Kazakhmys Appoints Second Contractor at Bozshakol, Raises Cost
Kazakhmys Plc (KAZ), Kazakhstan’s largest copper miner, appointed China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. as a second contractor for its Bozshakol project to ensure the mine starts in 2015 and said the total budgeted cost will rise by about $350 million.
“The board believes it is in the best interests of the group and its shareholders to bring additional resource to ensure that commissioning remains on track,” Chief Executive Officer Oleg Novachuk said in a statement today.
Kazakhmys, targeting 500,000 tons of annual copper output by 2017, is building the Bozshakol and Aktogay mines at a cost of about $4 billion. It today agreed to sell its remaining 50 percent of power generator Ekibastuz LLP for $1.3 billion to bolster finances. The copper miner also is studying appointing a second contractor for Aktogay, it said in today’s statement.
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