/IRBIS, May 19, 2010/ - Kazakhstan gold producer company KazakhGold, 50.1% of shares belong to CJSC Polyus Gold, is planning to increase production of gold ore with 0.97 million tons per year to 1.3 million tons by 2020, investing in the modernization of existing facilities and building new USD202 million, reported today's press service.

The Board of Directors considered the development strategy of the company's assets until 2020, which provides for the modernization of existing production capacity, increase processing capacity of 0.97 million tons per year to 1.3 million tons a year - to the press service of the company.

The company also plans to build steel plant for dore, investing in this project $83 million

The strategy also includes an exploration program in 2010 -2011 in order to increase the recoverable reserves of up to 262 tons under the baseline scenario and up to 359 tons under an optimistic scenario.

Capital expenditures in the baseline scenario are estimated at $512 million, according to optimistic - $661 million - the report says.

The strategy envisages the construction of three new gold-production factories in the fields of Aksu, and Bestobe Zholymbet total production capacity of 4.7 million tons of ore per year, as well as installation of heap leaching of the total production capacity of 2.2 million tons of ore per year.

In 2009, the Kazakh company deposits were produced 72.8 million ounces of gold.

Polyus Gold is one of the world's biggest gold producers by market capitalization, volume of raw materials and production. Company's asset portfolio includes ore and placer deposits in the Krasnoyarsk Territory, Irkutsk, Magadan, Amur regions, Yakutia.

[2010-05-19]