Information  X 
Enter a valid email address

Kazakhmys PLC (KAZ)

  Print      Mail a friend       Annual reports

Tuesday 23 May, 2006

Kazakhmys PLC

AGM Statement

Kazakhmys PLC
23 May 2006


                                                         
                                                                 
                                  AGM Statement


                                                                     23 May 2006


At the company's Annual General Meeting held in London today 23 May 2006, Mr
Vladimir Kim, Chairman of Kazakhmys PLC made the following remarks:

In the first quarter of 2006 we saw unprecedented growth in commodity prices
with copper in particular, reaching record levels. Despite the reductions in
share prices of all mining companies seen in recent days, the increases in
commodity prices have had a positive impact on the Kazakhmys share price
performance.

Despite the lower production levels in the first two months of 2006 caused by
some operational interruptions and adverse weather conditions, our first quarter
production results were only slightly lower than the first quarter of 2005.

The production volume expansion programme at the Nurkazgan mine and the
stripping works at the Zhaman-Aybat mine were successfully completed ahead of
schedule, with the increasing contribution from both mines expected to be
reflected in higher copper cathode production from the second quarter of 2006
onwards.

Against the backdrop of strong commodity price fundamentals, significant
opportunities exist across the natural resources sector in Kazakhstan. We
continue to search for growth opportunities in our region and remain committed
to deliver on our growth strategy declared at the time of IPO.

As one would expect of a UK company such as ours, my Board colleagues and I are
firmly committed to delivering high standards of corporate governance. In that
context, I am delighted to announce that Jim Rutland has agreed to take on the
role of Senior Independent Director of Kazakhmys PLC. In addition, we re-iterate
our intention of appointing, in due course, another independent non-executive
director to provide the Board with further depth.

Our employees are a fundamental part of the business and we remain committed to
improving the safety environment across all our operations. As part of our
commitment to further improve our contribution to local communities, I am
pleased to confirm today that we are joining the Extractive Industries
Transparency Initiative.

Looking ahead, we expect commodity markets to remain very healthy throughout
2006. We anticipate that Kazakhmys's 2006 production of copper cathode will be
moderately higher compared to 2005, driven by increasing production volumes from
own concentrate. We will continue to maintain our focus on cost controls,
improving health, environmental and safety standards and on searching for
attractive acquisition targets in our region.

I would like to take this opportunity to thank all our employees who contributed
so much to Kazakhmys' success in 2005. Their dedication is crucial in delivering
results and creating shareholder value in the future.

For further information please contact:

Jinsoo Yang, Head of IR                          Tel: +44(0)845 080 2369
Sergei Stephantsov, Deputy Head of IR
Kazakhmys PLC

Morgan Bone                                      Tel: +44 20 7251 3801
Robin Walker
Finsbury


Notes to Editor


The Group's principal business is the mining, processing, smelting, refining and
sale of copper and copper products, including copper cathode and copper rod, and
is carried on by the Company's main subsidiary LLC Kazakhmys Corporation
("Kazakhmys"). Based on 2004 production, the Group is the 10th largest producer
of copper cathode and mined copper in the world. The Group's operations are
vertically integrated. Kazakhmys operates 19 open pit and underground mines and
two smelting and refining complexes in the Republic of Kazakhstan. Kazakhmys
also owns significant rail infrastructure in Kazakhstan and MKM, a copper
products fabrication company in Germany.









                      This information is provided by RNS
            The company news service from the London Stock Exchange