/REUTERS, Almaty, Tatyana Seroshtanova, February 11, 05/ - Kazakhstan biggest zinc producer - Kazzinc OJSC - in year 2004 increased zinc output to 279,480 tonnes from 276,790 tonnes in 2003, a source close to the company as said.

Total zinc production in Kazakhstan in 2004 grew up to 316.,515 tonnes from 294,566 tonnes one year before.

Company calls Shaymerden mine as the major priority in investment projects in year 2005. In 2004 Kazzinc purchased in Kustanay oblast Shaymerden field confirmed reserves of which were 910,000 tonnes of zinc, average concentration in ore was 21%.

"Load of rotary complexes of Ust-Kamenogorsk and Riddersk plants to planned capacity will let get up to 60,000 tonnes of metal zinc a year from Shaymerden ore", - the source says.

In the nearest years company plans large building programs at the mine and at Kazzinc's metallurgical complex.

"according to the plan first ore at Shaymerden field is to be received in summer of 2006", - company says.

Below is dynamics of company's production volumes since 2004 until 1996:

-----------------------------------------------------
         zinc     lead  copper       gold      silver
year   tonnes   tonnes  tonnes  tr. ounce   tr. ounce
----  -------  -------  ------  ---------  ----------
2004  279,480   98,747  66,741    208,398   4,876,072
2003  276,790   88,329  70,696    204,327   6,278,399
2002  266,886  101,104  65,136    183,324   5,644,423
2001  259,285  107,078  59,266    199,900   9,174,478
2000  245,175  133,340  38,724    201,419  11,007,281
1999  229,590  112,045  30,721    173,062   7,388,325
1998  222,344   80,548  30,811    161,857   5,417,789
1997  173,192   71,589  29,637    151,136   2,777,916
1996  155,398   54,802  22,773     75,559   1,109,138
-----------------------------------------------------

Company was founded in 1997 by joining assets of three main companies- producers of non-ferrous metals in East Kazakhstan: Ust-Kamenogorsk lead- zinc combine, Leninogorsk polymetallic combine and Zyryanovsk lead combine.

Company also produces refined copper in marketable products, lead, gold, silver.

Kazzinc does not reveal its ownership structure, but says its major investor is Glencore International AG international holding specializing in mining industry, non-ferrous metallurgy, power engineering and agriculture.

[2005-02-11]