LONDON (Alliance News) - KAZ Minerals PLC on Tuesday said it has started to test and commission the main Aktogay sulphide concentrator in eastern Kazakhstan, with first production expected early next year, and said the overall budget has been lowered by USD100.0 million.
The copper miner is expecting to produce its first saleable copper from the concentrator before the end of the first quarter of 2017, and said full year guidance for the concentrator concerning 2017 will be published with its full year results on February 23, 2017.
KAZ said the total budget for the concentrator has been lowered to USD2.10 billion from USD2.20 billion after making faster than anticipated progress during the construction phase, securing a partial release of the contingency and from the continued benefit of a local supplier strategy and sustained weak Kazakh tenge.
"The timing of the remaining capital payments has been updated, with certain payments previously expected in late 2016 now anticipated in early 2017 and USD70.0 million relating to the expansion of oxide ore heap leach cells deferred to 2018," said the miner.
The resulting capital expenditure profile for the project is expected to see KAZ spend USD100.0 million in the second half of 2016, USD240.0 million in 2017 and USD370.0 million in 2018. The miner said the guidance for 2018 includes USD300.0 million worth of payments relating to work in 2016 and 2017 that was deferred under an agreement with the main contractor under a deal signed in November 2015.
"We are happy to be able to announce the start of commissioning activities at the Aktogay sulphide concentrator and a further reduction of USD100.0 million in the project budget. We are now focused on ramping up production at Aktogay and Bozshakol to deliver industry-leading copper production growth," said Chief Executive Oleg Novachuk.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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