Kazakhmys in talks over selling stake in Ekibastuz GRES-1

Kazakhmys started negotiations on a possible sale of a stake in Ekibastuz GRES-1 power station, Tengrinews.kz reports citing the company's official website. "In respond to media reports on a 50-percent stake in Ekibastuz GRES-1, the biggest power station in Kazakhstan, Kazahkmys group is please to announce that it has started negotiations on this stake," the message states. According to the company, the negotiations are at the initial state and may or may not end up in signing of a deal. The corporation also reminded that Kazakhmys purchased the power station in 2008 for $1.28 billion. Samruk-Kazyna purchased a 50-percent stake in Ekibastuz GRES-1 for $681 million. In the 6 months that ended on June 30, 2012 Ekibastuz GRES-1 received $278 million from sales, while its EBITDA made $184 million. Kazakhmys is the biggest copper producer in Kazakhstan and one of the world's leaders in the industry. It owns 16 producing mines, 10 mining processing plants. Copper production is fully integrated, starting from ore production and finishing with the final goods of cathode copper and copper rod. The group is one of the biggest silver producers in the world. It produced 12.6 million ounces of silver in 2012. Kazakhmys manages four coal-fired power stations, which together account for over 20% of Kazakhstan’s power supply. Ekibastuz GRES-1 of which 50% is owned by Kazakhmys, is Kazakhstan’s largest power station. The power is mainly sold to industrial users in Kazakhstan under short-term contracts, with around 10% being sold to Russia. Kazakhmys also owns and operates three captive power plants which supply heat and electricity to our operations and the surrounding communities. In 2011 around 60% of the output was used internally and the balance was sold to third parties. Ekibastuz GRES-1 has six turbine units in operation and a capacity of 3,000 MW. By 2017 the plant should have eight units in operation, with a total capacity of 4,000 MW. The upgrade is funded from the internal cash flows generated by Ekibastuz GRES-1. With around 1,000 people working at the plant, Ekibastuz plays a major role in the region's communities.