15th Jul 2008 09:00
15 July 2008
KAZAKHMYS PLC ANNOUNCES PROGRESS OF BOZYMCHAK GOLD PROJECT TO FEASIBILITY STAGE
Kazakhmys PLC ("Kazakhmys") announces that the Bozymchak Gold Project in Kyrgyzstan has successfully completed its pre-feasibility study, and the Board of Kazakhmys has approved progressing the project to the feasibility stage. At the same time lead investment of up to $22 million has been approved for the project.
The feasibility study should complete by the end of 2008 and will continue to be managed by consulting engineers WorleyParsons. Extraction of ore should commence in 2009 and it is anticipated that annual production will be 30 koz of gold and 7 kt of copper.
The investment of $22 million will be for establishing essential infrastructure and will ensure that the project remains on schedule.
Oleg Novachuk, Chief Executive Officer of Kazakhmys PLC said "Bozymchak is an attractive project and we are pleased that it continues to make good progress towards production. This is one of many opportunities that we believe exist in the region and we believe we are uniquely placed to bring these projects to full development."
For further information please contact:
|
Kazakhmys PLC |
||
|
John Smelt |
Head of Corporate Communications |
Tel: +44 20 7901 7882 Tel: +44 78 7964 2675 |
|
Olga Nekrassova |
Financial Analyst |
Tel: +44 20 7901 7814 |
|
Merlin |
||
|
David Simonson |
Tel: +44 20 7653 6620 |
|
|
Tom Randell |
Tel: +44 20 7653 6620 |
|
|
Leonid Fink |
Tel: +44 20 7653 6620 |
- ends -
Notes to Editors
The Bozymchak deposit in south western Kyrgyzstan was acquired in July 2007 as part of the assets of Eurasia Gold Inc. It is estimated to contain combined indicated and inferred resources of 16.5 million tonnes with 0.95% copper and 1.58 g/t gold.
Kazakhmys PLC is a leading international natural resources group, listed in the UK and Kazakhstan, 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 20 mines, 10 concentrators and 2 smelters. Kazakhmys copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode produced in 2007 from own ore was 341 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure. Kazakhmys also owns MKM, an upstream copper products fabrication company in Germany, which produces a range of pre- and semi-finished copper and copper alloy products.
Kazakhmys produces significant volumes of other metals, including zinc, silver and gold. In 2007, it produced 45 thousand tonnes of zinc metal and 133 thousand tonnes of zinc concentrate. Kazakhmys is the fourth largest silver producer in the world (19 million ounces produced in 2007). Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes substantial new development and exploration opportunities. The Group produced 146 thousand ounces of gold in 2007 and has measured and indicated resources of 2.3 million ounces.
Kazakhmys Power, the largest privately owned power business in Kazakhstan owns and operates a number of power plants, including the recently acquired coal fired Ekibastuz plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the Maikuben West open cast coal mine, supplying around 20% of the power plant's fuel requirements producing over 3.4 million tonnes of coal in 2007.
Kazakhmys Petroleum has acquired the Dostan-Temir LLP exploration block, with an area of 602km², located on the eastern fringe of the Caspian depression.
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 $5.3 billion in 2007 with EBITDA of $2.3 billion. The Group employs some 65,000 people, principally in Kazakhstan. The Group's strategic aim is to diversify and participate in the development of the significant natural resource opportunities in Central Asia.
About WorleyParsons
WorleyParsons is a leading provider of professional services to the energy, resource and complex process industries. WorleyParsons' business has been built by working closely with customers through long-term relationships, anticipating their needs and delivering inventive solutions through streamlined, proprietary project delivery systems. With over 27,700 employees in 105 offices and 34 countries, its service capability covers the entire project lifecycle: from identifying the opportunity to the operating phase.
Related Shares:
KAZ.L