Kazakhmys cuts cathode copper output 0.8% in 9M
ASTANA. Oct 30 (Interfax) - Kazakhmys plc in January-September 2014 produced 213,100 tonnes of cathode copper, which is 0.8% less than in the same period of 2013, the Kazakh miner said.
In the first nine months of 2014, copper cathode production in the East Region was 59,400 tonnes, a 10% increase compared to the corresponding period in 2013. "This rise in production partly reflects a 4% growth in copper in concentrate output and also that the prior year period was impacted by a build up of work in progress at the Balkhash smelter," the company said in a press release.
"The recovery rate achieved at the Nikolayevsky concentrator was 88% in the first nine months of 2014 compared to 80% in the corresponding period in 2013. In Q3 2014 copper cathode output of 18.3 kt was 8% below Q2 2014 mainly due to an increase in work in progress at the Balkhash smelter at the end of September 2014, as well as a 2% decrease in copper concentrate production in the quarter. The average copper grade achieved in the first nine months of 2014 was 2.50%, above the 2.37% in the comparative period in 2013, as higher grade sections were exploited at the Orlovsky mine in the first half of the year," the company said.
The extraction of copper ore in January-September 2014 in the Eastern Region declined by 3.9% to 3.147 million tonnes from 3.274 million tonnes a year earlier.
In January-September in the East region, the company produced 66,000 tonnes of copper in concentrate against 63,500 tonnes in the same period in 2013 (an increase of 4%).
Zinc in concentrate decreased by 10.3% to 89,400 tonnes to 99,600 tonnes in January-September 2013.
Silver production declined by 24.3% to 2.630 million ounces compared to 3.477 million ounces in January-September 2013, gold production reached 23,300 ounces vs. 34,100 ounces respectively (a decrease of 31.7%).
Copper cathode equivalent in Karaganda, Balkhash and Zhezkazgan totaled 153,700 tonnes, which is 4.4% less than in January-September 2013.
Extraction of copper ore at these enterprises in January-September this year amounted to 24.548 million tons against 26.296 in January-September 2013 (down 6.6%).
Production of copper in concentrate was 167.300 tonnes against 173,000 tonnes in the same period last year (down 3.3%).
"Our Retained Assets in the East Region are on track to deliver the copper production guidance for 2014. Output of concentrate from Bozymchak has commenced and we anticipate the first shipment of concentrate from Bozymchak to Balkhash for processing to be dispatched in November. Meanwhile I am pleased to report that regulatory consents for the restructuring have been obtained. We are now very close to the completion of the transaction and with it the creation of KAZ Minerals, a high growth copper company focused on large scale, low cost open pit mining in Kazakhstan," Oleg Novachuk, Chief Executive, sad.
In February 2014, the Group announced plans for a potential restructuring of its business to improve profitability and cash returns. On 23 July 2014, Kazakhmys made a further announcement on its proposed restructuring, having entered into an agreement to transfer certain mature assets in the Zhezkazgan and Central Regions (the "Disposal Assets") to Cuprum Netherlands Holding B.V., a company owned by Vladimir Kim and Eduard Ogay. The transaction was approved by independent shareholders on 15 August 2014 and completion is expected imminently. Following completion of the transaction, the Group will continue to own the mining and producing assets in the East Region and the Bozymchak mine in Kyrgyzstan, as well as the major growth projects Bozshakol, Aktogay and Koksay (the "Retained Assets"). The Company will be renamed KAZ Minerals PLC upon completion.
