Kazakhmys signs agreement for possible JV

Mining giant Kazakhmys has signed an agreement with JSC RusHydro, one of Russia's largest power generating companies, to consider establishing a hydro-electric power joint venture.

The two parties will review the development of small hydro-electric plants in Kazakhstan with a total capacity of up to 300 megawatts.

The firms anticipate that they will together supply up to 30% of the possible project costs, with the balance coming from external project finance.

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Oleg Novachuk, Chief Executive of Kazakhmys, said: "Kazakhstan needs further investment in its power sector in order to maintain adequate and reliable supplies and assist economic growth. Currently just 10% of Kazakhstan's power is generated from hydro plants with nearly 90% coming from coal fired stations.

"As the largest producer of power in Kazakhstan, Kazakhmys is ideally placed to promote the development of renewable energy and we believe that small hydro-electric plants may have a key role in the growth of the sector. The combination of RusHydro and Kazakhmys brings a balance of knowledge and skills which should deliver a successful and profitable outcome."

The share price had fallen 3.78% to 700.50p by 12:24, in line with an overall decline of 3.37% across the mining sector.

NR