Kazakhmys to Raise Pay to Help Compensate for Tenge Devaluation

Kazakhmys Plc (KAZ), the largest Kazakh copper miner, will raise pay in the country by as much as 10 percent to compensate for the devaluation of the currency.

The decision, effective April, followed talks between the government and large companies, Kazakhmys said in a statement.

Kazakhstan last week devalued the tenge about 19 percent as central Asia’s biggest energy producer seeks to stay competitive following a slump in the Russian ruble to a record low.

Kazakhmys “still locks in a significant benefit from the devaluation,” Patrick Jones, an analyst at Nomura International Plc, said in a note, raising the stock to a “neutral” rating.

The stock rose 1.7 percent to 237.80 pence by 9:25 a.m. in London after jumping about 31 percent last week on the devaluation.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.