Kazakh Kazakhmys Corporation suspends some projects

Business Materials 3 February 2015 14:14 (UTC +04:00)

Baku, Azerbaijan, Feb. 3

By Elena Kosolapova - Trend:

Kazakh Kazakhmys Corporation was forced to start the optimization of the production processes at all the production sites and suspend some projects due to difficult economic conditions, the company announced.

The difficulties primarily resulted from the sharp decline in the market value of copper, the company said.

However, the company does not plan the mass reduction of number of jobs.

"Part of assets which are unprofitable at the moment will be temporarily suspended. All the workers working at these assets or about 2000 people will attend courses and training raising the level of their skills and will receive the average wage. After the training they will be employed at Bozshakol and Aktogay projects. The corresponding agreements have been reached with KAZ Minerals company," the company said.

The administrative staff of the corporation will be also affected by the optimization process. The work hours of some managers will be cut. Moreover the corporation will cut bonuses of some managers by 10 percent.

"In the case of a sharp decline in production, free people will be on forced leave with at least 50 percent of their salary. Temporarily not employed staff will attend training and refresher courses at the expense of Kazakhmys Corporation," the company said.

In October 2014, Kazakhmys Group completed the disposal of certain mature assets in the Zhezkazgan and Central Regions to Cuprum Netherlands Holding B.V. These assets belong to the Kazakhmys Corporation.

Following the completion of the Restructuring, Kazakmys PLC company was renamed KAZ Minerals PLC. The company retained mining and processing assets in the East Region, Bozymchak (the new mine and concentrator in Kyrgyzstan) and the three major growth projects Bozshakol, Aktogay and Koksay.

Edited by S.I.

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