KAZAKHMYS PLC (United Kingdom) announces potential strategic partnership in Kazakhmys Power

07.10.08, 20:32
/KASE, October 7, 08/ - KAZAKHMYS PLC (London), common shares of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of the first category, provided KASE with the press release: Quotation start Kazakhmys PLC ("Kazakhmys") announces that it has signed a memorandum of understanding with Samruk-Energy JSC ("Samruk-Energy") in which Kazakhmys and Samruk-Energy agree to consider entering into a strategic partnership and joint ownership of the Kazakhmys Power Division. Such a partnership would be expected to bring benefits of access to additional coal resources and greater integration with Kazakhstan's energy development and transmission programs. Samruk-Energy is a company established by the Government of the Republic of Kazakhstan to implement state policy on the modernisation of existing power stations and the construction of new power stations. The memorandum of understanding will allow Samruk-Energy to carry out due diligence on the assets within the Kazakhmys Power Division and, should the partnership proceed, it will be subject to regulatory and shareholder approval. Any transaction will be in accordance with the stated intention of seeking strategic partnerships for these assets. Oleg Novachuk, Chief Executive of Kazakhmys, said: "Samruk-Energy, with their access to substantial coal assets, would be an excellent partner for our power division and we look forward to seeing how we can develop a relationship with them to optimise the business' potential. Such a partnership could further support the upgrading of the Ekibastuz power station, the largest power generator in Kazakhstan, and bring it up to its maximum capacity at the earliest opportunity." For detailed information, please, contact: Kazakhmys PLC John Smelt Head of Corporate Communications Tel.: +44 20 7901 7882 Tel.: +44 78 7964 2675 Olga Nekrassova Financial Analyst Tel.: +44 20 7901 7814 "Merlin" Davide Simonson Tel.: +44 20 7653 6620 Tom Randell Tel.: +44 20 7653 6620 Leonid Fink Tel.: +44 20 7653 6620 Quotation end [2008-10-07]