(KAZ.L) Kazakhmys PLC Buy/Sell

By Eric Onstad

LONDON, Nov 12 (Reuters) - Kazakh mining group ENRC will return output next year to 2008 levels, but is still wary about the outlook for 2010 as it posted a 2.1 percent fall in third-quarter output of ferrochrome, a key product.
The London-listed firm, which slashed production late last year as demand slid during the global downturn, said on Thursday its production volumes had returned to normal levels at the end of September.
"For the ongoing businesses of the group, we are planning production volumes in 2010 will be close to 2008 levels," a statement said.
"We continue to anticipate uncertainty into 2010, with the risk for the industry of further volatility in commodity prices and volumes as supply still continues to outpace demand for many commodities."
The company, which floated on the London bourse in December 2007, said it was becoming more convinced about recovery in China, the main driver of commodities demand, but the situation in the United States, Europe and Russia was mixed.
ENRC shares, which have nearly tripled this year, fell 2.0 percent to 903.5 pence by 0927 GMT, compared to a 1.0 percent dip in the UK mining index.
Liberum Capital said in a note that although the firm reported strong quarter-on-quarter recovery in output after earlier cutbacks, the shares were no bargain.
"ENRC currently looks fully valued at 14.0x P/E... on 2010 spot earnings and we expect near-term price weakness," it said.
The spot ferrochome price has slipped to 90 cents per pound compared to fourth-quarter contract prices of $1.03 and there was concern that Kazakhmys could unload its stake, Liberum added.
Kazakh rival Kazakhmys is the group's biggest shareholder with a 26 percent holding.

Output of ferrochrome, a key component in stainless steel, declined 2.1 percent year-on-year to 332,000 tonnes during the three months to the end of September, but bounced by 21 percent versus the second quarter.
Ferroalloys are ENRC's most profitable unit, accounting for 62 percent of operating profit in the first half, with iron ore making up 31 percent.
Saleable iron ore pellet production was flat at 1.86 million tonnes and jumped by 48 percent compared to the second quarter.
ENRC said costs for the group fell "substantially" in the first nine months, but revenue fell further due to weak prices.
Average ferroalloy prices were down 56 percent during the first nine months, it added.
The group still had a robust balance sheet with $1.9 billion in cash at the end of September and that would fall by $665 million when it paid for the rest of its takeover of CAMEC.
In September, ENRC agreed a $955 million deal to buy junior firm Central African Mining and Exploration Co (CAMEC), whose key assets are copper/cobalt operations in the Democratic Republic of Congo.
"We will continue to develop the group through capital expenditure and selected acquisitions," Chief Executive Felix Vulis said.
(Reporting by Eric Onstad; Editing by Jon Loades-Carter) Keywords: ENRC/

(eric.onstad@thomsonreuters.com; +44 20 7542 7093; Reuters Messaging: eric.onstad.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Nov 12 (Reuters) - Kazakh mining group ENRC was more convinced about China's economic recovery, but wary about the outlook for 2010, as it posted a 2.1 percent fall in third quarter output of ferrochrome, one of the group's key products.
The London-listed firm also said on Thursday overall production next year was expected to be flat compared to 2008.
"Sustainability of the Chinese economic recovery is now more convincing, and with signs of stability, and even some initial recovery, in the United States, Europe and Russia," a statement said.
"Industry outlook into 2010 remains uncertain, with the risk of further volatility in volumes and prices."
Output of ferrochrome, a key component in stainless steel, declined to 332,000 tonnes during the three months to the end of September from 339,000 tonnes in the same period last year.
Saleable iron ore pellet production was flat at 1.86 million tonnes.
Kazakh rival Kazakhmys is the group's biggest shareholder with a 26 percent stake.

(Reporting by Eric Onstad; Editing by Jon Loades-Carter) Keywords: ENRC/ (eric.onstad@thomsonreuters.com; +44 20 7542 7093; Reuters Messaging: eric.onstad.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Nov 12 (Reuters) - Kazakh mining group ENRC was more convinced about China's economic recovery, but wary about the outlook for 2010, as it posted a 2.1 percent fall in third quarter output of ferrochrome, one of the group's key products.
The London-listed firm also said on Thursday overall production next year was expected to be flat compared to 2009.
"Sustainability of the Chinese economic recovery is now more convincing, and with signs of stability, and even some initial recovery, in the United States, Europe and Russia," a statement said.
"Industry outlook into 2010 remains uncertain, with the risk of further volatility in volumes and prices."
Output of ferrochrome, a key component in stainless steel, declined to 332,000 tonnes during the three months to the end of September from 339,000 tonnes in the same period last year.
Saleable iron ore pellet production was flat at 1.86 million tonnes.
Kazakh rival Kazakhmys is the group's biggest shareholder with a 26 percent stake.

(Reporting by Eric Onstad; Editing by Jon Loades-Carter) Keywords: ENRC/ (eric.onstad@thomsonreuters.com; +44 20 7542 7093; Reuters Messaging: eric.onstad.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Nov 12 (Reuters) - ENRC:

RNS Number : 5785B Kazakhmys PLC 30 October 2009

30 October 2009

Kazakhmys PLC ("the Company")

TOTAL VOTING RIGHTS

In conformity with the Disclosure and Transparency Rules ("the Rules"), we notify the market of the following:

At the date of this notice, the issued capital of the Company comprises 535,240,338 ordinary shares. All of these shares carry voting rights of one vote per share.

The Company does not currently hold any shares in treasury.

The above figure of 535,240,338 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Rules.

Robert Welch Company Secretary

020 7901 7831

This information is provided by RNS The company news service from the London Stock Exchange

TVRCKCKKKBDDPKB

Oct 30 (Reuters) - UK mining:

RNS Number : 5557B
  Kazakhmys PLC
  29 October 2009
   

    

29 October 2009

Kazakhmys PLC Production Report for the Third Quarter Ended 30 September 2009 and Interim Management Statement

* Production remains on track to meet the full year target of 315 kt copper cathode equivalent:

*     *     Production in first 9 months of 2009 in line with the same period 2008

*     Production of 82 kt benefited in Q3 from some continued use of stockpiled material

*     Q4 output is likely to be at a lower run rate, reflecting planned maintenance work and timing of processing

* By-product output for the year to date remains positive: 

*     *     Gold production of 104 koz, a 13% increase compared to 9 months of 2008

*     Silver production increased 9% to 13,196 koz 

*     Zinc in concentrate output of 109 kt, in line with 2008

* Kazakhmys Power saw strong recovery in demand during Q3:

*     *     22% increase in power generated in Q3 2009 from Q2 2009 

*     Market recovery continues and further growth expected in Q4 2009

* Net debt reduced to $1,398 million: 

*     *     Positive cash generation, supported by rising commodity prices

Oleg Novachuk, Chief Executive Officer, said: "This is another solid set of results, demonstrating the continued management focus on operational efficiency. In the fourth quarter we will carry out some maintenance work and may see a rebuild of inventory, but we remain on track to meet our full year target of copper cathode equivalent output of 315 kt."
    
      

For further information please contact:

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

Notes to Editors

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 20 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 2008 from own ore was 343 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 2008, it produced 48 thousand tonnes of zinc metal and 137 thousand tonnes of zinc in concentrate. The Group is the fourth largest silver producer in the world (17 million ounces produced in 2008). 

Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes substantial new development and exploration opportunities. The Group produced 179 thousand ounces of gold in 2008 and has measured and indicated resources of 2.3 million ounces.

Kazakhmys Power owns the coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the Maikuben open cast coal mine, supplying around 20% of the power plant's fuel requirements producing over 3.6 million tonnes of coal in 2008.

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. 

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.

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 $5.2 billion in 2008 with EBITDA of $2.0 billion. The Group employs some 67,000 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.
      

Copper Summary

Kazakhmys Copper Production

                                                 9m      9m     Q3     Q2     Q3
                                               2009    2008   2009   2009   2008

 Ore extraction                      '000 t  24,411  26,706  8,398  8,253  9,235
  Average copper grade                    %    1.18    1.25   1.15   1.18   1.32
  Average zinc grade1                     %    4.02    3.22   3.98   3.82   3.07

 Copper in concentrate               '000 t   269.9   291.1   91.5   91.0  105.7
  own concentrate                    '000 t   267.9   269.2   89.5   91.0   98.8
  purchased concentrate              '000 t     2.0    21.9    2.0      -    6.9

 Copper cathodes equivalent          '000 t   256.9   275.4   83.1   88.2  101.1
 production 2
  own concentrate                    '000 t   252.3   252.1   82.2   88.2   95.0
  purchased concentrate              '000 t     4.6    23.2    0.9      -    6.1
  tolling concentrate                '000 t       -     0.1      -      -      -
 Copper rod                          '000 t     7.6    32.7    2.9    2.6    9.1

1 Complex ores only.

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

Production in the first 9 months of the year shows the impact of suspended high cost mines on reduced ore output. The suspension of these mines has been offset by improved efficiency in existing operations and the additional benefit from the use of stockpiled material. In Q3 there was some use of stockpiled material, but at a reduced level, as stockpiles have now been largely utilised. Output in Q4 2009 is likely to be lower than in Q3 2009, due to maintenance work and the timing of material processing.

Ore output in the first 9 months of 2009 reduced by 9% to 24.4 million tonnes, compared to the corresponding period in 2008, reflecting the reduction in the number of operating mines. The decrease was partially offset by an increase in output at continuing operations, which were assisted by the transfer of equipment and personnel from the suspended mines. Production in 2009 was also assisted by bringing into production Nurkazgan West underground mine in Karaganda region. Extraction in Q4 may be slightly below Q3, as Taskura (part of the North group of mines) will cease its production, as the ore body will have been exhausted.

The average copper grade over the first 9 months of 2009 was 1.18%, compared to 1.25% in 2008. This was due to the suspension of output from the high grade Akbastau mine in the Karaganda region at the end of 2008. This decline was partially offset by improved grades at Zhomart mine in the Zhezkazgan Complex and the suspension of output at the low grade Kounrad mine in Balkhash. Copper grade in Q3 was slightly below Q2 2009 mainly due to declining grades at the maturing Annensky mine, in the Zhezkazgan region. 

Over the first 9 months of 2009, the production of copper in own concentrate was in line with 2008, despite the lower levels of mined ore and metal grade. Concentrate production benefited from the processing of stockpiled material, particularly in the first six months of the year, and an improvement in recovery rates.
      

Copper Summary

Kazakhmys Copper Production (continued)

Copper cathode equivalent production from own concentrate of 252 kt, to 30 September 2009, was in line with the same period in 2008, reflecting the output of copper in concentrate.  Output of cathode from own material in the final quarter is expected to be lower than in Q3, due to lower production from stockpiled material and timing of material processing. The decrease in the final quarter should lead to the total cathode equivalent output for the year being in line with the 2009 full year target of 315 kt.

      

By-products Summary

Kazakhmys copper By-products Production

                                    9m      9m     Q3     Q2     Q3
                                  2009    2008   2009   2009   2008

 Zinc in concentrate  '000 t     108.8   104.6   32.4   36.6   38.2
 Zinc metal            '000 t      8.6    35.2      -      -   10.6

 Silver                '000 oz  13,198  12,124  4,051  4,709  3,794
  own production1      '000 oz  13,196  12,123  4,051  4,708  3,794
  tolling2             '000 oz     1.6     0.9      -    0.6      -

 Gold                  '000 oz   110.7    93.4   37.5   42.9   29.8
  own production1      '000 oz   104.1    92.1   36.2   38.9   29.4
  tolling2             '000 oz     6.6     1.3    1.3    4.0    0.4

1 Includes slimes from purchased concentrate. 

2Represents tolled materials provided via third parties.

Zinc by-product

Zinc in concentrate production for the 9 months of 2009 was 4% above the corresponding period in 2008. Despite the reduction in ore output and metal mined, zinc in concentrate production in 2009 benefited from the processing of previously stockpiled material. Production was also assisted by an improvement in recovery rates, supported by an upgrade of the Karagaily concentrator. 

There was an increase in metal in ore mined in Q3 2009 compared to Q2 2009, with the recommencement of extraction at Abyz and an increase in grades in the East region. These factors were not fully reflected in zinc in concentrate production, which was 11% lower in Q3 than in Q2 2009, due to lower receipts of material from a third party processor.

Silver by-product

The processing of stockpiled ore from Abyz and Akbastau, mainly in the first half of the year, led to a 9% increase in silver production to 13,196 koz in the nine months to 30 September 2009 from the same period in 2008. Production was also assisted by an improvement in recovery rates and lower levels of work in progress at the end of September 2009 compared to December 2008.

The production of silver in Q3 2009 was 14% below the previous period, due to an increase in work in progress during the quarter.

Gold by-product

The production of gold from own material in the first 9 months of 2009 increased to 104.1 koz, compared to 92.1 koz in the same period of 2008. The processing of stockpiled material, mainly from Abyz mine, and an improvement in recovery rates, supported by an upgrade at the Karagaily concentrator, led to the increased production in the 9 month period.

Gold metal output declined by 7% in Q3 2009, compared to the previous quarter, as Q2 benefited from a substantial release of work in progress.
      

Kazakhmys Copper Review by Region

Zhezkazgan Complex

                                     9m      9m     Q3     Q2     Q3
                                   2009    2008   2009   2009   2008

 Ore extraction          '000 t  18,088  17,873  6,127  6,053  5,860
 Average copper grade         %    0.87    0.83   0.86   0.87   0.88

 Copper concentrate      '000 t   369.2   360.9  119.4  121.8  126.1
 Copper in concentrate   '000 t   136.8   129.5   45.7   45.9   44.6

 Copper cathodes1        '000 t    84.1   132.7   28.5  24.5    48.7
  own concentrate        '000 t    84.1   131.5   28.5   24.5   47.8
  purchased concentrate  '000 t       -     1.2      -      -    0.9
  tolling2               '000 t       -       -      -      -      -
 Copper rod              '000 t     7.6    32.7    2.9    2.6    9.1

1 Includes copper used to produce copper rod.

2Represents tolled materials provided via third parties.

Ore extraction during the 9 months in 2009 was slightly above the comparative period which, combined with a modest increase in grade, led to higher production of copper in concentrate. A more integrated approach to metal processing across Kazakhmys Copper, led to the transfer of some concentrate from Zhezkazgan to the smelter at Balkhash, so that the output of cathodes within Zhezkazgan smelter no longer reflects the production of concentrate from within the Complex.

As already mentioned in the Q2 production report, there were a number of operational changes within the Complex, although these did not lead to an overall change in output volumes. Operations were suspended at the higher cost West mine. This suspension was offset by a significant recovery at South mine, which was affected in 2008 by repair work on the main shaft lifting equipment. Both South and East mines also benefited from the transfer of personnel and equipment from West mine. 

Stepnoy and North mines increased their ore extraction by 15% and 6%, respectively, over the first 9 months of the year, compensating for smaller reductions elsewhere in the Complex. Stepnoy mine benefited from improved equipment availability and the commissioning of a conveyer early in the year, thereby improving ore transportation. North mine has temporarily benefited from production at the short life Taskura open pit, within the North group of mines. Mining operations at Taskura will cease in Q4 2009, as the deposit will be exhausted.

The overall average copper grade achieved during the 9 months of 2009 rose to 0.87%, from 0.83% achieved during the corresponding period in 2008. The increase was due to higher grade ore output from the relatively new Zhomart mine and suspension of output from the low grade West mine. These changes were partly offset by the lower ore grade at East mine and a gradual reduction of grade at Annensky mine as the mine matures.

      

Kazakhmys Copper Review by Region

Zhezkazgan Complex (continued)

The higher level of copper in concentrate production reflects the change in quantities of metal mined. The lower level of copper cathode production from own concentrate during the 9 months of 2009 reflects two main factors:

*     the direct sale of copper in concentrate to China - 20.4 kt , or 19.6 kt of copper cathode equivalent;

*     the transfer of copper concentrate to Balkhash smelter, to use the Group's two smelters more efficiently whilst a furnace at Zhezkazgan is undergoing planned maintenance. 
      

Kazakhmys Copper Review by Region

Balkhash Complex

                                    9m     9m    Q3    Q2    Q3
                                  2009   2008  2009  2009  2008

 Ore extraction          '000 t  1,686  2,354   551   589   930
 Average copper grade         %   1.33   0.99  1.35  1.28  1.05

 Copper concentrate1     '000 t  144.3  203.1  50.7  47.4  96.0
 Copper in concentrate   '000 t   26.0   28.9   9.4   8.3  13.3

 Copper cathodes         '000 t  153.2  139.9  50.9  52.8  49.6
  own concentrate        '000 t  148.6  117.8  50.0  52.8  44.4
  purchased concentrate  '000 t    4.6   22.0   0.9     -   5.2
  tolling2               '000 t      -    0.1     -     -     -

1 Excludes concentrate processed by third parties.

2Represents tolled materials provided via third parties.

Ore output at Balkhash during the first 9 months of 2009 was below the same period in 2008, due to the suspension of operations at the low grade Kounrad mine during Q4 2008. Metal in ore output was only 3% below the corresponding period in 2008, as increased output from the higher grade Shatyrkul mine offset the lost metal extraction at Kounrad. During H1 2008, production at Shatyrkul was reduced while work was undertaken to develop a new shaft in order to improve ventilation. Balkhash complex generally benefited from new equipment, following investments made in the previous year.

The changes in copper grade reflect the suspension of production at Kounrad. 

In 2008 ores from Akbastau and Nurkazgan, in the Karaganda region, were processed at Balkhash, in order to utilise spare capacity while improvement works were undertaken on the Karagaily and Nurkazgan concentrators. As this additional processing at Balkhash has now ceased, with the suspension of Akbastau and the use of Nurkazgan concentrator, copper in concentrate production in the 9 months of 2009 has decreased by 10% compared to the same period in 2008.

The production of copper in concentrate was 13% higher in Q3 2009 compared to Q2 2009 as a result of reprocessing higher volumes of waste material, whilst metal in ore mined remained in line with Q2 output.

Copper cathode production from own material during the 9 months of 2009 increased by 26% compared to 2008. This increase was due to the transfer of concentrate from Zhezkazgan, bringing the production of copper cathodes at Balkhash smelter to 148.6 kt in 2009. 
      

Kazakhmys Copper Review by Region

East Region

                                   9m     9m     Q3     Q2     Q3
                                 2009   2008   2009   2009   2008

 Ore extraction         '000 t  3,379  3,576  1,124  1,135  1,322
 Average copper grade        %   2.87   2.82   2.81   2.89   2.76

 Copper concentrate1    '000 t  450.7  427.7  148.1  147.1  150.5
 Copper in concentrate  '000 t   82.0   81.2   26.7   27.8   28.9

1Excludes concentrate processed by third parties.

Ore extraction in the East region during the first 9 months of 2009 was slightly below the comparative period, leading to a decrease of mined metal in ore by 4%. Belousovsky mine was suspended at the start of the year, but this was offset by an increase in output at the higher grade Yubileyno-Snegirikhinsky mine, as some personnel and equipment were relocated from Belousovsky mine. At Artemyevsky mine, as reported in H1 2009, production is constrained by backfilling work. A new backfill cement plant is under construction and this should assist in overcoming the production bottlenecks at Artemyevsky in 2010.

Copper in concentrate output actually increased over the first nine months of 2009, despite the lower metal in ore mined, as greater volumes from Yubileyno-Snegirikhinsky were processed at Nikolayevsky concentrator at an improved recovery rate.
      

Kazakhmys Copper Review by Region

Karaganda Region

                                   9m     9m    Q3    Q2     Q3
                                 2009   2008  2009  2009   2008

 Ore extraction         '000 t  1,258  2,903   596   476  1,123
 Average copper grade        %   0.90   2.13  0.87  1.02   2.12

 Copper concentrate     '000 t  198.3  178.4  81.7  68.9   70.4
 Copper in concentrate  '000 t   16.8   24.4   6.0   6.4   10.0

Ore output in Karaganda during the first 9 months of 2009 was significantly below the corresponding period in 2008. This decrease was due to the suspension of operations at the high grade Akbastau mine. The decision was taken to preserve the ore body until a new concentrator is built nearby. This will substantially reduce the transportation costs incurred in production as at present the nearest concentrator is 220 km from the mine.

Ore output increased in Q3 2009 by 25% as the Nurkazgan West underground mine gradually ramped up its production and operations recommenced at Abyz, following the completion of stripping work.

The average copper grade over the first 9 month of 2009 decreased to 0.90%, compared to 2.13% in 2008. The lower average copper grade reflects the suspension of the high grade Akbastau mine. The reduction in grade in Q3 2009, compared to Q2 2009, was due to a lower grade and higher output at Nurkazgan West mine.

Production of copper in concentrate in Karaganda region decreased by 31% during the 9 months of 2009 compared to 2008, generally reflecting the suspension of mining at Akbastau. The regional numbers are also impacted by the processing of ores from Kosmurun and Akbastau outside Karaganda during 2008, and the processing in Karaganda during H1 2009 of stockpiled ore from Akbastau and Abyz.
      

Other Divisions Review 

kazakhmys POWER PRODUCTION

                                                  9m     9m     Q3     Q2     Q3
                                                2009   2008   2009   2009   2008

 Coal extraction                       '000 t  2,593  2,578    940    749    807
 Coal extraction attributable to       '000 t         1,184           749    807
 Kazakhmys*

                                               2,593           940

 Net power generated                      GWh  6,171  7,965  2,410  1,981  2,459
 Net power generated attributable to      GWh         3,404         1,981  2,459
 Kazakhmys1 

                                               6,171         2,410
 Net dependable capacity2                  MW         1,951         2,256  1,782
                                               2,258         2,268
       1Period from acquisition on 29th May 2008.
       2The net dependable capacity is the real productive capacity of GRES-1. It is calculated by taking the maximum design capacity of the      generation units and then factoring in the physical condition of the units (e.g. wear and tear) and internal consumption of electricity.

Net power generated has recovered in Q3 2009, compared to the previous quarter, and is similar to Q3 2008. For the year to date, however, net power generated remains behind the same period of 2008, following a weak H1 2009.

The demand for electricity in Kazakhstan reduced significantly in Q4 2008 and remained low at the start of 2009. This decrease reflected weakness in the global economy, and major industrial groups with captive power generation sold their surplus power onto the market. A moderate increase in demand was seen in April 2009, and industrial groups began to reduce their sales to the market and absorb more of their own captive power production. In addition, seasonal maintenance outages at other power stations have enabled GRES-1 to gain market share.

Net dependable capacity for the first nine months of 2009 increased by 307 MW, compared with the same period of 2008, due to the major overhaul of Unit 6 in 2008 and planned maintenance on other units. 

The major overhaul of Unit 5 started in mid April 2009 and is expected to be completed in Q4 2009. This overhaul will raise the unit's gross dependable capacity from 430 MW to the nameplate capacity of 500 MW. 

Ore extraction at Maikuben West coal mine during the first 9 months of 2009 was in line with the corresponding period in 2008. Q3 2009 coal output exceeded output from the previous quarter and Q3 2008 by 26% and 16%, respectively, reflecting stronger demand from power producers, including Ekibastuz GRES-1.

.
      

Other Divisions Review

kazakhmys gold PRODUCTION

                                   9m     9m    Q3    Q2    Q3
                                 2009   2008  2009  2009  2008

 Ore extraction         '000 t  1,407  1,630   661   608   773
 Gold ore grade            g/t   1.40   1.50  1.33  1.38  1.50

 Gold in ore to pads   '000 oz   59.8   70.1  26.2  26.0  32.9
 Gold precipitation    '000 oz   35.2   42.0  15.6  13.0  20.1

 Gold dor?roduction    '000 oz   35.3   41.9  15.6  13.6  19.8
 Silver production     '000 oz   33.8   31.4  14.9  12.5  10.5

Ore extraction decreased from Q3 2008 and the 9 months of 2008 due to the closure of the Zhaima deposit in September 2008. In Q3 2009, ore output rose following maintenance work of equipment undertaken in 2009 at Mizek. Extraction at Mizek and Mukur has moved to less mineral rich areas, resulting in the lower gold grade achieved during the 9 months of 2009, compared to the same period in 2008.

Exploration and site development work continues as planned at the Bozymchak Gold Project in Kyrgyzstan, following the completion of the feasibility study at the beginning of 2009.

kazakhmys petroleum

Kazakhmys Petroleum is continuing its work programme at the Eastern Akzhar exploration block. As previously reported, the testing of the first deep well encountered technical difficulties, which are being rectified.

The drilling of the second deep well was completed at the beginning of September 2009 and preparation work is underway to start the testing of the well.  

The drilling of a third deep well was started at the end of September. As at 28 October, 2,016 metres out of a projected 5,200 metres had been drilled.

3D seismic data covering the north western part of the licensed area, which was obtained during 2009, is being processed and interpreted. The results are expected to identify a prospective site for future deep well drilling. 
      

Interim Management Statement

MATERIAL eVENTS AND tRANSACTIONS

Sale of 25% of Ekibastuz power plant to Samruk

On 13 October 2009, the Group announced the sale of a 25% stake in its Ekibastuz GRES-1 power plant to the National Welfare Fund Samruk-Kazyna JSC ("Samruk-Kazyna") for a consideration of $339 million in cash, which will primarily be used by Kazakhmys to repay debt. The transaction implies a gross valuation for the Ekibastuz power plant of $1,356 million.

The value of the transaction was determined by reference to the price paid by the Group when it acquired the Ekibastuz power plant in May 2008, plus subsequent investments in the business by Kazakhmys. The transaction follows a Memorandum of Understanding, signed in October 2008, between Kazakhmys and Samruk-Energy JSC, a subsidiary of Samruk-Kazyna, to consider a strategic partnership at Ekibastuz.

The transaction is subject to regulatory consents and approvals and completion is expected by the end of 2009. Kazakhmys will retain management control of Ekibastuz following the transaction.

Negotiation of loan facility

On 13 October 2009, the Group announced that it is in discussion with the China Development Bank and Samruk-Kazyna regarding a potential corporate loan facility of around $2 billion. The loan would help fund the development of the Group's major growth projects. 

Letter of credit

On 19 October 2009, the pledge over the ENRC PLC shares, which secured the letter of credit issued in favour of AES Corporation, was removed and replaced with cash collateral. The letter of credit, for a total value of $102 million, arose following the early completion of the Ekibastuz and Maikuben West coal mine management contracts with AES Corporation in March 2009. Following release of the share pledge, all ENRC PLC shares held by the Group are free of any security.

         

Interim Management Statement

fINANCIAL Performance

Sales volumes 

The following table sets out the sales volumes of the major products produced by Kazakhmys Copper:

                                     9m      9m
                                   2009    2008

 Copper cathodes         '000 t   246.5   238.3
 Copper rod              '000 t     6.9    31.0
 Copper in concentrate   '000 t    20.4     2.9
 Total copper products   '000 t   273.8   272.2

 Zinc metal              '000 t    16.8    37.2
 Zinc in concentrate     '000 t    98.5    66.2

 Gold                   '000 oz   102.9    95.0

 Silver                 '000 oz  12,700  12,250

Total copper product sales for the 9 months ended 30 September 2009 were in-line with the same period in the prior year. Copper cathodes, sold into China and Europe, benefited from a reduction in finished goods resulting in cathode and rod sales volumes exceeding the level of production by 16.1 kt. In 2008, copper rods were largely sold into China, however the premiums available in 2009 were lower, so sales of copper rods were restricted to meeting local demand. Copper in concentrate sales in 2008 were carried out on a trial basis into China. In 2009, sales of copper concentrate have continued on a monthly basis until August. No further copper concentrate sales have been contracted for 2009 with all copper concentrate expected to be processed into cathode and all material for 2009 has now been contracted and sold.

The zinc smelter was suspended in 2009 with all zinc concentrate now being sold rather than processed further into zinc metal. The sales recorded in the period are the result of running down material at the smelter. Gold and silver sales levels in the 9 months of 2009 have been broadly in-line with production volumes. 

      

Interim Management Statement

FINANCIAL PERFORMANCE (CONTINUED)

Commodity Prices

The following table sets out the average realised prices for the major commodities:

                                  9m     9m
                                2009   2008

 Copper1              $/tonne  4,580  8,050
 Zinc                 $/tonne  1,100  2,043
 Gold                 $/tr.oz    924    910
 Silver               $/tr.oz   13.8   16.5
 Electricity tariff2  KZT/kWh    3.0    2.5

1 The realised price excludes any impact from the copper hedges, mentioned below.
                    2 2008 tariff is in respect of the period from acquisition on 29th May 2008.

The following table sets out the average LME/LBMA prices:

                      9m     9m
                    2009   2008

 Copper   $/tonne  4,650  7,966
 Zinc     $/tonne  1,469  2,099
 Gold     $/tr.oz    930    892
 Silver   $/tr.oz   13.7   16.6

Realised prices differ from the average market prices, because the timing of sales tends not to occur evenly over the period. In 2009, the sale of zinc metal mainly took place in first the quarter, while the LME price shown above is the average for the nine months. Premiums or discounts to metal exchange prices, agreed with customers, also impact realised average prices. 

The electricity tariff is the average realised price of power sales from Ekibastuz GRES-1 to Kazakhstan and Russia. The tariff within Kazakhstan has risen significantly during 2009, which reflects improving demand and a move by the authorities to raise tariff ceilings in order to encourage investment in the sector.

Copper hedging 

As previously announced, the Group entered into a hedging programme over production of 8.5 kt per month during 2009. These hedges establish a price protecting floor at $3,045 per tonne and a cap at $4,034 per tonne, with the contracts expiring by 31 December 2009. The Group has made net settlements under these contracts of $62.5 million for the nine months to 30 September 2009. The market value of the unsettled portion of the contracts, as at 30 September 2009, was $(54.1) million.

Exchange rates

The KZT/$ exchange rate at 30 September 2009 was KZT 150.95 compared to KZT 150.41 at 30 June 2009, a movement of 0.4%. The average KZT/$ exchange rate for the nine months to 30 September 2009 was KZT 146.73 compared to an average rate of KZT 120.34 for the 

Interim Management Statement

FINANCIAL PERFORMANCE (CONTINUED)

comparative period in 2008, a depreciation of 21.9% due to the devaluation of the KZT in February 2009.

The weakening of the KZT against the US dollar gives rise to foreign currency translation losses on the carrying value of net assets, which on consolidation are charged directly to equity. 

The devaluation has a beneficial impact on the profitability of the Kazakhmys Copper mining business as its revenues are mostly based on US dollar metals prices and some of its costs are denominated in local currency. However, there is an adverse impact for Kazakhmys Power since its revenues are denominated in tenge.

      

Interim Management Statement

fINANCIAL POSITION

Except as described in this statement, there has been no significant change in the financial position of the Group since 30 June 2009. 

Net debt

The net debt position of the Group, which consists of cash, current deposits and borrowings, amounted to $1,398 million at 30 September 2009, compared to $1,568 million at 30 June 2009. 

Cash and deposits increased to $541 million at 30 September 2009 from $491 million at 30 June 2009. Cash generation benefited from strengthening commodity prices and higher power sales during the quarter which offset debt repayments on the Group's principal debt facility of $131 million. 

The Group's $150 million standby revolving credit facility remains undrawn.

Holding in ENRC PLC

The Group's holding of 334,824,860 shares in ENRC PLC had a market value of $4,690 million based on a share price of 877 pence on 30 September 2009, compared to a value of $3,620 million at 30 June 2009. 

In October 2009, the Group received a dividend of $20 million from ENRC PLC.
      Kazakhmys Copper Production Appendix

Copper MINing
 Zhezkazgan complex                 9m        9m     Q3     Q2     Q3
                                  2009      2008   2009   2009   2008

 North            ore ('000 t)   2,883  2,712       970    978  1,050
                  grade (%)       0.76      0.76   0.76   0.74   0.77
 East             ore ('000 t)   3,836     4,010  1,292  1,285  1,330
                  grade (%)       0.65      0.80   0.66   0.65   0.76
 South            ore ('000 t)   3,899     2,212  1,355  1,389    616
                  grade (%)       0.69      0.65   0.68   0.69   0.61
 West             ore ('000 t)      69     1,724      -      -    597
                  grade (%)       0.72      0.53      -      -   0.58
 Stepnoy          ore ('000 t)   2,550     2,223    847    858    742
                  grade (%)       0.81      0.82   0.81   0.80   0.86
 Annensky         ore ('000 t)   2,418     2,508    815    747    701
                  grade (%)       0.75      0.88   0.62   0.79   0.97
 Zhomart          ore ('000 t)   2,433     2,484    848    796    824
                  grade (%)       1.81      1.30   1.86   1.84   1.58

 Complex total    ore ('000 t)  18,088    17,873  6,127  6,053  5,860
 Complex average  grade (%)       0.87      0.83   0.86   0.87   0.88

 Balkhash complex                   9m        9m     Q3     Q2     Q3
                                  2009      2008   2009   2009   2008

 Kounrad          ore ('000 t)       -       829      -      -    335
                  grade (%)          -      0.28      -      -   0.28
 Sayak I, III     ore ('000 t)   1,281     1,293    417    450    510
                  grade (%)       1.03      1.13   1.04   0.97   1.22
 Shatyrkul        ore ('000 t)     405       232    134    139     85
                  grade (%)       2.29      2.72   2.32   2.29   3.03

 Complex total    ore ('000 t)   1,686     2,354    551    589    930
 Complex average  grade (%)       1.33      0.99   1.35   1.28   1.05
      Kazakhmys Copper Production Appendix

Copper MINing (continued)
 East region                                 9m      9m     Q3     Q2     Q3
                                           2009    2008   2009   2009   2008

 Nikolayevsky              ore ('000 t)     413     377    163    150    185
                           grade (%)       1.93    1.62   1.33   2.18   1.50
 Artemyevsky               ore ('000 t)     922   1,138    290    299    402
                           grade (%)       1.63    1.69   1.70   1.58   1.69
 Irtyshsky                 ore ('000 t)     360     363    128    105    126
                           grade (%)       1.51    1.39   1.54   1.49   1.44
 Belousovsky               ore ('000 t)       -     177      -      -     55
                           grade (%)          -    0.96      -      -   1.04
 Orlovsky                  ore ('000 t)   1,222   1,146    408    408    400
                           grade (%)       4.39    4.91   4.44   4.31   4.90
 Yubileyno-Snegirikhinsky  ore ('000 t)     462     375    135    173    154
                           grade (%)       3.22    3.29   3.26   3.30   3.19

 Region total              ore ('000 t)   3,379   3,576  1,124  1,135  1,322
 Region average            grade (%)       2.87    2.82   2.81   2.89   2.76

 Karaganda region                            9m      9m     Q3     Q2     Q3
                                           2009    2008   2009   2009   2008

 Nurkazgan (West, North)   ore ('000 t)   1,169     519    512    471    170
                           grade (%)       0.86    0.68   0.78   1.00   0.42
 Akbastau                  ore ('000 t)       -   1,723      -      -    706
                           grade (%)          -    2.55      -      -   2.48
 Kosmurun                  ore ('000 t)       -     299      -      -    120
                           grade (%)          -    2.73      -      -   2.94
 Abyz                      ore ('000 t)      89     362     84      5    127
                           grade (%)       1.51    1.72   1.44   2.78   1.63

 Region total              ore ('000 t)   1,258   2,903    596    476  1,123
 Region average            grade (%)       0.90    2.13   0.87   1.02   2.12

 Total                     ore ('000 t)  24,411  26,706  8,398  8,253  9,235
 Average                   grade (%)       1.18    1.25   1.15   1.18   1.32

      Kazakhmys Copper Production Appendix

Copper processing
                                              9m       9m     Q3     Q2     Q3
                                            2009     2008   2009   2009   2008

 Zhezkazgan complex
 Copper concentrate              '000 t    369.2    360.9  119.4  121.8  126.1
 Copper in concentrate           '000 t    136.8    129.5   45.7   45.9   44.6
 Balkhash complex
 Copper concentrate              '000 t    144.4    203.1   50.7   47.4   96.0
 Copper in concentrate           '000 t     26.0     28.9    9.4    8.3   13.3
 East region
 Copper concentrate              '000 t    450.7    427.7  148.1  147.1  150.5
 Copper in concentrate           '000 t     82.1     81.2   26.8   27.8   28.9
 Karaganda region
 Copper concentrate              '000 t    198.3    178.4   81.7   68.9   70.4
 Copper in concentrate           '000 t     16.8     24.4    6.0    6.4   10.0

 Total own processed
 Copper concentrate              '000 t  1,162.6  1,170.1  399.9  385.2  443.0
 Copper in concentrate           '000 t    261.7    264.0   87.9   88.4   96.8

 Own ore processed by third
 parties
 Copper concentrate              '000 t     24.5     18.9    6.3   10.1    7.4
 Copper in concentrate           '000 t      6.2      5.2    1.6    2.6    2.0

 Total own
 Copper concentrate              '000 t  1,187.1  1,189.0  406.2  395.3  450.4
 Copper in concentrate           '000 t    267.9    269.2   89.5   91.0   98.8

 Purchased concentrate
 Copper concentrate              '000 t      7.6     78.7    7.5      -   24.8
 Copper in concentrate           '000 t      2.0     21.9    2.0      -    6.9

 Total copper in concentrate     '000 t    269.9    291.1   91.5   91.0  105.7

      Kazakhmys Copper Production Appendix

Copper smelter / refinery - copper cathodes production
                                     9m     9m    Q3    Q2    Q3
                                   2009   2008  2009  2009  2008

 Zhezkazgan smelter
 Own concentrate          '000 t   84.1  131.5  28.5  24.5  47.8
 Purchased concentrate    '000 t      -    1.2     -     -   0.9
 Sub - total              '000 t   84.1  132.7  28.5  24.5  48.7
 Tolling                  '000 t      -      -     -     -     -
 Total including tolling  '000 t   84.1  132.7  28.5  24.5  48.7

 Balkhash smelter
 Own concentrate          '000 t  148.6  117.8  50.0  52.8  44.4
 Purchased concentrate    '000 t    4.6   22.0   0.9     -   5.2
 Sub - total              '000 t  153.2  139.8  50.9  52.8  49.6
 Tolling                  '000 t      -    0.1     -     -     -
 Total including tolling  '000 t  153.2  139.9  50.9  52.8  49.6

 Grand total              '000 t  237.3  272.6  79.4  77.3  98.3

      

Kazakhmys Copper Production Appendix

By-products Mining - Zinc
 ZINC                                    9m     9m    Q3    Q2    Q3
                                       2009   2008  2009  2009  2008

 East region
 Nikolayevsky              grade (%)   2.04   3.68  2.20  1.77  4.10
 Artemyevsky               grade (%)   4.90   5.30  4.34  4.70  5.90
 Irtyshsky                 grade (%)   3.64   3.62  3.61  3.68  4.03
 Belousovsky               grade (%)      -   1.92     -     -  1.79
 Orlovsky                  grade (%)   4.66   4.55  4.86  4.62  4.00
 Yubileyno-Snegirikhinsky  grade (%)   2.43   3.57  2.47  2.22  3.04

 Region average            grade (%)   3.99   4.37  3.91  3.81  4.39

 Karaganda region
 Kosmurun                  grade (%)      -   3.93     -     -  3.64
 Akbastau                  grade (%)      -   0.67     -     -  0.39
 Abyz                      grade (%)   4.89   3.49  4.84  5.64  3.67

 Region average            grade (%)   4.89   1.51  4.84  5.64  1.23

 Overall average           grade (%)   4.02   3.22  3.98  3.82  3.07

 Zinc in concentrate       ('000 t)   108.8  104.6  32.4  36.6  38.2
 Zinc metal                ('000 t)     8.6   35.2     -     -  10.6

      Kazakhmys Copper Production Appendix

By-products Mining - Silver
 SILVER                                           9m      9m     Q3     Q2      Q3
                                                2009    2008   2009   2009    2008

 Zhezkazgan complex
 North                           grade (g/t)   11.64    9.94  12.04  11.11    8.57
 East                            grade (g/t)   18.93   18.62  18.54  20.25   17.73
 South                           grade (g/t)   17.89   13.01  17.66  17.17   13.86
 West                            grade (g/t)   17.01   14.49      -     --   16.82
 Stepnoy                         grade (g/t)    9.89    8.93  13.43   8.58    8.74
 Annensky                        grade (g/t)   20.47   16.77  16.94  18.99   21.35
 Zhomart                         grade (g/t)    8.15    7.58   9.25   7.08    8.38

 Region average                  grade (g/t)   15.02   13.21  15.11  14.52   13.57

 Balkhash complex
 Kounrad                         grade (g/t)       -    0.73      -      -    0.47
 Sayak I, III                    grade (g/t)    5.17    5.22   5.22   4.80    5.35
 Shatyrkul                       grade (g/t)    2.33    2.09   2.30   1.93    2.23

 Region average                  grade (g/t)    4.49    3.33   4.51   4.12    3.31

 East region
 Nikolayevsky                    grade (g/t)   21.65   36.69  24.54  14.04   37.98
 Artemyevsky                     grade (g/t)   89.36  103.09  76.55  88.55  124.89
 Irtyshsky                       grade (g/t)   58.67   54.68  58.34  58.38   57.11
 Belousovsky                     grade (g/t)           35.77                 28.08
 Orlovsky                        grade (g/t)   64.27   61.74  64.02  62.60   55.82
 Yubileyno-Snegirikhinsky        grade (g/t)   27.84   43.15  25.75  27.41   31.94

 Region average                  grade (g/t)   60.34   68.31  56.29  57.28   70.51

 Karaganda region
 Nurkazgan                       grade (g/t)    2.40    2.17   1.83   3.18    2.03
 Akbastau                        grade (g/t)       -   24.03      -      -   20.95
 Kosmurun                        grade (g/t)       -   43.55      -      -   31.14
 Abyz                            grade (g/t)   59.66   46.45  60.18  50.96   52.95

 Region average                  grade (g/t)    6.47   24.94  10.08   3.68   22.78

 Overall average                 grade (g/t)   20.12   20.99  19.57  19.04   21.81

 Silver in concentrate           ('000 oz)    12,733  13,404  4,278  4,066   4,617
 Own concentrate                 ('000 oz)    11,071   9,815  3,689  3,561   3,962
 Own concentrate processed by    ('000 oz)     1,443   1,374    370    505       -
 3rd parties 
 Purchased concentrate           ('000 oz)       219   2,215    219      -     655
 Silver metal                    ('000 oz)    13,196  12,123  4,051  4,708   3,794

Kazakhmys Copper Production Appendix

By-products Mining - gold
 GOLD                                               9m    9m    Q3    Q2    Q3
                                                  2009  2008  2009  2009  2008

 Balkhash complex
 Sayak I, III                       grade (g/t)   0.34  0.38  0.29  0.29  0.42
 Shatyrkul                          grade (g/t)   0.40  0.48  0.37  0.39  0.51

 Region average                     grade (g/t)   0.36  0.40  0.31  0.32  0.43

 East region
 Nikolayevsky                       grade (g/t)   0.26  0.39  0.28  0.13  0.40
 Artemyevsky                        grade (g/t)   1.09  1.18  0.86  1.04  1.44
 Irtyshsky                          grade (g/t)   0.38  0.36  0.37  0.38  0.38
 Belousovsky                        grade (g/t)      -  0.38     -     -  0.32
 Orlovsky                           grade (g/t)   0.96  1.02  1.01  0.97  0.90
 Yubileyno-Snegirikhinsky           grade (g/t)   0.43  0.58  0.36  0.42  0.39

 Region average                     grade (g/t)   0.78  0.86  0.72  0.74  0.86

 Karaganda region
 Nurkazgan                          grade (g/t)   0.29  0.29  0.28  0.35  0.29
 Akbastau                           grade (g/t)      -  0.82     -     -  0.72
 Kosmurun                           grade (g/t)      -  2.09     -     -  0.93
 Abyz                               grade (g/t)   5.53  4.14  5.54  5.38  5.18

 Region average                     grade (g/t)   0.67  1.27  1.03  0.40  1.18

 Overall average                    grade (g/t)   0.64  0.92  0.70  0.55  0.90

 Gold in concentrate                ('000 oz)    104.1  94.4  38.0  34.4  34.6
 Own concentrate                    ('000 oz)    102.4  73.3  34.2  30.8  27.7
 Own concentrate processed by 3rd   ('000 oz)              -         3.6     -
 party                                             9.8         2.1
 Purchased concentrate              ('000 oz)      1.7  21.1   1.7     -   6.9
 Gold output                        ('000 oz)    104.1  92.1  36.2  38.9  29.4

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCFEDFUASUSEFS

Oct 14 (Reuters) -

LONDON/ALMATY, Oct 13 (Reuters) - Copper producer Kazakhmys said on Tuesday it sold a 25 percent stake in Ekibastuz GRES -1, the largest power plant in Kazakhstan, to Kazakh state welfare fund Samruk-Kazyna for $339 million in cash.
Kazakhmys said it will use the proceeds to repay debt.
In August, the company said talks to sell the 25-percent stake were at an advanced stage and that it may reduce its holding in Ekibastuz further given the capital commitment needed to increase the plant's capacity.
Samruk-Kazyna said in a separate statement on Tuesday it was considering raising its stake in the power plant to 50 percent to gain more control over the asset it saw as key to national energy security.
Kazakhmys acquired the coal-fired power plant in May 2008 for an initial $1.1 billion in cash with deferred and other payments of up to $381 million.
Shares in London-listed Kazakhmys were up 3.4 percent at 1,212 pence at 1138 GMT, ahead of the 1.4 percent increase in the UK mining index.

(Reporting by Julie Crust in London and Olga Orininskaya in Almaty; Writing by Olzhas Auyezov) Keywords: KAZAKHMYS/ (olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Oct 13 (Reuters) - Kazakhmys PLC:

RNS Number : 6693A Kazakhmys PLC 13 October 2009

13 October 2009

KAZAKHMYS PLC ANNOUNCES THE NEGOTIATION OF A MAJOR LOAN FACILITY

Kazakhmys PLC notes comments in the press and announces that it is in discussion with the China Development Bank and JSC Sovereign Wealth Fund Samruk-Kazyna regarding a potential corporate loan facility of around $2 billion. The loan would help fund the development of major growth projects. We will update the market should negotiations result in a facility being signed.

.

For further information please contact:

Kazakhmys PLC
John Smelt Head of Corporate Tel: +44 20 7901 7882Tel: +44 78 7964
Communications 2675
Irene Burton Financial Analyst Tel: +44 20 7901 7814
Zulfira Mukhamediyarov Senior Manager - Tel: +77 27 266 317
Media

Merlin
David Simonson Tel: +44 20 7653 6620
Tom Randell Tel: +44 20 7653 6620
Leonid Fink Tel: +44 20 7653 6620

LONDON, Oct 13 (Reuters) - Copper producer Kazakhmys said it sold a 25 percent stake in Ekibastuz GRES -1, the largest power plant in Kazakhstan, to government-owned Samruk-Kazyna for $339 million in cash.
Kazakhmys said it will use the proceeds to repay debt.
In August, the company said talks to sell the 25-percent stake were at an advanced stage and that it may reduce its holding in Ekibastuz further given the capital commitment needed to increase the plant's capacity.
Kazakhmys acquired the coal-fired power plant in May 2008 for an initial $1.1 billion in cash with deferred and other payments of up to $381 million.
Shares in London-listed Kazakhmys were down 1.0 percent at 1,161 pence at 0737 GMT, in line with the 0.9 percent drop in the UK mining index.
(Reporting by Julie Crust; editing by Lorraine Turner) Keywords: KAZAKHMYS/

(julie.crust@thomsonreuters.com; +44 207 542 3847)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Oct 13 (Reuters) - Kazakhmys PLC:

RNS Number : 6564A Kazakhmys PLC 13 October 2009

13 October 2009

KAZAKHMYS PLC ANNOUNCES THE SALE OF A 25% STAKE IN EKIBASTUZ

POWER PLANT TO SAMRUK-KAZYNA

Kazakhmys PLC ("Kazakhmys" or the "Group") announces the sale of a 25% stake in its Ekibastuz GRES -1 ("Ekibastuz") power plant to the National Welfare Fund Samruk-Kazyna JSC ("Samruk-Kazyna") for a consideration of $339 million in cash. The transaction implies a gross valuation for the Ekibastuz power plant of $1,356 million.

Ekibastuz is the largest power plant in Kazakhstan and has the potential to significantly increase capacity over the next 5 years, from the current available capacity of 2,250 MW back to the plant's original nameplate capacity of 4,000 MW. In a market increasingly short of power supply, Ekibastuz is key to meeting Kazakhstan's future power needs.

The value of the transaction was determined by reference to the price paid by Kazakhmys when it acquired the Ekibastuz plant in May 2008, plus subsequent investments in the business by Kazakhmys. The transaction follows a memorandum of understanding, signed in October 2008, between Kazakhmys and Samruk-Energy JSC, a subsidiary of Samruk-Kazyna, to consider a partnership at Ekibastuz.

The consideration of $339 million will be payable in cash and will primarily be used by Kazakhmys to repay debt. The transaction is subject to regulatory consents and approvals and completion is expected by the end of 2009. Kazakhmys will retain management control of Ekibastuz following the transaction.

The Board believes that partnership with Samruk-Kazyna will enhance the value of Ekibastuz by providing a closer relationship with the Bogatyr mine (jointly owned by Samruk-Energy JSC and UC Rusal) which supplies approximately 80% of Ekibastuz's coal requirements. The strategic partnership is also expected to further support the upgrading of the Ekibastuz power station, while providing greater integration with Kazakhstan's generation and transmission programmes.

Oleg Novachuk, Chief Executive of Kazakhmys, said:

"Samruk-Kazyna is an excellent partner for us in Ekibastuz and we are pleased to be formalising the relationship. Ekibastuz is a key strategic asset in Kazakhstan and this agreement will assist its long-term development and return to full capacity."

The Government of Kazakhstan owns Samruk-Kazyna and is, indirectly, a significant shareholder in Kazakhmys, with representation on the board of directors. The proposed transaction constitutes a 'smaller related party transaction' for the purposes of the Listing Rules of the United Kingdom Listing Authority.

The directors have been advised by J.P. Morgan Cazenove regarding the related party aspects of the transaction.

For further information please contact:

Kazakhmys PLC
John Smelt Head of Corporate Tel: +44 20 7901 7882Tel: +44 78 7964
Communications 2675
Irene Burton Financial Analyst Tel: +44 20 7901 7814
Zulfira Mukhamedyarov* Senior Manager * Tel: +77 27 266 317
Media Relations

Merlin
David Simonson Tel: +44 20 7653 6620
Tom Randell Tel: +44 20 7653 6620
Leonid Fink Tel: +44 20 7653 6620

By Raushan Nurshayeva

ASTANA, Oct 12 (Reuters) - Copper producer Kazakhmys may receive a loan of $1.5-$2 billion from China Development Bank for its Bozshakol copper project, the head of Kazakh state welfare fund Samruk-Kazyna said on Monday. Samruk-Kazyna chief executive Kairat Kelimbetov told reporters another Kazakh miner, ENRC, could get a $400 million loan from the Shanghai Cooperation Organisation (SCO), a regional body in which both Kazakhstan and China participate.
Samruk-Kazyna is a shareholder in both Kazakhmys and ENRC.
"We ... are in talks with them (China) in order to help ENRC and Kazakhmys finance their projects," Kelimbetov said, adding the deals could be signed during a meeting of SCO prime ministers in China this week.
Kelimbetov said Kazakhmys would use the funds to develop the Bozshakol copper deposit in northern Kazakhstan, which could produce 12.5 million tonnes of copper ore annually.
ENRC would use the loan to finance its aluminium plant explansion, which is due to double annual capacity to 250,000 tonnes by 2011.

(Writing by Olzhas Auyezov; Editing by Dan Lalor) Keywords: KAZAKHMYS/LOAN (olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

ASTANA, Oct 12 (Reuters) - Kazakh copper producer Kazakhmys may receive a loan of between $1.5 billion and $2 billion from China Development Bank for its Bozshakol copper project, the head of Kazakh state welfare fund Samruk-Kazyna said on Monday. Samruk-Kazyna Chief Executive Kairat Kelimbetov told reporters that another Kazakh miner, ENRC, could get a $400 million loan from the Shanghai Cooperation Organisation, a regional body in which both Kazakhstan and China participate.

(Reporting by Raushan Nurshayeva, writing by Olzhas Auyezov, editing by Robin Paxton) Keywords: KAZAKHMYS/LOAN (olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

ASTANA, Oct 5 (Reuters) - Kazakh copper producer Kazakhmys may reduce copper output by up to 9.6 percent this year, a regional official told a government meeting on Monday.
"As for Kazakhmys, its copper output is seen decreasing by 9.6 percent due to planned maintenance at the Zhezkazgan smelter, but it will be compensated by growth in other products including precious metals," said Nurlan Nigmatullin, the head of the Karaganda region where most Kazakhmys facilities are based.
Nigmatullin said London-listed Kazakhmys would boost gold output by 10.3 percent this year and silver production by 1.2 percent.
Kazakhmys boosted copper cathode output from its own material by 8 percent in the first half of the year to 170,000 tonnes.
For London Metal Exchange copper prices, click.

(Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov, editing by Will Waterman) Keywords: KAZAKHMYS/OUTPUT (olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

ASTANA, Oct 5 (Reuters) - Kazakh copper giant Kazakhmys may reduce copper output by up to 9.6 percent this year, a regional official told a government meeting on Monday. "As for Kazakhmys, its copper output is seen decreasing by 9.6 percent due to planned maintenance at the Zhezkazgan smelter but it will be compensated by growth in other products including precious metals," said Nurlan Nigmatullin, the head of Karaganda region where most Kazakhmys facilities are based.

(Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov, editing by Gleb Bryanski) Keywords: KAZAKHMYS/OUTPUT (olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

RNS Number : 8503Z Kazakhmys PLC 30 September 2009

30 September 2009

Kazakhmys PLC ("the Company")

TOTAL VOTING RIGHTS

In conformity with the Disclosure and Transparency Rules ("the Rules"), we notify the market of the following:

At the date of this notice, the issued capital of the Company comprises 535,240,338 ordinary shares. All of these shares carry voting rights of one vote per share.

The Company does not currently hold any shares in treasury.

The above figure of 535,240,338 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Rules.

Robert Welch Company Secretary

020 7901 7831

This information is provided by RNS The company news service from the London Stock Exchange

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Sept 21 (Reuters) - ENRC and Kazakhmys PLC: