Kazakhmys, Chinese firm in copper project venture

Kazakhmys Plc, a leading international natural resources group with significant interests in copper, gold, zinc, silver, power generation and petroleum, has signed a memorandum of understanding with Chinese company Jinchuan Group Ltd. to develop a copper project at Aktogay in Kazakhstan.

As per the deal signed on Tuesday, Jinchuan will buy 49 per cent stake in the project for $120 million, payable in cash.

The Aktogay deposit is a large open-pit mine and concentrator project located in the Ayoguz region in the east of Kazakhstan.

Once the joint venture is established a feasibility study of the project will be commissioned.

The study is expected to take around a year to complete, after which the development and construction phase is anticipated to take around three years.

Kazakhmys said the estimated development cost of Aktogay is in the range of $1.5 billion to $2 billion.