Kazakh state holding Tau-Ken Samruk acquires ShalkiyaZinc for $170 mln
ALMATY. Aug 5 (Interfax) - Kazakh national mining company Tau-Ken Samruk has acquired 100% of leading zinc and lead producer ShalkiyaZinc for 31 billion tenge (about $170.3 million at the current exchange rate), Tau-Ken Samruk said in its annual report.
The deal was transacted in Astana on July 11, 2014.
The acquisition is aimed at developing the mining sector by restarting operations at the Shalkiya zinc and lead deposit, which was mothballed in 2008 due to declining zinc prices. The project will increase Tau-Ken Samruk's resource base, making it one of the leading mining concerns in Kazakhstan and the Russia-Central Asia region.
A priority will be to add capacity by installing high-efficiency, innovative technology for mining and processing complex and refractory ores, which will make production competitive, create jobs and improve social infrastructure in Kyzylorda region.
The mine and enrichment plant, with capacity to process up to 4 million tonnes, will be the result of a collaboration between Kazakh and foreign R&D organizations and companies.
ShalkiyaZinc includes the Shalkiya mine with capacity to produce 1.5 million tonnes of ore per year and a plant in Kentau with capacity to process 1.5 million tonnes of ore per year, as well as the Talap deposit.
The official exchange rate on August 5 was 182.05 tenge/$1.
