/IRBIS, October 8, 2010/ - The Government of Kazakhstan plans to seize control of Kazakhmys and ENRC, indicated in the room The Daily Telegraph on October 6.

"In the City are growing fears that the government's intention to increase its stocks in Kazakhmys, and possibly in ENRC may disturb the institutional investors who are buying blue chips for UK pension funds", - stated in the message.

Recall, on October 5 Kazakhmys reported that the Chairman of the Board of Directors Mr. Vladimir Kim has sold 58,876,793 ordinary shares at 20 pence each, roughly equivalent to 11% of the shares of the Group. The operation was performed on the Kazakhstan Stock Exchange at a price of KZT3,363 per share, which corresponds to the price of 1.423 pence per share at the close of the London Stock Exchange on Oct. 4, 2010. The shares were purchased by JSC "National Welfare Fund" SK ".

"The investment the Government will strengthen the company and show that it intends to implement several projects in Kazakhstan," - said The Daily Telegraph Mr. Zhandos Abishev, director of mining to JSC "National Welfare Fund" SK ".

As indicated by the publication, within six weeks of fund tends to increase the share of the Government of Kazakhstan to Kazakhmys and ENRC, after which the fund will appoint directors on the board of both companies.

"It will take some time to understand how the company works ... and then, in the long term we will probably decide to increase its stake in ENRC, as was done with Kazakhmys", - said to the publication Mr. Zh. Abishev.

Meanwhile, investment analysts carefully evaluate the policy of expanding the government of Kazakhstan in these companies.

Mrs. Louise Collinge, an analyst of Evolution, lowered the company's rating to "reduce". "We are cautious in assessing the impact of these steps," - she said.

As indicated in the last Global Witness report strongly "rejected" Kazakhmys ", describing the company as potentially the first object Interest handful of people associated with the Kazakh government. "What investors are aware of Kazakhstan's policy? Really very little" - said Mr. Tom Mayne of Global Witness.

According to the publication, ENRC declined to comment.

[2010-10-08]