The government is striving for the place in the Directors' board of Kazakhmys Plc - vice minister of finances

/INTERFAX-KAZAKHSTAN, Astana, June 11, 08/ - The government of Kazakhstan is negotiating with Kazakhmys Plc relative to the receiving of the place in the directors' board of the company, the vice minister of finances Daulet Yergojin informed. "Now we'll negotiating in order to take the place in the directors' board of Kazakhmys, to promote the policy of the state, the strategy", - he told to journalists on Wednesday in Astana. "We won't interrupt the operative activity (of Kazakhmys. - IF-K)", - he added. "We'll be as the strategic observer, in order to consider not only the interests of the owners, but also the state too, and also consider the social interest of those regions, in which Kazakhmys is working", - D/Yergojin added. Along with it, commenting the deal for exchange of the part of state shareholding in ENRC corporation to the part of additional emission of Kazakhmys shares, D.Yergojin said, that "it's perfect deal". "The shares had grown for both of companies, capitalization had incased, the state's asset had grown", - he noted. "If to consider the long-term prognosis (of prices - IF-K), for copper, mainly, it will grow. It's a right decision, we'll now be present in two companies and receive the stable dividends form both companies. They (ENRC and Kazakhmys. - IF-K) has the good indicators, so why not to take the additional source (of profit - IF-K) to the sate budget", - D.Yergojin said. Last Tuesday the press-service of the prime minister of Kazakhstan announced, that on the same day the government had accepted the resolution "About further measures for ore-mining and metallurgic field development in Republic of Kazakhstan", according to which it is purchasing the stake of participation in the joint stock capital of Kazakhmys Plc. "The purchasing of shareholding of Kazakhmys Plc will be executed by the way of shares exchange: the government transfers the part of state shareholding in Eurasian Natural Resources Corporation (ENRC Plc) in exchange to additional issue of Kazakhmys Plc shares", - was noted in the press-release. Meanwhile Kazakhmys informed that it had signed the agreement about purchasing of 7.66% shares of ENRC holding form the government of Kazakhstan. As the result of the deal the stake of Kazakhmys in ENRC increases from 14.59% to 22.24%. In order to pay for the purchasing, Kazakhmys issues 80 286 050 new shares in favor of Kazakhstan. The stake of the government in the increased capital of company makes 15%. The parameters of the deal are calculated based upon the price per ENRC share at 6.23 sterling pounds (614 m. pounds per whole shareholding). By results of this transaction Kazakhmys will become the largest shareholder of ENRC, however it is not planning to make the offer for purchasing of 100% of the company, was informed in the message of Kazakhmys. ENRC consolidated the assets of such enterprisers as SSMIU, Kazchrome, Aluminum of Kazakhstan, Kazakhstan electrolysis plant, Zhayremskiy mining-smelting combine, Eurasian energy corporation and also ENRC Logistics and ENRC Marketing & Sales. 19.3% shares of ENRC belong to the government of Kazakhstan. Kazakhmys is the big shareholder of ENRC, which owns 14.6% shares. ENRC in December had offered 21.3% shares (considering the option) on the London stock exchange and had borrowed 1.5 bn. sterling pounds. Kazakhmys - is the largest copper producer in Kazakhstan, in year 2005 had offered its shares on exchange in London from the name of holding Kazakhmys Plc, registered in Great Britain, in which also are included the oil, gold extracting and energy subdivisions, and MKM plant in Germany. The Kazakhmys corporation is specializing on the production of refined copper and copper reed, other non-ferrous and precious metals, coal extraction, four production subdivisions are included into it: Zhezkazgantsvetmet, Balkhashtsvetmet, Vostoktsvetmet and Karagandatsvetmet. [2008-06-11]