FTSE 100 miner Kazakhmys has approved the development of Aktogay, its second major copper project, following the successful completion of a feasibility study.
The total measured an indicated mineral resource is 1,719m tonnes, at an average copper grade of 0.33%.
The company said it plans to start development early next year, and expects first production from the oxide ore body in 2015 and sulphide ore body the following year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Oleg Novachuk, Chief Executive Officer of Kazakhmys said: "I am delighted to announce the approval of Aktogay, which allows us to move forward with our second major copper project.
"The combination of our Bozshakol and Aktogay projects will add around 200kt of low cost production from new generation open pit mines, which will be transformational for Kazakhmys and also for the mining industry in Kazakhstan. The combined projects represent an investment of around $4bn, creating significant employment and ensuring the continued growth of the copper industry in the country."
The project has a capital cost of around $2bn, and is primarily being funded from a $1.5bn project specific financing facility signed with the China Development Bank in December 2011.
The share price rose 0.14% to 741.50p by mid-afternoon.
NR
-
Will Comstock crash – or soar?Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
-
Can new management turn RIT Capital around?After several years of poor performance, there is growing evidence that RIT has turned the corner, says Max King
