AES sells power plant, mine in Kazakhstan to UK's Kazakhmys

06 February 2008

Mumbai: US power utility AES Corporation has agreed to sell its power plant and coal mine in Kazakhstan to London-based Kazakhmys Plc for up to $1.48 billion.

Arlington, Va-based AES owns the 2250 KW Ekibastuz coal-fired power plant - largest power plant in Kazakhstan - and a 3.1 million tonne coal plant in Maikuben West. The mine is expected to hold reserves for another 30 years.

The power plant and the coal mine, located in northeastern Kazakhstan, had combined sales of $149 million in 2006. The mine supplies about 20 per cent of the plant's fuel requirements.

Kazakhmys is self-sufficient in power supply, and will sell electricity from Ekibastuz or use it for future projects.

AES, however, will manage the assets until December 2010 on behalf of Kazakhmys.

London-based Kazakhmys is Kazakhstan's biggest copper producer.