Aktogay – sustaining our production growth

Aktogay is the Group's second largest project, located in eastern Kazakhstan. The processing facilities at the mine will produce both copper cathode from oxide ore and copper in concentrate. The copper concentrate will be exported directly to customers in China as concentrate.

Construction work started in the first half of 2013 and commissioning of the main sulphide concentrator began in December 2016. The production of copper cathode from oxide ore commenced in December 2015 and production of copper in concentrate from sulphide ore is expected by the end of Q1 2017. The project capital cost was reduced from $2.3 billion to $2.1 billion in 2016.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

On 1 December 2015, the Aktogay oxide project commenced the production of copper cathode from oxide ore. The SX/EW facilities are operational and are expected to swiftly reach an output level of 15 kt per annum. We are concentrating now on finishing foundation works, structural steel and equipment installation at the sulphide project. The sulphide concentrator remains on track for commissioning in 2017.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

As of June 2015 we have completed acid storage and PLS pump house, sulphide plant foundations and oxide heap leach cells 101 and 102 which are ready to receive ore. We are continuing with the construction of the oxide plant buildings and processing facilities, heap leach cells 103-109 and the permanent camp. The 110 kV power line is close to completion and concrete works for the grinding and concentrator building foundations are ongoing. We are preparing the sites for the primary crusher and conveyor. We are on track for oxide production to commence in Q4 2015.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

We awarded the contract for the construction of the sulphide concentrator to Non Ferrous China (“NFC”) in September 2014. The sulphide concentrator contract is the largest item in the capital expenditure budget for Aktogay. Following this contract award the Group was able to confirm that the total capital cost for the Aktogay project is expected to be in the region of $2.3bn. In the first half of 2014 we completed 50% of the construction of 110 kV overhead transmission line and commenced the bulk earthworks at the site. The assembly of mining equipment continued. The contractor for the heap leach plant mobilised and commenced foundation works. We started the construction and installation of the water pipeline and the railway spurs.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

This winter was very harsh in Kazakhstan, in January the temperature on site reached -35°C. We finished off infrastructure links leading directly to the side, Aktogay had the advantage of existing infrastructure in the vicinity of the project including power lines and transportation links.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

In autumn 2013, we were finishing off infrastructure links leading directly to the site: railways and installation of the 110 kV transmission lines. We began preparing to commence the main construction.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

We started preparing the territory for the beginning of construction: started the delivery of the equipment and machines and removal of top soil. We started work on the construction of the main drainage trench for the heap leach pad and began to pour concrete foundation of the main processing plants.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

We made further progress with the earthworks on the territory of the main buildings, continued removing top soil and improving the roads. We set up the temporary camp and offices and started preparing the ground for the permanent camp.

The board approved the development of Aktogay on 6 December 2012. It has significant similarities to Bozshakol, and the intention is to enhance value by replicating design and engineering work from Bozshakol. Please see the photo report below to follow the development of this project.

Unlike Bozshakol, which was a green field site when we started working there, Aktogay had the advantage of existing infrastructure including power and transportation links. We carried out surveying works on the locations of the future main building on site and started removing top soil to prepare the area for the camps and main buildings.

Project Video

KEY FACTS

Copper cathode equivalent production:
– Oxide deposit: 15 kt pa for 11 years
– Sulphide deposit: 90 kt pa for the first 10 years

First oxide copper production: 1 December 2015

First sulphide copper production: Q1 2017

Mineral Resources:
– 1,597 MT of sulphide ore at 0.33% copper grade
– 119 MT of oxide ore at 0.37% copper grade

By-products:
– 115 kt of molybdenum

Net cash cost – 100-120 USc/lb*

*Estimated net cash cost for copper cathode equivalent sales is calculated for the first 10 years after the commencement of the sulphide concentrator’s operation, using a long-term molybdenum price of $12,000 per tonne.