Government mulling over boosting its share in ENRC

Kazakhstan’s Minister of Economic Affairs Erbolat Dossayev doesn’t rule out that the Kazakhstan’s Government might boost its share in Eurasian Natural Resources Corporation PLC (ENRC), an FTSE miner, Newskaz.ru reports. “There is some possibility (…) that the Government will significantly boost its share in ENRC (…) it will be a deal in line with the current market conditions. When the market price is defined, there will be some final decision taken (…) the Government will definitely keep its current share and might boost it – if there is such an opportunity”, the Minister elaborated. “The Government considers ENRC to be one of the most important mining assets (…) active participation and involvement of the Government is natural (…) there are many rumors and speculations (…) however, there has been no deal closed so far. We are on the way (…) there are some preliminary suggestions (…) when a final structure of the deal is defined, there will be a special announcement”, he added. “There will be an official statement (…) as far as my personal opinion is concerned, if the Government retains its share in ENRC, it will be more actively involved in management and control”, he said. Alexander Mashkevich, Patokh Shodiyev and Alizhan Ibragimov, ENRC founders, own 14.59% each, with the Government owning 11.65%, Kazakhmys mining company holding another 26% and the rest 19% being owned by minor shareholders. As of the end of 2012 the Corporation announced losses of $852 million as compared to a profit of $1.98 billion in 2011. The Corporation is a subject of a criminal investigation by the Serious Fraud Office. It received its prestigious London listing in 2007.