Investors in Kazakhmys have approved a split of the UK-listed copper miner, putting their faith in a plan to get rid of most of its mines and concentrate on a few higher-growth and lower-cost projects.
What Kazakhmys calls its “mature assets” will be hived off into a separate company owned by Vladimir Kim, the miner’s largest shareholder, and Eduard Ogay, another investor, the FT’s James Wilson reports.
The UK-listed company will keep only five mines but has three projects that should start coming on stream from next year, bringing production back to today’s levels – but at lower cost.
The mines are being handed over to Mr Kim’s company along with about $240m of working capital. But the transaction is still seen as a good deal for Kazakhmys as it escapes from what could be a difficult restructuring of a swath of labour-intensive mines.
Shares in Kazakhmys are up 37 per cent up since the disposal plan was publicly mooted in February.
The miner will rename itself KAZ Minerals when the separation completes, expected by the end of the year.
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