Tax Exemption

10 Jan 2006 10:23

Steppe Cement Limited10 January 2006 STEPPE CEMENT LIMITED TAX EXEMPTION The directors of Steppe Cement Limited ("Steppe" or the "Company" AIM - STCM.L)are pleased to announce that the Company's 100% owned subsidiary, Karcement JSC("Karcement"), has concluded an agreement with the Ministry of Industry andTrade of the Republic of Kazakhstan regarding the tax incentives covering itscapacity expansion project. The agreement grants a five year income tax and property tax exemptioncommencing on the date Karcement begins production from the refurbished drylines and expiring not later than 31 December 2012. Karcement will undertake the refurbishment of dry lines number 5 and 6 for anestimated total cost of US$93 million during 2006 and 2007. This will providethe group with additional production capacity of 2.4 million tonnes of cementper annum. The Company is also discussing possible exemptions from import duties and VAT onimported machinery for the project with the relevant authorities in Kazakhstan.The Company will inform the market as soon as any agreement in relation to thismatter has been finalized and approved. This information is provided by RNS The company news service from the London Stock Exchange