Kaz Minerals moves into Russia with $900 million acquisition of Baimskaya project

Kaz Minerals has announced this week that it has completed a $900 million cash and shares deal to buy the Baimskaya project, located in the Chukotka region of Russia.

The Baimskaya project is one of the world’s most significant undeveloped copper assets, with a JORC resource of 9.5Mt of copper and 16.5 Moz of gold.

Kaz will look to producer around 250 kt of copper and 400 koz of gold annual over the first ten years of operations. The mine itself has a life of mine of 25 years.

The deal is made up of an initial consideration of $675 million, which will see Kaz take a 75% interest in the project.

Breaking the deal down further, Kaz will pay $436 million in cash as well as three million Kaz Minerals shares, valued at $239 million.

The remaining 25% of the project will be acquired through a Deferred Consideration of $335 million.

“The acquisition of Baimskaya marks the next stage of the transformation of KAZ Minerals,” said Oleg Novachuk, Chair of Kaz Minerals.