REFERENCE: Corporation Kazakhmys OJSC (Kazakhstan) - characteristics of activities

/IRBIS, information of the KASE Listing commission, Aug 23, 01/ - The following information is published due to the transfer of Kazakhmys Corporation second issue common and preferred shares from "B" category into "A" category of Kazakhstan Stock Exchange (KASE) official list. Primary activities of Corporation Kazakhmys: - survey, exploration, extraction, concentration, processing and exporting of copper; - survey, exploration, extraction, concentration, processing and exporting of other minerals, as well as oil related operations; - sales of the raw materials and processed minerals, as well as by- products: - generation and sales of heat and electricity; - construction of industrial objects, housing and social-cultural objects; - scientific-research, designing and research and development; - acquisition and sales, including barter deals, commodities, technologies, raw materials, know-how; - collection, processing and sales of scrap of ferrous and non-ferrous and rare metals, other scrap of its subdivisions; - exports and imports of goods, works and services; - investments and representation activities. The production of Corporation Kazakhmys OJSC is fully based on its own raw material base (37.4m tons of ore a year). Corporation Kazakhmys OJSC also has the licenses to develop 23 sites with copper, polymetallic mines, construction materials, coal. Mining-geological formations of the ores allow the corporation to develop the sites both using open-pit and underground mining. The ore reserves for some of the sites under current production level are sufficient for 34 years on average. Characteristics of sites of Corporation Kazakhmys OJSC -------------------------------------------------------------------------------------- Name of the site Size of the site Reserves Type of ore sufficiency, years ------------------------ --------------------- ----------------- ------------------ Central Kazakhstan Jezkazgan copper ore unique 20 Jylandy group of sites copper ore large 15 Jaman - Aibat copper ore large 34 Kounradskoe copper ore large 21 Sayak -1 copper ore small 10 Tastau copper ore small 7 ------------------------ --------------------- ----------------- ------------------ South Kazakhstan 8 years of open Jatyrkol Copper-molybdenum average mining ------------------------ --------------------- ----------------- ------------------ Eastern Kazakhstan Orlovskoe polymetallic ores large 20 Nikolaevskoe polymetallic ores small 10 Shemonaikhinkoe polymetallic ores small 15 Artemievskoe polymetallic ores small 21 Belousovskoe polymetallic ores small 17 Irtyshskoe polymetallic ores small 22 Yiubileino-Snegirikhskoe polymetallic ores small 20 ------------------------ --------------------- ----------------- ------------------ South Kazakhstan Skalnoe construction material small Aktas-3 fluxing limestone small 23 Belokamennoe marble small ------------------------ --------------------- ----------------- ------------------ Central Kazakhstan Kuu-Chekinskoe coal small 14 Borlinskoe coal small 113 -------------------------------------------------------------------------------------- By the data of Corporation Kazakhmys OJSC management, explored and approved reserves of solid mineral are sufficient for 17 years on average, those of construction materials - for 20 years, coal - for 100 years. Corporation Kazakhmys OJSC is engaged in a complete production cycle, beginning from the extraction to the production of finished goods. The corporation produces copper, zinc concentrates, cathode copper, wire rods, rare metals, sulfuric acid, coal, generates electricity and heat. From 1995 to 2000 production and processing of ores increased 2.6 - 2.8 times, production of black copper reached 407 th. tons and refined - 395 th. tons a year. In last 5 years following objects were put into service, which are engaged in copper ore extraction: Annenskii mine (4m tons of ore a year), Itauz pit at Jylandy site (2m tons a year), 73/75 mine (2m tons a year). In 2000 Shatyrkol mine was put into service. Gold and silver refinery plant and enamel covered wire production plant in Balkhash were put into service. To restore the reserves of the enterprises preparation and mining are being conducted at Jaman-Aibat (copper), Artemievskoe and Orlovskoe (polymetallic) sites. Corporation Kazakhmys OJSC was the first to use xanthogen (chemical used in ore concentration) in Kazakhstan and it will supply all concentration plants of the corporation. Ore extraction dynamics at enterprises of Corporation Kazakhmys OJSC (th. tons) ----------------------------------------------------------- 1998 1999 2000 ----------------------------- -------- -------- -------- Copper ores Jezkazgan enterprises (mines) 2,3760.6 26,584.9 28,521.5 BGMK (mines) 6,980.3 1,915.7 4,024.8 Polymetallic ores MHK (open-pit mines) 2,101.5 2,261.3 2,185.2 Irtysh mine 0 126 513 Belousovskii mine 0 143 365 Total: 32,842.5 31,031.2 35,610.4 ----------------------------------------------------------- Ore processing dynamics at enterprises of Corporation Kazakhmys OJSC (th. tons) --------------------------------------------------------------------- 1998 1999 2000 --------------------------------------- -------- -------- -------- Copper ores Jezkazgan region (concentrating plants) 2,4435.4 2,698.6 28,972.4 BGMK (concentrating plants) 7,219.0 5,545.4 7,199.1 Polymetallic ores MHK 1,875.2 2,157.7 2,203.0 Berezovskaya concentrating plant 0 131.2 487.9 Belousovskaya concentrating plant 0 173.3 364.8 Total: 33,529.6 34,989.2 39,227.2 --------------------------------------------------------------------- Commodity output dynamics at enterprises of Corporation Kazakhmys OJSC (tons) ------------------------------------------------------------------ 1998 1999 2000 --------------------------------------- ------- ------- ------- Copper concentrate Jezkazgan region (concentrating plants) 209,101 228,058 259,429 BGMK (concentrating plants) 29,723 35,266 36,695, MHK 26,124 25,630 32,271 Berezovskaya concentrating plant 0 1,620 5,870 Belousovskaya concentrating plant 0 2,718 4,663 Total: 264,948 293,292 338,928 --------------------------------------- ------- ------- ------- Zinc concentrate MHK 43,566 56,365 31,529 Berezovskaya concentrating plant 0 2,956 13,269 Belousovskaya concentrating plant 0 4,072 9,511 Total: 43,566 63,393 54,309 ------------------------------------------------------------------ Finished goods production dynamics at enterprises of Corporation Kazakhmys OJSC ----------------------------------------------------------- 1998 1999 2000 -------------------------- --------- --------- --------- Refined copper, tons Jezkazgan copper smelter 214,090 228,390 250,487 BGMK 110,376 133,500 144,236 Total: 324,466 361,980 394,723 -------------------------- --------- --------- --------- Gold bars, kg Jezkazgan region 203.8 173.8 270 BGMK 1,515.0 950.3 1,555 Total: 1,718.8 1,124.1 1,825 -------------------------- --------- --------- --------- Silver, granules, kg Jezkazgan region 32,3731.2 325,092.5 375518.3 BGMK 35,342.8 86,614.0 170,948.9 Total: 359,074.0 411,706.5 546,467.2 -------------------------- --------- --------- --------- Power generation, tons kWh 5,022,575 4,829,061 4,856,174 Heat generation, tons Gcal 3,785.1 3,481.4 3,464.5 Coal production at Borly 6,153 5,908.4 6,533.2 -----------------------------------------------------------