KAZ Minerals is a copper miner based in Kazakhstan and Kyrgyzstan.
KAZ Minerals is a copper producer with mining operations in Kazakhstan and Kyrgyzstan. The Group acquired the Baimskaya copper project in January 2019, a major greenfield asset in Russia which it intends to develop into a large scale, open pit copper mine by 2026.
In Kazakhstan the Group operates the Aktogay and Bozshakol mines and concentrators, as well as three underground mines and associated concentrators in the East Region, employing approximately 16,000 staff. In 2019 the Group exported 138 kt of copper cathode from Kazakhstan to customers in Asia and Europe (2018: 106 kt) and 179 kt of payable copper in concentrate, mainly to China (2018: 190 kt). The Group generated revenues of $2,266 million in 2019 and made a total tax contribution of $386 million in Kazakhstan, including $201 million of MET and $94 million of corporate income and withholding taxes.
The Group employs approximately 1,000 staff in Kyrgyzstan where it operates the Bozymchak copper-gold mine. Tax payments of $15 million were made in Kyrgyzstan by Bozymchak in 2019.
The Group has invested a total of $4.7 billion in the construction of new mining facilities in Kazakhstan from 2011 to 2019 at its Aktogay and Bozshakol sites. A further $540 million is planned to be invested in the partially completed Aktogay expansion project over 2020 and 2021. The capital budget for the new Baimskaya copper project in Russia is currently estimated at around $5.5 billion over the seven year construction period and will be confirmed and updated on completion of the bankable feasibility study. The new mining facilities in Kazakhstan make material financial and tax contributions as well as creating employment for around 3,900 employees and 2,600 construction contractors, and valuable training opportunities for locally recruited apprentices.
Economic value generated and distributed
Direct economic value generated
Economic value distributed
Operating cash costs1
Employee wages and benefits2
Payments to providers of capital3
Economic value retained
2019 $ million
2018 $ million
Operating cash costs as disclosed in the Financial review (page 41), being the difference between revenues and EBITDA adjusted to exclude total employee costs (see note 9 to the financial statements) and social spend, which are shown separately in the table above.
Employee wages and benefits are the Group’s total labour costs and associated social taxes (see note 9 to the financial statements).
Payments to providers of capital represents interest paid on borrowing facilities and dividends to shareholders during the period (see consolidated statement of cash flows on page 130).
Taxes paid for each region is reflected in the payments to governments table on page 49 (see Financial review) and is the total taxes paid adjusted to remove employee and employers’ payroll taxes, which are reflected within employee wages and benefits for each region and excludes social spend, reflected as community investments.
Community investments represents the social payments as reflected in the payments to government table on page 49.