Kazakhmys confirms acquisition of Koksay copper deposit for $260 mln
ALMATY. April 15 (Interfax) - Kazakhmys plc hs concluded the agreement for the purchase of Koksay deposit in Kazakhstan's Almaty region from CCC Mining Construction B.V., an unrelated private company, for $260 million, the group's press office said in a statement on Tuesday.
Koksay will be the Group's third major growth project, completion is subject to the Kazakh government and regulatory approvals.
Oleg Novachuk, the company chief executive said: "We are delighted to have secured Koksay, which will provide long-term growth beyond our existing projects of Bozshakol and Aktogay. The acquisition is in keeping with our strategy of production dominated by low cost, open pit, long life mines. Koksay will provide a sound return for shareholders, and local benefit through employment and economic growth."
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 July 31, 2015. The latter is subject to confirmation of reserves.
The Koksay deposit is around 234 kilometres from Almaty and well located for existing infrastructure. The mine has a total resource of approximately 3.4 MT of copper, with an average grade of 0.48%. 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 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate.
Kazakhmys plc is a leading international natural resources group with significant interests in copper, gold, zinc, silver, power generation and petroleum. The company trades on the London Stock Exchange (LSE), the Hong Kong Stock Exchange (HKSEx) and the Kazakhstan Stock Exchange (KASE).