Information  X 
Enter a valid email address

Kazakhmys PLC (KAZ)

  Print      Mail a friend       Annual reports

Thursday 29 January, 2009

Kazakhmys PLC

Production Summary for 12 Mon

RNS Number : 4242M
Kazakhmys PLC
29 January 2009
 



29 January 2009


Kazakhmys PLC Production Summary for 12 Months and the Fourth Quarter Ended 31 December 2008 



  • Annual copper output ahead of expectations:

    • 340.1 kt of cathode from own material plus 3.5 kt of copper sold in concentrate 

    • Output rose consistently through the year

    • Benefit of increased equipment availability and production at new mines 


  • By-product output over the full year was generally positive compared to 2007:

    • Zinc in concentrate production rose 3% to 137.3 kt 

    • Silver production declined by 12% to 16,710 koz 

    • Gold production increased 9% to 123.5 koz 


  • Business review to conserve cash and protect margin in current market downturn:

    • Copper capex reductions of $250 mln

    • Efficiency savings identified of $200 mln 

    • 2009 copper cathode output to be reduced to around 300 kt


  • Successfully completed 2009 annual copper volume sales contracts


  • Kazakhmys Power electricity generation up year-on-year by 17% to 10,402 GWh

    • Q4 output decreased with softening industrial demand in Kazakhstan

    • Medium-term outlook remains positive


  • Year end net debt position $1.66 bln

    • Year end cash position $560 mln

    • Undrawn revolving credit facility of $200 mln


Oleg Novachuk, Chief Executive Officer, said "In this challenging environment for the industry, we are delighted to have delivered an increase in copper production slightly ahead of expectations. This is a result of the operational initiatives undertaken through the year. We have now also completed our previously announced operational review to take account of current trading conditions. With the suspension of selected higher cost operations and a significant reduction in discretionary capex, we believe we are better placed to continue to operate through the downturn and to maintain our flexibility to increase capacity when market conditions improve. I should like to thank our workforce for their commitment in such a difficult environment. Beyond this downturn, the medium term outlook for copper is positive as current and future capacity is cut across the industry and the long term demand fundamentals remain robust."

  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 (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 copper smelters. Kazakhmys Copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent produced in 2008 from own ore was 343 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 2008, it produced 48 thousand tonnes of zinc metal and 137 thousand tonnes of zinc concentrate. Kazakhmys is the fourth largest silver producer in the world (17 million ounces produced in 2008). 


Kazakhmys Gold division includes substantial new development and exploration opportunities. In total the Group produced 179 thousand ounces of gold in 2008 and has measured and indicated resources of 2.3 million ounces.


Kazakhmys Power owns the 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 3.6 million tonnes of coal in 2008.


Kazakhmys Petroleum owns the East Akzhar 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 approximately 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



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction

'000 t

35,675

33,968

8,969

9,235

7,729

Average copper grade

%

1.26

1.22

1.27

1.32

1.22

Average zinc grade1

%

3.10

3.87

2.74

3.07

4.19








Copper in concentrate

'000 t

399.8

389.9

108.6

105.7

96.8

  own concentrate

'000 t

370.9

347.9

101.6

98.8

84.7

  purchased concentrate

'000 t

28.9

42.0

7.0

6.9

12.1








Copper cathodes from:







  own concentrate

'000 t

340.1

340.9

90.7

92.2

91.6

  purchased concentrate

'000 t

37.8

39.0

14.8

6.1

11.3

  tolling concentrate

'000 t

0.2

1.3

-

-

0.2

Total copper cathodes2

'000 t

378.1

381.2

105.5

98.3

103.1

Copper rod

'000 t

48.3

35.7

15.6

9.1

8.8

1Complex ores only    

2Includes copper used to produce copper rod 


Ore extraction in 2008 increased by 5% to 35,675 kt. Output benefited from improved equipment availability and relatively stable production in most regions, as well as the opening of some smaller mines at the beginning of 2008. The rise in ore output is reflected in the higher copper in concentrate production, up 7% to 370.9 kt. Cathode production of 340.1 kt was in line with 2007, but an additional 3.5 kt of copper in concentrate (cathode equivalent of 3.3 kt) was sold without being converted to cathode, as part of trial sales of concentrate material mentioned in our Interim Report. In total, copper cathode equivalent production was 343.4 kt, ahead of 2007 and previous guidance.


Cathode output from purchased concentrate was slightly below last year, although there was an increase in the final quarter, as stocks of this material were reduced. There has been a modest increase in work in progress of own material and this will be processed during Q1 2009.


In light of current market conditions, a general review of operations has been undertaken, which is likely to result in a reduction in copper cathode output from own material, in 2009, of around 10%-15%. Output has been temporarily suspended at three higher cost mines, BelousovskyNorth Nurkazgan and Kounrad, which in 2008 accounted for 1.3% of copper in oreOre output will also be reduced as a result of lower discretionary capital expenditure and potential suspensions at other high cost mines


The operational review included processing and smelting. In several regions, the flow of material is being adjusted to minimise transportation costs. Both concentrating and smelting capacities may be temporarily reduced to match the lower ore output and to enhance productivity. The zinc smelter may be suspended as zinc concentrate can be sold more profitably than in-house produced metal. Some of the copper smelting facilities were due for maintenance shutdowns in 2009 and these may be brought forward to match ore throughput.


Copper rod is produced to demand and the output reflects strong demand from the Chinese market during 2008. Rod production has relatively low profit margin and may be reduced or suspended in the current economic climate.


With a reduction in output, some of the workforce may be offered relocation or reduced pay or hours. As a major employer in Kazakhstan, however, we have committed that we will endeavour not to make large scale redundancies arising from any suspension of operations. In addition to our sociacommitment, this approach will allow an easier restart of facilities when the market recovers. 

  

By-products Summary

Kazakhmys copper By-products Production




12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Zinc in concentrate

  '000 t 

137.3

132.8

32.8

38.2

31.6

Zinc metal

'000 t 

47.5

45.2

12.3

10.6

12.1








Silver own production1

'000 oz

16,710

18,985

4,587

3,794

4,154

Silver tolling2

'000 oz

5.7

10.0

4.8

-

-








Gold own production1

'000 oz

123.5

113.4

31.4

29.4

32.2

Gold tolling2

'000 oz

4.5

23.5

3.2

0.4

1.5

Includes slimes from purchased concentrate 

2 Represents tolled materials provided via third parties


The annual production of zinc in concentrate and zinc metal benefited from an increase in extraction of zinc bearing ores in the East region. Zinc in concentrate production in Q4 2008 decreased compared to Q3 2008, due to a decline in grades at the Artemyevsky mine and the timing of material being received from third party processors under tolling arrangements. 


As mentioned above, an evaluation of the zinc smelting plant is underway and, depending upon anticipated market conditions and local tolling charges, operations at the plant may be suspended in H1 2009. This closure will not impact the availability of material for sale, as there is good demand for zinc concentrate in Central Asia and China. 


The apparent decrease in annual silver production is due to a high level of work in progress compared to last year, which will be processed in 2009. Silver output during Q4 2008 benefited from the processing of work in progress which had been accumulated during Q3 2008. 


Gold production in 2008 was assisted by production from Akbastau mine, which opened in Q1 2008, and higher output of gold rich ores at Orlovsky mineTolling, which is performed on an ad-hoc basis, decreased significantly in 2008 due to capacity being used for own material. Production of gold during Q4 2008 benefited from the processing of previously accumulated material. There is still a relatively high volume of stockpiled ores containing gold which will be processed in 2009.


  Kazakhmys Copper Review by Region

Zhezkazgan Complex



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction

'000 t

24,124

24,355

6,252

5,860

5,751

Average copper grade

%

0.84

0.82

0.85

0.88

0.83








Copper concentrate

'000 t

493.9

491.1

133.1

126.1

122.9

Copper in concentrate

'000 t

176.2

178.6

46.7

44.6

42.9








Copper cathodes from:







own concentrate

'000 t

179.6

183.7

48.1

47.8

49.0

purchased concentrate

'000 t

1.1

3.8

-

0.9

0.1

Total copper cathodes1

'000 t

180.7

187.5

48.1

48.7

49.1

Copper rod

'000 t

48.3

35.7

15.6

9.1

8.8

1 Includes copper used to produce copper rod


Ore extraction at the Zhezkazgan complex in Q4 2008 increased by 7% compared to Q3 2008. This increase was largely due to increased output at the South mine, which flooded in Q4 2007. South mine is gradually increasing output as it undergoes maintenance work, but remains below full capacity. Overall ore production for the full year was slightly lower than in 2007. This decrease did not impact metal output due to increased extraction at higher grade mines, principally at the Zhomart mine and the new Taskura mine (part of the North group of mines). 


The average copper grade in Q4 2008 decreased from Q3 2008 due to lower grades at the Annensky mine anas production increased at the relatively low grade South mine. 


The increase in production of copper in concentrate quarter-on-quarter at the Zhezkazgan complex reflects the increase in metal in ore extracted. 


Copper cathode production from own concentrate during Q4 2008 was in line with the previous quarter, in spite of the rise in metal in ore extractedProduction was affected by timing differences in processing concentrate as some concentrate, produced during Q4 2008, will be processed in 2009


Overall production of cathodes in 2008 was in line with the previous year reflecting overall volumes of mined metal and copper in concentrate. 


Copper rod is produced to customer order, principally for the Chinese market. There was a 71% increase in Q4 2008compared to Q3 2008, to ensure that all orders were completed in anticipation of scheduled maintenance closure in Q1 2009. As mentioned earlier, rod production is low margin, and its production is being reviewed in the current pricing environment. 

  Kazakhmys Copper Review by Region

Balkhash Complex



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction

'000 t

2,998

2,127

644

930

419

Average copper grade

%

1.03

1.05

1.21

1.05

1.07








Copper concentrate1

'000 t

267.3

187.9

64.2

96.0

47.6

Copper in concentrate

'000 t

38.8

32.5

9.8

13.3

8.7








Copper cathodes from:







own concentrate

'000 t

160.5

157.2

42.6

44.4

42.6

purchased concentrate

'000 t

36.7

35.2

14.8

5.2

11.2

tolling2

'000 t

0.2

1.3

-

-

0.2

Total copper cathodes1

'000 t

197.4

193.7

57.4

49.6

54.0

1Excludes concentrate processed by third parties

2 Represents tolled materials provided via third parties


Ore output decreased at the Balkhash complex in Q4 2008, compared to the previous period, due to the suspension of the Kounrad mine in response to lower copper prices. Kounrad mine has the lowest grade across all Kazakhmys Copper mines and was undergoing an extensive overburden removal accompanied by modest ore output. The output from the Kounrad mine during the first nine months of 2008, and the improved availability of equipment at the Shatyrkul mine, contributed to the 41% increase in ore extraction in the region during 2008, compared to 2007. 


The average copper grade increased from 1.05% in Q3 2008 to 1.21% due to the suspension of mining at Kounrad which has a grade of 0.29%The average copper grade increased from 1.07% in Q4 2007 to 1.21% in Q4 2008benefiting from the higher grade and increased output at Shatyrkul


Production of copper in concentrate during Q4 2008 decreased by 26% from the level achieved during the previous quarter. This reduction is due to the decrease in extracted ore and mined metal due to the closure of the Kounrad mine, and lower contributions from the Akbastau mine in the Karaganda Region in order to reduce transportation costs.


Output of copper in concentrate increased by 13% from 8.7kt in Q4 2007 to 9.8kt in Q4 2008, due to an overall increase in metal mined. Since November 2008, ore from the Nurkazgan mine (Karaganda region) is no longer processed at the Balkhash complex but is processed at the newly commissioned Nurkazgan concentrator. This significantly reduces transportation costs. 


The increase of copper in concentrate output seen in 2008 partially reflects increased metal content in ore as well as the processing of ore from mines in other regions during the year.  


Balkhash smelting plant processes concentrate from every region except Zhezkazgan. The decrease in copper cathode production from own concentrate in Q4 2008 reflects changes in copper in concentrate production across these three regions.


Annual cathode output increased slightly from the previous year, reflecting the increase in metal mined across the three regions, offset by timing differences in processing concentrate. Purchased concentrate, which was previously used to maintain a buffer level at the smelter, was no longer required given the improved volumes of own concentrate. Surplus purchased concentrate was released in Q4 which resulted in the increase in cathode output from purchased material. 

  Kazakhmys Copper Review by Region

East Region



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction

'000 t

4,880

4,140

1,303

1,322

1,005

Average copper grade

%

2.82

2.84

2.82

2.76

3.16








Copper concentrate1

'000 t

583.7

506.2

156.0

150.5

147.4

Copper in concentrate

'000 t

110.7

95.9

29.5

28.9

27.8

1Excludes concentrate processed by third parties


Ore extraction in Q4 was in line with the previous quarter, but increased significantly compared to the same quarter last year and year-on-year. The improvement against 2007 was mainly due to the delivery of previously ordered equipment, leading to increased output at most mines.


Operations at the Belousovsky mine, which contributes approximately 4% of the region's ore output, were suspended during Q4 2008 as a result of the review of operations mentioned earlier


The decrease in the grade in 2008 mainly reflects the increased production at a lower grade at the Orlovsky mine.


Production of copper in concentrate quarter-on-quarter is in line with the level of mined metal in ore. Copper in concentrate output increased by 6% compared to the same quarter last year due to the increase in mined metal content offset by a higher amount of ore stockpiled during Q4 2008. The processing of complex ores from Kosmurun mine (Karaganda region) at the Nikolayevsky concentrator which started during Q4 2007 was stopped during Q4 2008.

The increase in annual output of copper in concentrate is due to higher levels of mined metal and the processing of complex ores from the Kosmurun mine, in the Karaganda region for two more quarters compared to 2007. This increase was offset by stockpiling of ore during Q4 2008 which will be processed in 2009.

   Kazakhmys Copper Review by Region

Karaganda Region



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction

'000 t

3,673

3,346

770

1,123

554

Average copper grade

%

2.13

2.21

2.14

2.12

1.94








Copper concentrate

'000 t

252.9

231.6

74.5

70.4

38.9

Copper in concentrate

'000 t

38.4

33.3

13.9

10.0

4.2


Ore extraction in the Karaganda region in Q4 2008 decreased compared to Q3 2008. Two mines, West Nurkazgan and Kosmurun, have both now ceased open pit operations and are preparing to move underground. However, a development study of operations at the region's Kosmurun and Akbastau mines is currently underway to determine their future production directions. As part of the general review of operations, mentioned earlier, ore output at the North Nurkazgan mine was suspended.


The increase in production compared to Q4 2007 and the 12 months of 2007 was due to the output from the Akbastau and Abyz mines, which both opened at the beginning of 2008. This offset the decreased production at West Nurkazgan and Kosmurun


The average copper grade achieved in Q4 2008 was higher than in Q3 2008 due to the significant decrease in production at the relatively low grade Nurkazgan group on minesThe increase in grade compared to Q4 2007 reflects the impact of output from the Akbastau mine. 


The reduction in the average copper grade from 2008 to 2007 was caused by the declining grades and ore output at the Nurkazgan and Kosmurun mines, offsetting the higher grade at Akbastau. 


Copper in concentrate production increased in Q4 2008, compared to Q4 2007, due to the processing of ore stockpiled at the new Nurkazgan concentrator as well as the increase in mined metal.


The increase in production of copper in concentrate for Q4 2008, from Q3 2008, is due to the processing of Akbastau ore at the Nurkazgan concentrator, which was previously processed at the Balkhash concentrator, and the increased processing of Akbastau ores at the Karagaily concentratorAnnual output of copper in concentrate increased by 15% benefiting from increased mined metal content and from the processing of ore stockpiled in 2007


The Nurkazgan concentrator will be temporarily shut down in Q1 2009 to install new equipment. To maximise efficiency, operations at the concentrator will resume once underground extraction at the West Nurkazgan mine commences. 


  Other divisions review

kazakhmys gold PRODUCTION



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Ore extraction  

t

2,014

2,061

384

773

479

Gold grade

g/t

1.51

1.48

1.53

1.50

1.38








Gold in ore to pads 

'000 oz

87.2

103.0

17.1

32.9

26.0

Gold precipitation

'000 oz

56.9

52.2

14.9

20.1

15.9








Gold doré production

'000 oz

55.7

51.3

13.8

19.8

15.5

Silver production

'000 oz

41.9

44.2

10.4

10.5

11.6


The decrease in production during Q4 compared to Q3, is due to normal seasonal changes. Production is carried out using heap leaching which slows down with decrease in the temperature of the solution. However, ore extraction in Q4 2008 was below Q4 2007 due to decreased output from the Zhaima mine. Zhaima mine finished operations in September 2008, as the ore body was exhausted, though processing of the extracted Zhaima ore will continue into 2009.

 

Annual ore extraction was in line with the previous year due to increased output from Mizek mine earlier in 2008 offset by closure of the Zhaima mine in September 2008The average gold grade achieved in Q4 2008, and during the 12 months of 2008, was higher than in the corresponding periods last year due to targeted stripping and mining at Mukur and improved grades at MizekGold in ore to pads decreased in 2008 due to lower output from Zhaima and stockpiling of sulphide ores. Gold precipitation in 2008 increased slightly compared to 2007 due to the higher grade of gold in ore assisted by movements in WIP. 


Gold doré production decreased significantly compared to Q3 2008 due to seasonal factors offset by higher volumes of gold precipitated in the previous quarter. Annual gold doré production benefited from release of WIP accumulated in 2007 as well as from the launch of a new de-coppering solutions workshop at the Mizek mine. 




kazakhmys Petroleum

The main focus of the exploration activity is the Eastern Akzhar section, where the 3D seismic survey remains on track. The processing of the field data was completed at the end of August 2008 and is now being followed by the interpretation of data which is scheduled to be finalised in early 2009. The results of the survey will be used to plan the location of future new deep wells in 2009 and 2010. 


Whilst the 3D seismic data is being analysed, drilling of a duplicate well started at the end of July 2008. At the end of Q4, 4,511 metres out of a projected 5,200 metres had been drilled. The copy well is scheduled to be completed and tested in Q1 2009. Once drilling of the copy well is completed, the drilling equipment will be relocated to a second well, with plans to complete the drilling of the second well in Q3 2009. 



  Other divisions review (continued)

kazakhmys POWER PRODUCTION



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007



12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Coal extraction

'000 t

3,600

3,420

1,023

807

995

Coal extraction attributable to Kazakhmys*

'000 t

2,200

n/a

1,023

807

n/a








Net power generated

GWh

10,402

8,864

2,440

2,459

2,683

Net power generated attributable to Kazakhmys* 

GWh

5,774

n/a

2,440

2,459

n/a

Net dependable capacity

MW

2,013

1,913

2,200

1,782

2,174

Period from acquisition on 29th May 2008


Coal extraction increased in 2008 by 5% from 2007 levels due to higher demand from Kazakhstan and Russia. 


The 17% increase in generated electricity during 2008 was driven by growing demand from the market within Kazakhstan during the first half of 2008. However, in light of the recent economic climate, major industrial customers reduced electricity consumption during Q4 2008. This reduction resulted in a decrease in demand and output during the latter part of Q4 2008. 


Net dependable capacity1 increased from 1,913 MW to 2,013 MW following completion of maintenance work on four units (Units 3, 4, 5 and 7), and major overhaul on Unit 6, which was put back into operation in early November 2008. The major overhaul of Unit 6 took its capacity from 430 MW to 500 MW.


Work continues on the investment programme including the rehabilitation and refurbishment of non-operational units and the installation of electrostatic precipitators, which reduce ash emissions allowing increased power generationNegotiations are continuing to secure suitable project finance partners for this programme.

 

 

 

 

1The net dependable capacity is 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

12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

North

ore ('000 t)

3,746

2,375

1,033

1,050

478


grade (%)

0.76

0.65

0.77

0.77

0.70

East

ore ('000 t)

5,188

5,615

1,178

1,330

1,428


grade (%)

0.78

0.82

0.70

0.76

0.82

South

ore ('000 t)

3,311

5,220

1,100

616

967


grade (%)

0.64

0.69

0.63

0.61

0.63

West 

ore ('000 t)

2,252

2,054

528

597

  488


grade (%)

0.51

0.37

0.70

0.58

0.41

Stepnoy

ore ('000 t)

2,940

2,849

717

742

746


grade (%)

0.82

0.80

0.79

0.86

  0.86

Annensky

ore ('000 t)

3,407

3,360

899

701

873


grade (%)

0.87

1.03

0.84

0.97

0.98

Zhomart

ore ('000 t)

3,280

2,882

797

824

  771


grade (%)

1.39

1.27

1.65

1.58

1.23








Complex total 

ore ('000 t)

24,124

24,355

6,252

5,860

5,751

Complex average

grade (%)

0.84

0.82

0.85

0.88

0.83


Balkhash complex

12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Kounrad

ore ('000 t)

874

404

46

335

41


grade (%)

0.29

0.30

0.32

0.28

0.48

Sayak I, III

ore ('000 t)

1,753

1,372

460

510

338


grade (%)

1.10

1.02

1.03

1.22

  1.03

Shatyrkul

ore ('000 t)

371

351

138

85

40


grade (%)

  2.48

2.05

2.09

3.03

2.01








Complex total

ore ('000 t)

2,998

2,127

644

  930

419

Complex average

grade (%)

1.03

1.05

1.21

1.05

1.07



East region

12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Nikolayevsky

ore ('000 t)

574

532

197

185

111


grade (%)

1.60

1.75

1.57

1.50

1.93

Artemyevsky

ore ('000 t)

1,548

1,395

410

402

313


grade (%)

1.68

1.65

1.68

1.69

1.70

Irtyshsky

ore ('000 t)

481

390

118

126

  95


grade (%)

1.41

1.39

1.46

1.44

1.45

Belousovsky

ore ('000 t)

211

163

34

55

54


grade (%)

1.02

0.85

1.36

1.04

  0.83

Orlovsky

ore ('000 t)

1,528

1,231

382

400

326


grade (%)

4.99

5.24

5.23

4.90

5.74

Yubileyno-Snegirikhinsky

ore ('000 t)

538

429

162

154

106


grade (%)

3.15

3.31

2.83

3.19

3.52








Region total

ore ('000 t)

4,880

4,140

1,303

1,322

1,005

Region average

grade (%)

2.82

2.84

2.82

2.76

3.16


Karaganda region

12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Nurkazgan (West, North)

ore ('000 t)

575

1,842

56

170

263


grade (%)

0.65

1.11

0.41

0.42

0.88

Akbastau

ore ('000 t)

2,363

40

640

706

  -


grade (%)

2.50

3.91

2.35

2.48

  -

Kosmurun

ore ('000 t)

299

1,464

-

120

291


grade (%)

2.73

3.55

-

2.94

2.90

Abyz

ore ('000 t)

436

-

74

127

-


grade (%)

1.70

-

1.63

1.63

-








Region total

ore ('000 t)

3,673

3,346

770

1,123

554

Region average

grade (%)

2.13

2.21

2.14

2.12

  1.94








Total

ore ('000 t)

35,675

33,968

8,969

9,235

7,729

Average

grade (%)

1.26

1.22

1.27

1.32

1.22

Copper processing


12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Zhezkazgan complex







Copper concentrate

'000 t

493.9

491.1

133.1

126.1

122.9

Copper in concentrate

'000 t

176.2

178.6

46.7

44.6

42.9

Balkhash complex



 



 

Copper concentrate

'000 t

267.3

187.9

64.2

96.0

47.6

Copper in concentrate

'000 t

38.8

32.5

9.8

13.3

  8.7

East region



 



 

Copper concentrate

'000 t

583.7

506.2

156.0

150.5

  147.4

Copper in concentrate

'000 t

110.7

95.9

29.5

28.9

27.8

Karaganda region



 



 

Copper concentrate

'000 t

252.9

231.6

74.5

70.4

38.9

Copper in concentrate

'000 t

38.4

33.3

13.9

10.0

4.2








Total own processed



 



 

Copper concentrate

'000 t

1,597.8

1,416.8

427.8

443.0

356.8

Copper in concentrate

'000 t

364.1

340.3

99.9

96.8

83.6








Own ore processed by third parties







Copper concentrate

'000 t

25.4

28.9

6.5

7.4

  4.1

Copper in concentrate

'000 t

6.8

7.6

1.7

2.0

1.1








Total own







Copper concentrate

'000 t

1,623.2

1,445.7

434.3

450.4

360.9

Copper in concentrate

'000 t

370.9

347.9

101.6

98.8

84.7








Purchased concentrate



 



 

Copper concentrate

'000 t

105.1

152.5

26.4

24.8

41.3

Copper in concentrate

'000 t

28.9

42.0

7.0

6.9

12.1








Total copper in concentrate

'000 t

399.8

389.9

108.6

105.7

96.8

COPPER SMELTER / REFINERY - Copper CATHODES Production


12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Zhezkazgan smelter







Own concentrate

'000 t

179.6

183.7

48.1

47.8

49.0

Purchased concentrate

'000 t

1.1

3.8

-

0.9

0.1

Total 

'000 t

180.7

187.5

48.1

48.7

49.1








Balkhash smelter







Own concentrate

'000 t

160.5

157.2

42.6

44.4

42.6

Purchased concentrate

'000 t

36.7

35.2

14.8

5.2

11.2

Sub - total

'000 t

197.2

192.4

57.4

49.6

53.8








Tolling

'000 t

0.2

1.3

-

-

0.2

Total including tolling

'000 t

197.4

193.7

57.4

49.6

54.0








Grand total

'000 t

378.1

381.2

105.5

98.3

103.1


  Kazakhmys Copper

By-products Mining, Processing and SMELTER / REFINERY

ZINC


12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

East region







Nikolayevsky

grade (%)

3.71

3.07

3.76

4.10

2.74

Artemyevsky

grade (%)

5.09

5.19

4.51

5.90

4.91

Irtyshsky

grade (%)

3.58

3.24

3.46

4.03

3.25

Belousovsky

grade (%)

1.77

2.87

0.99

1.79

2.67

Orlovsky

grade (%)

4.51

4.60

4.38

4.00

5.03

Yubileyno-Snegirikhinsky

grade (%)

3.15

3.27

2.19

3.04

3.56








Region average

grade (%)

4.24

4.27

3.88

4.39

4.29








Karaganda region







Kosmurun

grade (%)

3.93

2.77

-

3.64

3.88

Akbastau

grade (%)

0.63

2.84

0.54

0.39

-

Abyz

grade (%)

3.19

-

1.76

3.67

-








Region average

grade (%)

1.31

2.77

0.66

1.23

3.87








Overall average 

grade (%)

3.10

3.87

2.74

3.07

4.19








Zinc in concentrate 

'000 t

137.3

132.8

32.8

38.2

31.6

Zinc metal

'000 t

47.5

45.2

12.3

10.6

12.1


  

SILVER 


12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Zhezkazgan complex







North

grade (g/t)

10.08

8.25

10.44

8.57

8.79

East

grade (g/t)

17.95

16.82

15.68

17.73

16.22

South

grade (g/t)

14.46

16.86

17.39

13.86

14.48

West 

grade (g/t)

15.15

11.11

17.32

16.82

11.71

Stepnoy

grade (g/t)

8.79

11.81

8.34

8.74

12.61

Annensky

grade (g/t)

18.35

21.86

22.73

21.35

16.66

Zhomart

grade (g/t)

8.44

8.15

11.13

8.38

6.86








Region average

grade (g/t)

13.63

14.6

14.85

13.57

13.27








Balkhash complex







Kounrad 

grade (g/t)

0.71

0.86

0.33

0.47

0.07

Sayak I, III

grade (g/t)

5.34

5.22

5.67

5.35

5.17

Shatyrkul

grade (g/t)

2.21

1.71

2.41

2.23

1.49








Region average

grade (g/t)

3.60

3.82

4.59

3.31

4.32








East region







Nikolayevsky

grade (g/t)

36.22

38.60

35.32

37.98

50.37

Artemyevsky

grade (g/t)

102.06

95.99

99.22

124.89

69.00

Irtyshsky

grade (g/t)

54.63

53.66

54.46

57.11

52.73

Belousovsky

grade (g/t)

33.73

47.89

23.23

28.08

47.95

Orlovsky

grade (g/t)

59.35

55.90

52.16

55.82

56.22

Yubileyno-Snegirikhinsky

grade (g/t)

37.70

49.23

25.09

31.94

58.37








Region average

grade (g/t)

66.22

65.97

60.49

70.51

58.99








Karaganda region







Nurkazgan

grade (g/t)

2.38

2.77

4.30

2.03

2.84

Akbastau

grade (g/t)

23.51

33.43

22.10

20.95

-

Kosmurun

grade (g/t)

43.55

36.72

-

31.14

55.34

Abyz

grade (g/t)

41.90

-

19.6

52.95

-








Region average

grade (g/t)

24.02

17.99

20.56

22.78

30.42








Overall average

grade (g/t)

21.05

20.52

21.23

21.81

19.97








Silver in concentrate 

'000 oz

18,815

20,490

5,382

4,617

4,624

Own concentrate

'000 oz

13,660

14,088

3,846

3,349

3,236

Own concentrate processed by 3rd parties

'000 oz

1,934

2,343

560

613

242

Purchased concentrate 

'000 oz

3,221

4,059

976

655

1,146








Silver metal1

'000 oz

16,710

18,985

4,587

3,794

4,154


  

GOLD


12m

2008

12m

2007

Q4

2008

Q3

2008

Q4

2007

Balkhash complex







S            Sayak I, III

grade (g/t)

0.38

 0.34

0.38

0.42

 0.52

Shatyrkul

grade (g/t)

0.44

 0.30

0.38

0.51

 0.38








Region average

grade (g/t)

0.39

0.33

0.38

0.43

0.50








East region







Nikolayevsky 

grade (g/t)

0.34

 0.71

0.26

0.40

 0.68

Artemyevsky

grade (g/t)

1.12

 1.28

0.97

1.44

 0.79

Irtyshsky

grade (g/t)

0.37

 0.37

0.40

0.38

 0.39

Belousovsky

grade (g/t)

0.35

 0.46

0.20

0.32

 0.47

Orlovsky

grade (g/t)

0.98

 0.59

0.84

0.90

 0.63

Yubileyno-Snegirikhinsky

grade (g/t)

0.54

 0.70

0.43

0.39

 0.73








Region average

grade (g/t)

0.81

0.83

0.69

0.86

0.67








Karaganda region







Nurkazgan 

grade (g/t)

0.39

 0.32

1.34

0.29

 0.32

Akbastau

grade (g/t)

0.75

 1.80

0.54

0.72

 -

Kosmurun

grade (g/t)

2.09

 2.46


0.93

 4.52

Abyz

grade (g/t)

3.78

 - 

2.03

5.18

 -








Region average

grade (g/t)

1.16

1.27

0.74

1.18

2.53















Overall average

grade (g/t)

0.85

 0.89

0.63

0.90

 1.17








Gold in concentrate

'000 oz

128.2

129.5

32.8

34.6

61.6

Own concentrate

'000 oz

86.0

 80.8

21.1

23.8

 24.6

Own concentrate processed by 3rd parties

'000 oz

11.5

13.1

3.2

3.9

14.2

Purchased concentrate

'000 oz

30.7

35.6

8.5

6.9

22.8








Gold output1

'000 oz

123.5

113.4

31.4

29.4

32.2


1 Includes slimes from purchased concentrate


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