/KASE, May 30, 08/ - Company KAZAKHMYS PLC (London), common shares
of which are traded in the Kazakhstan Stock Exchange (KASE) category "A"
official list, provided to KASE the press release where informed on the
following:
Quotation start
Kazakhmys PLC ("Kazakhmys", "Group") announces that it has today completed
the acquisition ("acquisition") of the Ekibastuz coal-fired power plant, and the
Maikuben West coal mine in Kazakhstan, the largest power plant in Kazakhstan.
- Ekibastuz is a strategic asset in the Central Asian power market:
- The expected growth in demand for electricity in Kazakhstan and the
tight reserve margins make the electricity market an attractive growth
platform for Kazakhmys
- Ekibastuz GRES-1 is the largest source of power in Kazakhstan, with
nameplate capacity of 4,000MW, in a market increasingly short of power
supply. The acquisition makes Kazakhmys the largest generator of
power in Kazakhstan
- Ekibastuz offers significant growth opportunities from existing
infrastructure with capacity to double output over the next 5 years from
current available capacity of 2,250 MW
- The captive coal mine at Maikuben provides a secure base of raw
material supply, with current output of 3.1 million tonnes of coal and an
estimated mine life of approximately 30 years based on A, B, C1
classification of reserves.
- Creates diversification into the commercial power market and brings
considerable potential for strategic opportunities with off-take partners.
Ekibastuz also secures the Group's power needs for the major Boschekul
and Aktogay projects.
- Total payments of up to USD1.5 bn., subject to adjustment under a closing
mechanism.
- Includes an initial cash consideration of USD1.100 m. and a deferred
cash consideration and other payments of up to USD381 m., subject to
various growth targets being met
- The transaction will be funded through an existing debt facility, placing
the Group into a net debt position, for the first time since listing in
October 2005
Oleg Novachuk, Chief Executive of Kazakhmys said "The acquisition of
Ekibastuz is an important strategic move for Kazakhmys. It is clear that
electricity demand in Kazakhstan and the region is increasing significantly and
the spare capacity at Ekibastuz will be key in satisfying market demand. Ekibastuz
offers substantial commercial opportunities as well as underpinning all our future
internal electricity requirements. The acquisition represents excellent value and
should deliver substantial earnings growth and attractive returns for our
shareholders."
For more detailed information, please call on the following contact telephones:
Kazakhmys PLC
John Smelt, Head of Corporate Communications
Tel.: +44 20 7901 7882
Olga Nekrassova, Financial Analyst
Tel: +44 20 7901 7814
Zulfira Mukhamedyarova
PR Manager (AES Ekibastuz - Kazakhmys Power)
Tel.: +7 7187 29 81 42
Mob:+7 701 534 21 97
"Merlin"
David Simonson and Tom Randell
Tel.: +44 20 7653 6620
Leonid Fink
Tel.: +44 20 7653 6620
Quotation end
The full version of KAZAKHMYS PLC press release is available on the KASE
website at:
-
http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_300508.pdf - in
Russian;
-
http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_300508e.pdf - in
English.
[2008-05-30]