Mending turbines at the Ekibastuz Power Station

CEO introduction

At KAZ Minerals we place a high priority on growing our business responsibly and being a socially responsible developer and operator of mining assets in Kazakhstan and Kyrgyzstan. Corporate responsibility is at the core of our strategy and licence to operate. Our employees, investors, local communities, governments and other stakeholders expect us to develop mineral wealth for the benefit of wider society in Kazakhstan and Kyrgyzstan, to ensure our employees and contractors are provided with a safe working environment, to minimise the impact of our activities on the surrounding environment and local communities and to develop natural resources.

The Group began a period of significant growth in 2016 which is set to continue through 2017 and 2018. Throughout this period we will carefully manage the environmental and social impacts of our activities. Our impacts will increase in absolute terms as we grow our production, but we have invested in modern equipment and technology which will improve the overall efficiency of our operations.

Health and safety is of primary concern to the management and Board of KAZ Minerals. Over the last five years we have made significant efforts aimed at improving our performance in this vital area. We have been able to reduce the rate of fatalities to much lower levels over this time period, though I am disappointed to report that there has been an increase this year, compared to 2015.

The health and safety risk profile of the Group is set to improve as we transition to open pit mining at our new assets, Bozshakol and Aktogay. We will continue to strive for improvements in our East Region mines and our goal is zero fatalities across all of our operations.

We are continually seeking to reduce the impact of its activities on the environment. Our business is changing rapidly as we have entered a period of significant expansion, with compound annual production growth of over 50% expected between 2015 and 2018 as we ramp up our major growth projects - Bozshakol and Aktogay. The efficiency of our operations should improve further, both on a per unit of ore processed and per unit of finished metal produced basis, as the recently commissioned plants increase recovery rates and reach design capacities in 2017 and 2018. 

Oleg Novachuk

CEO KAZ Minerals PLC