Kazakh copper producer Kazakhmys changes owners

ASTANA. Dec 10 (Interfax) - The Kazakh copper mining company Kazakhmys of Vladimir Kim and Eduard Ogai has signed a framework agreement providing for an upcoming change of control over the company, Kazakhmys said.

The agreement was signed by the joint decision of Kazakhmys President Kim and Board Chairman Ogai, the company said. "The signing of the document is the starting point of the control transfer process," it said. The new owner is not named in the statement.

The founder of Kazakhmys Corporation LLP is JSC Kazakhmys Copper, whose sole shareholder in turn is KCC B.V., registered in the Netherlands. The ultimate parent company is Kazakhmys Holding Limited, registered in the Astana International Financial Centre, the founders of which are Kim and Ogai.

It is expected that all necessary procedures and obligations under the agreement and the signing of the share purchase and sale agreement will be carried out in the very near future. According to existing regulations, special permission from the Kazakh Industry and Construction Ministry and the Agency for Protection and Development of Competition for the change of share owner will be obtained.

"In parallel, processes to notify partners, creditors, minority participants and other interested parties will be carried out. According to the signed document, the upcoming change [of owner] will not affect production or operational processes, and contractual obligations, social guarantees for employees and job stability are preserved in full," Kazakhmys said.

The company also said that operations will continue as usual, and the implementation of current and prospective projects will proceed in accordance with existing strategic plans.

Kazakhmys is the largest copper producer in Kazakhstan. The company comprises ten mines, five concentrators, two copper smelters and two coal open pits.