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Kazakhmys PLC (KAZ)

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Friday 24 September, 2010

Kazakhmys PLC

Increase in Power Capacity at

RNS Number : 2515T
Kazakhmys PLC
24 September 2010
 



 

 

 

24 September 2010

 

Kazakhmys announces 40% increase in power capacity at Ekibastuz by 2014 and acceleration of investment programme

 

Kazakhmys PLC ("Kazakhmys") announces the approval of a further $400 million of capital expenditure at the Ekibastuz GRES-1 power station.  This significant expenditure accelerates the investment programme by 12 months from the schedule planned in May 2008, when the business was acquired.

 

Ekibastuz GRES-1 currently has 5 active turbines with a capacity of 2,500 MW, from an original nameplate capacity of 8 turbines and 4,000 MW.  Rehabilitation work began on one of the three non-operational turbines at the end of 2009. This additional capital expenditure will allow the rehabilitation of a second turbine, taking capacity to 3,500 MW by the end of 2014.

 

Funding for the increase in capacity will be supported entirely from the internally generated cashflows of Ekibastuz GRES-1

 

Oleg Novachuk, Chief Executive of Kazakhmys PLC, stated: "Demand for power in Kazakhstan has been strong over the past 12 months, creating good cashflows within Ekibastuz GRES-1 and enabling the capital expenditure programme to be significantly accelerated ahead of the original schedule.  This is positive for Kazakhmys and, as Ekibastuz GRES-1 is the largest power station in Kazakhstan, for the continued development of the national economy."

 

 

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

 

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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 16 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 149 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 new development and exploration opportunities. Kazakhmys Gold has measured and indicated gold equivalent resources of 2.5 million ounces. The Group produced 182 thousand ounces of gold in 2009.

 

Kazakhmys Power has a 50% interest in the coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW.

 

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

 

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 $3.7 billion in 2009 with EBITDA of $1.6 billion. The Group employs some 62,000 people, principally in Kazakhstan. The Group's strategic aim is to optimize its current operations, deliver its major growth projects and to diversify and participate in the development of the significant natural resource opportunities in Central Asia.

Ekibastuz GRES-1, is located in northeastern Kazakhstan's Pavlodar region. It is the largest power plant in Kazakhstan and was commissioned in the 1980's with a nameplate capacity of 4,000 MW, operating from 8 turbines. Capacity declined at the plant following the break up of the Soviet Union.  The plant has been undergoing an extensive investment programme, since its purchase by Kazakhmys in May 2008.  In 2009, the power plant produced 9,737 GWh of electricity, from net dependable capacity of 2,012 MW. The investment programme is self funded from the cashflows generated within the business and will return the plant to its nameplate capacity over the next five years.  Ekibastuz GRES-1 is jointly owned by Kazakhmys and National Welfare Fund Samruk-Kazyna JSC.

 


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