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23.08.2001 00:00

REFERENCE: Corporation Kazakhmys OJSC (Kazakhstan) - sales markets and consumers

/IRBIS, information of the KASE Listing commission, Aug 23, 01/ - The following information is published due to the transfer of Corporation Kazakhmys second issue common and preferred shares from "B" category into "A" category of Kazakhstan Stock Exchange (KASE) official list.

The main product of Corporation Kazakhmys OJSC is a cathode copper of MOOK, MOK, M1K grades, which corresponds to the world standards and confirmed by the certificates issued by Jezkazgan branch of NATSEcK OJSC of the State certification system of Kazakhstan (certificate dated April 20, 2001, KSS #0003913). The company produces about 400,000 tons of copper a year, which places it among ten major copper companies of the world. Now Corporation Kazakhmys OJSC is the only company in Kazakhstan engaged in extraction, processing and production of copper.

The proportion of Corporation Kazakhmys OJSC in overall copper production in the world is 2.73%, or 14.654m tons.

Corporation Kazakhmys OJSC signed contracts with following companies that will buy its products:

  • on annual production of gold and silver - with Samsung Deutschland GmbH.
  • on monthly production of zinc concentrate: with Glencor International AG - 30%; Kazzinc OJSC - 25%; Dantrade AG - 25%; remaining 20% with other consumers.

Subsidiary of VostokKazmed produces about 91.0 th. tons of zinc concentrate with 43-46% zinc content.

  • Consumers of copper wire rods are:
  • Alashankou Yanger Co Ltd. (China) - 46%:
  • Alashankou Santaim Co Ltd. (China) - 7%;
  • Ichen Co Ltd. (China) - 47%

Consumers of sulfuric acid are:

  • Promtechservis CJSC - 5,000 tons or more a month;
  • Ispat-Karmet OJSC - 2,000 tons a month;
  • AZHS OJSC - from 2,000 to 4,000 tons a month;
  • Kazinterkom LLP - 5,000 tons and more a month.

The production volumes of Corporation Kazakhmys OJSC are sufficient to satisfy the needs of domestic market. However, there are no major consumers of all copper, zinc concentrate and other products in Kazakhstan, therefore, the company focuses on external markets most. Thus, 100% of cathode copper, 99.99% of copper wire rods, 80% of zinc concentrate are exported.

In 2001 Corporation Kazakhmys OSJC signed a contract with Samsung Deutschland GmbH to supply its annual copper production. Also, contracts have been signed to supply all production of copper wire rods at 42.0 th. tons (4.0 - 5.0 th. tons a month).

The company's output enjoys a steady demand on internal and external markets, including non-CIS countries. Major consumers: cathode copper - Europe (except for Greece) - 39%, Turkey - 22%, Greece - 14%, Saudi Arabia - 13%, China - 7%, South Korea - 6%, rare metals - SAMSUNG (Seoul, South Korea), Marc Reach (Tsug, Switzerland), Kazakhstani banks, lead dust - ASPMK-19 companies (Kazakhstan).