ENRC has preconditions to turn into global leading mining company
January 21. KAZINFORM. ASTANA
Eurasian Natural Resources Corporation (ENRC) mining company has growth prospects, the experts of Troika Dialogue Kazakhstan think so.
“Though the major part of the ENRC extracting assets are located in Kazakhstan it distinctly set itself as a global player and intends to extend its historical borders by the organic and non-organic growth. The Company has an impressive portfolio of development projects, good balance and skilled team of managers. In such a manner, ENRC has all preconditions to turn into a leading diversified mining company of the world caliber”, – the analytical review of Troika Dialogue Kazakhstan said.
ENRC specializing in ferrochrome production and iron ore export enters the three largest global producers of iron whereas its key production capacities are distinguished by high quality, the experts said.
“With the production centered in Kazakhstan, as well as developed and efficient structure and processes, the Company is perfectly positioned – geographically and as a business – to extend its strong regional presence as the market for natural resources shifts eastwards towards Russia and China”.
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No plans to exit ENRC stake now – Mr Philip Aiken
Jan 21. Reuters
Reuters reported that Kazakh based copper producer Kazakhmys has no current plans to exit its 26% stake in rival ENRC, but will look at future options.
Mr Philip Aiken senior non ED of Kazakhmys said that we have a good investment in ENRC they’ve got good results and going forward we’ll look at the options for that.
Mr Aiken said while asking in an interview if one option was for the two London listed companies to each go their own way that “That’s always possible and everyone knows that everything has a value or a price, at this stage there’s no intention to do that, but we’ll see what the options are in the future.”
He said that Kazakhmys stake in ENRC is worth around USD 5.4 billion and is equivalent to 44% of the firm’s market capitalization of about USD 12.3 billion.
Mr Aiken said that the firm was concentrating on its growth projects, such as Boschekul which is due to launch output in 2013 or 2014.
He said that “I think at this point in time, we’re very much about the organic growth in the copper business in Kazakhstan and the region and that’s probably our major priority at the moment.”