KAZ Minerals pleased with first half as Aktogay concentrator reaches capacity

KAZ Minerals issued its first half production report on Thursday, reporting an 18% improvement in copper production to 139.6 kt year-on-year.

The FTSE 250 company said the Aktogay sulphide concentrator achieved its design throughput capacity during the period to 30 June, adding that its operations were on track to achieve 2018 production guidance for all metals.

Bozshakol first half copper production fell to 49.8 kt from 52.0 kt in the same period last year.

Average sulphide copper grade was 0.46% in the second quarter, down from 0.52% in the first quarter but in line with the mine plan.

KAZ said its Bozshakol clay plant achieved 95% of its design throughput capacity in the second quarter, after achieving 65% in the first quarter.

It reported “strong” first half gold production at Bozshakol of 62.3 koz, down slightly from 62.9 koz year-on-year.

At Aktogay, first half copper production increased 83% to 60.5 kt, with the sulphide concentrator averaging 89% of design throughput capacity in the second quarter compared to 66% in the first quarter, including a sustained period operating at 100% of design throughput capacity.

Cathode production from oxide ore at Aktogay was 11.5 kt in the first half, up from 10.4 kt a year ago.

At the East Region and Bozymchak, first half copper production was of 29.3 kt, down from 33.0 kt year-on-year.

KAZ said the planned idling of Nikolayevsky concentrator reduced processing volumes there in the first half.

First half gold production of 27.2 koz and silver production of 1,082 koz at the East Region and Bozymchak was said to have represented “good progress” towards full year production targets.

Zinc in concentrate production there of 24.9 kt in the first half was down from 32.3 kt at the same time last year, which the board said was due to concentrator idling and extraction from lower grade sections.

“In the first half of 2018 the group delivered a strong operational performance, with the Aktogay sulphide concentrator achieving design throughput capacity for a sustained period,” said KAZ chief executive Andrew Southam.

“Higher throughput at Aktogay was the main driver of an 18% increase in copper production compared to the first half of 2017.

“The group is on track to achieve its copper output target of 270-300 kt and by-product guidance in 2018.”