Baku, Azerbaijan, Dec. 7
By Elena Kosolapova - Trend:
KAZ Minerals PLC commenced testing and commissioning of the main Aktogay sulphide concentrator in Kazakhstan, the company reported.
“Production of saleable copper concentrate from sulphide ore is expected by the end of the first quarter of 2017,” the company said.
The sulphide concentrator will have an annual ore processing capacity of 25 million tons when fully ramped up.
The Aktogay project budget has been reviewed and reduced by $100 million to $2.1 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 2H2016, $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.
KAZ Minerals 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.
The company produced 81,000 tons of copper cathode in 2015. The group’s major growth projects at Bozshakol and Aktogay are expected to deliver one of the highest growth rates in the industry.
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