KAZ Minerals published production activity and audited financial results for 2016.
KAZ Minerals completed the construction of Bozshakol and Aktogai growth projects. The launch of new mines is the result of investments at over $4 billion. In 2017, KAZ Minerals is about to produce 225-260 thousand tons of copper and approach strategic aim – large-scale low-cost production at about 300 thousand tons of copper in 2018, 80% of which will be produced at the open-pit mines.
In 2016 KAZ Minerals produced 140.3 thousand tons of copper in cathode equivalent and increased production by 73% against 2015 (81.1 thousand tons). Contribution of the enterprises of Eastern region and Bozymchak GOK (Kyrgyzstan) made up 77.4 thousand tons of copper in cathode equivalent, Bozshakol GOK – 44.8 thousand tons, Aktogai GOK – 18.1 thousand tons.
In 2016 KAZ Minerals realized 141 thousand tons of copper (2015 – 84 thousand tons). Sales result made it possible to balance reduction of an average copper price on the LME. An average copper price made up $4.860 thousand per 1 ton on the Exchange in 2016 (-12% y-o-y).
There set a wide annual plan range of copper production at KAZ Minerals in 2017, amounting to 225-260 thousand tons, including an increase of production at Bozshakol and Aktogai.
There planned an improvement of a flotation process at Bozshakol GOK to increase productivity. The mine is expected to reach full production in H2 and produce 95-110 thousand tons of commercial copper in concentrate in 2017. KAZ Minerals plans to use an experience at Aktogay GOK and produce 45-65 thousand tons of copper in concentrate here. Design level of production at Aktogay sulphide ore processing plant is expected to reach in H2, 2017. Aktogai complex for copper production from oxidized ore operate in full. Cathode copper production is expected to make up 20 thousand tons by the end of the year.
Production plan at Vostoktsvetmet and Bozymchak makes up about 65 thousand tons of cathode copper (in 2016 – 77.4 thousand tons). Reduction of the plan is due to termination of operation at Yubileino-Snegirikhinskaya mine in December 2016 and technical activity at Orlovskaya mine.
KAZ Minerals is about to produce 135-170 thousand ounces of gold in 2017, including 50-60 thousand ounces from the Eastern region and Bozymchak and 85-110 thousand ounces from Bozshakol. Silver production plan makes up 2.75-3.00 million ounces, production of zinc in concentrate – 70-75 thousand tons.
Chairman of the Board of Management of KAZ Minerals Group O.Novachuk commented: “Successful launch of our new projects contributed to a growth of copper production by 73% at one of the lowest figure of net monetary cost of production in the sector. Bozshakol and Aktogay are fully operational when there started production from suphide ore at the Aktogay GOK. At present, KAZ Minerals shows high potential to reach its target – low-cost production of 300 thousand tons of copper in 2018 amidst strengthening market.”
Prospects and tendencies of the global and domestic copper industry will be discussed at the VIth All-Russian conference “Copper, brass, bronze: production and consumption tendencies”, which will take place on October 12-13, 2017 in Yekaterinburg.