of surplus concentrate were sent from Zhezkazgan to Balkhash for smelting.

 

During Q2 2010, the refurbished furnace at the Zhezkazgan smelter was successfully tested and commissioned. At the beginning of July 2010, the second furnace was suspended pending a total refurbishment.

 

 

Kazakhmys Copper Review by Region

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	1,159	1,135	597	562	589
Average copper grade	%	1.28	1.32	1.28	1.28	1.28
Copper concentrate1	'000 t	116.2	93.6	59.1	57.1	47.4
Copper in concentrate	'000 t	20.9	16.6	10.5	10.4	8.3
Copper cathodes	'000 t	101.8	102.3	51.7	50.1	52.8
own concentrate	'000 t	101.0	98.6	50.9	50.1	52.8
purchased concentrate	'000 t	0.8	3.7	0.8	-	-
tolling2	'000 t	-	-	-	-	-

1Excludes concentrate processed by third parties.

2 Represents tolled materials provided via third parties.

 

Ore output at the Balkhash Complex, in H1 2010 and Q2 2010, increased by 2% and 6%, respectively, compared to H1 2009 and Q1 2010. There were no major changes in operations at the Complex. 

 

The average copper grade in H1 2010 decreased to 1.28%, compared to 1.32% in H1 2009. There was a decline in grade at the Sayak mine, as operations moved to a less rich area.

 

Production of copper in concentrate increased by 26%, to 20.9 kt in H1 2010, compared to 16.6 kt in H1 2009. The increase in output was due to the reprocessing of waste material, whilst metal in ore mined remained in line with H1 2009.

 

Copper cathode production at the Complex in H1 2010 was 2% ahead of H1 2009. A reduction in work in progress at the smelter offset the lower volumes of copper in concentrate received from the East Region and lower volumes of concentrate shipments from Zhezkazgan.

 

The annual maintenance of one of the furnaces is scheduled during August 2010. This shut down should not influence cathode production in H2 2010.

 

 

Kazakhmys Copper Review by Region

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	2,295	2,255	1,124	1,171	1,135
Average copper grade	%	2.56	2.90	2.53	2.59	2.89
Copper concentrate1	'000 t	243.9	302.6	123.6	120.3	147.1
Copper in concentrate	'000 t	45.0	55.3	23.6	21.4	27.8

1Excludes concentrate processed by third parties.

 

Ore extraction in the Region in H1 2010 was slightly ahead of H1 2009 at 2,295 kt. Output from Nikolaevsky mine was impacted in Q2 2010 by extended spring flooding, however, the mine is expected to return to planned capacity during the second half of the year. Extraction at Artemyevsky mine increased by 13% in H1 2010, compared to the same period in 2009. The mine benefited from the commissioning of a backfill cement plant and new lifting equipment on the main shaft, which was reported in the Q1 2010 production report.

 

In H1 2010, the average grade in the East Region was 2.56%, which was below the level achieved in the comparative period in 2009. The reduction was principally due to a decline in grade at Orlovsky and Nikolaevsky mines, where mining operations moved to a less rich area.

 

The overall reduction in copper in concentrate output in the Region in H1 2010, compared to the previous year, was due to the lower volumes of metal mined and transportation issues connected to severe winter conditions in Q1 2010.

 

 

Kazakhmys Copper Review by Region

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	1,483	662	743	740	476
Average copper grade	%	1.04	0.93	1.14	0.93	1.02
Copper concentrate1	'000 t	154.5	116.6	89.7	64.8	68.9
Copper in concentrate	'000 t	13.2	10.8	7.8	5.4	6.4

1Excludes concentrate processed by third parties.

 

 

Ore extraction in Karaganda Region increased by 821 kt compared to H1 2009. This increase was due to the higher volumes from Nurkazgan West, which has ramped up its production from 657 kt in H1 2009, to 1,192 kt in H1 2010. H1 2010 also saw a full contribution from Abyz mine, which was suspended during H1 2009 for stripping work.

 

The average copper grade achieved during H1 2010 increased to 1.04%, compared to 0.93% in H1 2009. The increase in ore output at a lower grade from Nurkazgan West was more than offset by the contribution from Abyz mine, which had a grade of 1.82%.

 

Production of copper in concentrate in the Karaganda Region increased by 22% to 13.2 kt, reflecting the higher quantities of metal mined. However, H1 2009 production benefited significantly from the processing of previously stockpiled ore from the Abyz and Akbastau mines.

 

Copper in concentrate production in Q2 2010 increased to 7.8 kt compared to 5.4 kt in Q1 2010, due to the processing of some stockpiled ore.

 

 

Other Divisions Review

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Ore extraction	'000 t	618	746	527	91	608
Gold ore grade	g/t	1.21	1.46	1.21	1.25	1.38
Gold in ore to pads	'000 oz	30.6	33.6	25.7	4.9	26.0
Gold precipitation	'000 oz	16.5	19.6	11.1	5.4	13.0
Gold doré production	'000 oz	16.2	19.7	10.7	5.5	13.6
Silver production	'000 oz	16.8	18.9	10.4	6.4	12.5

 

 

Ore extraction in H1 2010 decreased compared to H1 2009, due to severe winter conditions and interruptions to the power supply, which occurred during Q1 2010. The gradual depletion of Mukur and Mizek mines has also created a natural decline. The increase in ore extraction in Q2 2010, relative to the previous quarter, was due to improved seasonal conditions.

 

Mining at Mizek and Mukur mines has moved to less mineral rich areas, resulting in the lower gold grade achieved during H1 2010.

 

Gold doré production in H1 2010 decreased compared to H1 2009, reflecting the lower quantity of gold metal mined and processed.

 

 

 

Other Divisions Review

Kazakhmys Petroleum continues its drilling and testing programme at the East Akzhar exploration block in western Kazakhstan.

 

Testing of the third deep well, which commenced in Q2 2010, has confirmed the presence of hydrocarbons. Acid treatment will now be carried out on the first and third wells, in order to assist in the evaluation of their commercial potential.

 

The testing of the second well will take place when the results of the first and the third well have been obtained.

 

The drilling of the fourth deep well commenced in May 2010. At the end of June 2010, 4,200 metres had been drilled, out of a projected 5,200 metres.

 

 

Other Divisions Review

 

 

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Net power generated	GWh	5,373	3,761	2,453	2,920	1,981
Net dependable capacity1	MW	2,166	1,985	2,160	2,171	1,876
Electricity tariff	KZT/kWh	4.56	2.84	4.54	4.58	2.90

1 The net dependable capacity is the maximum capacity a unit can sustain over a specified period modified for seasonal limitations and reduced by the capacity required for station service and auxiliaries.

 

 

On 26 February 2010, the Group completed the disposal of 50% of Ekibastuz GRES-1 to Samruk-Kazyna with the Group retaining a 50% interest. The results shown above are for 100% of the business.

 

Net power generated in H1 2010 increased by 43% compared to H1 2009. At the end of 2008, the demand for electricity from industrial customers declined significantly due to the overall economic downturn, and demand remained low in Q1 2009. A moderate improvement in demand started in April 2009 and the trend has continued since then, led by a recovery in industrial output in Kazakhstan and Russia.

 

Net power generated at Ekibastuz GRES-1 in Q2 2010 fell 16% from Q1 2010, although it was 24% higher year-on-year. The quarter-on-quarter in 2010 decrease was driven by normal seasonal factors and an unusually extended flood period, which benefited the hydro plants in Kazakhstan.

 

The weighted average tariff for electricity increased by 61% in H1 2010 compared to H1 2009. The average tariff is close to the agreed ceiling tariff for domestic sales of 4.68 KZT/KWh, compared to 3.60 KZT/KWh set in 2009. The ceiling tariff for domestic sales is agreed with the Ministry of Industry and New Technologies on an annual basis, and is set to allow the plant to undertake its substantial investment programme.

 

Net dependable capacity achieved in H1 2010 increased by 181 MW compared to H1 2009 as a result of the refurbishment and maintenance work carried out to improve the efficiency of the power station. In Q2 2010, net dependable capacity was 11 MW lower than Q1 2010 due to the restriction placed on the plant's output caused by warmer water temperature in the spring and summer.

 

 

Kazakhmys Copper Production Appendix

Zhezkazgan complex		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
North	ore ('000 t)	502	1,913	440	62	978
	grade (%)	0.73	0.76	0.78	0.31	0.74
East	ore ('000 t)	2,369	2,544	1,062	1,307	1,285
	grade (%)	0.68	0.64	0.69	0.67	0.65
South	ore ('000 t)	2,702	2,544	1,319	1,383	1,389
	grade (%)	0.65	0.70	0.63	0.66	0.69
West	ore ('000 t)	470	69	470	-	-
	grade (%)	0.56	0.72	0.56	-	-
Stepnoy	ore ('000 t)	1,683	1,703	808	875	858
	grade (%)	0.80	0.80	0.83	0.77	0.80
Annensky	ore ('000 t)	1,713	1,603	848	865	747
	grade (%)	0.73	0.81	0.71	0.75	0.79
Zhomart	ore ('000 t)	1,861	1,585	925	936	796
	grade (%)	1.60	1.78	1.57	1.62	1.84
Complex total	ore ('000 t)	11,299	11,961	5,871	5,428	6,053
Complex average	grade (%)	0.85	0.87	0.83	0.86	0.87
Balkhash complex		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Sayak I, III	ore ('000 t)	882	864	452	430	450
	grade (%)	0.99	1.02	0.99	0.98	0.97
Shatyrkul	ore ('000 t)	278	271	146	132	139
	grade (%)	2.23	2.27	2.20	2.26	2.29
Complex total	ore ('000 t)	1,159	1,135	597	562	589
Complex average	grade (%)	1.28	1.32	1.28	1.28	1.28

 

 

Kazakhmys Copper Production Appendix

East region		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Nikolayevsky	ore ('000 t)	253	250	106	147	150
	grade (%)	1.18	2.33	0.95	1.34	2.18
Artemyevsky	ore ('000 t)	714	632	378	336	299
	grade (%)	1.80	1.60	1.81	1.80	1.58
Irtyshsky	ore ('000 t)	228	232	110	118	105
	grade (%)	1.41	1.50	1.32	1.50	1.49
Orlovsky	ore ('000 t)	799	814	382	417	408
	grade (%)	3.64	4.37	3.72	3.56	4.31
Yubileyno-Snegirikhinsky	ore ('000 t)	300	327	147	153	173
	grade (%)	3.54	3.20	3.30	3.77	3.30
Region total	ore ('000 t)	2,295	2,255	1,124	1,171	1,135
Region average	grade (%)	2.56	2.90	2.53	2.59	2.89
Karaganda region		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Nurkazgan (West, North)	ore ('000 t)	1,192	657	591	601	471
	grade (%)	0.84	0.91	0.96	0.73	1.00
Abyz	ore ('000 t)	291	5	152	139	5
	grade (%)	1.82	2.78	1.83	1.81	2.78
Region total	ore ('000 t)	1,483	662	743	740	476
Region average	grade (%)	1.04	0.93	1.14	0.93	1.02
Total	ore ('000 t)	16,236	16,013	8,335	7,901	8,253
Average	grade (%)	1.14	1.19	1.12	1.15	1.18

 

 

 

 

 

Kazakhmys Copper Production Appendix

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Zhezkazgan complex
Copper concentrate	'000 t	233.0	249.8	117.7	115.3	121.8
Copper in concentrate	'000 t	85.8	91.1	44.2	41.6	45.9
Balkhash complex
Copper concentrate	'000 t	116.2	93.6	59.1	57.1	47.4
Copper in concentrate	'000 t	20.9	16.6	10.5	10.4	8.3
East region
Copper concentrate	'000 t	243.9	302.6	123.6	120.3	147.1
Copper in concentrate	'000 t	45.0	55.3	23.6	21.4	27.8
Karaganda region
Copper concentrate	'000 t	154.5	116.6	89.7	64.8	68.9
Copper in concentrate	'000 t	13.2	10.8	7.8	5.4	6.4
Total own processed
Copper concentrate	'000 t	747.5	762.7	390.0	357.5	385.2
Copper in concentrate	'000 t	164.9	173.8	86.1	78.8	88.4
Own ore processed by third parties
Copper concentrate	'000 t	17.0	18.1	8.9	8.1	10.1
Copper in concentrate	'000 t	4.5	4.6	2.3	2.2	2.6
Total own
Copper concentrate	'000 t	764.5	780.8	398.8	365.6	395.3
Copper in concentrate	'000 t	169.4	178.4	88.4	81.0	91.0
Purchased concentrate
Copper concentrate	'000 t	3.5	0.1	3.5	-	-
Copper in concentrate	'000 t	1.2	-	1.2	-	-
Total copper in concentrate	'000 t	170.6	178.4	89.6	81.0	91.0

  

Kazakhmys Copper Production Appendix

		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Zhezkazgan smelter
Own concentrate	'000 t	63.3	55.6	35.0	28.3	24.5
Purchased concentrate	'000 t	-	-	-	-	-
Sub - total	'000 t	63.3	55.6	35.0	28.3	24.5
Tolling	'000 t	-	-	-	-	-
Total including tolling	'000 t	63.3	55.6	35.0	28.3	24.5
Balkhash smelter
Own concentrate	'000 t	101.0	98.6	50.9	50.1	52.8
Purchased concentrate	'000 t	0.8	3.7	0.8	-	-
Sub - total	'000 t	101.8	102.3	51.7	50.1	52.8
Tolling	'000 t	-	-	-	-	-
Total including tolling	'000 t	101.8	102.3	51.7	50.1	52.8
Grand total	'000 t	165.1	157.9	86.7	78.4	77.3

 

  

 

Kazakhmys Copper Production Appendix

ZINC		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
East region
Nikolayevsky	grade (%)	3.94	1.94	3.38	4.34	1.77
Artemyevsky	grade (%)	6.29	5.16	6.20	6.39	4.70
Irtyshsky	grade (%)	3.23	3.65	2.89	3.55	3.68
Orlovsky	grade (%)	4.89	4.56	4.78	4.99	4.62
Yubileyno-Snegirikhinsky	grade (%)	2.50	2.42	1.79	3.17	2.22
Region average	grade (%)	4.74	4.03	4.55	4.93	3.81
Karaganda region
Abyz	grade (%)	3.11	5.64	3.05	3.17	5.64
Region average	grade (%)	3.11	5.64	3.05	3.17	5.64
Overall average	grade (%)	4.56	4.04	4.37	4.74	3.82
Zinc in concentrate	('000 t)	80.9	76.4	41.4	39.5	36.6
Zinc metal	('000 t)	-	8.6	-	-	-

 

 

Kazakhmys Copper Production Appendix

SILVER		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Zhezkazgan complex
North	grade (g/t)	5.56	11.43	5.93	2.96	11.11
East	grade (g/t)	13.21	19.13	12.25	14.0	20.25
South	grade (g/t)	15.52	18.01	14.06	16.92	17.17
West	grade (g/t)	10.07	17.01	10.07	-	-
Stepnoy	grade (g/t)	14.59	8.13	13.99	15.14	8.58
Annensky	grade (g/t)	14.44	22.27	14.93	13.96	18.99
Zhomart	grade (g/t)	7.25	7.57	6.34	8.15	7.08
Region average	grade (g/t)	12.70	14.97	11.70	13.79	14.52
Balkhash complex
Sayak I, III	grade (g/t)	4.69	5.15	5.25	4.10	4.80
Shatyrkul	grade (g/t)	2.42	2.35	2.46	2.39	1.93
Region average	grade (g/t)	4.15	4.48	4.57	3.70	4.12
East region
Nikolayevsky	grade (g/t)	34.10	19.77	32.39	35.34	14.04
Artemyevsky	grade (g/t)	119.23	95.22	131.60	105.34	88.55
Irtyshsky	grade (g/t)	58.83	58.85	62.54	55.38	58.38
Orlovsky	grade (g/t)	59.41	64.40	55.44	63.05	62.60
Yubileyno-Snegirikhinsky	grade (g/t)	27.86	28.71	27.80	27.93	27.41
Region average	grade (g/t)	71.04	62.36	75.92	66.36	57.28
Karaganda region
Nurkazgan	grade (g/t)	2.07	2.84	2.35	1.80	3.18
Abyz	grade (g/t)	40.60	50.96	39.83	41.45	50.96
Region average	grade (g/t)	9.63	3.21	10.03	9.23	3.68
Overall average	grade (g/t)	20.06	20.41	19.70	20.44	19.04
Silver in concentrate	('000 oz)	7,437	8,455	3,869	3,568	4,066
Own concentrate	('000 oz)	6,240	7,382	3,113	3,127	3,561
Own concentrate processed by 3rd parties	('000 oz)	1,090	1,073	649	441	505
Purchased concentrate		107	-	107	-	-
Silver metal1	('000 oz)	6,697	9,145	3,570	3,127	4,708

1 Includes slimes from purchased concentrate.

 

Kazakhmys Copper Production Appendix

GOLD		6m 2010	6m 2009	Q2 2010	Q1 2010	Q2 2009
Balkhash complex
Sayak I, III	grade (g/t)	0.22	0.36	0.20	0.23	0.29
Shatyrkul	grade (g/t)	0.41	0.42	0.37	0.47	0.39
Region average	grade (g/t)	0.26	0.38	0.24	0.29	0.32
East region
Nikolayevsky	grade (g/t)	0.28	0.24	0.19	0.35	0.13
Artemyevsky	grade (g/t)	1.27	1.20	1.20	1.34	1.04
Irtyshsky	grade (g/t)	0.31	0.39	0.30	0.32	0.38
Orlovsky	grade (g/t)	1.11	0.93	1.12	1.10	0.97
Yubileyno-Snegirikhinsky	grade (g/t)	0.32	0.45	0.28	0.36	0.42
Region average	grade (g/t)	0.88	0.81	0.87	0.90	0.74
Karaganda region
Nurkazgan	grade (g/t)	0.31	0.30	0.37	0.25	0.35
Abyz	grade (g/t)	4.05	5.38	3.69	4.44	5.38
Region average	grade (g/t)	1.04	0.34	1.05	1.03	0.40
Overall average	grade (g/t)	0.78	0.61	0.77	0.80	0.55
Gold in concentrate	('000 oz)	66.1	66.1	36.4	29.7	34.4
Own concentrate	('000 oz)	58.7	58.6	32.2	26.5	30.8
Own concentrate processed by 3rd party	('000 oz)	6.8	7.5	3.6	3.2	3.6
Purchased concentrate		0.6	-	0.6	-	-
Gold output1	('000 oz)	62.4	67.9	29.4	33.0	38.9

1 Includes slimes from purchased concentrate.

 

 

 

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