OREANDA-NEWS  On 13 October Kazakhmys PLC (“Kazakhmys”) announced that it signed a memorandum of understanding with Samruk-Energy JSC (“Samruk-Energy”) in which Kazakhmys and Samruk-Energy agree to consider entering into a strategic partnership and joint ownership of the Kazakhmys Power Division. Such a partnership would be expected to bring benefits of access to additional coal resources and greater integration with Kazakhstan’s energy development and transmission programmes.

Samruk-Energy is a company established by the Government of the Republic of Kazakhstan to implement state policy on the modernisation of existing power stations and the construction of new power stations. The memorandum of understanding will allow Samruk-Energy to carry out due diligence on the assets within the Kazakhmys Power Division and, should the partnership proceed, it will be subject to regulatory and shareholder approval. Any transaction will be in accordance with the stated intention of seeking strategic partnerships for these assets.

Oleg Novachuk, Chief Executive of Kazakhmys, said: “Samruk-Energy, with their access to substantial coal assets, would be an excellent partner for our power division and we look forward to seeing how we can develop a relationship with them to optimise the business’ potential. Such a partnership could further support the upgrading of the Ekibastuz power station, the largest power generator in Kazakhstan, and bring it up to its maximum capacity at the earliest opportunity.”