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Kazakhmys PLC (KAZ)

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Wednesday 30 July, 2008

Kazakhmys PLC

Q2 Production Results

RNS Number : 1667A
Kazakhmys PLC
30 July 2008
 



30 July 2008




Kazakhmys PLC Production Summary for 6 Months and the Second Quarter Ended 30 June 2008


  • Copper in concentrate and cathode production improved significantly in Q2 2008

    • Recovering from the severe weather seen in the previous quarter

    • Benefiting from rising output at the four new mines 

    • Copper in own concentrate rose 13% to 90.thousand tonnes from Q1 2008 and copper cathode production rose 8% to 81.6 thousand tonnes quarter on quarter


  • Improvements continue to be seen in the deliveries of ordered equipment 

    • Equipment availability and delivery remains a key area of management focus


  • Maintenance to Kazakhstan national grid may affect copper cathode output in Q3

    • Copper in concentrate production should be unaffected


  • Good progress on new projects

    • Taskura copper mine started production in April 2008

    • Bozymchak gold mine moved into feasibility study

    • Balkhash sulphuric acid plant started production


  • Kazakhmys Power is included in the production report for the first time

    • Production increased significantly in H1 2008, reflecting rising demand and higher capacity




Oleg Novachuk, Chief Executive Officer, said "After the severe weather in Q1 2008, we have seen good progress, with output recovering well, assisted by new mine production and improvements in equipment availability. In Q3 2008 there may be an impact on cathode production, as the national grid undergoes maintenance work potentially affecting power supplies. However, mine and concentrate output will be unaffected and we maintain our target that copper cathode production from own ore production for the full year should be at least in line with 2007."

  For further information please contact:


Kazakhmys PLC



John Smelt, Head of Corporate Communications 


Tel: +44 20 7901 7882

Tel: +44 787 964 2675

Olga NekrassovaFinancial Analyst 


Tel: +44 20 7901 7814




Merlin



David Simonson & Tom Randell (English language)


Tel: +44 20 7653 6620

Leonid Fink & Anastasia Ivanova (Russian language)


Tel: +44 20 7653 6620





Notes to Editors

Kazakhmys PLC is a leading international natural resources group, listed in the UK and Kazakhstan, with significant interests in copper, gold, zinc, silver, power generation and petroleum.


It is the largest copper producer in Kazakhstan and one of the top ten worldwide with 20 mines, 10 concentrators and 2 smelters. Kazakhmys copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode produced in 2007 from own ore was 341 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure. Kazakhmys also owns MKM, an upstream copper products fabrication company in Germany, which produces a range of pre- and semi-finished copper and copper alloy products.


Kazakhmys Copper produces significant volumes of other metals, including zinc, silver and gold. In 2007, it produced 45 thousand tonnes of zinc metal and 133 thousand tonnes of zinc concentrate. Kazakhmys is the fourth largest silver producer in the world (19 million ounces produced in 2007). Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes substantial new development and exploration opportunities. The Group produced 146 thousand ounces of gold in 2007 and has measured and indicated resources of 2.3 million ounces.


Kazakhmys Power owns the recently acquired coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the Maikuben open cast coal mine, supplying around 20% of the power plant's fuel requirements producing over 3.4 million tonnes of coal in 2007.


Kazakhmys Petroleum has acquired the Dostan-Temir LLP exploration block, with an area of 602km², located on the eastern fringe of the Caspian depression. 


The Group is part of the FTSE-100 index of companies listed on the London Stock Exchange and is also listed on the Kazakhstan Stock Exchange (KASE). It had revenues of $5.3 billion in 2007 with EBITDA of $2.3 billion. The Group employs some 65,000 people, principally in Kazakhstan. The Group's strategic aim is to diversify and participate in the development of the significant natural resource opportunities in Central Asia.


  

Copper Summary

Kazakhmys Copper Production



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


 Ore extraction

'000 t

17,472

17,994

9,215

8,257

9,063

 Average copper grade

%

1.22

1.21

1.23

1.21

1.18

 Average zinc grade1

%

3.32

3.69

3.19

3.49

3.67








Copper in concentrate

'000 t

185.8

201.5

99.8

86.0

96.7

 own concentrate

'000 t

170.7

182.8

90.6

80.1

89.2

 purchased concentrate

'000 t

15.1

18.7

9.2

5.9

7.5








Copper cathodes2

'000 t

174.3

191.2

90.2

84.1

91.5

 own concentrate

'000 t

157.1

163.5

81.6

75.5

79.7

 purchased concentrate

'000 t

17.1

26.9

8.6

8.5

11.6

 tolling concentrate

'000 t

0.1

0.8

-

0.1

0.2

Copper rod

'000 t

23.6

18.0

10.2

13.4

9.0

1Complex ores only

2Includes copper used to produce copper rod


Ore output increased by 12to 9,215 kt in Q2 2008 from 8,257 kt in Q1 2008, a quarter which was depressed by severe winter weather. Ore output showed a slight increase from the levels achieved in Q2 2007The quarter benefited from a combination of new mine production and the delivery of new equipment, an issue mentioned in previous production reports


The ore output for H1 2008 remains below the level achieved in H1 2007, mainly due to the weather related lower production in Q1 2008, mentioned above. 


Copper grades in Q2 2008 increased compared to Q2 2007 due to decreased output from the low grade South mine and improved grades in the East region. 


Copper in own concentrate production in Q2 2008 increased from the previous period reflecting the increase in mined metal.  


Cathode production from own concentrate in Q2 2008 at 81.6 kt represents an 8% increase from the previous quarter due to processing of concentrate accumulated at the end of Q1 2008, in addition to higher volumes of copper in concentrate produced in Q2 2008.

 

Production of copper cathode from own concentrate in the first six months of 2008 was slightly lower than the same period of 2007 due to lower production in Q1 2008. Improved performance in Q2 combined with the anticipated mine output for the rest of the year leaves Kazakhmys on track to reach copper production targets.


The national grid in Kazakhstan is currently undergoing significant maintenance work, which may impact the availability of power to the copper smelters. This will result in a further build up in inventory in Q3, but the target for copper cathodes from own ore for the full year is unaffected.

  

By-products Summary

Kazakhmys copper By-products Production



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Zinc in concentrate

 '000 t 

66.4

71.2

32.8

33.6

32.6

Zinc metal

'000 t 

24.6

27.4

12.2

12.4

12.5








Silver

'000 oz

8,330

10,111

4,310

4,020

5,089

 own production1

'000 oz

8,329

10,104

4,309

4,020

5,087

 tolling2

'000 oz

1

7

1

-

2








Gold

'000 oz

63.5

70.6

32.1

31.4

36.6

 own production1

'000 oz

62.8

51.4

31.4

31.4

32.2

 tolling2

'000 oz

0.7

19.2

0.7

-

4.4

1 Includes slimes from purchased concentrate 

2 Represents tolled materials provided via third parties


Zinc in concentrate production in Q2 2008 was in line with Q2 2007 and with Q1 2008. Zinc in concentrate production over the six month period was lower than in 2007 due to the timing of receipts of material from third party processors under tolling arrangements with ore processing scheduled for every second month. 

Zinc metal production during Q2 2008 remained in line with the previous periods.


Production of silver during Q2 2008 increased over Q1 2008, benefiting from the processing of more silver-bearing ore from the Zhezkazgan region and stockpiled Kosmurun ore. 


The decrease of silver production compared to Q2 2007 and H1 2007 reflects the reduced output of ore and lower silver grades at the South mine and lower output at the Kosmurun mine. This was partially offset by output from the new Akbastau and Abyz mines. 


Gold output in Q2 2008 was in line with the previous quarter and the corresponding period of 2007. Gold production for the first six months of 2008 benefited from an increase in grades, after commencement of production at the Abyz mine In addition, gold work in progress has built up during H1 2008, which will be processed in H2 2008. This should ensure that overall gold production for 2008 is higher than 2007. 


  

Kazakhmys Copper Review by Region

Zhezkazgan Complex



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Ore extraction

'000 t

12,013

12,816

6,209

5,804

6,516

Average copper grade

%

0.81

0.81

0.83

0.79

0.80








Copper concentrate

'000 t

234.9

247.2

123.2

111.7

126.4

Copper in concentrate

'000 t

85.0

93.1

45.0

40.0

46.6








Copper cathodes1

'000 t

84.0

93.7

37.4

46.6

43.8

 own concentrate

'000 t

83.7

90.0

37.1

46.6

42.5

 purchased concentrate

'000 t

0.3

3.7

0.3

-

1.3

 tolling2

'000 t

-

-

-

-

-

Copper rod

'000 t

23.6

18.0

10.2

13.4

9.0

1 Includes copper used to produce copper rod

2 Represents tolled materials provided via third parties


Ore extraction at the Zhezkazgan complex increased at all mines, except the South minebenefiting from an improvement in equipment availability. In addition the new Taskura mine (part of the North group of mines) started production in April 2008. This increase was only partially offset by decreased production at the South mine during Q2 2008, which is undergoing repair works to the main shaft lifting equipment until late 2008Overall output in H1 2008 was below production in 2007 reflecting the weather issues of Q1 2008. 


In Q2 2008, the copper grade rose to 0.83%, from 0.80% in Q2 2007 and 0.79% in Q1 2008. This was due to higher grade ore produced at the new Taskura mine, increased output at higher grade Zhomart mine and decreased output at the low grade South mine


Average grade for the first six months of 2008 was in line with the grade achieved during the same period in 2007. This was again the result of the impact of South mine, where lower grade and production supported the higher grades achieved at the two new operations at Taskura and Sary-Oba mines.

 

The changes in production of copper in concentrate at the Zhezkazgan complex reflect the changes in ore extraction and grade. 


Copper cathode production from own concentrate in the second quarter of 2008 was 20% lower than in the same period last year and 15% lower than in Q1 2008. This was due to the 53 day maintenance shutdown for a smelter furnace in Q2 2008whereas there was no shutdown in Q1 2008 and only 14 day shutdown in Q2 2007. The accumulated concentrate will be processed in H2 2008. 


Copper rod, which is produced to customer order, increased markedly in H1 2008 compared to the same period last year reflecting strong demand from Chinese customers. 

  

Kazakhmys Copper Review by Region

Balkhash Complex



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Ore extraction

'000 t

1,424

1,092

820

604

603

Average copper grade

%

0.95

1.15

0.96

0.93

1.08








Copper concentrate1

'000 t

107.0

92.5

69.2

37.8

51.3

Copper in concentrate

'000 t

15.7

15.9

9.5

6.1

8.3








Copper cathodes

'000 t

90.3

97.5

52.8

37.5

47.7

 own concentrate

'000 t

73.4

73.5

44.5

28.9

37.2

 purchased concentrate

'000 t

16.8

23.2

8.3

8.5

10.3

 tolling2

'000 t

0.1

0.8

-

0.1

0.2

1Excludes concentrate processed by third parties

2 Represents tolled materials provided via third parties


The increased ore extraction throughout H1 2008, was due to greater output from the Kounrad mine, which although undergoing extensive overburden removal is enjoying modest output of relatively low grade ore. Production at the Shatyrkul mine increased slightly compared to Q1 2008 as a result of more favourable geological conditions. 


The average copper grade has decreased from Q2 2007 and H1 2007 levels to 0.96% and 0.95%, respectively. This decrease shows the impact of output from Kounrad mine, which has a grade of 0.28%. However the grade improved from Q1 2008, reflecting an increase in grades at the Sayak and Shatyrkul mines. 


Output of copper in concentrate at the Balkhash complex increased significantly during Q2 2008 from Q1 2008, partially reflecting increased ore output and higher copper grades. Additionally, Akbastau ore and previously stockpiled Nurkazgan from the Karaganda region were processed at the Balkhash complex during Q2 2008, to utilise its spare capacity and to achieve higher recovery rates from copper only oresThe Karagaily concentrator in Karaganda will continue processing complex ores from the Akbastau mine. 


Copper cathode production from own concentrate increased by 20% and 54% compared to Q2 2007 and Q1 2008, respectively. This is due to processing of concentrate accumulated in Q1 2008 when the smelter was closed for some of the time for maintenance. Cathode production from own concentrate in H1 2008 was in line with H1 2007


Production of sulphuric acid started at the end of H1 2008, in line with previous guidance, and will ramp up to full production (1.2 million tonnes of sulphuric acid per annum) by Q4 2008. During one month of operations at the acid plant emissions of sulphur dioxide were reduced by 30%. 

  

Kazakhmys Copper Review by Region

East Region



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Ore extraction

'000 t

2,254

2,174

1,206

1,048

1,027

Average copper grade

%

2.85

2.60

2.75

2.96

2.50








Copper concentrate1

'000 t

277.2

231.4

142.6

134.6

105.2

Copper in concentrate

'000 t

52.3

43.7

27.2

25.1

20.0

1Excludes concentrate processed by third parties


Ore extraction in Q2 2008 increased in all mines compared to Q1 2008 as previously ordered equipment continued to arrive. The increase of 15% in Q2 2008, compared to Q1 2008, was also assisted by increased output from the Artemyevsky mine where the access to the ore body improved following backfill works in Q1 2008. 


The decrease in copper grade to 2.75% in Q2 2008, compared to 2.96% in Q1 2008, was due to increased production, combined with lower grades obtained, at the Yubileyno-Snegirikhinsky, Orlovsky and Nikolayevsky minesThe general increase in the copper grade in 2008, both for Q2 and H1, reflects the increase in ore output at the relatively high grade Orlovsky mine. 


Production of copper in concentrate in the East region increased compared to Q2 2007 and H1 2007. This is due to the increase of ore output and grades, as well as processing of additional ore from the Kosmurun mine in the Karaganda region. Following the end of the cold season, and decreased national transportation of coal, the availability of rail transport improved and higher amounts of ore were transported from the Kosmurun mine located in the Karaganda region to the Nikolayevsky concentrator in the East region. This resulted in an 8% increase in copper in concentrate produced compared to Q1 2008. 

  

Kazakhmys Copper Review by Region

Karaganda Region



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Ore extraction

'000 t

1,781

1,912

980

801

917

Average copper grade

%

2.14

2.36

2.10

2.20

2.46








Copper concentrate

'000 t

108.1

158.7

60.5

47.6

79.5

Copper in concentrate

'000 t

14.5

24.6

7.5

7.0

12.0


Ore extraction in the Karaganda region during Q2 2008 was 7% higher compared to the same period in 2007. This was due to the output from the Akbastau and Abyz mines, which opened in 2008, offset by temporarily low extraction at West Nurkazgan and Kosmurun. These are both in preparation for operations moving underground which are scheduled to start in early 2009 and 2012, respectively. 


The increased production from the new Akbastau mine in Q2 2008 resulted in the 22% increase in ore output, compared to the previous quarter. The decrease from 1,912 thousand tonnes extracted in 6 months of 2007, to 1,781 thousand tonnes extracted in 2008, is due to the decreased production at the West Nurkazgan and Kosmurun mines offsetting the contributions from Akbastau and Abyz. 


The North Nurkazgan open pit mine started production in Q2 2008; however output remains light, as operations focus on the higher grade Akbastau mine while the Nurkazgan concentrator awaits additional milling equipment


The average copper grade achieved in Q2 2008 was lower than Q2 2007 reflecting the reduced output from the Kosmurun open pit mine. The reduction in the average copper grade from Q1 2008 to Q2 2008, was caused by the increased ore output from Akbastau where the overall copper grade is affected by the copper ore body being intercepted with zinc bearing blocks. 


In October 2007, the processing of complex ores frothe Kosmurun mine was transferred from the Karagaily concentrator in the Karaganda region to the Nikolayevsky concentrator in the East region. This has resulted in a reduction in the concentrate produced in Karaganda region seen in H1 2008, compared to H1 2007. Previously stockpiled ore from the Nurkazgan mine continues to be processed at the Balkhash complex utilising its spare capacity. During Q2 2008, another 180 thousand tonnes of stockpiled Nurkazgan ore was shipped and processed, reducing the stockpiled ore to 570 thousand tonnes. From Q2 2008 the processing of copper only ores from the Akbastau mine is being undertaken by the Balkhash complex.

  

Other divisions review

kazakhmys gold PRODUCTION



6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Ore extraction  

t

857

854

665

192

645

Gold ore grade

g/t

1.50

1.42

1.55

1.50

1.46








Gold in ore to pads 

ktr.oz

37

40

28

9

34

Gold precipitation

ktr.oz

22

19

15

7

13








Gold doré production

ktr.oz

22

19

14

8

12

Silver production

ktr.oz

21

24

12

9

14


As was announced in July 2008 the Bozymchak Gold Project in Kyrgyzstan has successfully completed its pre-feasibility study, and the project has moved to the feasibility stage. The feasibility study should be completed by the end of 2008. Extraction of ore should commence by the end of 2009 and it is anticipated that the annual production of metal, which will start in 2010, will be 30 ktr.oz of gold and 7 kt of copper per annum. 


Exploration works were started in Q2 at the Akjilga silver project by PamirGeology, the state owned exploration company in Tajikistan


Mizek Sulphide project should move to the feasibility stage in H2 2008. 


Ore extraction is in line with Q2 2007 and H1 2007 and is significantly higher compared to Q1 2008 due to standard seasonal changes. Production is carried out using heap leaching with optimal temperature for the leaching solution being 15oC


The average gold grade is higher than 2007 levels as further exploration was conducted at Mukur mine, allowing operations to target ore bodies with a higher grade. The average grade was also assisted by the extraction of sulphide ores at Mizek with a high gold grade. 


The higher gold doré production was slightly ahead of Q2 2007 due to the higher gold precipitation reflecting the increase in grades. Combined with the release of gold from work in progress in Q1 2008, this has led to higher production during H1 2008 compared to the same period last year. 


  

Other divisions review (continued)

kazakhmys Petroleum

The main focus of the exploration activity is the Eastern Akzhar (subsalt) section, where the 3D seismic survey is on track. The field data collection process was completed in  May 2008 with the survey now progressing to the data analysis stage. This should be completed by the end of 2008 and the results of this survey will be used to plan the location of future new deep wells in 2009.


In H2 2008, while the 3D seismic data is analysed, a copy well of a well drilled in the 1980s will be drilled. Contractors have been appointed for drilling works which are scheduled to start in Q3 2008


  

Other divisions review (continued)

kazakhmys POWER PRODUCTION




6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Coal extraction

'000 t

1,771

1,549

849

922

552

Coal extraction attributable to Kazakhmys*

'000 t

377

n/a

377

n/a

n/a








Net power generated

GWh

5,506

3,931

2,636

2,870

1,906

Net power generated attributable to Kazakhmys* 

GWh

948

n/a

948

n/a

n/a

Net dependable capacity

MW

2,036

1,926

1,882

2,190

1,785

Period from acquisition on 30th May 2008


This is the first time that Kazakhmys Power has been included in the production reporthaving been acquired on 30 May 2008


Kazakhmys Power division includes the Maikuben West coal mine and Ekibastuz GRES-1 power plant, the largest power plant in Kazakhstan. Ekibastuz power plant has a nameplate capacity of 4,000 MW and eight energy generating blocks. Only five blocks are currently operational and support current available capacity of 2,250 MW.  Kazakhmys Power plans to rehabilitate unit 8 and put it into operation in 2011 with a total estimated capacity (including houseload) expected to reach 3,000 MW. The remaining non - operational units, 1 and 2, are expected to begin operations in 2013 and 2014 respectively, increasing capacity level to 4,000 MW. All investment plans depend on an increase in tariffs to support the Group's investment returns. 


Maikuben coal mine extracts lignite with calorific value of 3900-4300 kkal/t. This coal is mainly used for domestic purposes although it is also consumed by coal-fired electric stations in Northern and Eastern Kazakhstan and Russia


The power plant's net dependable capacity (NDC)1 during the autumn-winter season (November 2007 - March 2008) was 2,190 MW with five out of eight units being operational. Historically, the maintenance season is from April to October. During the 2008 maintenance season, one of the units will not be available due to major overhaul and other units will be subject to routine maintenance worksThis will reduce NDC by 20-25% until the end of the maintenance season in November. 


Net generated electricity increased by 40% in H1 2008 compared to the same period last year. This is due to the increased capacity and the increased demand by the local market, which was also reflected in an increased number of supply contracts


 1 The net dependable capacity is essentially the real productive capacity of GRES-1. It is calculated by taking the maximum design capacity of the generation units and then factoring in the physical condition of the units (e.g. wear and tear), production outages for repairs and internal consumption of electricity. 

Kazakhmys Copper 

CoppeMINing

Zhezkazgan complex

6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


North

ore ('000 t)

1,662

1,344

1,104

558

619


grade (%)

0.75

0.66

0.79

0.68

0.65

East

ore ('000 t)

2,680

2,753

1,358

1,322

1,405


grade (%)

0.82

0.82

0.83

0.82

0.79

South

ore ('000 t)

1,596

3,137

628

968

1,590


grade (%)

0.66

0.69

0.67

0.66

0.65

West 

ore ('000 t)

1,128

1,047

640

488

497


grade (%)

0.51

0.37

0.55

0.45

0.33

Stepnoy

ore ('000 t)

1,481

1,447

765

716

837


grade (%)

0.81

0.80

0.77

0.84

0.87

Annensky

ore ('000 t)

1,806

1,649

859

947

810


grade (%)

0.85

1.04

0.90

0.81

1.08

Zhomart

ore ('000 t)

1,660

1,439

855

805

758


grade (%)

1.16

1.30

1.22

1.10

1.18








Complex total 

ore ('000 t)

12,013

12,816

6,209

5,804

6,516

Complex average

grade (%)

0.81

0.81

0.83

0.79

0.80


Balkhash complex

6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Kounrad

ore ('000 t)

494

178

349

145

130


grade (%)

0.28

0.31

0.28

0.29

0.28

Sayak I, III

ore ('000 t)

783

701

384

399

363


grade (%)

1.07

1.05

1.13

1.01

1.01

Shatyrkul

ore ('000 t)

147

213

87

60

110


grade (%)

2.53

2.22

2.91

1.98

2.27








Complex total

ore ('000 t)

1,424

1,092

820

604

603

Complex average

grade (%)

0.95

1.15

0.96

0.93

1.08



East region

6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Nikolayevsky

ore ('000 t)

192

275

110

82

155


grade (%)

1.74

1.72

1.41

2.18

1.71

Artemyevsky

ore ('000 t)

736

802

403

333

404


grade (%)

1.68

1.71

1.70

1.67

1.72

Irtyshsky

ore ('000 t)

237

202

119

118

104


grade (%)

1.36

1.33

1.35

1.38

1.31

Belousovsky

ore ('000 t)

122

74

61

61

15


grade (%)

0.92

0.83

0.94

0.90

0.91

Orlovsky

ore ('000 t)

746

618

386

360

250


grade (%)

4.92

4.61

4.78

5.06

4.72

Yubileyno-Snegirikhinsky

ore ('000 t)

221

203

127

94

99


grade (%)

3.35

3.09

3.22

3.53

2.80








Region total

ore ('000 t)

2,254

2,174

1,206

1,048

1,027

Region average

grade (%)

2.85

2.60

2.75

2.96

2.50


Karaganda region

6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Nurkazgan (West, North)

ore ('000 t)

349

1,106

127

222

472


grade (%)

0.81

1.17

0.53

0.96

1.15

Akbastau

ore ('000 t)

1,016

-

636

380

-


grade (%)

2.61

-

2.35

3.04

-

Kosmurun

ore ('000 t)

180

806

106

74

445


grade (%)

2.60

4.00

2.61

2.58

3.85

Abyz

ore ('000 t)

236

-

111

125

-


grade (%)

1.77

-

1.92

1.63

-








Region total

ore ('000 t)

1,781

1,912

980

801

917

Region average

grade (%)

2.14

2.36

2.10

2.20

2.46








Total

ore ('000 t)

17,472

17,994

9,215

8,257

9,063

Average

grade (%)

1.22

1.21

1.23

1.21

1.18

Copper processing


6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Zhezkazgan complex







Copper concentrate

'000 t

234.9

247.2

123.2

111.7

126.4

Copper in concentrate

'000 t

85.0

93.1

45.0

40.0

46.6

Balkhash complex







Copper concentrate

'000 t

107.0

92.5

69.2

37.8

51.3

Copper in concentrate

'000 t

15.7

15.9

9.6

6.1

8.3

East region







Copper concentrate

'000 t

277.2

231.4

142.6

134.6

105.2

Copper in concentrate

'000 t

52.3

43.7

27.2

25.1

20.0

Karaganda region







Copper concentrate

'000 t

108.1

158.7

60.5

47.6

79.5

Copper in concentrate

'000 t

14.5

24.6

7.5

7.0

12.0








Total own processed







Copper concentrate

'000 t

727.2

729.8

395.5

331.7

362.4

Copper in concentrate

'000 t

167.5

177.4

89.3

78.2

86.9








Own ore processed by third parties







Copper concentrate

'000 t

11.4

20.7

4.5

6.9

8.5

Copper in concentrate

'000 t

3.2

5.4

1.3

1.9

2.3








Total own







Copper concentrate

'000 t

738.6

750.5

400.0

338.6

370.8

Copper in concentrate

'000 t

170.7

182.8

90.6

80.1

89.2








Purchased concentrate







Copper concentrate

'000 t

53.6

72.4

29.6

24.0

29.8

Copper in concentrate

'000 t

15.1

18.7

9.2

5.9

7.5








Total copper in concentrate

'000 t

185.8

201.5

99.8

86.0

96.7

COPPER SMELTER / REFINERY - Copper CATHODES Production


6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Zhezkazgan smelter







Own concentrate

'000 t

83.7

90.0

37.1

46.6

42.5

Purchased concentrate

'000 t

0.3

3.7

0.3

  -

1.3

Sub - total 

'000 t

84.0

93.7

37.4

46.6

43.8

Tolling

'000 t

-

-

-

  -

-

Total including tolling

'000 t

84.0

93.7

37.4

46.6

43.8








Balkhash smelter







Own concentrate

'000 t

73.4

73.5

44.5

28.9

37.2

Purchased concentrate

'000 t

16.8

23.2

8.3

8.5

10.3

Sub - total

'000 t

90.2

96.7

52.8

37.4

47.5

Tolling

'000 t

0.1

0.8

-

0.1

0.2

Total including tolling

'000 t

90.3

97.5

52.8

37.5

47.7








Grand total

'000 t

174.3

191.2

90.2

84.1

91.5



  Kazakhmys Copper

By-products Mining, Processing and SMELTER / REFINERY

ZINC


6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


East region







Nikolayevsky

grade (%)

3.26

3.05

3.53

2.91

3.29

Artemyevsky

grade (%)

4.97

5.44

4.69

5.30

5.46

Irtyshsky

grade (%)

3.40

3.07

3.53

3.28

3.00

Belousovsky

grade (%)

1.98

2.84

2.03

1.92

2.24

Orlovsky

grade (%)

4.85

4.23

4.65

5.06

4.36

Yubileyno-Snegirikhinsky

grade (%)

3.94

3.23

4.10

3.72

2.77








Region average

grade (%)

4.36

4.28

4.26

4.46

4.31








Karaganda region







Kosmurun

grade (%)

4.13

2.10

3.72

4.70

2.19

Akbastau

grade (%)

0.87

--

1.02

0.60

--

Abyz

grade (%)

3.39

--

3.39

3.39

--








Region average

grade (%)

1.69

2.11

1.45

1.73

2.19








Overall average 

grade (%)

3.32

3.69

3.19

3.49

3.67








Zinc in concentrate 

('000 t)

66.4

71.2

32.8

33.6

32.6

Zinc metal

('000 t)

24.6

27.4

12.2

12.4

12.5


  

SILVER 


6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Zhezkazgan complex







North

grade (g/t)

10.80

8.66

10.51

11.39

8.22

East

grade (g/t)

19.06

17.05

18.99

19.14

17.56

South

grade (g/t)

12.68

17.50

11.47

13.46

18.88

West 

grade (g/t)

13.26

10.92

13.44

13.01

9.75

Stepnoy

grade (g/t)

9.02

12.01

8.23

9.87

11.91

Annensky

grade (g/t)

15.00

25.60

17.34

12.87

25.09

Zhomart

grade (g/t)

7.17

9.08

7.98

6.31

9.81








Region average

grade (g/t)

13.03

15.42

13.08

12.99

15.71








Balkhash complex







Kounrad 

grade (g/t)

0.90

0.80

0.85

1.05

0.78

Sayak I, III

grade (g/t)

5.14

5.44

5.06

5.21

5.37

Shatyrkul

grade (g/t)

2.00

1.90

2.02

1.98

1.81








Region average

grade (g/t)

3.34

4.00

2.94

3.89

3.73








East region







Nikolayevsky

grade (g/t)

35.45

29.89

25.97

48.06

32.56

Artemyevsky

grade (g/t)

91.18

109.06

81.04

103.5

107.41

Irtyshsky

grade (g/t)

53.39

53.10

55.39

51.4

55.87

Belousovsky

grade (g/t)

39.23

43.00

37.96

40.47

35.30

Orlovsky

grade (g/t)

64.93

54.40

69.09

60.46

55.34

Yubileyno-Snegirikhinsky

grade (g/t)

50.96

42.86

36.34

70.88

44.41








Region average

grade (g/t)

67.02

69.90

62.79

71.88

71.07








Karaganda region







Nurkazgan

grade (g/t)

2.24

2.65

2.11

2.31

2.48

Akbastau

grade (g/t)

26.17

--

19.56

37.27

--

Kosmurun

grade (g/t)

51.80

28.17

38.72

70.35

29.11

Abyz

grade (g/t)

42.96

--

44.62

41.48

--








Region average

grade (g/t)

26.30

13.41

22.20

31.30

15.40








Overall average

grade (g/t)

20.56

21.09

19.66

21.57

21.15








Silver in concentrate 

('000 oz)

8,816

11,043

4,672

4,144

5,394

  own concentrate

('000 oz)

7,226

9,246

3,681

3,545

4,716

purchased concentrate 

('000 oz)

1,590

1,797

991

599

678

Silver metal1

('000 oz)

8,329

10,104

4,309

4,020

5,087


  

GOLD


6m

2008


6m

2007


Q2

2008


Q1

2008


Q2

2007


Balkhash complex







Sayak I, III

grade (g/t)

0.36

0.27

0.42

0.31

0.30

Shatyrkul

grade (g/t)

0.46

0.29

0.58

0.28

0.26








Region average

grade (g/t)

0.38

0.27

0.45

0.31

0.23








East region







Nikolayevsky 

grade (g/t)

0.38

0.61

0.30

0.46

0.55

Artemyevsky

grade (g/t)

1.03

1.49

0.91

1.10

1.59

Irtyshsky

grade (g/t)

0.35

0.36

0.30

0.37

0.35

Belousovsky

grade (g/t)

0.40

0.48

0.36

0.40

0.41

Orlovsky

grade (g/t)

1.09

0.57

1.17

0.93

0.56

Yubileyno-Snegirikhinsky

grade (g/t)

0.71

0.62

0.64

0.77

0.62








Region average

grade (g/t)

0.86

0.89

0.82

0.90

0.95








Karaganda region







Nurkazgan 

grade (g/t)

0.28

0.31

0.27

0.29

0.30

Akbastau

grade (g/t)

0.90

--

0.77

1.05

--

Kosmurun

grade (g/t)

2.86

1.63

2.95

2.63

1.70

Abyz

grade (g/t)

3.57

--

3.81

3.24

--








Region average

grade (g/t)

1.33

0.86

1.29

1.32

0.98















Overall average

grade (g/t)

0.94

0.77

0.92

0.95

0.83








Gold in concentrate

('000 oz)

60.7

62.6

38.0

22.7

30.5

  own concentrate

('000 oz)

45.5

48.4

26.5

19.0

23.8

purchased concentrate

('000 oz)

15.2

14.2

11.5

3.7

6.7

Gold output1

('000 oz)

62.8

51.4

31.4

31.4

32.2


1 Includes slimes from purchased concentrate




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