Investment Projects - Construction of the MMC on Beshokinskaya Square in the Karaganda region

Project description:

This investment project (hereinafter referred to as the "Project") provides for the construction of a MMC at the Beshoky field.

Project Objective:

development of a group of deposits on the Beshokinskaya square, creation of an effective integrated business for the extraction and processing of copper-molybdenum ore.

Production process:

open-pit mining; processing of ore at a processing plant and obtaining copper-molybdenum concentrate; processing of concentrate at a copper smelter to produce copper and molybdenum.

Products:

copper and molybdenum

Processing production capacity:

10 million tons of ore per year

Prerequisites for the Project implementation:

Large reserves of copper.

Kazakhstan ranks 8th in the world in terms of copper reserves with a share of 4.7% of world reserves (37 million tons).

High demand.

Copper plays a significant role in modern infrastructure, power generation and transmission, in the production of industrial equipment and electrical appliances. According to the forecasts of the International Copper Study Group, the annual growth in demand for refined copper will be 2% in 2019 and 1.5% in 2020.

Price stabilization.

According to Bloomberg, prices for refined copper are expected to increase with its subsequent stabilization in the medium term: 2019 − 6038.5 US dollars, 2023-6087 US dollars per ton.

The increase in the price of molybdenum.

Despite a significant decline in molybdenum prices from 2013 (24,889 US dollars) to 2015 (11,625 US dollars), according to the index of the London Metal Exchange (LBM), the price of molybdenum began to grow steadily to 24.9 thousand US dollars in 2018 (CAGR for 2015-2018 - 29%).

Field reserves according to JORC (2012)