Baku, Azerbaijan, April 15
By Elena Kosolapova - Trend:
Kazakhstan's Metallurgical Corporation Kazakhmys PLC has concluded an agreement for the purchase of Koksay copper field from CCC Mining Construction B.V., an unrelated private company, Kazakhmys reported on April 15.
Completion of the deal is subject to Kazakh Government and regulatory approvals.
As previously announced, the net acquisition cost will be $260 million in cash, of which $65 million is deferred. Of the deferred consideration, $30 million is payable on 1 January 2015 and $35 million on 31 July 2015. The latter is subject to confirmation of reserves.
The Koksay deposit is in south eastern Kazakhstan around 234 kilometers from Almaty and is well located for existing infrastructure. The mine has a total resource of approximately 3.4 million tons of copper, with an average grade of 0.48 percent. There are by-products of gold, silver and molybdenum.
The project is at scoping stage and has an estimated mine life of over 20 years with average annual production of around 80,000 tons of copper cathode equivalent, 60,000 ounces of gold, 400,000 ounces of silver and 1,000 tons of molybdenum in concentrate.
Koksay will be the group's third major growth project.
Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver and power generation.
It is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines, eight concentrators and a copper smelter. Kazakhmys Mining's operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent output from own ore was 294,000 tonnes in 2013. Production is backed by a captive power supply and significant rail infrastructure.
Edited by C.N.
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