OREANDA-NEWS. KAZAKHMYS PLC, common shares of which are listed on Kazakhstan Stock Exchange (KASE), provided KASE with a press release dated March 10, 2009, reported the press-centre of KASE:

Kazakhmys Group, the largest copper producer in Kazakhstan and a leading natural resources group in Central Asia, has today released its trading results for 2008 reporting on its operational and financial performance.

Kazakhmys' production of copper was 343 kt of copper cathode equivalent during 2008, ahead of both 2007 and its target for 2008. Financial performance was however affected by market turbulence and the decline in metals prices in the last few months of the year with revenue declining 2%.

In 2008 Kazakhmys continued its diversification strategy to steer away from being exclusively a copper operation. It increased its stake in ENRC, Kazakhstan's leading producer of ferroalloys and aluminium, to 26% and acquired Ekibastuz GRES-1 Power Plant, transforming Kazakhmys into the largest power producer in Kazakhstan, able to provide over 20% of Kazakhstan's power.

In 2008 Kazakhmys reaffirmed its commitment to the national economy through taxes, business and social investment and its role as a leading employer with over 65,000 employees. Kazakhmys spent over US100 million on social responsibility and local community projects in 2008, the largest programme of its kind, including the construction of a boarding school for over 300 orphans in Astana.

The Group recognises that 2009 will be a challenging year. With the significant fall in copper prices Kazakhmys will reduce copper output to 300 kt and suspend operations in some higher cost mines. The Group has identified opportunities for efficiency savings in production and will reduce capital expenditure in 2009. These measures are designed to secure a successful future for the business and so it can continue as a major employer and supporter of national and regional economies. Kazakhmys has repeated its commitment to avoid significant staff redundancies. To make this possible it has introduced flexible working schedules and is relocating staff to alternative sites.

Vladimir Kim, Executive Chairman of Kazakhmys, said: "The success of our Group is principally due to the efforts of our employees and on behalf of the Board I would like to thank them for their support over the year. 2009 will undoubtedly be a challenging year and in the current environment we are committed to pursuing our strategy and business management in a prudent manner for the benefit of our employees, local communities and the economy of Kazakhstan."