Kazakhmys and Jinchuan to form Copper Project Joint Venture

Subject to the parties completing an investment agreement and regulatory and other approvals, Jinchuan has agreed to purchase a 49 percent stake in the Aktogay project for USD 120 million, payable in cash. Following establishment of the joint venture, a feasibility study will be conducted on the Aktogay project, which should take around 12 months to complete. The Aktogay project will then enter into development and construction, which is anticipated to take around three years. Aktogay has an estimated development cost of USD 1.5 to USD 2 billion and is expected to produce around 100000 tonnes of copper in concentrate each year, with a mine life of approximately 40 years.

Oleg Novachuk, Chief Executive of Kazakhmys, said: “We are delighted to be moving ahead with our second major copper project. Aktogay should produce around 100000 tonnes of copper in concentrate each year, which is similar in size to our development at Bozshakol. These two projects are equivalent to 60 percent of our current production, significantly increasing our output in the next five years. Kazakhstan’s extensive infrastructure and proximity to the Chinese market has been central in taking these projects forward and we are pleased to have secured such a key partner as Jinchuan.”