Kazakhmys

Kazakhmys

Kazakhmys PLC is an international natural resources company that joined the FTSE 100 group of companies in December 2005 after it was listed on the London Stock Exchange in October 2005. The company was founded in 1930.

The company's operations began at the Balkhash copper smelting complex in Kazakhstan. In 1971 smelting operations began at the Zhezkazgan complex and it has grown steadily since. When Kazakhmys was listed on the London Stock Exchange it had an opening market capitalisation of £2.6 billion.

Kazakhmys is listed in the UK and its headquarters are in London but has its principal operations in Kazakhstan and the surrounding region. The core business is the production and sale of copper. Kazakhmys is the largest copper producer in Kazakhstan and in the top ten worldwide.

Kazakhmys Copper Operations

Kazakhmys is an international natural resources company but the core business is the production and sale of copper. Kazakhmys is fully integrated from mining ore to the production of finished metal.

The copper division also produces significant volumes of other metals as by-products, including zinc, silver and gold. The copper division has operating sites across Kazakhstan with 20 open pit and underground mines, 9 concentrators, a zinc plant and two smelting and refining complexes.

The Kazakhmys Group produces around 400,000 tonnes of copper cathode each year, including some production from third party concentrate. In order to deliver major growth projects, Kazakhmys is currently running pre feasibility projects at Boschekul and the Aktogay oxide deposits. These projects will substantially increase copper production from 2012.

Kazakhmys group structure

As primarily a copper mining company the main assets are located in Kazakhstan. Kazakhmys also has precious metal mines in Tajikistan and Kyrgyzstan. The group also has various subsidiaries. All of the subsidiaries are wholly owned, with the exception of the copper division, Kazakhmys LLC that has 0.23% of its shares held outside the Group.

These subsidiaries include:

• Gold – the gold division has three operational mines, at Mizek, Central Mukur and Zhaima. It acquired Eurasia Gold in July 2007 and incorporated it into the group. The Division produces gold in the form of gold cathode to sediment, on annual contracts.
• Petroleum - In 2007 Kazakhmys acquired the petroleum exploration rights to the East Akzhar Exploration block. East Akzhar, a 602km2 exploration block, is located to the south of Aktobe in a region home to many oil and gas operations on the eastern fringe of the Caspian depression. East Akzhar is in close proximity to the Loktibai-Kenkiyak oil pipeline and the Kenkiyak-Atyrau gas pipeline.
• MKM - a German subsidiary that produces refined copper products and manufactures and sells a variety of pre-finished and semi-finished copper and copper alloy products, including wires, sheets, plate strips, tubes and bars. These are sold primarily to customers in the construction, automotive, aviation and general engineering industries.