Results of the general annual meeting of Kazakhmys Corporation OJSC (Kazakhstan) shareholders

/IRBIS, Oct 20, 00/ - According to the listing requirements, Kazakhmys Corporation OJSC (Zhezkazgan) submitted to the KASE the report of the General annual meeting of shareholders held on July 10, 2000 (including minutes of the meeting, the Board's report, Act of the Inspection commission and its conclusion for 1999). According to he agenda the Kazakhmys shareholders approved the Board's report and conclusion of the Inspection Commission for year 1999. The shareholders also decreed: - to distribute net income for 1999 (including undistributed net income of previous years) as follows: reserve fund - KZT683,215.8 th., dividend payments - KZT4,277,945.2 th.; - to pay off dividend of KZT871.0 per each ordinary and preferred share, payment will start on Jan 01, 2001. The final date of registration for holders of dividend shares is Dec 01, 2000; - to increase the announced authorised capital to KZT2,946,919,800 which will consist of 4,911,533 shares with KZT600 at face value. - to approve issue and circulation terms regulation of the bonds emission; - to approve and register modifications and amendments into the Regulation of Kazakhmys Corporation OJSC relating to increase of the announced authorised capital and activity of the management bodies. Due to expiration of authority of the Kazakhmys management body shareholders elected new staff for the Board of Directors (8 members): Voo Tek Johng (president of the Samsung Corporation), Yong Ku Cha (executive director of the Samsung), Kim Vladimir Alekseyevich (the president of Kazakhmys Corporation OJSC), Ni Vladimir Vasilievich (Head of the Board of "KHOZU of the President of the Republic of Kazakhstan" CJSC - Economic Management Division of the President of the Republic of Kazakhstan), Nazarbayev Marat Nurdildaeyvich (vice-president of Bn- Consulting, Korzhov Andrei Ivanovich (Kazakhmys Corporation OJSC), Ch.X.Song (General Manager of Samsung Corporation), Ch.X. Khong (the president of Sam Trading). The shareholders also elected new members of the Inspection Commission: Ruzmatova Zoya Ivanovna, Doszhanov Zholaman, Khan Sap Shim. The president of the Kazakhmys, Kim V.S. addressed a meeting the report on the company's activity for year 1999. He reported that Samsung corporation has been managing the state block of shares (35%) during 5 years. Since June 07, 2000, state shares were transferred to the President of Kazakhmys under management terms. The report also presented result of the company's activity in 1999 (data for 1995 given in parentheses): ore mining - 32.6m tons (12.7m), ore processing - 36.6m tosn (13.3m), concentrated copper - 348.5 th. tons (135.7 th.), blister copper - 376.5 th tons (131.5 th), refined copper - 361.9 th. tons (132.3 th), coal mining - 5.9m tons (3.1m), electric power production - 4.8b kWh/h (0.5b), heat energy - 3.5m G. Calories (1.2 mln). Besides, gold bullion production in 1999 totalled - 2,319.8 kg., granule silver - 412.08 kg, concentrated zinc - 95.9 th. tons. For last 5 years production investments totalled $345m of own and borrowed funds. They included investments into mining equipment, ore base development, reconstruction of copper and concentrating mills. Several major ore production sites have been launched during this time: Annenskii mine (4m tons of ore per year), Itauz open cast mine - (2m), mine#73 (2m). New precious metals production plant was launched in Balhash. The company also started construction of zinc production plant. The company started mining work on Zhaman-Aibat, Shaturkul, Artemeyvskoe and Prlovskoe deposits. For 5 years the corporation has acquired new production complexes including: Balhash mining plant, Eastern Kazakhstan copper-chemical facility, three electric power stations. The corporation opened new branch in Eastern Kazakhstan that included Irtish, Berezovo and Belousovo mines. The corporation owns 65% of Zhektenskii mining and processing plant. The president also noted that the development of ore resources. The long- term development of the corporation requires the presence of 100-120 years reserve of explored copper deposits. Thus the main task for the Kazakhmys is costs reduction and budget tightening policies. The plan for 2000 includes productions: cathode copper - 419 th. tons, 37.9m tons of ore. The corporation planned to invest $80m in development of ore reserves, reconstruction and modernisation of equipment. The main activity of the Kazakhmus is mining and processing of minerals, cathode copper production, production of the electric and heating power. Ordinary (KZ1С04930912, trade code - KZMS) and preferred registered (KZ1P04930917, trade code - KZMSp) had been traded on the non-listing floor of KASE since May 13, 1998. On Dec 02, 1998 they were included in the official list of KASE securities holding "B" category.