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Kazakhmys PLC (KAZ)

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Monday 11 August, 2008

Kazakhmys PLC

Purchase of Further Shares in

RNS Number : 0318B
Kazakhmys PLC
11 August 2008

11 August 08 



Kazakhmys PLC ("Kazakhmys") announces that it has made market purchases of a further 35,733,717 shares in ENRC PLC ("ENRC"). The purchases were made at an average price of 1126 pence per sharein line with the closing price of ENRC on 8 August 2008.  This takes the total holding of Kazakhmys in ENRC to 322,177,851 shares or 25.02% of the issued share capital of ENRC, just above the strategic 25% level.


Oleg Novachuk, Chief Executive of Kazakhmys stated: "The recent decline in mining equities provided an opportunity to modestly increase our holding in ENRC. We are the largest single shareholder of ENRC with just above 25%".

For further information please contact:

Kazakhmys PLC

John Smelt

Head of Corporate Communications

Tel: +44 20 7901 7882

Tel: +44 78 7964 2675

Olga Nekrassova

Financial Analyst

Tel: +44 20 7901 7814


David Simonson

Tel: +44 20 7653 6620

Tom Randell

Tel: +44 20 7653 6620

Leonid Fink 

Tel: +44 20 7653 6620

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Notes to Editors

Kazakhmys PLC

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 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, the largest privately owned power business in Kazakhstan owns and operates a number of power plants, including the recently acquired coal fired Ekibastuz plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the Maikuben West 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.


ENRC is a leading diversified natural resources group with integrated mining, processing, energy, logistical and marketing operations. The majority of the ENRC assets were acquired in the privatisation process undertaken in Kazakhstan in the mid-1990s. The Company was formed as part of a reorganisation in December 2006 to simplify the ownership structure of the assets and to consolidate them in a single group of companies. ENRC's production assets are located in the Republic of Kazakhstan where it employs approximately 62,000 people. In 2006, ENRC accounted for approximately 4% of the country's GDP. 

ENRC has five operating divisions: The Ferroalloy Division, The Iron Ore Division, The Alumina and Aluminium Division, The Energy Division and The Logistics Division. Shares in ENRC are listed on the Official List and admitted to trading on the main board of the London Stock Exchange and as at August 2008 ENRC had a market capitalisation of $28,000 million. For the twelve months to 31 December 2007 ENRC reported revenues of $4,106 million and profit of $814 million.  As at 31 December 2007 ENRC had total assets of $8,188 million. 

City Code Restrictions

On 10 June 2008 it was announced that the Board had no intention of making a full offer for ENRC at that time. As a result, Kazakhmys remains bound by the provisions of Rule 2.8 of the City Code on Takeovers and Mergers (the 'City Code'). For the purposes of Rule 2.8, Kazakhmys continues to reserve the right to make or participate in an offer or possible offer for ENRC within the six months following the date of that announcement on 10 June: (1) with the agreement or recommendation of the Board of ENRC; (2) upon the announcement of an offer by a third party for ENRC; (3) upon the announcement by or on behalf of ENRC of a 'whitewash' proposal (as defined in the City Code) or of a reverse takeover (as defined in the City Code); or (4) if there is a material change of circumstances.

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