KAZ Minerals PLC Koksay Project Investment by NFC (7143Q)
June 08 2018 - 2:00AM
UK Regulatory
TIDMKAZ
RNS Number : 7143Q
KAZ Minerals PLC
08 June 2018
KAZ MINERALS PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA STREET
LONDON SW1E 5JL
Tel: +44 (0) 20 7901
7800
=======================
8 June 2018
KOKSAY PROJECT INVESTMENT BY NFC
KAZ Minerals PLC ("KAZ Minerals" or the "Group") announces an
agreement to invest $70 million into the Group's Koksay project by
China Nonferrous Metal Industry's Foreign Engineering and
Construction Company Ltd ("Non Ferrous China" or "NFC"). Following
the $70 million investment, which is subject to certain conditions
precedent including regulatory approvals in Kazakhstan and China,
NFC will hold a 19.4% stake in the Koksay project.
Koksay is a potential open pit copper mine development project
in Kazakhstan, located around 230 kilometres from Almaty. The
deposit has a mineral resource(1) of 736 Mt at an average copper
grade of 0.42%, with contained copper of 3.1 Mt.
The $70 million to be invested into the project entity by NFC
will be ring-fenced for the development of Koksay, including a
feasibility study which will determine the detailed design for
mining and processing operations and the associated capital budget.
The Board will review the results of the feasibility study to
assess how and when to proceed with the project.
Oleg Novachuk, Chair, said: "We are pleased to welcome NFC as a
partner in the Koksay project. We worked successfully with NFC in
the construction of Bozshakol and Aktogay and we are looking
forward to developing our relationship further as we assess this
opportunity in Kazakhstan."
(1) Measured, indicated and inferred resources at 31 December
2017.
For further information please contact:
KAZ Minerals PLC
====================== ================================= ======================
Chris Bucknall Investor Relations, London Tel: +44 20 7901 7882
Anna Mallere Investor Relations, London Tel: +44 20 7901 7814
Maksut Zhapabayev Corporate Communications, Almaty Tel: +7 727 244 03 53
====================== ================================= ======================
Brunswick Group
====================== ================================= ======================
Carole Cable, Charlie
Pretzlik Tel: +44 20 7404 5959
====================== ================================= ======================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals PLC is a high growth copper company focused on
large scale, low cost, open pit mining in Kazakhstan. It operates
the Bozshakol and Aktogay open pit copper mines in the Pavlodar and
East Region of Kazakhstan, three underground mines and associated
concentrators in the East Region of Kazakhstan and the Bozymchak
copper-gold mine in Kyrgyzstan. In 2017, total copper production
was 259 kt with by-products of 58 kt of zinc in concentrate, 179
koz of gold and 3,506 koz of silver.
The Group's new operations at Bozshakol and Aktogay have
delivered one of the highest growth rates in the industry and
transformed KAZ Minerals into a company dominated by world class,
open pit copper mines.
Bozshakol is a first quartile asset on the global cost curve
with an annual ore processing capacity of 30 million tonnes and a
remaining mine life of 39 years at an average copper grade of
0.35%. The mine and processing facilities will produce an average
of 100 kt of copper cathode equivalent and 120 koz of gold in
concentrate per year over the first 10 years of operations.
Aktogay is a large scale, open pit mine similar to Bozshakol,
with a remaining mine life of 28 years at an average copper grade
of 0.36% (oxide) and 0.33% (sulphide). Aktogay commenced production
of copper cathode from oxide ore in December 2015 and copper in
concentrate from sulphide ore in February 2017. The operating
sulphide concentrator has an annual ore processing capacity of 25
million tonnes and the sulphide processing capacity will be doubled
to 50 million tonnes with the addition of a second concentrator by
the end of 2021. Aktogay is competitively positioned on the global
cost curve and will produce an average of 90 kt of copper per year
from sulphide ore until 2021, increasing to 170 kt per year from
2022 to 2027, after the second concentrator commences operations.
Copper production from oxide ore will be in the region of 20 kt per
annum until 2025.
KAZ Minerals is listed on the London Stock Exchange, the
Kazakhstan Stock Exchange and the Hong Kong Stock Exchange and
employs around 13,000 people, principally in Kazakhstan.
China Nonferrous Metal Industry's Foreign Engineering and
Construction Company Ltd ("Non Ferrous China" or "NFC") is a
state-controlled listed company on the Shenzhen Stock Exchange
involved in international project contracting and nonferrous metal
resource development. NFC was the first Chinese company to invest
in nonferrous metal mining assets outside China, with business
operations in more than 20 countries including a number of
nonferrous metal mines both inside and outside China.
This announcement contains inside information.
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END
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