Non Ferrous China to invest $70m in Kaz Minerals' Koksay project

Kaz Minerals said on Friday that Non Ferrous China has agreed to invest $70m into its Koksay project, giving it a 19.4% stake.

Koksay is a potential open pit copper mine development project in Kazakhstan, located around 230 kilometres from Almaty. The deposit has a mineral resource of 736 Mt at an average copper grade of 0.42%, with contained copper of 3.1 Mt.

The investment by NFC, which is subject to certain conditions including regulatory approvals in Kazakhstan and China, will be ring-fenced for the development of Koksay, including a feasibility study which will determine the detailed design for mining and processing operations and the associated capital budget.

Kaz said the board will review the results of the feasibility study to assess how and when to proceed with the project.

Chair Oleg Novachuk: "We are pleased to welcome NFC as a partner in the Koksay project. We worked successfully with NFC in the construction of Bozshakol and Aktogay and we are looking forward to developing our relationship further as we assess this opportunity in Kazakhstan."

Peel Hunt said the investment means Koksay can progress faster than otherwise would have been the case.

"Given the expectations for copper supply deficits this makes sense. It also brings in a partner to share the project risk and capex spend."