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Kazakhmys PLC (KAZ)

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Monday 30 October, 2006

Kazakhmys PLC

3rd Quarter Results

Kazakhmys PLC
30 October 2006




                                                                 30 October 2006


                        Kazakhmys PLC Production Summary
                 for the third quarter ended 30 September 2006



• Copper cathode production grew by 9 per cent and copper in concentrate 
  production increased by 4 per cent, compared to the second quarter
  of 2006. Copper cathode produced from own copper concentrate increased by 5 per
  cent over the same period.

• Zinc metal production was 22 per cent lower compared to the second
  quarter, primarily due to technical issues associated with the coolers at the
  Balkhash zinc plant, which are exacerbated in hot summer months. Zinc in
  concentrate production rose by 17 per cent due to an improved operational
  performance of the Artemyevskoe mine.

• Gold and silver production from own concentrate was 16 per cent and 3
  per cent lower respectively, compared to the second quarter of 2006. This was
  largely due to lower production volumes from the Abyz mine where scheduled
  stripping works were conducted throughout the quarter.


Copper

Kazakhmys Group Copper Production
                                   9m         9m         Q3         Q2         Q3
                                 2006       2005       2006       2006       2005
---------------------------------------------------------------------------------
Ore extraction        '000 t   30,255     29,189     10,128     10,289      9,731
average copper grade  %          1.12       1.03       1.16       1.13       1.04
average zinc grade    %          4.23       3.07       4.75       4.03       3.23

Copper in Concentrate '000 t    314.0      296.5      111.4      107.6       96.1
own concentrate       '000 t    283.6      255.9      100.1       98.7       83.3
purchased concentrate '000 t     30.5       40.5       11.3        8.9       12.8

Copper Cathodes*      '000 t    295.2      294.1      107.3       98.8       94.4
own concentrate       '000 t    265.5      247.7       96.5       92.2       80.4
purchased concentrate '000 t     28.1       37.9       10.6        5.9       12.3
tolling concentrate   '000 t      1.7        8.5        0.3        0.7        1.8
Copper Rod            '000 t     22.4        7.1        8.1        9.0        1.2
---------------------------------------------------------------------------------

*Includes copper used to produce copper rod

In the third quarter of 2006, the Group produced 107.3 thousand tonnes of copper
cathode (of which 8.1 thousand tonnes were used to produce copper rods), a 9 per
cent increase compared to the second quarter of 2006. Copper cathode production
from own concentrate increased by 5 per cent compared to the second quarter, and
amounted to 96.5 thousand tonnes reflecting a better performance of the East
Region mines. Copper cathode production through tolling arrangements decreased
from 0.7 to 0.3 thousand tonnes. The increased production volume was primarily
the result of higher copper grades, which increased from 1.13 to 1.16 per cent
compared to the second quarter of 2006, an improved performance of the East
Region mines, as well as the increased volume of purchased concentrate.


By-products

Kazakhmys Group By-products Production
                                  9m         9m         Q3         Q2         Q3
                                2006       2005       2006       2006       2005
--------------------------------------------------------------------------------
Zinc in Concentrate  '000 t    107.1       61.2       36.6       31.3       18.9
Zinc Metal           '000 t     45.9       38.2       12.1       15.6        9.6

Silver               '000 oz  15,993     15,455      5,301      5,443      4,817
own concentrate      '000 oz  15,954     15,405      5,295      5,433      4,811
tolling              '000 oz      39         51          6         10          6

Gold                 '000 oz   120.6      102.1       42.9       42.7       39.3
own concentrate      '000 oz    79.2       73.2       25.6       30.4       26.5
tolling              '000 oz    41.4       28.9       17.3       12.3       12.8
--------------------------------------------------------------------------------

Zinc metal production in the third quarter of 2006 was 12.1 thousand tonnes in
comparison to 15.6 thousand tonnes in the second quarter of 2006 due to
technical issues with the zinc plant coolers, which were not coping fully with
the high summer temperatures. Rectifications to the cooling system are currently
underway to increase cooling capacity. In the meantime, lower temperatures in
the autumn and winter months will have a positive effect on productivity; in
fact, in September 2006, zinc metal production increased by 31 per cent compared
to August 2006. Zinc in concentrate production was up by 17 per cent compared to
the second quarter of 2006, primarily due to higher contribution from the
zinc-rich ores of the Artemyevskoe mine.


In the third quarter of 2006, the Group produced 5.3 million ounces of silver
and 42.9 thousand ounces of gold, in both cases similar volumes compared to the
second quarter of 2006. Of the 42.9 thousand ounces of gold produced, 25.6
thousand ounces were produced from own concentrate (a 16 per cent decrease
compared to the second quarter of 2006). The decrease in gold production from
own concentrate was caused primarily by lower production volumes from the Abyz
and Kosmurun mines, where scheduled stripping works were conducted throughout
the quarter, and partially due to longer lead times in transporting sludge
supplies through the pipeline from the Balkhash smelter to the precious metals
refinery caused by some malfunctioning in the pumps. The stripping works at the
Abyz mine should continue into the early months of 2007. Of the 5.3 million
ounces of refined silver, production under tolling arrangements represented only
6 thousand ounces.


Review by region

Zhezkazgan
                                  9m         9m         Q3         Q2         Q3
                                2006       2005       2006       2006       2005
--------------------------------------------------------------------------------
Ore extraction       '000 t   21,120     20,661      7,071      7,226      6,910
Average copper grade %          0.81       0.88       0.79       0.82       0.86
Copper Concentrate   '000 t    412.2      442.9      132.1      140.7      143.1
Copper in            '000 t    149.6      160.3       48.7       51.7       52.0
Concentrate
Copper Cathodes*     '000 t    165.6      170.6       59.8       54.1       52.7
of which tolling     '000 t      0.5        0.1        0.2        0.3         --
Copper Rod           '000 t     22.4        7.1        8.0        9.0        1.2
--------------------------------------------------------------------------------

*Includes copper used to produce copper rod


In the third quarter of 2006, copper cathode production at the Zhezkazgan
complex was over 10 per cent higher than in the second quarter of 2006, due to
processing of larger volumes of copper in work-in-progress carried forward from
the previous quarter and higher volumes of purchased concentrate. The Zhezkazgan
complex produced 6 per cent less copper in concentrate than in the second
quarter primarily due to roof fall in the overlapping East and Annensky mines.
This did not result in any causalities or significant damage to the
equipment but affected average ore grades for the period, which
went down from 0.82 to 0.79 per cent compared to the second quarter of 2006.


Copper rod production in the third quarter remained in line with the second
quarter of 2006 following continued strong customer demand in the Chinese
market.

Balkhash
                                  9m         9m         Q3          Q2         Q3
                                2006       2005       2006        2006       2005
---------------------------------------------------------------------------------
Ore extraction       '000 t    3,538      4,260      1,252       1,266      1,437
Average copper grade %          0.78       0.72       0.72        0.81       0.75
Copper Concentrate   '000 t    205.2      139.7       72.1        84.2       50.2
Copper in            '000 t     34.6       25.4       10.3        14.9        8.9
Concentrate
Copper Cathodes      '000 t    128.6      123.5       47.5        44.7       41.7
of which tolling     '000 t      1.0        8.4        0.1         0.7        1.8
Copper Rod           '000 t       --         --         --          --         --
---------------------------------------------------------------------------------

At the Balkhash complex, copper cathode production in the third quarter was 6
per cent higher than in the second quarter due to processing of larger volumes
of the copper work-in-progress carried forward from the previous quarter and
higher volumes of purchased concentrate. Copper in concentrate production in the
third quarter was lower than in the second quarter of 2006 due to decrease of
ore grades from 0.81 to 0.72 per cent. This decrease in average ore grades was
caused by lower grade at the Sayak and Shatyrkul mines due to dilution of ore by
barren rocks and lower than anticipated grades at Kounrad mine.

East Region
                                  9m         9m         Q3         Q2         Q3
                                2006       2005       2006       2006       2005
--------------------------------------------------------------------------------
Ore extraction       '000 t    3,393      3,685      1,075        957      1,257
average copper grade %          2.78       2.31       3.09       2.92       2.31
Copper Concentrate*  '000 t    259.5      241.2      127.4      132.1      106.7
Copper in            '000 t     74.1       63.6       26.5       24.1       19.0
Concentrate
Copper Cathodes      '000 t       --         --         --         --         --
Copper Rod           '000 t       --         --         --         --         --
--------------------------------------------------------------------------------

*Excludes concentrate processed by third parties


In the third quarter of 2006, copper concentrate production at the East Region
complex was 4 per cent lower compared to the second quarter of 2006. However,
higher copper grade ores from the recently commissioned mines led to an increase
of 10 per cent in copper in concentrate production in the third quarter compared
to the second quarter of 2006.

Karaganda
                                  9m         9m         Q3         Q2         Q3
                                2006       2005       2006       2006       2005
--------------------------------------------------------------------------------
Ore extraction       '000 t    2,204        582        730        825        165
average copper grade %          2.13       0.81       2.72       2.28       1.61
Copper Concentrate   '000 t    136.9       81.7       65.7       43.2       43.2
Copper in            '000 t     18.0        2.3       11.6        5.5        1.4
Concentrate
Copper Cathodes      '000 t       --         --         --         --         --
Copper Rod           '000 t       --         --         --         --         --
--------------------------------------------------------------------------------

Ore extraction at the Karaganda complex in the third quarter of 2006 was 12 per
cent lower than in the second quarter of 2006 primarily due to mining operations
at the Abyz mine being restricted by scheduled stripping works which are
expected to continue into the earlier months of 2007. Lower production at the
Kosmurun mine due to scheduled stripping works and whilst ore inventory was
cleared, also contributed to lower ore extraction.


For further information please contact:

Jinsoo Yang, Head of Investor Relations                   Tel: +44 20 7901 7800
Sergei Stephantsov, Deputy Head of Investor Relations
Kazakhmys PLC


Robin Walker                                              Tel: +44 20 7251 3801
Finsbury



- ends -

Notes to Editors

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 Kazakhmys Corporation LLC
("Kazakhmys"). Based on 2005 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.





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