Kazakhmys First Half Copper Output Falls 3.4% on Low Stockpile Processing

July 29. Bloomberg

By Firat Kayakiran and Claudia Carpenter

Kazakhmys First Half Copper Output Falls 3.4% on Low Stockpile ProcessingKazakhmys Plc, Kazakhstan’s biggest copper producer, said first-half output of finished metal from its own ore fell 3.4 percent because it processed fewer stockpiles than a year earlier.

Output declined to 164,300 metric tons, from 170,100 tons a year earlier, London-based Kazakhmys said in a statement today. It plans to produce more than 300,000 tons of copper this year.

“Mining, processing and smelting have all met or exceeded targets,” Chief Executive Officer Oleg Novachuk said in the statement. “Customer demand remains firm for our metals and our objective will be to maintain our operational consistency in the second half of 2010.”

Output of copper in concentrate was 169,400 tons, 5 percent lower than a year earlier, Kazakhmys said. “This decrease reflects the 3 percent reduction in metal in ore mined, as well as the additional copper in concentrate, produced” in the first half of 2009 “from previously stockpiled ore.”

The company’s output of zinc contained in concentrate, an intermediate product shipped to refineries, rose 5.9 percent to 80,900 tons. Silver production fell 27 percent to 6.7 million ounces, while gold declined 8.1 percent to 62,400 ounces.