Celtic wants to triple its Kazakh gold output

/REUTERS, Semipalatinsk, October 4, 05/ - London-listed Celtic Resources aims to boost its gold output in Kazakhstan to three tonnes next year from an estimated one tonne this year, Celtic's Kazakh subsidiary Alel said on Tuesday. "Once it has reached its nameplate capacity, Alel will process 315,000 tonnes of sulphide ores and process three tonnes of gold, or 250 kg monthly," Yevgenia Sukhorukova, Alel's deputy executive director, told reporters in this eastern Kazakh town. Alel, 100 percent Celtic-owned, develops two gold deposits near Semipalatinsk, the site of Soviet-era nuclear tests. One of the deposits, Suzdalskoye, is among Kazakhstan's five largest gold fields and is estimated to hold 50 tonnes of gold. Alel ships the gold it produces to Switzerland for refining. Suzdalskoye and the nearby Zhirek are 75 percent Celtic-owned. The $50-million expansion of Celtic's operations in the Central Asian state is funded by its own funds and a $26.5-million loan from the country's largest bank Kazkommertsbank. Kazakhstan, which holds 199 gold deposits and is the ninth in the world according to its proven gold reserves, produced 9.579 tonnes of the metal last year from 10.959 tonnes in 2003, a modest amount compared to next- door Uzbekistan which annually produces more than 80 tonnes. Kazakh copper firm Kazakhmys and zinc corporation Kazzinc account together for up to 80 percent of all Kazakh gold output. Celtic officials say the company has no immediate plans for new acquisitions in Kazakhstan. "We plan to take part in tenders to be announced by the government and we intend to further boost Celtic's presence in Kazakhstan," said Celtic Financial Director Fyodor Popandopulo. "We plan to look for new geological structures containing molybdenum. But to date Celtic has made no new purchases or acquisitions." Celtic-controlled company Eureka Mining is involved in a molybdenum project with Kazakh state uranium firm Kaztomprom. [2005-10-05]