KAZ Minerals Co. increases its copper mines

According to Mining News Pro - KAZ company has identified the project, which is located in the Chukotka region in the far east of Russia, as one of the most important assets of the less developed copper in the world. It is expected that the primary production of this mine will be exploited by around 2026.

At a meeting with analysts, the company announced that the Baimskaya mine has the ability to become a large-scale copper mine, long life and low cost production. The average production of this mine during the first decade of its operation is expected to reach 250,000 tons of copper and 400,000 ounces a year.

Ogh Nawachuk, Chief Executive Officer of Qaza, said the project is projected to be exploited during the period of a significant deficit in the copper market.

The price of copper in the LME at the beginning of this month was $ 6.198 per tonne. In the event of a high production of the mines and a prediction of the price of $ 7,000 per tonne of copper by the World Bank, Qaz will be in a strong position.

The company is optimistic about the transfer of operations from Kazakhstan to Russia, due to the common sense of thought and culture, and that both countries are members of the Eurasian Economic Union and formerly part of the Soviet Union. The Russian government`s support for this project is another encouraging factor.

Moscow supports the project and seeks to further develop its infrastructure in the region. Qasem acquired $ 900 million in cash and stock purchases, including an initial $ 675 million and subsequent payments of $ 225 million.