The delivery and ramp-up of our major growth projects is our most important strategic objective.
KAZ Minerals is entering a new phase of development, with Bozshakol and Aktogay at the core of our long-term growth. Both mines are long-life, low-cost copper projects which are expected to deliver substantial growth and value for our business. Both mines are now operational and as they ramp-up they will enable the Group to increase its production to approximately 300kt in 2018. Ramping up these new mines is expected to lead to a significant increase in the Group's profitability and efficiency.
Major Growth Projects
Bozshakol and Aktogay:
- were the largest green-field development projects in Kazakhstan when under construction and are among the largest newly developed copper deposits in the world
- are close to existing power, transportation, water and other infrastructure
- have competitive operating cost profiles
- benefit from similar design and engineering features such as the main sulphide ore concentrators, mining equipment and layout, allowing for significant efficiencies
Koksay is our third growth project opportunity, to be developed once Bozshakol and Aktogay have been ramped up.
Bozshakol is the Group’s first major growth project and commenced production in February 2016. Bozshakol is a first quartile asset on the global cost curve and will have an annual ore processing capacity of 30 million tonnes when fully ramped up, with a mine life of 40 years at a copper grade of 0.36%. The mine and processing facilities will produce 100 kt of copper cathode equivalent and 120 koz of gold in concentrate per year over the first 10 years of operations. Read more.
Aktogay is a large scale, open pit mine similar to Bozshakol, with a mine life of more than 50 years and average copper grades of 0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of copper cathode from oxide ore in December 2015 and copper in concentrate production from sulphide ore is expected to begin by the end of Q1 2017. The sulphide concentrator will have an annual ore processing capacity of 25 million tonnes when fully ramped up. Aktogay is competitively positioned on the global cost curve and will produce an average of 90 kt of copper cathode equivalent from sulphide ore and 15 kt of copper cathode from oxide ore per year over the first 10 years of operations. Read more.
We acquired the Koksay deposit in April 2014 for $260 million. The deposit is in south eastern Kazakhstan around 234 kilometres from Almaty and is located close to existing infrastructure. Read more.