ADDITION: Kazakhstan has cancelled trades in state blocks of shares of Aluminium of Kazakhstan and UKTMC

17.10.02 00:00
/REUTERS, Almaty-Astana, October 17, 02/ - Government of Kazakhstan has cancelled the decision to exhibit for stock exchange's sale state blocks of shares of branch monopolists - Aluminium of Kazakhstan and Ust-Kamenogorsk titanium-magnesium combine, which had been appointed for October 24. Before the Government announced that it exhibited at the stock exchange belonging to the Government 15.5% of shares of Ust-Kamenogorsk titanium- magnesium combine and 31.76% Aluminium of Kazakhstan - since October 24, and also 24.65% state block of copper corporation Kazakhmys, terms of the sale it promised to announced later. "Committee of state property and privatization of the ministry of finance... informs that trades at Kazakhstan stock exchange CJSC of the state blocks of shares of Aluminium of Kazakhstan and Ust-Kamenogorsk titanium-magnesium combine have been cancelled", - says the message of the committee of state property, which was published on Thursday in the official paper "Kazakhstanskaya pravda". Reasons on trades canceling are not specified in it. A representative of the Ministry of finance said Рейтер on Thursday that trades in the state blocks "had been cancelled on account of insufficient pre-sale preparation of documentation". He gave no details and could not say when the shares could be exhibited for sale again and did not answer whether the announced sale of the state block of Kazakhsmys would be held. "There is still no information", - said the representative of the Ministry of finance. Explaining motives of the sale at the stock exchange of all remaining in the Government's ownership blocks of shares of largest metallurgical enterprises, the Government's representative said that the major purpose is animation of the shares market in Kazakhstan. The Government also believes that state blocks of shares of potential blue chips will attract largest investors - pension funds and banks, which have deficiency of instruments for investments after Redemption on October 2 of sovereign eurobonds of Kazakhstan in the amount of $350m. Besides, non-residents will also be able to purchase the shares. Aluminium of Kazakhstan, which is controlled by Eurasian industrial association, intends to raise production volume in this year to 1.4 tons of alumina from 1.2 million tons in last year. Kazakhstan, where there is no aluminum production, exports raw stuff - mainly to Russia. The company has started modernization of its capacities, which is to be conducted during 5 years, and which is estimated at $60m and aimed for improvement of production quality. In the capital of Ust-Kamenogorsk titanium-magnesium combine 66% of shares belong to Belgian Specialty Metals Company S.A. Kazakhmys, which's headquarters is in Zheskazgan, partially belongs to South- Korean Samsung, which together with affiliated company possesses 32% of its shares. In January-August of 2002 Kazakhmys increased copper production to 286,500 from 273,000 within similar period of last year. [2002-10-17]