OREANDA-NEWS. On 02 June 2008 Kazakhmys PLC announced that it had completed the acquisition of the Ekibastuz coal-fired power plant, and the Maikuben West coal mine in Kazakhstan, the largest power plant in Kazakhstan.

Ekibastuz is a strategic asset in the Central Asian power market:

o The expected growth in demand for electricity in Kazakhstan and the tight reserve margins make the electricity market an attractive growth platform for Kazakhmys

o Ekibastuz GRES-1 is the largest source of power in Kazakhstan, with nameplate capacity of 4,000MW, in a market increasingly short of power supply. The acquisition makes Kazakhmys the largest generator of power in Kazakhstan

o Ekibastuz offers significant growth opportunities from existing infrastructure with capacity to double output over the next 5 years from current available capacity of 2,250 MW

o The captive coal mine at Maikuben provides a secure base of raw material supply, with current output of 3.1 million tonnes of coal and an estimated mine life of approximately 30 years based on A, B, C1 classification of reserves.

o Creates diversification into the commercial power market and brings considerable potential for strategic opportunities with off-take partners. Ekibastuz also secures the Group's power needs for the major Boschekul and Aktogay projects .

_ Total payments of up to US\\\\$1.5 billion, subject to adjustment under a closing mechanism.

o Includes an initial cash consideration of US\\\\$1,100 million and a deferred cash consideration and other payments of up to US\\\\$381 million, subject to various growth targets being met

o The transaction will be funded through an existing debt facility, placing the Group into a net debt position, for the first time since listing in October 2005

Oleg Novachuk, Chief Executive of Kazakhmys said "The acquisition of Ekibastuz is an important strategic move for Kazakhmys. It is clear that electricity demand in Kazakhstan and the region is increasing significantly and the spare capacity at Ekibastuz will be key in satisfying market demand. Ekibastuz offers substantial commercial opportunities as well as underpinning all our future internal electricity requirements. The acquisition represents excellent value and should deliver substantial earnings growth and attractive returns for our shareholders."