* Kaz Minerals share price outperforms wider market
* Seen on cusp of being large-scale, low-cost producer
LONDON, Dec 6 (Reuters) - Kazakhstan copper firm KazMinerals on Tuesday said its major new copper project atAktogay would deliver its next phase of production early in 2017at a lower cost than expected.
The news lifted the company's share price by 2.3 percent byaround 10 GMT, while the broader market fell nearly 2 percent.
Analysts said the lower capital expenditure would boost thebalance sheet and a long development phase was over.
"Kaz Minerals is on the cusp of transforming itself from adeveloper with legacy assets into a large-scale, low costproducer," BMO Capital Markets said in a note.
Kaz Minerals is bringing online two major copper projects,which it describes as world-class open-pit mines -- cheaper thanhaving to extract from deep underground.
It began producing copper from the most accessible oxide oreat Aktogay late last year and said it expects copper fromsulphide ore to begin early in 2017.
In a statement, Kaz Minerals said the Aktogay project budgethas been reviewed and reduced by $100 million to $2.1 billion asconstruction had been quicker than expected and because of theweakness of the local currency, the tenge.
Oleg Novachuk, chief executive, said the company was focusedon ramping up production at Aktogay and Bozshakol, its other newplant, which began production in February.
The company will give full-year production guidance at thetime of its results in February.
Copper prices have lagged a rally in othercommodities, although U.S. President Elect Donald Trump'spromise of major infrastructure projects gave the metal a spurin November.
Many in industry say the outlook for copper is relativelystrong and companies are on the hunt for high-quality assets. (Reporting by Barbara Lewis, editing by David Evans)
