KAZ Minerals

KAZ Minerals
Public company
Traded as LSE: KAZ, SEHK: 847
Industry Mining
Founded 1930
Headquarters Almaty, Kazakhstan
Key people
 Simon Heale, Chairman
Oleg Novachuk, CEO
Products Copper, zinc, silver, gold
Revenue $665 million (2015)[1]
$90 million (2015)[1]
$(12) million (2015)[1]
Website www.kazminerals.com

KAZ Minerals is a copper company focused on large scale, low cost open pit mining in Kazakhstan. The Group is listed in London, Kazakhstan and Hong Kong stock exchanges. The company operates 4 underground mines and 3 concentrators in the East Region, one open pit mine at Bozymchak, Kyrgyzstan and is developing two major growth projects Aktogay and Bozshakol, with the third - Koksay - at scoping stage. KAZ Minerals was created after the completion of the Restructuring of Kazakhmys PLC. The company is listed on the London Stock Exchange and it is a constituent of the FTSE 250 Index.

History

In 1930 Kazakhmys' operations began at the Balkhash copper smelting complex in Kazakhstan. In 1971 smelting operations commenced at the Zhezkazgan Complex. The Government of Kazakhstan forms the company, entitled OJSC Zhezgazgantsvetmet in 1992. From 1992 to 2002, a series of privatisations reduce the Government's holding from 100% to 0%. Samsung Corporation of Korea took over management of the company in June 1995. In 1996, Samsung acquired a 40% stake and subsequently sold it.

Kazakhmys was listed on the London Stock Exchange in October 2005 at 540 pence per share, joining the broad range of international mining companies listed in London.[2]

In January 2010 Kazakhmys announced the first of two facilities, totalling $4.2 billion, from the China Development Bank Corporation, to support growth projects.[3]

In February 2010 the company completed the sale of a 50% stake in its Ekibastuz GRES-1 power plant to the National Welfare Fund Samruk-Kazyna JSC for $681 million. This was originally set out at the time of purchase in May 2008.[4]

On 11 November 2013 the Company announced the sale of its stake in ENRC. Following the transaction, which included the offer of certain Kazakhmys shares to ENRC shareholders, Kazakhmys becomes a majority free float company for the first time.[5]

On 7 January 2014 the Group approved the disposal of its 50% stake in the Ekibastuz GRES-1 power station, to become a focused, pure-play copper mining company.[6]

On 15 August 2014 the independent shareholders vote to approve the Group Restructuring. Kazakhmys PLC disposed of a number of mature assets primarily in the Zhezkazgan and Central Regions to Cuprum Holding, a company whose principal shareholder is Vladimir Kim. On completion Kazakhmys PLC was renamed KAZ Minerals PLC.[7]

Following the completion of a major restructuring on 31 October 2014 which included the disposal of mining, smelting and power assets in the Zhezkazgan and Central Regions, the Group became a high growth copper company focused on large scale, low cost open pit mining in Kazakhstan. The company was renamed ‘KAZ Minerals PLC’.[8][9]

On 23 July 2014 the Group announced that it had entered into a definitive agreement to transfer certain of its mature assets in the Zhezkazgan and Central Regions of Kazakhstan to Cuprum Holding B.V.[8] On 15 August 2014 shareholders approved a major restructuring of the Group. All outstanding conditions to the restructuring were satisfied on 31 October 2014 with economic separation effective from 1 August 2014.[10]

Operations

KAZ Minerals is focused on copper production but also produces and sells significant quantities of zinc, silver and gold as by-products.

In 2013, prior to the Group restructuring the company produced 294 kt of copper cathode equivalent from own material, 108 koz of gold, 14,348 koz of silver and 134 kt of zinc in concentrate.[11]

In 2014 the operating assets in the East Region and Bozymchak produced 83.5 kt of copper cathode 121 kt of zinc in concentrate, 3,435 koz of silver and 35 koz of gold.[1][12]

The Group operates the following assets:

East Region

East Region has the following assets:

In the 2014, the East Region mined approximately 4.2 MT of ore at a copper grade of 2.48%, and produced 89.2 kt of copper in concentrate.[12]

Bozymchak, Kyrgyzstan

Bozymchak is located in Ala-Bukinsky region, Jalal-Abad, Kyrgyzstan. Bozymchak is expected to have an average annual output of 6 kt of copper in concentrate and 28 koz of gold bar over the life of the mine.[13]

Growth Projects

The group is developing 2 growth projects - Aktogay and Bozshakol projects, with third - Koksay - at scoping stage.[8] Bozshakol is the Group's major growth project; it is located in Pavlodar region, Kazakhstan. Mineral resources are: 1,170 MT of ore with 4.2 MT of contained copper at an average grade of 0.36%.[13]

Aktogay is the Group's second largest project, located in eastern Kazakhstan. Mineral resources are: 1,597 MT of sulphide ore at 0.33% copper grade and 121 MT of oxide ore at 0.37% copper grade.[13]

Koksay is located in south eastern Kazakhstan around 234 kilometres from Almaty and is close to existing infrastructure. It contains measured and indicated mineral resource of 701 MT with a copper grade of 0.44%.[14]

Production

KAZ Minerals is focused on copper production. In 2014 the operating assets produced 83.5 of copper cathode.[15] KAZ Minerals also produces significant quantities of zinc, silver and gold as by-products. In 2014 the operating assets produced 35 koz of gold, 3,453 koz of silver and 121 kt of zinc in concentrate.[12][16]

In 2015, producing assets are expected to produce between 80 - 85 kt of copper cathode, between 90 - 95 kt of zinc in concentrate, between 42 - 47 koz of gold bar and between 2,250 - 2,500 kox of silver granule [1][17]

Revenue and employees

In 2014, east Region generated sales revenue of approximately $846 million with EBITDA (excluding special items) of $355.[1][18][19]

KAZ Minerals employees around 10,000 people principally in Kazakhstan.[8][20]

Management

See also

References

  1. 1 2 3 4 5 6 "Annual Report 2015". KAZ Minerals. Retrieved 9 April 2016.
  2. ↑ "Kazakhmys prices London IPO toward upper end". Market Watch. 7 October 2005. Retrieved 22 March 2015.
  3. ↑ "Kazakhstan’s leading copper producer posts half-year results". The Times of Central Asia. 5 September 2013. Retrieved 22 March 2015.
  4. ↑ "Kazakhmys To Sell 50% Of Ekibastuz Gres -1 Plant For $681 Million". ADVFN. 9 December 2013. Retrieved 22 March 2015.
  5. ↑ "Kazakhmys sells ENRC stake". The Telegraph. 4 October 2013. Retrieved 22 March 2015.
  6. ↑ "Proposed sale of remaining 50 per cent. of the issued share capital of Ekibastuz LLP and 100 per cent. of the issued share capital of Kazhydro to Samruk-Energo". Kazakhmys. 9 December 2013. Retrieved 22 March 2015.
  7. 1 2 3 "Kazakhmys announces completion of restructuring". London Stock Exchange. Retrieved 2014-12-12.
  8. 1 2 3 4 "Kazakhmys Completes Restructuring, Changes Name to KAZ Minerals". Bloomberg. Retrieved 2014-12-12.
  9. ↑ "Copper miner Kazakhmys restructuring over, now called Kaz Minerals". Reuters. Retrieved 2014-12-12.
  10. ↑ "Kazakhmys is now KAZ Minerals as miner splits - fastFT: Market-moving news and views, 24 hours a day". FT.com. Retrieved 2014-12-12.
  11. ↑ Annual report 2013 PDF, pages 30-31.
  12. 1 2 3 "KAZ Minerals PLC - Our business - Mining". kazminerals.com. Retrieved 2014-12-12.
  13. 1 2 3 "KAZ Minerals Annual Report 2014"., page. 48.
  14. ↑ KAZ Minerals Annual Report 2014, p. 48.
  15. ↑ "KAZ Minerals PLC - Our business - Production summary". kazminerals.com. Retrieved 2015-04-10.
  16. ↑ "Audited Results for Year ended 31 December 2014". London Stock Exchange. Retrieved 2015-04-10.
  17. ↑ "KAZ Minerals PLC - About US - Facts & Figures". kazminerals.com. Retrieved 2015-04-10.
  18. ↑ Results & Reports page, Preliminary Results 2014
  19. ↑ "LSE:KAZ: KAZ Minerals PLC Audited Results for Year Ended 31 December 2014". iii.co.uk. Retrieved 2015-04-10.
  20. ↑ "KAZ Minerals PLC - About us - Why Kazakhstan?". kazminerals.com. Retrieved 2014-12-12.
  21. ↑ "KAZ Minerals PLC - About us - Management overview". kazminerals.com. Retrieved 2014-12-12.

External links

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