KAZ Minerals PLC Aktogay Project Update (0199R)
December 06 2016 - 2:00AM
UK Regulatory
TIDMKAZ
RNS Number : 0199R
KAZ Minerals PLC
06 December 2016
KAZ MINERALS
PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA
STREET
LONDON SW1E 5JL
Tel: +44 (0)
20 7901 7800
==================
6 December 2016
AKTOGAY PROJECT UPDATE
KAZ Minerals PLC ("KAZ Minerals" or "the Group") announces that
the testing and commissioning of the main Aktogay sulphide
concentrator has commenced today. Production of saleable copper
concentrate from sulphide ore is expected by the end of the first
quarter of 2017. Production guidance for Aktogay in 2017 will be
announced with the Group's full year results on 23 February
2017.
The Aktogay project budget has been reviewed and reduced by $100
million to $2,100 million. The saving has been achieved through
faster than anticipated progress in construction of the
concentrator, a partial release of contingency and from the
continued benefit of a local supplier strategy and sustained weak
tenge.
The timing of the remaining capital payments has been updated,
with certain payments previously expected in late 2016 now
anticipated in early 2017 and $70 million relating to the expansion
of oxide ore heap leach cells deferred to 2018.
The resulting capital expenditure profile for the project is
expected to be approximately $100 million in H2 2016, $240 million
in 2017 and $370 million in 2018. The $370 million guidance for
2018 includes $300 million of payments relating to work in 2016 and
2017 that was deferred under an agreement with the principal
construction contractor in November 2015.
Oleg Novachuk, Chief Executive, said: "We are happy to be able
to announce the start of commissioning activities at the Aktogay
sulphide concentrator and a further reduction of $100 million in
the project budget. We are now focused on ramping up production at
Aktogay and Bozshakol to deliver industry-leading copper production
growth."
For further information please contact:
KAZ Minerals
PLC
==================== ========================== =================
Chris Bucknall Investor Relations, Tel: +44 20 7901
London 7882
Investor Relations, Tel: +44 20 7901
Anna Mallere London 7814
Maksut Zhapabayev Corporate Communications, Tel: +7 727 244
Almaty 03 53
==================== ========================== =================
Instinctif Partners
==================== ========================== =================
Tel: +44 20 7457
David Simonson 2020
==================== ========================== =================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high
growth copper company focused on large scale, low cost, open pit
mining in Kazakhstan. It operates four mines and three
concentrators in the East Region of Kazakhstan, the Bozymchak
copper-gold mine in Kyrgyzstan, the Bozshakol open pit copper mine
in the Pavlodar region of Kazakhstan and the Aktogay open pit
copper mine in the East Region of Kazakhstan. In 2015, total copper
cathode output from the East Region and Bozymchak was 81 kt with
by-products of 94 kt of zinc in concentrate, 3,135 koz of silver
and 35 koz of gold bar.
The Group's major growth projects at Bozshakol and Aktogay are
expected to deliver one of the highest growth rates in the industry
and transform KAZ Minerals into a company dominated by world class,
open pit copper mines.
Bozshakol is a first quartile asset on the global cost curve and
will have an annual ore processing capacity of 30 million tonnes
when fully ramped up, with a mine life of 40 years at a copper
grade of 0.36%. The mine and processing facilities will produce 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 mine life of more than 50 years and average copper grades of
0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of
copper cathode from oxide ore in December 2015, and the production
of copper in concentrate from sulphide ore is expected to begin by
the end of the first quarter of 2017. The sulphide concentrator
will have an annual ore processing capacity of 25 million tonnes
when fully ramped up. Aktogay is competitively positioned on the
global cost curve and will produce an average of 90 kt of copper
cathode equivalent from sulphide ore and 15 kt of copper cathode
from oxide ore per year over the first 10 years of operations.
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.
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
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