OREANDA-NEWS. October 14, 2009. KAZAKHMYS PLC, common shares of which are listed on Kazakhstan Stock Exchange (KASE), provided KASE with a press release, reported the press-centre of KASE:

Kazakhmys PLC ("Kazakhmys" or the "Group") announces the sale of a 25% stake in its Ekibastuz GRES -1 ("Ekibastuz") power plant to the National Welfare Fund Samruk-Kazyna JSC ("Samruk-Kazyna") for a consideration of US339 million in cash. The transaction implies a gross valuation for the Ekibastuz power plant of US 1,356 million.

Ekibastuz is the largest power plant in Kazakhstan and has the potential to significantly increase capacity over the next 5 years, from the current available capacity of 2,250 MW back to the plant's original nameplate capacity of 4,000 MW. In a market increasingly short of power supply, Ekibastuz is key to meeting Kazakhstan's future power needs.

The value of the transaction was determined by reference to the price paid by Kazakhmys when it acquired the Ekibastuz plant in May 2008, plus subsequent investments in the business by Kazakhmys. The transaction follows a memorandum of understanding, signed in October 2008, between Kazakhmys and Samruk-Energy JSC, a subsidiary of Samruk-Kazyna, to consider a partnership at Ekibastuz. The transaction is subject to regulatory consents and approvals and completion is expected by the end of 2009. Kazakhmys will retain management control of Ekibastuz following the transaction.

Oleg Novachuk, Chief Executive of Kazakhmys, said:"Samruk-Kazyna is an excellent partner for us in Ekibastuz and we are pleased to be formalising the relationship. Ekibastuz is a key strategic asset in Kazakhstan and this agreement will assist its long term development and return to full capacity."

The Government of Kazakhstan owns Samruk-Kazyna and is, indirectly, a significant shareholder in Kazakhmys, with representation on the board of directors. The proposed transaction constitutes a 'smaller related party transaction' for the purposes of the Listing Rules of the United Kingdom Listing Authority.