Kazakh mining company to defer huge payment
Baku, Azerbaijan, Nov. 17
By Elena Kosolapova - Trend:
KAZ Minerals PLC ("KAZ Minerals" or "the Group") announces that it has reached agreement with its principal construction contractor, Non Ferrous China ("NFC"), to defer payment of $300 million relating to the Group's Aktogay project, the company said.
"Under the revised terms, $300 million of construction costs which were scheduled to be paid in 2016 and 2017 will be settled in the first half of 2018," the statement said.
There is no change to the overall amount payable to NFC or the project budget of $2.3 billion.
Aktogay remains on track to commence production from oxide ore in 2015 and production from sulphide ore in 2017.
The deferral of $300 million to 2018 provides KAZ Minerals with additional liquidity during the construction and ramp up of Bozshakol and Aktogay.
KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan. It is a leading copper producer in Kazakhstan with five operating mines and four concentrators. In 2014, total copper cathode output from continuing operations was 84,000 tons.
The Group's continuing operations also produced 121,000 tons of zinc in concentrate, 3.4 million ounces of silver and 35,000 ounces of gold in 2014.
The Group has two major copper projects under construction, Bozshakol and Aktogay, and a third, Koksay, at scoping stage.
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