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Kazakhmys PLC (KAZ)

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Thursday 08 March, 2007

Kazakhmys PLC


Kazakhmys PLC
08 March 2007


      Kazakhmys PLC ("Kazakhmys") announces move into the petroleum sector

Kazakhmys today announces that agreement has been reached to acquire
Dostan-Temir LLP, a Kazakhstan based company, which holds the right to sign the
contract to undertake further exploration for oil and gas in the East Akzhar
Exploration Block ("East Akzhar") in Western Kazakhstan. In 2005, Dostan-Temir
LLP successfully participated in a Government tender and was awarded the right
to sign the exploration contract with the Government of Kazakhstan. The
acquisition is subject to fulfilment of certain conditions, with completion
expected within the next few months.

East Akzhar, a 602km2 exploration block, is located to the south of Aktobe in a
region home to numerous 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.

A number of 2D and 3D seismic surveys and other exploration activities have been
performed on the block including the drilling of exploration wells. Further
exploration work will be carried out to determine the block's full potential.

This transaction represents Kazakhmys' first entry into the petroleum sector, in
line with its stated strategy to seek growth opportunities across natural
resources within Kazakhstan and the region. The Board is considering a number of
options for the development of East Akzhar.

Dostan-Temir LLP is a Kazakhstan registered company with gross assets of $0.1
million. It has been acquired from Total Commerce Solutions Limited, a privately
owned company.

Vladimir Kim, Kazakhmys Executive Chairman said:

"I am excited by this move into the oil and gas sector. It is a first step to
delivering on our strategy of diversification of our business. Kazakhstan is a
country rich in natural resources and we will continue to seek out further
opportunities for our shareholders."

For further information please contact:

Matthew Hird, Company Secretary
Kazakhmys PLC                                  Tel:+44 20 7901 7800

Robin Walker
Andrew Mitchell
Finsbury                                       Tel:+44 20 7251 3801

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Notes to Editors

Kazakhmys is a London listed natural resources company with operations in
Kazakhstan. Kazakhmys' 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. 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

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