Kazakhmys secures $1.5bn loan from Chinese bank for copper project

ASTANA (Scrap Monster): Kazakhmys PLC, the world's 10th-largest copper miner has signed a memorandum of understanding with the China Development Bank Corporation (“CDB”) to secure a $1.5 billion loan facility on Monday, to develop the major copper project at Aktogay in Kazakhstan.

Further negotiations will be undertaken to move the MOU to a full loan agreement by the end of 2011.  This loan will be in addition to the existing CDB loan facility of $2.7 billion, which is being used for the development of the major copper project at Bozshakol and a series of midsized projects.

Oleg Novachuk, Chief Executive of Kazakhmys, said: “We are delighted to be developing our relationship further with CDB.  This funding will allow us to develop Aktogay and yet retain full ownership of the asset. Our two major growth projects, Aktogay and Bozshakol, should produce around 200 kt of copper in concentrate each year, equivalent to 60% of our current production, which is significant for Kazakhmys and for the growth of the metals industry in Kazakhstan.”

Kazakhmys PLC is a leading international natural resources group with significant interests in copper,gold, zinc, silver, power generation and petroleum.

It is the largest copper producer in Kazakhstan and one of the top worldwide with 17 operating mines, 10 concentrators and 2 copper smelters. Kazakhmys Copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod.