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.
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 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
-
Parental contributions to kids' university living costs could reach £14,000 a yearParents helping kids with university living costs face contributions of up to £14,000 per year, according to a report from HEPI and TechnologyOne.
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
