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Kazakhmys PLC (KAZ)

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Thursday 28 January, 2010

Kazakhmys PLC

Production Report for 12 Mont

RNS Number : 2449G
Kazakhmys PLC
28 January 2010
 



28 January 2010




Kazakhmys PLC Production Report for 12 Months and the Fourth 

Quarter Ended 31 December 2009


  • Annual copper cathode equivalent production of 320 kt, ahead of target:
    • Benefiting from processing of stockpiled material and operational efficiencies

    • Commissioning of Nurkazgan West underground mine

    • Q4 output of 68 kt, with rebuild of work in progress


  • Increase in by-product output in 2009:
    • Zinc in concentrate production up 9% to 149 kt

    • Silver production in line with 2008 at 17 million ounces

    • Gold production increased by 9% to 135 thousand ounces


  • Kazakhmys Power completed the year ahead of target:
    • Continued strong recovery in Q4, with 48% increase in power generated, compared to Q3 2009 

    • 9,737 GWh annual output, supported by recovery in industrial demand in Kazakhstan and Russia

    • Successful completion of major overhaul of Unit 5, bringing net dependable capacity to 2,012 MW




Oleg Novachuk, Chief Executive Officer, said: "Operational management have performed exceptionally well to meet the challenges of 2009.  At the start of the year we reduced ore output by suspending high cost operations and we anticipated cathode production of 300 kt. The successful focus on operational efficiency and the use of stockpiled material has allowed us to comfortably exceed this target, with final production of 320 kt. In 2010 ore output will be maintained at similar level to 2009 and the target for cathode production will therefore again be just over 300 kt."

  

For further information please contact:




Kazakhmys PLC



John Smelt 

Head of Corporate Communications

Tel: +44 20 7901 7882

Tel: +44 78 7964 2675

Irene Burton 

Financial Analyst 

Tel: +44 20 7901 7814

Zulfira Mukhamedyarovа

Senior Manager - Media Relations

Tel: +77 27 266 3317   

Merlin



David Simonson


Tel: +44 20 7726 8400

Tom Randell


Tel: +44 20 7726 8400

Leonid Fink 


Tel: +44 20 7726 8400


Notes to Editors 

Kazakhmys PLC is a leading international natural resources group 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 15 operating 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 2009 from own ore was 320 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure. 


Kazakhmys Copper produces significant volumes of other metals, including zinc, silver and gold. In 2009, it produced 150 thousand tonnes of zinc in concentrate. The Group is in the top ten largest silver producers in the world (17 million ounces produced in 2009). 


Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes substantial new development and exploration opportunities. The Group produced 180 thousand ounces of gold in 2009 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 a quarter of the power plant's fuel requirements producing over 3.7 million tonnes of coal in 2009.


Kazakhmys Petroleum is continuing its work programme at the East Akzhar exploration block, located on the eastern fringe of the Caspian depressionwhich was acquired in April 2007. 


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.


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 $5.2 billion in 2008 with EBITDA of $2.0 billion. The Group employs some 67,000 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

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction

'000 t

32,409

35,675

7,998

8,398

8,969

 Average copper grade

%

1.18

1.26

1.19

1.15

1.27








Copper in concentrate

'000 t

360.9

399.8

91.0

91.5

108.6

 own concentrate

'000 t

358.9

370.9

91.0

89.5

101.6

 purchased concentrate

'000 t

2.0

28.9

-

2.0

7.0








Copper cathode equivalent production 1

'000 t

326.0

380.9

69.1

83.1

106.1

 own concentrate

'000 t

320.4

342.9

68.1

82.2

91.3

 purchased concentrate

'000 t

5.5

37.8

0.9

0.9

14.8

 tolling concentrate

'000 t

0.1

0.2

0.1

-

-

Copper rod

'000 t

9.7

48.3

2.1

2.9

15.6















1 Includes copper sold in concentrate and cathode converted into rod. 


Ore output in 2009 was reduced by 9%, following the suspension of four high cost mines from the end of 2008, in order to control costs and protect profit margins in a period of lower copper pricesThe reduction in ore extraction was offset by improved productivity at continuing operations and the use of stockpiled material. These factors led to a decline in copper cathode of just under 7%, to 320.4 kt, ahead of the target of 300 kt set at the beginning of the year.


The most significant reduction in ore and metal output arose from the suspension of operations at the high grade Akbastau mine in the Karaganda regionwhich produced around 2,363 kt of ore and 13% of total metal in ore output in 2008. The suspension of Akbastau was also the main factor behind the lower average grade in 2009. Akbastau will be returned to production in a few years when an adjacent concentrator is completed. This concentrator will capture additional value by substantially reducing transportation costs. 


The reduction in ore output from suspended mines was partly offset by the 59% increase in production at South mine, in Zhezkazganto 5,272 ktIn 2008, South mine was impacted by repair work on the main shaft. This work finished in 2009 and output then further benefited from the transfer of some activities from the suspended West mine.  Ore output was also assisted by Nurkazgan West, in the Karaganda region, which started underground operations in February 2009 and ramped up its production to 1,729 kt


Ore extraction in Q4 2009 was lower than Q3 2009, due to the cessation of mining at Taskora open pit (part of the North mine in the Zhezkazgan complex), where the ore body is exhausted. Extensive stripping work will be carried out at North mine during the first half of 2010. Production should restart in Q2 and increase during the second half of the year.

  Copper Summary

Kazakhmys Copper Production (continued)

Lower ore output and grade led to a 15% decrease in mined metal during the year, but copper in own concentrate reduced just 3% to 358.9 kt. The production of concentrate benefited from the processing of stockpiled ore and the reprocessing of waste materials. Recovery rates at the concentrators were also raised by various operational improvements made during the year.


There have been some changes to the processing of copper in concentrate across the two smelters at Balkhash and Zhezkazgan during 2009. The reduction of mined metal during the year allowed the redirection of some Zhezkazgan concentrate to Balkhash, enabling major maintenance to take place on one of the furnaces in ZhezkazganThis maintenance has now been completed and the refurbished furnace will be recommissioned in the second quarter of 2010.  Maintenance work will now take place on the other Zhezkazgan furnace. 


During Q4 there was a rebuild of work in progresswhich had been reduced to low levels during the year as part of the efficiency drive.  Thincrease in work in progress in Q4 2009 is seen in the 17% reduction in cathode output in Q4 2009, compared to Q3 2009Some of this work in progress will be processed in 2010.

  

By-products Summary

Kazakhmys copper By-products Production



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Zinc in concentrate

'000 t  

149.3

137.3

40.5

32.4

32.8

Zinc metal

'000 t 

8.6

47.5

-

-

12.3

Average zinc grade

%

4.15

3.10

4.56

3.98

2.74








Silver

'000 oz

16,899

16,716

3,701

4,051

4,592

 own production1

'000 oz

16,894

16,710

3,698

4,051

4,587

 tolling2

'000 oz

5.0

5.7

3.4

-

4.8

Average silver grade

g/tonne

20.62

21.05

22.16

19.57

21.23








Gold

'000 oz

145.3

128.0

34.6

37.5

34.6

 own production1

'000 oz

134.7

123.5

30.6

36.2

31.4

 tolling2

'000 oz

10.6

4.5

4.0

1.3

3.2

Average gold grade

g/tonne

0.66

0.85

0.70

0.70

0.63

1 Includes slimes from purchased concentrate. 

2Represents tolled materials provided via third parties.


Summary

By-product output in 2009 exceeded 2008 as the reduction in by-product metals mined during the year was offset by significant contributions from the processing of stockpiled polymetallic ores from Akbastau and Abyz. Higher recovery rates achieved in 2009 at concentrators, and lower levels of work in progress at the end of 2009, also lifted annual silver and gold output.


In 2010, by-product output should continue to benefit from improved recovery rates, but with reduced contribution from stockpiled ores. Production of finished material should be in line with underlying ore output.


Zinc by-product

The production of zinc in concentrate in 2009 increased by 9%, due to the processing of stockpiled ore and improved recovery rates at the concentrators. This increase is in contrast to the underlying reduction in mined metal, as there was no contribution from zinc rich ores at Kosmurun and Akbastau, in the Karaganda region. 

  

The increase in zinc in concentrate in Q4 2009, compared to Q3 2009, reflects the higher contributions from Artemyevsky and Nikolaevsky mines in the East region, and the timing of receipts of material from third party processors. 


Silver by-product

There was a reduction in mined metal, principally due to the suspension of Akbastau mine, which contributed around 7% of all silver mined in 2008. The annual production of silver from own material was, however, in line with 2008, again benefiting from the processing of stockpiled ores and an improvement in recovery rates.   


The production of silver in Q4 2009 was 9% below the previous quarter, not reflecting the 8% increase in metal mined, due to an increase in work in progress during the quarter.


By-products Summary

Kazakhmys copper By-products Production (continued)

Gold by-product

The increase in production of gold from own material to 134.7 koz in 2009, compared to 123.5 koz in 2008, was due to the processing of stockpiled ores from the gold rich Abyz and Akbastau mines. The commissioning in May of new equipment at the Karagaily concentrator, in the Karaganda region, improved recovery rates and also lifted the production of own gold in concentrate.


The production of gold metal in Q4 2009 decreased compared to the previous quarter, due to an increased level of work in progress over the quarter.

  

Kazakhmys Copper Review by Region

Zhezkazgan Complex



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction

'000 t

23,779

24,124

5,691

6,127

6,252

Average copper grade

%

0.87

0.84

0.88

0.86

0.85








Copper concentrate

'000 t

491.3

493.9

122.1

119.4

133.1

Copper in concentrate

'000 t

181.4

176.2

44.6

45.7

46.7








Copper cathodes1

'000 t

105.0

180.7

20.9

28.5

48.1

 own concentrate

'000 t

105.0

179.6

20.9

28.5

48.1

 purchased concentrate

'000 t

-

1.1

-

-

-

 tolling2

'000 t

-

-

-

-

-

Copper rod

'000 t

9.7

48.3

2.1

2.9

15.6

1 Includes copper used to produce copper rod.

2Represents tolled materials provided via third parties.


Ore extraction of 23,779 kt at the Zhezkazgan complex in 2009 was slightly below 2008.  The reduction of output due to the suspension of West mine, was offset by increased extraction at South mine. South mine increased production by 1,961 kt to 5,272 ktbenefiting from the transfer of equipment and personnel from West mineThe Complex also benefited from the 13% increase in output at Stepnoy, due to mine development work and the commissioning of a conveyer, early in the 2009, which improved the transportation of ore.


The ore body at Taskora open pit mine has been exhausted and operations ceased there in December 2009. This closure has resulted in lower extraction volumes in Q4 2009 compared to Q3 2009 and Q4 2008.  During the first half of 2010, stripping work will take place at North mineMining should be resumed from Q2 2010, gradually ramping up in the second half of the year. 


The average copper grade for 2009 was 0.87%, compared to 0.84% in 2008. There is a trend of declining grades at the mature mines in the Zhezkazgan complex. This long term trend was interrupted in 2009 by the higher contribution from the relatively new Zhomart mine, and the suspension of operations at the low grade West mine. 


Improved grades offset the decline in ore output and there was a 3% increase in copper concentrate production in 2009, compared to 2008. Copper in concentrate output in Q4 2009 benefited from improved recovery rates at the Complex's concentrators, offsetting the reduction in metal mined.


The lower level of copper cathode production from own concentrate in Zhezkazgan in 2009, reflects:

  • the direct sale of copper in concentrate, principally to China, equivalent to 21.9 kt of copper cathode. In 2010 all concentrate will be processed internally to copper cathode;

  • the processing of Zhezkazgan copper in concentrate at Balkhash smelter.



Kazakhmys Copper Review by Region

Balkhash Complex



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction

'000 t

2,276

2,998

590

551

644

Average copper grade

%

1.32

1.03

1.27

1.35

1.21








Copper concentrate1

'000 t

206.7

267.3

62.4

50.7

64.2

Copper in concentrate

'000 t

37.9

38.8

11.9

9.4

9.8








Copper cathodes

'000 t

199.1

197.4

45.9

50.9

57.4

 own concentrate

'000 t

193.5

160.5

44.8

50.0

42.6

 purchased concentrate

'000 t

5.5

36.7

0.9

0.9

14.8

 tolling2

'000 t

0.1

0.2

0.1

-

-

1 Excludes concentrate processed by third parties.

2Represents tolled materials provided via third parties.


Ore output decreased at the Balkhash complex in 2009 to 2,276 kt, as operations at Konyrat mine were suspended at the end of 2008, due to its high cost baseHowever, metal mined decreased by just 3% due to the increase in output at the higher grade Shatyrkul mine.  Shatyrkul mine has increased its output by 47% in 2009 compared to 2008.  Production was assisted by new equipment, purchased in the previous year. Balkhash complex benefited from the commissioning of new equipment, following the investment programme in the previous yearEfficient operation and lack of interruptions in Q4 2009 allowed output to rise 7% above the previous quarter.


The average copper grade increased from 1.03% in 2008 to 1.32% in 2009, reflecting the suspension of mining at Konyrat at the end of 2008, which had a grade of just 0.29%. The reduction in average copper grade in Q4 2009 was caused by mining operations moving to less rich copper seams


Production of copper in concentrate of 37.9 kt in 2009 declined 2% from 2008. In 2008, stockpiled ore from Nurkazgan and copper only ore from Akbastau mines, both in Karaganda region, were processed at Balkhash to utilise spare capacity and achieve higher recovery rates. The production of copper in concentrate in 2009 was lifted by the reprocessing of significant volumes of waste material and this also helped increase production in Q4 2009, to 11.9 kt.


Copper cathode own production of 193.5 kt at the Balkhash complex increased by 21% on the previous yearwith the smelter operating close to design capacity. This substantial increase has been due to the transfer of copper in concentrate for smelting from the Zhezkazgan complex.


Production of copper cathodes decreased in Q4 2009 compared to Q3 2009, due to slight increase in work in progress, which will be processed during 2010.


During 2010 the Balkhash smelter will undergo annual maintenance, including the temporary shut down of the furnaces. This maintenance should not affect annual production.


  

Kazakhmys Copper Review by Region

East Region



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction

'000 t

4,458

4,880

1,079

1,124

1,303

Average copper grade

%

2.89

2.82

2.93

2.81

2.82








Copper concentrate1

'000 t

595.3

583.7

144.6

148.1

156.0

Copper in concentrate

'000 t

108.3

110.7

26.2

26.8

29.5

1Excludes concentrate processed by third parties.


Ore extraction in the East region decreased to 4,458 kt in 2009, due to the suspension earlier in the year of the Belousovsky mine. In addition, output was held at a reduced level at Artemyevsky mine, where backfilling work constrained production. A new backfill cement plant will be commissioned in 2010, which should allow the mine to increase output. The transfer of some personnel and equipment from Belousovsky mine to the higher grade Yubileyno-Snegirikhinsky mine allowed an increase in output at this mine, and helped offset the reductions elsewhere


Q4 2009 ore output was 4% below Q3 2009, due to reductions in output at Nikolayevsky mine, where mining was affected by underground water. 


The average copper grade of 2.89% in 2009 was higher than in 2008 due to the suspension of Belousovsky mine, which had the lowest grade in the region in 2008, and the mining of higher grade material at Artemyevsky. There has been a decline in grade at Orlovsky mine, which is likely to continue in 2010. The increase in grade at Artemyevsky mine contributed to the higher grade in Q4 2009, compared to Q3 2009.


Copper in concentrate production in 2009 was just 2% below the output in 2008, as the decline in ore extraction and the additional processing of Kosmurun complex ores (Karaganda region) in 2008 was offset by the increase in average grades within the region and higher recovery rates achieved at the Nikolayevsky concentratorImprovements were made to the flotation process at this concentrator during 2009 and work is continuing to further raise recovery grades within the region.


  

Kazakhmys Copper Review by Region

Karaganda Region



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction

'000 t

1,896

3,673

637

596

770

Average copper grade

%

0.91

2.13

0.93

0.87

2.14








Copper concentrate

'000 t

272.8

252.9

74.5

81.7

74.5

Copper in concentrate

'000 t

22.8

38.4

5.9

6.0

13.9


Ore extraction in Karaganda region has declined in 2009, following the decision to suspend operations at the high grade Akbastau mine at the beginning of the year. Akbastau mine produced 2,363 kt of ore in 2008, contributing around 75% of the region's mined metal.  This decision was taken due to the substantial transportation costs involved in processing the ore from the mine.  Production will be resumed when a new concentrator is built nearby. 


Ore output increased in Q4 2009 by 7% compared to the previous quarter due to the higher contribution from Nurkazgan West which started operating underground in Q2 2009. The mine has noyet reached full capacity and is expected to see a further increase in production in 2010.


The average copper grade in 2009 decreased to 0.91%, compared to 2.13% in 2008, due to the suspension of Akbastau mine and the commencement of production at Nurkazgan West, which contributed over 90% of the region's output in 2009, at an average grade of 0.85%.


Production of copper in concentrate in Karaganda in 2009 was 41% below the output achieved in 2008, again due to the suspension of Akbastau mine.  The relationship between copper in concentrate and ore mined is impacted by two factors:  in 2008, ore from Kosmurun and Akbastau was treated outside the region and in 2009 ore from Akbastau and Abyz, stockpiled during 2008, was processed within the region.

 



  

Other Divisions Review 

kazakhmys POWER PRODUCTION




12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Coal extraction

'000 t

3,688

3,600

1,094

940

1,023

Coal extraction attributable to Kazakhmys1

'000 t



3,688

2,200



1,094



940

1,023








Net power generated

GWh

9,737

10,402

3,566

2,410

2,440

Net power generated attributable to Kazakhmys1 

GWh



9,737

5,774



3,566



2,410

2,440

Net dependable capacity2

MW


2,012

1,946


2,143


1,933

2,104

   1Period from acquisition on 29th May 2008.

   2The net dependable capacity is the maximum capacity a unit can sustain over a  specified period modified for seasonal limitations and reduced by the capacity required for station service and auxiliaries. 


Annual net power generated at Ekibastuz GRES -1 in 2009 fell 6.4% from 2008. The demand for electricity declined significantly in Q4 2008 and remained low in Q1 2009.  A moderate improvement in demand started in April 2009 and the trend continued during the rest of the year, led by a recovery in industrial output in Kazakhstan and Russia.


In Q4 2009, net power generated increased by 46%, compared to Q4 2008, and 48% compared to Q3 2009. The Power division was able to attract new customers as there were scheduled outages at other power generators in Kazakhstan, and captive power producers increased consumption of their own power and reduced their sales in the market. Existing customers also increased their power consumption due to recovery in economic activity and seasonality factors.


Net dependable capacity increased by 66 MW compared with 2008 due to major overhauls of Unit 6 in 2008, on Unit 5 in 2009 and planned maintenance of other units during the year The major overhaul of Unit 5, which started in mid April 2009, has now been completed and it has been put into operation with a capacity of 500 MW, up from the previous 430 MW


Coal extraction at Maikuben West mine in 2009 increased by 2.4%, compared to 2008 Q4 2009 coal output exceeded output from the previous quarter and Q4 2008 by 16% and 7%, respectively, reflecting stronger seasonal demand from electricity producers. 






.

  

Other Divisions Review

kazakhmys gold PRODUCTION



12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Ore extraction  

'000 t

1,564

2,014

157

661

384

Gold ore grade

g/t

1.39

1.51

1.29

1.33

1.53








Gold in ore to pads 

'000 oz

71.9

87.2

12.1

26.2

17.1

Gold precipitation

'000 oz

46.1

56.9

10.9

15.6

14.9








Gold doré production

'000 oz

46.8

55.7

11.5

15.6

13.8

Silver production

'000 oz

43.7

41.9

9.9

14.9

10.4


There was a decrease in ore extraction during 2009, compared to 2008, due to the closure of the Zhaima mine in September 2008, where the ore body was exhausted, and lower output at Mizek. Q4 is also affected by normal seasonal changes with the onset of winter. Production is carried out using heap leaching method, which slows down with a decrease in the temperature of the solution and is therefore impacted by colder weather. Extraction at Mizek and Mukur mines has moved to less mineral rich areas, resulting in the lower gold grade achieved during 2009 compared to the same period in 2008. Gold doré production in 2009 declined compared to 2008, reflecting the lower quantity of gold metal mined.


Exploration and site development work at the Bozymchak gold/copper project in Kyrgyzstan has moved to the full development stage, following the allocation of $100 million funding by the China Development Bank and the Kazakhstan Sovereign Wealth Fund, Samruk-Kazyna


   kazakhmys petroleum

Kazakhmys Petroleum continues its drilling and testing programme at the Eastern Akzhar exploration block. Remedial work is being carried out at the first 2 deep wells in order to continue testing, which encountered some technical difficulties in 2009.


The drilling of a third deep well is planned to be completed in Q1 2010.


The results of 3D seismic data covering the western part of the licensed area will be available in Q1 2010 and it is expected that these results will be used to identify prospective locations for future deep well drilling in the future.


  

Kazakhmys Copper Production Appendix

CoppeMINing

Zhezkazgan complex

12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


North

ore ('000 t)

3,391

3,746

508

970

1,033


grade (%)

0.75

0.76

0.74

0.76

0.77

East

ore ('000 t)

5,143

5,188

1,307

1,292

1,178


grade (%)

0.66

0.78

0.69

0.66

0.70

South

ore ('000 t)

5,272

3,311

1,373

1,355

1,100


grade (%)

0.69

0.64

0.68

0.68

0.63

West 

ore ('000 t)

69

2,252

-

-

528


grade (%)

0.72

0.51

-

-

0.70

Stepnoy

ore ('000 t)

3,334

2,940

784

847

717


grade (%)

0.82

0.82

0.85

0.81

0.79

Annensky

ore ('000 t)

3,295

3,407

877

815

899


grade (%)

0.74

0.87

0.71

0.62

0.84

Zhomart

ore ('000 t)

3,275

3,280

842

848

797


grade (%)

1.80

1.39

1.77

1.86

1.65








Complex total 

ore ('000 t)

23,779

24,124

5,691

6,127

6,252

Complex average

grade (%)

0.87

0.84

0.88

0.86

0.85


Balkhash complex

12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Konyrat

ore ('000 t)

-

874

-

-

46


grade (%)

-

0.29

-

-

0.32

Sayak I, III

ore ('000 t)

1,731

1,753

450

417

460


grade (%)

1.02

1.10

0.98

1.04

1.03

Shatyrkul

ore ('000 t)

545

371

140

134

138


grade (%)

2.26

2.48

2.19

2.32

2.09








Complex total

ore ('000 t)

2,276

2,998

590

551

644

Complex average

grade (%)

1.32

1.03

1.27

1.35

1.21

  Kazakhmys Copper Production Appendix

CoppeMINing (continued)

East region

12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Nikolayevsky

ore ('000 t)

556

574

143

163

197


grade (%)

1.73

1.60

1.14

1.33

1.57

Artemyevsky

ore ('000 t)

1,198

1,548

276

290

410


grade (%)

1.72

1.68

2.02

1.70

1.68

Irtyshsky

ore ('000 t)

480

481

120

128

118


grade (%)

1.52

1.41

1.53

1.54

1.46

Belousovsky

ore ('000 t)

-

211

-

-

34


grade (%)

-

1.02

-

-

1.36

Orlovsky

ore ('000 t)

1,621

1,528

399

408

382


grade (%)

4.41

4.99

4.47

4.44

5.23

Yubileyno-Snegirikhinsky

ore ('000 t)

603

538

141

135

162


grade (%)

3.26

3.15

3.40

3.26

2.83








Region total

ore ('000 t)

4,458

4,880

1,079

1,124

1,303

Region average

grade (%)

2.89

2.82

2.93

2.81

2.82


Karaganda region

12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Nurkazgan (West, North)

ore ('000 t)

1,729

575

560

512

56


grade (%)

0.85

0.65

0.83

0.78

0.41

Akbastau

ore ('000 t)

-

2,363

-

-

640


grade (%)

-

2.50

-

-

2.35

Kosmurun

ore ('000 t)

-

299

-

-

-


grade (%)

-

2.73

-

-

-

Abyz

ore ('000 t)

167

436

78

84

74


grade (%)

1.60

1.70

1.70

1.44

1.63








Region total

ore ('000 t)

1,896

3,673

638

596

770

Region average

grade (%)

0.91

2.13

0.93

0.87

2.14








Total

ore ('000 t)

32,409

35,675

7,998

8,398

8,969

Average

grade (%)

1.18

1.26

1.19

1.15

1.27


  Kazakhmys Copper Production Appendix

Copper processing


12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Zhezkazgan complex







Copper concentrate

'000 t

491.3

493.9

122.1

119.4

133.1

Copper in concentrate

'000 t

181.4

176.2

44.6

45.7

46.7

Balkhash complex







Copper concentrate

'000 t

206.7

267.3

62.4

50.7

64.2

Copper in concentrate

'000 t

37.9

38.8

11.9

9.4

9.8

East region







Copper concentrate

'000 t

595.3

583.7

144.6

148.1

156.0

Copper in concentrate

'000 t

108.3

110.7

26.2

26.8

29.5

Karaganda region







Copper concentrate

'000 t

272.8

252.9

74.5

81.7

74.5

Copper in concentrate

'000 t

22.7

38.4

5.9

6.0

13.9








Total own processed







Copper concentrate

'000 t

1,566.1

1,597.8

403.6

399.9

427.8

Copper in concentrate

'000 t

350.3

364.1

88.6

87.9

99.9








Own ore processed by third parties







Copper concentrate

'000 t

33.4

25.4

8.9

6.3

6.5

Copper in concentrate

'000 t

8.6

6.8

2.4

1.6

1.7








Total own







Copper concentrate

'000 t

1,599.5

1,623.2

412.5

406.2

434.3

Copper in concentrate

'000 t

358.9

370.9

91.0

89.5

101.6








Purchased concentrate







Copper concentrate

'000 t

7.6

105.1

-

7.5

26.4

Copper in concentrate

'000 t

2.0

28.9

-

2.0

7.0








Total copper in concentrate

'000 t

360.9

399.8

91.0

91.5

108.6


  Kazakhmys Copper Production Appendix

Copper smelter / refinery - copper cathodes production


12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Zhezkazgan smelter







Own concentrate

'000 t

105.0

179.6

20.9

28.5

48.1

Purchased concentrate

'000 t

-

1.1

-

-

-

Sub - total 

'000 t

105.0

180.7

20.9

28.5

48.1

Tolling

'000 t

-

-

-

-

-

Total including tolling

'000 t

105.0

180.7

20.9

28.5

48.1








Balkhash smelter







Own concentrate

'000 t

193.5

160.5

44.9

50.0

42.6

Purchased concentrate

'000 t

5.5

36.7

0.9

0.9

14.8

Sub - total

'000 t

199.0

197.2

45.8

50.9

57.4

Tolling

'000 t

0.1

0.2

0.1

-

-

Total including tolling

'000 t

199.1

197.4

45.9

50.9

57.4








Grand total

'000 t

304.1

378.1

66.8

79.4

105.5


  

Kazakhmys Copper Production Appendix

By-products Mining - Zinc

ZINC


12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


East region







Nikolayevsky

grade (%)

2.45

3.71

3.6

2.20

3.76

Artemyevsky

grade (%)

5.19

5.09

6.13

4.34

4.51

Irtyshsky

grade (%)

3.63

3.58

3.62

3.61

3.46

Belousovsky

grade (%)

-

1.77

-

-

0.99

Orlovsky

grade (%)

4.74

4.51

4.99

4.86

4.38

Yubileyno-Snegirikhinsky

grade (%)

2.46

3.15

2.53

2.47

2.19








Region average

grade (%)

4.15

4.24

4.63

3.91

3.88








Karaganda region







Kosmurun

grade (%)

-

3.93

-

-

-

Akbastau

grade (%)

-

0.63

-

-

0.54

Abyz

grade (%)

4.27

3.19

3.56

4.84

1.76








Region average

grade (%)

4.27

1.31

3.56

4.84

0.66








Overall average 

grade (%)

4.15

3.10

4.56

3.98

2.74








Zinc in concentrate 

('000 t)

149.3

137.3

40.5

32.4

32.8

Zinc metal

('000 t)

8.6

47.5

-

-

12.3


  Kazakhmys Copper Production Appendix

By-products Mining - Silver

SILVER 


12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Zhezkazgan complex







North

grade (g/t)

11.28

10.08

9.15

12.04

10.44

East

grade (g/t)

19.31

17.95

20.41

18.54

15.68

South

grade (g/t)

18.54

14.46

20.39

17.66

17.39

West 

grade (g/t)

17.01

15.15

-

-

17.32

Stepnoy

grade (g/t)

11.83

8.79

18.14

13.43

8.34

Annensky

grade (g/t)

19.70

18.35

17.58

16.94

22.73

Zhomart

grade (g/t)

8.41

8.44

9.16

9.25

11.13








Region average

grade (g/t)

15.49

13.63

16.99

15.11

14.85








Balkhash complex







Konyrat 

grade (g/t)

-

0.71

-

-

0.33

Sayak I, III

grade (g/t)

5.13

5.34

5.01

5.22

5.67

Shatyrkul

grade (g/t)

2.30

2.21

2.21

2.30

2.41








Region average

grade (g/t)

4.45

3.60

4.34

4.51

4.59








East region







Nikolayevsky

grade (g/t)

23.75

36.22

29.83

24.54

35.32

Artemyevsky

grade (g/t)

96.93

102.06

122.21

76.55

99.22

Irtyshsky

grade (g/t)

60.35

54.63

65.37

58.34

54.46

Belousovsky

grade (g/t)

-

33.73

-

-

23.23

Orlovsky

grade (g/t)

63.50

59.35

61.14

64.02

52.16

Yubileyno-Snegirikhinsky

grade (g/t)

27.28

37.70

25.44

25.75

25.09








Region average

grade (g/t)

62.30

66.22

68.44

56.29

60.49








Karaganda region







Nurkazgan

grade (g/t)

2.29

2.38

2.05

1.83

4.30

Akbastau

grade (g/t)

-

23.51

-

-

22.10

Kosmurun

grade (g/t)

-

43.55

-

-

-

Abyz

grade (g/t)

49.67

41.90

38.13

60.18

19.6








Region average

grade (g/t)

6.45

24.02

6.43

10.08

20.56








Overall average

grade (g/t)

20.62

21.05

22.16

19.57

21.23








Silver in concentrate 

('000 oz)

17,076

18,815

4,342

4,278

5,382

Own concentrate

('000 oz)

15,062

13,660

3,991

3,689

3,846

Own concentrate processed by 3rd parties 

('000 oz)

1,835

1,934

392

370

560

Purchased concentrate

('000 oz)

179

3,221

(40)

219

976

Silver metal1

('000 oz)

16,894

16,710

3,698

4,051

4,587

Kazakhmys Copper Production Appendix

By-products Mining - gold

GOLD


12m

2009


12m

2008


Q4

2009


Q3

2009


Q4

2008


Balkhash complex







               Sayak I, III

grade (g/t)

0.33

0.38

0.30

0.29

0.38

Shatyrkul

grade (g/t)

0.39

0.44

0.36

0.37

0.38








Region average

grade (g/t)

0.34

0.39

0.31

0.31

0.38








East region







Nikolayevsky 

grade (g/t)

0.26

0.34

0.27

0.28

0.26

Artemyevsky

grade (g/t)

1.11

1.12

1.17

0.86

0.97

Irtyshsky

grade (g/t)

0.37

0.37

0.33

0.37

0.40

Belousovsky

grade (g/t)

-

0.35

-

-

0.20

Orlovsky

grade (g/t)

0.96

0.98

0.98

1.01

0.84

Yubileyno-Snegirikhinsky

grade (g/t)

0.40

0.54

0.32

0.36

0.43








Region average

grade (g/t)

0.78

0.81

0.78

0.72

0.69








Karaganda region







Nurkazgan 

grade (g/t)

0.28

0.39

0.26

0.28

1.34

Akbastau

grade (g/t)

-

0.75

-

-

0.54

Kosmurun

grade (g/t)

-

2.09

-

-


Abyz

grade (g/t)

5.64

3.78

5.77

5.54

2.03








Region average

grade (g/t)

0.75

1.16

0.93

1.03

0.74















Overall average

grade (g/t)

0.66

0.85

0.70

0.70

0.63








Gold in concentrate

('000 oz)

138.3

128.2

34.2

38.0

32.8

Own concentrate

('000 oz)

124.5

86.0

31.7

34.2

21.1

Own concentrate processed by 3rd party

('000 oz)


12.5

11.5


2.9


2.1

3.2

Purchased concentrate

('000 oz)

1.3

30.7

(0.4)

1.7

8.5

Gold output1

('000 oz)

134.7

123.5

30.6

36.2

31.4


1 Includes slimes from purchased concentrate




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