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 2027.

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 2020 the Group exported 123 kt of copper cathode from Kazakhstan to customers in China and Europe (2019: 138 kt) and 177 kt of payable copper in concentrate, mainly to China (2019: 179 kt). The Group generated revenues of $2,355 million in 2020 and made a total tax contribution of $322 million in Kazakhstan, including $118 million of corporate income and withholding taxes and $106 million of MET.

The Group employs approximately 1,000 staff in Kyrgyzstan where it operates the Bozymchak copper-gold mine. Tax payments of $21 million were made in Kyrgyzstan by Bozymchak in 2020. Operations were suspended at Bozymchak from 7 October to 26 December 2020 following a period of political instability
which affected a number of mining sites in the country.

The Group has invested a total of $5.0 billion in the construction of new mining facilities in Kazakhstan from 2011 to date, principally at its Aktogay and Bozshakol sites. A further $300 million is planned to be invested in the Aktogay expansion project in 2021 and 2022, with copper production to commence by the end of 2021. The capital budget for the new Baimskaya copper project in Russia is estimated at close to $8 billion, including a contribution to the development of new infrastructure, which will benefit other users in the region.

These new mining facilities at Baimskaya will make material financial and tax contributions to host communities, as well as creating employment for around 3,000 new full time employees and 5,000 roles for construction contractors during the project development.

Economic value generated and distributed

Direct economic value generated

$ million

Economic value distributed

$ million

Taxes paid⁴

$ million

1. Operating cash costs as disclosed in the Financial review, being the difference between revenues and EBITDA, adjusted to exclude total employee costs (see note 8 to the financial statements) and social spend, as reflected in the table above.
2. Employee wages and benefits represents the total labour cost and associated social taxes incurred by the Group (see note 8 to the financial statements).
3. 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 140).
4. Taxes paid for each region is reflected in the payments to governments table on page 53 (see Financial review) and is the total taxes paid adjusted to remove employee and employer’s payroll taxes, which are reflected within employee wages and benefits for each region and excludes social spend, reflected as community investments.
5. Community investments represents the social payments as reflected in the payments to government table on page 53.