Kaz Minerals lowers 2020 capex as virus restrictions bite
Copper miner Kaz Minerals on Thursday announced that it would spend between $50-million and $100-million less this year on its Aktogay expansion project, as Covid-19 restrictions in Kazakhstan and elsewhere are negatively impacting on supply chains.
Restrictions are also reducing the availability of local contractors and preventing vendor representatives from entering the country to support equipment installations.
Capital expenditure for 2020 is now forecast to be $300-million to $350-million, rather than the previous guidance of $400-million. The balance of the unchanged $1.2-billion project budget will be incurred in 2021.
By December 2019, Kaz Minerals had already spent $663-million on the Aktogay expansion, which will double the mine’s sulphide ore processing capacity to 50-million tonnes from 2021.
The company stressed that the project remained on track for completion in 2021, as previously guided, but was now expected to start production in late 2021.
Meanwhile, Kaz reported copper production of 74 900 t in the first quarter, which is 7% above the prior-year comparative period and keeps the miner on track to achieve its guidance of 280 000 t to 300 000 t this year.
Its gold production came to 55 400 oz and was driven by high ore throughput at the Bozshakol mine.
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