30th Jan 2008 07:01
Kazakhmys PLC30 January 2008 30 January 2008 Kazakhmys PLC Production Summary for 12 Months and the Fourth Quarter Ended 31 December 2007 • Copper cathode production for the year ended 31 December 2007 is in line with the guidance outlined in the Q3 production report. Total copper cathode production for the period was 380* thousand tonnes, of which 341 thousand tonnes was from own material. - Cathode output from own material increased by 7% from the previous quarter to 92 thousand tonnes. • By-product output over the full year was generally positive compared to 2006: - Zinc in concentrate production rose 3% to 133 thousand tonnes, due to the higher output of zinc bearing ores. - Silver production declined by 12%, with decreased production of silver bearing ores in the Zhezkazgan region. - Gold production increased by 6%, to 113 thousand ounces, reflecting ore grade increases. • Improvements were seen towards the year end in the deliveries of ordered equipment facilitating the availability, maintenance and repairs of mining equipment and facilities. Equipment availability and delivery remains a key area of management focus. • Mining started, as planned, in January 2008 at the re-opened Abyz mine and the new Akbastau mine. • Kazakhmys Gold and Kazakhmys Petroleum are included in the report for the first time. - Kazakhmys Gold has received the extension of the licence to develop the major Bozymchak Deposit in Kyrgyzstan. - Kazakhmys Petroleum has started drilling exploratory wells in the shallow northern area and seismic testing in the southern area. Oleg Novachuk, Chief Executive Officer, said "2007 brought some productionchallenges, especially in the supply of equipment and the flood at South Mine.Improvements were seen in several areas towards the year end, along with theintroduction of a new concentrator, two concentrator upgrades and the recentcommencement of mining at Abyz and Akbastau. We are looking forward to apositive year in 2008 with opportunities to grow production and to develop ourprogramme for operational improvements. There are several new projects andupgrades to be carried out during 2008, along with further work on our majorgrowth assets and we will continue to focus on the success of our core business,alongside the other areas of our strategy." * Excludes tolled material For further information please contact: Kazakhmys PLCJohn Smelt, Head of Corporate Tel: +44 20 7901 7882Communications Tel: +44 787 964 2675Olga Nekrassova, Financial Analyst Tel: +44 20 7901 7814 MerlinDavid Simonson & Tom Randell (English language) Tel: +44 20 7653 6620Leonid Fink & Anastasia Ivanova (Russian language) Tel: +44 20 7653 6620 Notes to Editors Kazakhmys 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 20 open pit andunderground mines, 9 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 other parts of CentralAsia. The Group's strategic aim is to diversify and participate in thedevelopment of the significant natural resource opportunities in Central Asia. Copper Summary Kazakhmys Copper Production------------------------ ------ ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006------------------------ ------ ------- ------- ------- ------- -------Ore extraction '000 t 33,968 39,240 7,729 8,242 8,986---------------- ------ ------- ------- ------- ------- -------Average copper grade % 1.22 1.17 1.22 1.21 1.32---------------- ------ ------- ------- ------- ------- -------Average zinc grade1 % 3.87 4.28 4.19 3.96 4.47---------------- ------ ------- ------- ------- ------- ------- Copper in concentrate '000 t 389.9 433.5 96.8 91.6 119.5---------------- ------ ------- ------- ------- ------- -------own concentrate '000 t 347.9 383.2 84.7 80.3 99.7---------------- ------ ------- ------- ------- ------- -------purchased concentrate '000 t 42.0 50.3 12.1 11.3 19.8---------------- ------ ------- ------- ------- ------- ------- Copper cathodes2 '000 t 381.2 407.0 103.1 86.9 111.8---------------- ------ ------- ------- ------- ------- -------own concentrate '000 t 340.9 368.4 91.6 85.9 102.9---------------- ------ ------- ------- ------- ------- -------purchased concentrate '000 t 39.0 36.8 11.3 0.7 8.7---------------- ------ ------- ------- ------- ------- -------tolling concentrate '000 t 1.3 1.8 0.2 0.3 0.2---------------- ------ ------- ------- ------- ------- -------Copper rod '000 t 35.7 28.5 8.8 9.0 6.1---------------- ------ ------- ------- ------- ------- ------- 1 Complex ores only 2 Includes copper used to produce copper rod Total ore extraction in Q4 2007 of 7.7 million tonnes was 6% below the previousquarter. The fourth quarter was mainly impacted by lower output in the Balkhashand Karaganda regions due to stripping works taking place in preparation for2008. Output in the Zhezkazgan and East regions was in line with Q3 production.Output for the year of 34.0 million tonnes was 13% below 2006 figures, as orevolumes fell, particularly in the Zhezkazgan region. Copper grades in the fourth quarter 2007 have remained at the level seen in theprevious quarter. Average grades of 1.22% in 2007 have generally been higherthan 2006. This is due to the significantly lower output from the Kounrad mine,which has the lowest grade of all our operations, which raised the overallaverage ore grade. Previous production reports have noted the impact on ore extraction fromequipment availability and maintenance, including the effect of longer leadtimes on the delivery of mining equipment. Towards the end of 2007 we have seensome improvement in rates of delivery for new equipment and to a lesser extentspare parts, but there is still a backlog, and equipment availability remains akey area of focus for management. Along with the major long term growth projects at the Boschekul and Aktogay,there are a number of smaller near term projects being implemented in Zhezkazganand Karaganda regions to keep core production stable and offset grade declinesin the more mature mines. The North Nurkazgan open pit mine in the Karagandaregion and East Sary-Oba and Taskura mines (both open pit mines in theZhezkazgan region) are scheduled to commence production in 2008. Production at the Akbastau mine in the Karaganda region with projected annualcapacity of 1.0 million tonnes started in January 2008. Copper Summary Kazakhmys Copper Production (cont) The decrease of copper in own concentrate production from 2006 reflects thereduction in ore extraction and the accumulation of approximately 1.3 milliontonnes of ore, containing approximately 15.3 thousand tonnes of copper, which isstockpiled and waiting to be processed at the new Nurkazgan concentrator. During 2007 two out of nine concentrators underwent scheduled upgrades and onenew concentrator has been constructed. The Nikolayevsky concentrator (EastRegion) successfully completed works in Q4 2007. A new concentrator at Nurkazganis scheduled to ramp up production in 2008. The Karagaily concentrator underwentthe installation of an automated production line. The 1.3 million tonnes ofstockpiled ore at Nurkazgan will start to be processed in H1 2008, and there is271 thousand tonnes of complex zinc-bearing Kosmurun ores at Karagaily whichwill be processed in 2008. During 2008 four other concentrators (Zhezkazgan, Orlovsky, Irtyshsky andBelousovsky) will undergo planned upgrades, which will focus on improvingcurrent recovery rates and increasing ore capacity by 900 thousand tonnes intotal. Total cathode output in Q4 2007, at 103.1 thousand tonnes, represents 19%increase from the previous quarter, due to processing greater levels of own andpurchased concentrate. In Q4 total copper cathode production from ownconcentrate increased by 7% from the previous quarter to 91.6 thousand tonnes,benefiting from a 4.2 thousand tonnes reduction of work in process material atthe Zhezkazgan smelter, which had accumulated during maintenance works in Q3. The cathode production from own material in the full year 2007 was 7% lower than2006, at 340.9 thousand tonnes, reflecting lower ore production. By-products Summary Kazakhmys copper By-products Production ---------------------- -------- ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006---------------------- -------- ------- ------- ------- ------- -------Zinc in concentrate '000 t 132.8 129.1 31.6 30.0 22.0-------------- -------- ------- ------- ------- ------- -------Zinc metal '000 t 45.2 59.5 12.1 5.7 13.6-------------- -------- ------- ------- ------- ------- ------- Silver '000 oz 18,995 21,570 4,154 4,729 5,577-------------- -------- ------- ------- ------- ------- -------own production1 '000 oz 18,985 21,530 4,154 4,726 5,576-------------- -------- ------- ------- ------- ------- -------tolling2 '000 oz 10 40 0 3. 1-------------- -------- ------- ------- ------- ------- ------- Gold '000 oz 136.9 165.5 33.7 32.6 44.9-------------- -------- ------- ------- ------- ------- -------own production1 '000 oz 113.4 106.9 32.2 29.8 27.7-------------- -------- ------- ------- ------- ------- -------tolling2 '000 oz 23.5 58.6 1.5 2.8 17.2-------------- -------- ------- ------- ------- ------- ------- 1 Includes slimes from purchased concentrate 2 Represents tolled materials provided via third parties Q4 2007 zinc in concentrate production of 31.6 thousand tonnes was 5% ahead ofthe previous quarter and the 2007 annual production of 132.8 thousand tonnes was3% ahead of 2006. Production over the year benefited from a higher output ofzinc bearing ores, in particular, at the Kosmurun mine, which more than offsetthe slight decline in grades from 4.28% to 3.87%. Zinc recovery rates at theNikolayevsky concentrator improved from 45% to 58% after its recent upgrade.Demand for zinc in concentrate in our markets remains firm. The sensitivity of the zinc smelter to external temperatures is clearly seen inthe improved output of 12.1 thousand tonnes in Q4, compared to just 5.7 thousandtonnes in the previous quarter. Zinc metal production over the full year wasbelow the 2006 level due to continued difficulties with the cooling equipment. Silver production from own material in Q4 reduced by 12% to 4.2 million ounces,compared to Q3 2007. Production for the full year reduced by the samepercentage, compared to 2006, to 19 million ounces. The lower silver productionis due to the decline in silver-bearing ore output at Zhezkazgan and East regionmines. Gold output in Q4 2007 increased 3% to 33.7 thousand ounces of gold, compared toQ3 2007. Excluding tolled material, 32.2 thousand ounces were produced, an 8%increase compared to the third quarter of 2007. In Q4, and throughout the year,gold production, excluding tolled material, benefited from the increase in thegold grade as well as from the gold recovered from purchased copper concentrate.This led own gold production to increase to 113.4 thousand ounces in 2007,compared to 106.9 thousand ounces in 2006. As previously reported, the gold-bearing Abyz mine was closed for majorstripping works for the entire year but resumed production in January 2008. Thisshould contribute to an increase in gold production in 2008. Kazakhmys Copper Review by Region Zhezkazgan Complex---------------------- ------ ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006---------------------- ------ ------- ------- ------- ------- -------Ore extraction '000 t 24,355 27,676 5,751 5,787 6,555---------------- ------ ------- ------- ------- ------- -------Average copper grade % 0.82 0.82 0.83 0.81 0.84---------------- ------ ------- ------- ------- ------- ------- Copper concentrate '000 t 491.1 541.1 122.9 121.0 128.8---------------- ------ ------- ------- ------- ------- -------Copper in concentrate '000 t 178.6 199.3 42.9 42.6 49.6---------------- ------ ------- ------- ------- ------- ------- Copper cathodes1 '000 t 187.5 221.8 49.1 44.7 56.2---------------- ------ ------- ------- ------- ------- -------own concentrate '000 t 183.7 214.9 49.0 44.7 55.2---------------- ------ ------- ------- ------- ------- -------purchased concentrate '000 t 3.8 6.2 0.1 -- 1.0---------------- ------ ------- ------- ------- ------- -------tolling2 '000 t -- 0.7 -- -- ------------------ ------ ------- ------- ------- ------- -------Copper rod '000 t 35.7 28.5 8.8 9.0 6.1---------------- ------ ------- ------- ------- ------- ------- 1 Includes copper used to produce copper rod 2 Represents tolled materials provided via third parties Ore extraction at the Zhezkazgan complex in Q4 2007 was in line with Q3, at 5.8million tonnes. Production for the full year was 12% lower than 2006, at 24.4million tonnes. As announced in December, production at the South mine recovered during Q4 2007from flooding which took place in September. The main mine shaft has recoveredto normal production, although further repair works will be required on thelifting equipment of the support mine shaft. As previously reported, the Northmine was impacted during the year, and in Q4, by delays in delivery of equipment- principally drilling, excavator and transportation. Shortages of equipmentinterrupted mine development works which affected the region's overall output. In Q4 2007, the copper grade increased due to slightly higher grades contributedby the Stepnoy, North and West mines, which saw the development of richer copperlayers. The average copper grade for 2007 was 0.82%, the same as 2006. This wasdue to the increased output volumes and improved grade at the relatively newZhomart mine of 1.27% in 2007 compared to 1.16% in 2006, compensating the modestdeclines seen elsewhere. The underlying trend of declining grade is likely tocontinue in 2008. However, this should be offset by increased ore extractionvolumes as result of the delivery of equipment. The output of copper in concentrate in the Zhezkazgan region reflects thereduction in ore extraction. Copper in concentrate production in Q4 2007 was inline with the Q3 figures, at 42.9 thousand tonnes. Q4 copper cathode production, of 49.1 thousand tonnes, was 10% higher than theprevious quarter. The increase is due to the ramp up after the maintenanceworks performed at the smelter in September and October. This included theprocessing of accumulated work in process materials at the smelting andelectrolysis shops, which was reduced by 4.2 thousand tonnes during Q4 2007.Annual copper cathode production decreased by 15% from 214.9 thousand tonnes in2006 to 183.7 thousand tonnes in 2007, again reflecting the lower level of oreproduction. Copper rod is produced to customer order and output for the fullyear 2007 grew by 25%, responding to continued strong demand from the Chinesemarket. Kazakhmys Copper Review by Region Balkhash Complex---------------------- ------ ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006---------------------- ------ ------- ------- ------- ------- -------Ore extraction '000 t 2,127 4,371 419 616 833---------------- ------ ------- ------- ------- ------- -------Average copper grade % 1.05 0.81 1.07 0.86 0.93---------------- ------ ------- ------- ------- ------- ------- Copper concentrate1 '000 t 187.9 257.1 47.6 47.8 52.0---------------- ------ ------- ------- ------- ------- -------Copper in concentrate '000 t 32.5 43.4 8.7 7.8 9.0---------------- ------ ------- ------- ------- ------- ------- Copper cathodes '000 t 193.7 185.2 54.0 42.2 55.6---------------- ------ ------- ------- ------- ------- -------own concentrate '000 t 157.2 153.5 42.6 41.2 47.7---------------- ------ ------- ------- ------- ------- -------purchased concentrate '000 t 35.2 30.6 11.2 0.7 7.7---------------- ------ ------- ------- ------- ------- -------tolling2 '000 t 1.3 1.1 0.2 0.3 0.2---------------- ------ ------- ------- ------- ------- -------Copper rod '000 t -- -- -- -- ------------------ ------ ------- ------- ------- ------- ------- 1 Excludes concentrate processed by third parties 2 Represents tolled materials provided via third parties The decreased ore extraction in Q4 2007 and for the 12 months of 2007 was due tothe scheduled major stripping works at Kounrad mine, which are expected tocontinue during 2008, though accompanied with intermittent ore extraction.Shatyrkul and Sayak mines saw lower ore output during Q4 due to delays in orepreparation works, caused by equipment issues similar to those in Zhezkazgan. Itis anticipated that this equipment will start arriving during H1 2008. The average copper grade over the year rose to 1.05% compared to 0.81% in 2006.This was principally due to the reduced output at the Kounrad mine, which hasthe lowest grade in the region, thereby increasing the overall average for theregion. Output of copper in concentrate increased by 12% from 7.8 thousand tonnes in Q32007 to 8.7 thousand tonnes in Q4 2007 mainly as a result of processing greatervolumes from the Nurkazgan mine in the Karaganda region. The annual copper inconcentrate production was 32.5 thousand tonnes, 25% lower than in 2006 and inline with the decrease in ore output. The Balkhash smelter processes concentrates not only from the Balkhashconcentrator but also from the concentrators in the East and Karaganda regions.Copper cathode production from own concentrate of 42.6 thousand tonnes in Q42007 was in line with the third quarter output of 41.2 thousand tonnes due toconsistent concentrate output levels during Q3 and Q4 by the contributingregions. Annual copper cathode production in 2007 from own material of 157.2thousand tonnes was in line with 2006. The new sulphuric acid plant is expected to start production in H2 2008.Sulphuric acid and by products produced from sulphur oxide gases will be sold tothird parties. The plant's expected annual capacity is 1.2 million tonnes ofsulphuric acid. This facility will bring environmental improvements to theBalkhash region. Kazakhmys Copper Review by Region East Region------------------------ ------ ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006------------------------ ------ ------- ------- ------- ------- -------Ore extraction '000 t 4,140 4,441 1,005 960 1,049---------------- ------ ------- ------- ------- ------- -------Average copper grade % 2.84 2.83 3.16 3.07 3.00---------------- ------ ------- ------- ------- ------- ------- Copper concentrate1 '000 t 506.2 534.5 147.4 127.4 135.2---------------- ------ ------- ------- ------- ------- -------Copper in concentrate '000 t 95.9 98.7 27.8 24.4 24.6---------------- ------ ------- ------- ------- ------- ------- Copper cathodes '000 t -- -- -- -- ------------------ ------ ------- ------- ------- ------- -------Copper rod '000 t -- -- -- -- ------------------ ------ ------- ------- ------- ------- ------- 1 Excludes concentrate processed by third parties Ore extraction in Q4, at 1 million tonnes, was 5% higher than the previousquarter benefiting from the increased production volumes at Artemyevsky andOrlovsky mines as result of the improved situation with spare parts. Ore extraction in the East region in 2007 was 7% lower than in 2006, primarilydue to the lower production volumes at several mines caused by issues ofequipment availability reported in Q3. The average copper grade rose in Q4 2007, due to higher grade and output atArtemyevsky mine and the increased production at Orlovsky, which had a grade ofover 5%. The average copper grade in 2007 was 2.84%, in line with 2006. Production of copper in concentrate during Q4 increased by 14% compared to theprevious quarter to 27.8 thousand tonnes. This was the result of the increase inboth ore output and copper grade. The annual 2007 copper in concentrate outputwas 95.9 thousand tonnes, 3% below the 98.7 thousand tonnes produced in 2006reflecting the lower ore production. The Nikolayevsky concentrator successfully underwent a planned upgrade during2007 replacing the automation and filter equipment in the flotation section.This expected to improve recovery rates from the complex ores. Kazakhmys Copper Review by Region Karaganda Region------------------------ ------ ------- ------- ------- ------- ------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006------------------------ ------ ------- ------- ------- ------- -------Ore extraction '000 t 3,346 2,752 554 879 549---------------- ------ ------- ------- ------- ------- -------Average copper grade % 2.21 2.59 1.94 2.06 4.46---------------- ------ ------- ------- ------- ------- ------- Copper concentrate '000 t 231.6 230.8 38.9 34.0 93.8---------------- ------ ------- ------- ------- ------- -------Copper in concentrate '000 t 33.3 33.7 4.2 4.5 15.7---------------- ------ ------- ------- ------- ------- ------- Copper cathodes '000 t -- -- -- -- ------------------ ------ ------- ------- ------- ------- -------Copper rod '000 t -- -- -- -- ------------------ ------ ------- ------- ------- ------- ------- The Karaganda region's ore output decreased during Q4 by 37% compared to Q32007. This was due to stripping works for 2008 production at the Kosmurun andWest Nurkazgan mines. Despite that, annual output increased by 22% from 2.8million tonnes in the year 2006, to 3.3 million tonnes for the full year of2007. The ramped up production at the Kosmurun and West Nurkazgan minescontributed to the higher volumes of ore extracted, with output of 1.5 milliontonnes and 1.8 million tonnes in 2007, compared to 0.9 million tonnes and 1.7million tonnes in 2006, respectively. This was partly offset by the gold-richAbyz mine, which produced 210 thousand tonnes in 2006, but was closed forplanned stripping works throughout 2007 and resumed production in January 2008. The new mine at Akbastau, with a projected annual capacity of 1.0 million tonnesper annum, underwent major stripping works in 2007 and started production inJanuary 2008. Akbastau is one of several small new projects which will offsetthe decrease in output from mature mines and maintain existing productionlevels. In 2008 it will offset the declining output from the mature Kosmurunmine. The reduction in the average copper grade from 2.59% in 2006 to 2.21% in 2007was caused by the decrease in the copper grade contributed by the Kosmurun minefrom 5.53% in 2006 to 3.55% in 2007. The Q4 2007 average copper ore grade of1.94% also decreased from the grade reported in Q3. This was again due to adecrease in copper grades at Kosmurun mine where there was a change in thegeological profile from copper ores, towards complex copper-zinc ores withhigher zinc content. Average grades were also affected by the decline in gradesat the West Nurkazgan, which fell to 0.88% from 1.12% in the previous quarter,due to geological conditions which led to higher ore dilution. This trend islikely to continue during 2008. The stockpile of 1.4 million tonnes of ore from the West Nurkazgan mine,containing approximately 16.8 thousand tonnes of copper was build up during H22007. A portion of the Nurkazgan stockpiles was processed at the Balkhashconcentrator. The remainder 1.3 million tonnes of ore containing approximately15.3 thousand tonnes of copper is being kept to process at the new Nurkazganconcentrator. The concentrator saw a trial processing in Q4 2007 and it isanticipated that the production will be ramped up in two phases over 2008. Tests were carried out to improve copper recovery from complex copper-zinc orefrom Kosmurun and production is expected to increase in Q1. At the year end 271thousand tonnes of this ore was held at the Karagaily concentrator, which willbe processed during 2008. Gold Review kazakhmys gold Production ---------------------- -------- ------- ------- ------- ------- ------- ------- 12m 12 m 6 m* Q4 Q3* Q4 2007 2006 2007 2007 2007 2006 ---------------------- -------- ------- ------- ------- ------- ------- -------Ore extraction t 2,061 2,058 1,206 479 728 499---------------- -------- ------- ------- ------- ------- ------- -------Gold ore grade g/t 1.48 1.29 1.52 1.38 1.52 1.27---------------- -------- ------- ------- ------- ------- ------- ------- Gold in ore to pads ktr.oz 103 102 63 26 37 17---------------- -------- ------- ------- ------- ------- ------- -------Gold precipitation ktr.oz 52 56 33 16 17 13---------------- -------- ------- ------- ------- ------- ------- ------- Gold dore production ktr.oz 52 53 33 15 17 13---------------- -------- ------- ------- ------- ------- ------- -------Silver production ktr.oz 44 44 21 12 9 10---------------- -------- ------- ------- ------- ------- ------- ------- * Period from acquisition on 4th July 2007 The decrease in production during Q4 compared to Q3 figures is due to standardseasonal changes. Production is carried out using heap leaching which slows downin line with the decreases in temperature of the solution. The optimaltemperature for the leaching solution is 15 degrees, compared with a maximumachieved during the winter season of 5-6 degrees. The weather during Q4 2007 wasmilder than anticipated in the beginning of the year allowing production to liftabove expectations. Q1 2008 production is expected to be below Q4 2007, reflecting the likelihood oflower temperatures. Annual production for 12 months in 2007 was 52 ktroz, ofwhich 33 ktroz is attributable to Kazakhmys, having purchased the assets in July2007. This was slightly ahead of management expectations, set at the start ofthe year and time of acquisition. The licence to develop the central part of the major Bozymchak gold-copperdeposit has been extended to 2027, by the State Agency for Geology and MineralResources of the Government of Kyrgyzstan. The Bozymchak deposit of gold, copperand silver is located in the Alabuka region Jalalabad district, Kyrgyzstan. An update on the substantial development projects at Kazakhmys Gold will begiven at the time of the 2007 Annual Results. Petroleum Review kazakhmys Petroleum Having completed the re-analysis of the available existing data on theexploration area, Kazakhmys Petroleum has started its shallow well drillingprogramme on the Northern Elimessai (suprasalt) section. This is expected tocontinue through to the end of H1 2008. The main focus of the exploration activity is the Southern Akzhar (subsalt)section. This will be the subject of a 3D seismic survey over most of 2008. Theresults of the survey will be used to plan the location of future new deepwells. Whilst the 3D seismic work is taking place, an existing deep well may bere-opened in 2008 to validate the results of earlier drilling programmes. Further updates on the exploration will be provided as news arises. Kazakhmys Copper Copper Mining------------------------- ------- ------- ------- -------- -------Zhezkazgan complex 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006 ------- ------- ------- -------- ------- North ore ('000 t) 2,375 3,143 478 552 714----------------- ------- ------- ------- -------- ------- grade (%) 0.65 0.66 0.70 0.58 0.69 ------- ------- ------- -------- -------East ore ('000 t) 5,615 5,501 1,428 1,434 1,252----------------- ------- ------- ------- -------- ------- grade (%) 0.82 0.88 0.82 0.82 0.87 ------- ------- ------- -------- -------South ore ('000 t) 5,220 6,819 967 1,117 1,692----------------- ------- ------- ------- -------- ------- grade (%) 0.69 0.72 0.63 0.74 0.72 ------- ------- ------- -------- -------West ore ('000 t) 2,054 2,585 488 519 571----------------- ------- ------- ------- -------- ------- grade (%) 0.37 0.41 0.41 0.33 0.43 ------- ------- ------- -------- -------Stepnoy ore ('000 t) 2,849 3,200 746 655 732----------------- ------- ------- ------- -------- ------- grade (%) 0.80 0.79 0.86 0.73 0.74 ------- ------- ------- -------- -------Annensky ore ('000 t) 3,360 4,225 873 838 760----------------- ------- ------- ------- -------- ------- grade (%) 1.03 1.10 0.98 1.06 1.16 ------- ------- ------- -------- -------Zhomart ore ('000 t) 2,882 2,203 771 672 834----------------- ------- ------- ------- -------- ------- grade (%) 1.27 1.16 1.23 1.26 1.26 ------- ------- ------- -------- ------- Complex total ore ('000 t) 24,355 27,676 5,751 5,787 6,555----------------- ------- ------- ------- -------- -------Complex average grade (%) 0.82 0.82 0.83 0.81 0.84----------------- ------- ------- ------- -------- ------- ------- ------- ------- -------- -------Balkhash complex 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006 ------- ------- ------- -------- -------Kounrad ore ('000 t) 404 2,267 41 184 379----------------- ------- ------- ------- -------- ------- grade (%) 0.30 0.35 0.48 0.25 0.44 ------- ------- ------- -------- -------Sayak I, III ore ('000 t) 1,372 1,663 338 333 376----------------- ------- ------- ------- -------- ------- grade (%) 1.02 1.11 1.03 0.95 1.16 ------- ------- ------- -------- -------Shatyrkul ore ('000 t) 351 441 40 99 78----------------- ------- ------- ------- -------- ------- grade (%) 2.05 2.03 2.01 1.69 2.21 ------- ------- ------- -------- ------- Complex total ore ('000 t) 2,127 4,371 419 616 833----------------- ------- ------- ------- -------- -------Complex average grade (%) 1.05 0.81 1.07 0.86 0.93----------------- ------- ------- ------- -------- ------- ------- ------- ------- -------- -------East region 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006 ------- ------- ------- -------- ------- Nikolayevsky ore ('000 t) 532 578 111 146 65----------------- ------- ------- ------- -------- ------- grade (%) 1.75 1.47 1.93 1.66 2.06 ------- ------- ------- -------- -------Artemyevsky ore ('000 t) 1,395 1,281 313 280 382----------------- ------- ------- ------- -------- ------- grade (%) 1.65 1.74 1.70 1.41 1.72 ------- ------- ------- -------- -------Irtyshsky ore ('000 t) 390 449 95 92 102----------------- ------- ------- ------- -------- ------- grade (%) 1.39 1.26 1.45 1.47 1.39 ------- ------- ------- -------- -------Belousovsky ore ('000 t) 163 246 54 36 69----------------- ------- ------- ------- -------- ------- grade (%) 0.85 1.00 0.83 0.93 1.14 ------- ------- ------- -------- -------Orlovsky ore ('000 t) 1,231 1,542 326 286 339----------------- ------- ------- ------- -------- ------- grade (%) 5.24 4.69 5.74 6.00 5.17 ------- ------- ------- -------- -------Yubileyno-Snegirikhinsky ore ('000 t) 429 345 106 120 92----------------- ------- ------- ------- -------- ------- grade (%) 3.31 4.20 3.52 3.51 4.21 ------- ------- ------- -------- ------- Region total ore ('000 t) 4,140 4,441 1,005 960 1,049----------------- ------- ------- ------- -------- -------Region average grade (%) 2.84 2.83 3.16 3.07 3.00----------------- ------- ------- ------- -------- ------- ------- ------- ------- -------- -------Karaganda region 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006 ------- ------- ------- -------- ------- West Nurkazgan ore ('000 t) 1,842 1,670 263 473 165----------------- ------- ------- ------- -------- ------- grade (%) 1.11 1.17 0.88 1.12 1.09 ------- ------- ------- -------- -------Akbastau ore ('000 t) 40 - - 40 ------------------ ------- ------- ------- -------- ------- grade (%) 3.91 - - 3.91 - ------- ------- ------- -------- -------Kosmurun ore ('000 t) 1,464 872 291 366 384----------------- ------- ------- ------- -------- ------- grade (%) 3.55 5.53 2.90 3.08 5.91 ------- ------- ------- -------- -------Abyz ore ('000 t) - 210 - - ------------------ ------- ------- ------- -------- ------- grade (%) - 1.67 - - - ------- ------- ------- -------- ------- Region total ore ('000 t) 3,346 2,752 554 879 549----------------- ------- ------- ------- -------- -------Region average grade (%) 2.21 2.59 1.94 2.06 4.46----------------- ------- ------- ------- -------- ------- ----------------- ------- ------- ------- -------- -------Total ore ('000 t) 33,968 39,240 7,729 8,242 8,986----------------- ------- ------- ------- -------- ------- Average grade (%) 1.22 1.17 1.22 1.21 1.32----------------- ------- ------- ------- -------- ------- Copper processing ------------------------- ------- ------- ------- -------- ------- 12m 12m Q4 Q3 Q4 2007 2007 2006 2007 2006 ------------------------- ------- ------- ------- -------- ------- Zhezkazgan complex----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 491.1 541.1 122.9 121.0 128.8----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 178.6 199.3 42.9 42.6 49.6----------------- --------- ------- ------- ------- -------- -------Balkhash complex----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 187.9 257.1 47.6 47.8 52.0----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 32.5 43.4 8.7 7.8 9.0----------------- --------- ------- ------- ------- -------- -------East region----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 506.2 534.5 147.4 127.4 135.2----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 95.9 98.7 27.8 24.4 24.6----------------- --------- ------- ------- ------- -------- -------Karaganda region----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 231.6 230.8 38.9 34.0 93.8----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 33.3 33.7 4.2 4.5 15.7----------------- --------- ------- ------- ------- -------- ------------------------ --------- ------- ------- ------- -------- -------Total own processed----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 1,416.8 1,563.5 356.8 330.2 409.8----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 340.3 375.1 83.6 79.3 98.9----------------- --------- ------- ------- ------- -------- ------------------------ --------- ------- ------- ------- -------- -------Own ore processed bythird parties ----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 28.9 32.8 4.1 4.1 3.2----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 7.6 8.1 1.1 1.0 0.8----------------- --------- ------- ------- ------- -------- ------------------------ --------- ------- ------- ------- -------- -------Total own----------------- --------- ------- ------- ------- -------- -------Copper concentrate '000 t 1,445.7 1,596.3 360.9 334.3 413----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 347.9 383.2 84.7 80.3 99.7----------------- --------- ------- ------- ------- -------- ------- Purchasedconcentrate -----------------Copper concentrate '000 t 152.5 214.2 41.3 38.8 73.8----------------- --------- ------- ------- ------- -------- -------Copper in concentrate '000 t 42.0 50.3 12.1 11.3 19.8----------------- --------- ------- ------- ------- -------- -------Total copper in concentrate '000 t 389.9 433.5 96.8 91.6 119.5----------------- --------- ------- ------- ------- -------- ------- COPPER SMELTER / REFINERY - Copper CATHODES Production----------------- --------- -------- -------- -------- -------- -------- 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006----------------- --------- -------- -------- -------- -------- -------- Zhezkazgansmelter -----------------Own concentrate '000 t 183.7 214.9 49.0 44.7 55.2----------------- --------- -------- -------- -------- -------- --------Purchased '000 t 3.8 6.2 0.1 0.0 1.0concentrate --------- -------- -------- -------- -------- -------------------------Sub - total '000 t 187.5 221.1 49.1 44.7 56.2----------------- --------- -------- -------- -------- -------- --------Tolling '000 t - 0.7 - - ------------------ --------- -------- -------- -------- -------- --------Total including tolling '000 t 187.5 221.8 49.1 44.7 56.2----------------- --------- -------- -------- -------- -------- -------- Balkhash smelter----------------- --------- -------- -------- -------- -------- --------Own concentrate '000 t 157.2 153.5 42.6 41.2 47.7----------------- --------- -------- -------- -------- -------- --------Purchased '000 t 35.2 30.6 11.2 0.7 7.7concentrate --------- -------- -------- -------- -------- -------------------------Sub - total '000 t 192.4 184.1 53.8 41.9 55.4----------------- --------- -------- -------- -------- -------- --------Tolling '000 t 1.3 1.1 0.2 0.3 0.2----------------- --------- -------- -------- -------- -------- --------Total including tolling '000 t 193.7 185.2 54.0 42.2 55.6----------------- --------- -------- -------- -------- -------- -------- Grand total '000 t 381.2 407.0 103.1 86.9 111.8----------------- --------- -------- -------- -------- -------- -------- Kazakhmys Copper By-products Mining, Processing and SMELTER / REFINERY----------------- --------- -------- -------- -------- -------- --------ZINC 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006----------------- --------- -------- -------- -------- -------- --------East region----------------- --------- -------- -------- -------- -------- --------Nikolayevsky grade (%) 3.07 2.48 2.74 3.37 3.69----------------- -------- -------- -------- -------- -------- ---------Artemyevsky grade (%) 5.19 6.91 4.91 4.78 6.52----------------- -------- -------- -------- -------- -------- ---------Irtyshsky grade (%) 3.24 2.80 3.25 3.60 3.26----------------- -------- -------- -------- -------- -------- ---------Belousovsky grade (%) 2.87 3.52 2.67 3.24 3.96----------------- -------- -------- -------- -------- -------- ---------Orlovsky grade (%) 4.60 3.72 5.03 4.93 3.06----------------- -------- -------- -------- -------- -------- ---------Yubileyno-Snegirikhinsky grade (%) 3.27 3.05 3.56 3.09 3.45----------------- -------- -------- -------- -------- -------- Region average grade (%) 4.27 4.32 4.29 4.23 4.47----------------- -------- -------- -------- -------- -------- Karaganda region----------------- --------- -------- -------- -------- -------- --------Kosmurun grade (%) 2.77 - 3.88 3.38 ------------------ -------- -------- -------- -------- -------- ---------Akbastau grade (%) 2.84 - - 2.84 ------------------ -------- -------- -------- -------- -------- ---------Abyz grade (%) - 3.47 - - ------------------ -------- -------- -------- -------- -------- ----------------- --------- -------- -------- -------- -------- --------Region average grade (%) 2.77 3.47 3.87 3.32 ------------------ -------- -------- -------- -------- -------- ----------------- --------- -------- -------- -------- -------- --------Overall average grade (%) 3.87 4.28 4.19 3.96 4.47----------------- -------- -------- -------- -------- -------- ----------------- --------- -------- -------- -------- -------- --------Zinc in concentrate ('000 t) 132.8 129.1 31.6 30.0 22.0----------------- --------- -------- -------- -------- -------- --------Zinc metal ('000 t) 45.2 59.5 12.1 5.7 13.6----------------- --------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------SILVER 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006 -------- -------- -------- -------- --------Zhezkazgan complex----------------- --------- -------- -------- -------- -------- --------North grade (g/t) 8.25 7.36 8.79 6.81 8.86----------------- --------- -------- -------- -------- -------- --------East grade (g/t) 16.82 19.29 16.22 16.96 18.92----------------- --------- -------- -------- -------- -------- --------South grade (g/t) 16.86 14.08 14.48 17.16 17.95----------------- --------- -------- -------- -------- -------- --------West grade (g/t) 11.11 14.26 11.71 10.92 15.56----------------- --------- -------- -------- -------- -------- --------Stepnoy grade (g/t) 11.81 16.58 12.61 10.44 14.37----------------- --------- -------- -------- -------- -------- --------Annensky grade (g/t) 21.86 23.75 16.66 19.91 31.71----------------- --------- -------- -------- -------- -------- --------Zhomart grade (g/t) 8.15 5.78 6.86 7.66 6.92----------------- --------- -------- -------- -------- -------- -------- ----------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 14.6 15.5 13.27 14.09 16.73----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Balkhash complex----------------- --------- -------- -------- -------- -------- --------Kounrad grade (g/t) 0.86 1.81 0.07 1.10 1.50----------------- --------- -------- -------- -------- -------- --------Sayak I, III grade (g/t) 5.22 6.12 5.17 4.81 6.04----------------- --------- -------- -------- -------- -------- --------Shatyrkul grade (g/t) 1.71 2.59 1.49 1.40 2.70----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 3.82 3.53 4.32 3.15 3.66----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------East region----------------- --------- -------- -------- -------- -------- --------Nikolayevsky grade (g/t) 38.60 24.50 50.37 46.06 33.90----------------- --------- -------- -------- -------- -------- --------Artemyevsky grade (g/t) 95.99 143.23 69.00 88.69 140.20----------------- --------- -------- -------- -------- -------- --------Irtyshsky grade (g/t) 53.66 44.10 52.73 55.86 51.48----------------- --------- -------- -------- -------- -------- --------Belousovsky grade (g/t) 47.89 52.60 47.95 57.59 55.31----------------- --------- -------- -------- -------- -------- --------Orlovsky grade (g/t) 55.90 52.35 56.22 58.79 47.71----------------- --------- -------- -------- -------- -------- --------Yubileyno-Snegirikhinsky grade (g/t) 49.23 37.42 58.37 51.92 34.89----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 65.97 72.98 58.99 64.39 80.30----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Karaganda region----------------- --------- -------- -------- -------- -------- --------Nurkazgan grade (g/t) 2.77 3.71 2.84 3.04 2.24----------------- --------- -------- -------- -------- -------- --------Akbastau grade (g/t) 33.43 - - 33.43 ------------------ --------- -------- -------- -------- -------- --------Kosmurun grade (g/t) 36.72 31.97 55.34 40.77 33.64----------------- --------- -------- -------- -------- -------- --------Abyz grade (g/t) - 47.88 - - ------------------ --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 17.99 16.04 30.42 20.13 24.20----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Overall average grade (g/t) 20.52 20.69 19.97 19.79 23.39----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Silver in concentrate ('000 oz) 18,147 20,549 4,382 4,373 6,288----------------- --------- -------- -------- -------- -------- --------own concentrate ('000 oz) 14,088 15,792 3,236 3,257 4,210----------------- --------- -------- -------- -------- -------- --------purchased concentrate ('000 oz) 4,059 4,757 1,146 1,116 2,078----------------- --------- -------- -------- -------- -------- --------Silver metal1 ('000 oz) 18,985 21,530 4,154 4,726 5,576----------------- --------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------GOLD 12m 12m Q4 Q3 Q4 2007 2006 2007 2007 2006----------------- --------- -------- -------- -------- -------- --------Balkhash complex----------------- --------- -------- -------- -------- -------- --------Sayak I, III grade (g/t) 0.34 0.27 0.52 0.29 0.27----------------- --------- -------- -------- -------- -------- --------Shatyrkul grade (g/t) 0.30 0.31 0.38 0.28 0.32----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 0.33 0.28 0.50 0.29 0.28----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------East region----------------- --------- -------- -------- -------- -------- --------Nikolayevsky grade (g/t) 0.71 0.26 0.68 0.94 0.31----------------- --------- -------- -------- -------- -------- --------Artemyevsky grade (g/t) 1.28 1.66 0.79 1.25 1.62----------------- --------- -------- -------- -------- -------- --------Irtyshsky grade (g/t) 0.37 0.31 0.39 0.40 0.37----------------- --------- -------- -------- -------- -------- --------Belousovsky grade (g/t) 0.46 0.50 0.47 0.43 0.51----------------- --------- -------- -------- -------- -------- --------Orlovsky grade (g/t) 0.59 0.58 0.63 0.57 0.59----------------- --------- -------- -------- -------- -------- --------Yubileyno-Snegirikhinsky grade (g/t) 0.70 0.57 0.73 0.84 0.49----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 0.83 0.82 0.67 0.84 0.91----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Karaganda region----------------- --------- -------- -------- -------- -------- --------Nurkazgan grade (g/t) 0.32 0.31 0.32 0.34 0.22----------------- --------- -------- -------- -------- -------- --------Akbastau grade (g/t) 1.80 - - 1.80 ------------------ --------- -------- -------- -------- -------- --------Kosmurun grade (g/t) 2.46 1.87 4.52 2.65 1.72----------------- --------- -------- -------- -------- -------- --------Abyz grade (g/t) - 3.67 - - ------------------ --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Region average grade (g/t) 1.27 1.06 2.53 1.37 1.27----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Overall average grade (g/t) 0.89 0.77 1.17 0.94 0.87----------------- --------- -------- -------- -------- -------- ------------------------- --------- -------- -------- -------- -------- --------Gold in concentrate ('000 oz) 116.4 111.4 47.4 27.8 43.6----------------- --------- -------- -------- -------- -------- --------own concentrate ('000 oz) 80.8 72.5 24.6 17.1 21.5----------------- --------- -------- -------- -------- -------- --------purchased concentrate ('000 oz) 35.6 38.9 22.8 10.7 22.1----------------- --------- -------- -------- -------- -------- --------Gold output1 ('000 oz) 113.4 106.9 32.2 29.8 27.7----------------- --------- -------- -------- -------- -------- -------- 1 Includes slimes from purchased concentrate This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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