KAZ Minerals' copper, gold production rises in Kazakhstan, Kyrgyzstan
Updated : 13:54
Kaz Minerals reported an increase in second quarter copper and gold production in its four mines in Kazakhstan and Kyrgyzstan.
Copper cathode production increased by 43% to 52,600 tonnes (kt) in the three months ended 30 June, due to commissioning of new mines in the east region of Kazakhstan. The company said that it expects production to grew in the second half of the year and it in track to meet the 130-155kt target.
The Bozshakol open copper mine in Pavlodar region of Kazakhstan was commissioning well and produced 9.5kt of copper concentrate.
The mine in Aktogay in east Kazakhstan produced oxide cathode of 3.9kt in the second quarter up from 1.5kt last year. The company said it was on track to for the 15kt for the full year. The production of copper in concentrate from sulphide ore is expected to begin in 2017.
There was a significant increase in gold production. The Bozymchak copper-gold mine in Kyrgyzstan produced 17.9k ounces (oz) gold bar equivalent in the first half of the year. The east region and Bozymchak produced 30koz of gold bar equivalent, which the company said is now on course to meet or exceed the 2016 guidance range of 40-50 koz.
The Bozshakol mine contributed 9.1koz of gold bar equivalent in the second half of the year, with 8.8koz in the second quarter.
The FTSE 250 listed company’s projects at Bozshakol and Aktogay are expected to deliver one of the highest growth rates in the industry and transform it into “a company dominated by world class, open pit copper mines”.
Chief executive Oleg Novachuk said: "Our new mines at Bozshakol, Aktogay and Bozymchak have begun to make a meaningful contribution to group production with copper output growing by 43% in the first half.
“The east region assets continue to deliver against targets and all mines are on track to achieve the group's full year production guidance. We are now delivering the highest growth rate in the sector”.
Shares in KAZ Minerals were up 4.8% to 148.60p at 1209 BST.