KNB head Amangeldy Shabdarbayev:

Scandalous corruption cases stem from KNB’s anticorruption effort, not political games

– The Kazatomprom case provoked a massive public response. As far as everybody knows, initially the issue about violations in Kazatomprom activities was raised a couple of years ago, however, criminal charges were brought only this May. That may cast doubts on the motive behind this case…

– There are no undercurrents, let alone political motivation behind the case.

The case was launched on the officially pressed charges, on the basis of solid evidences, and only after the thorough examination of all materials by the prosecutor general’s office (PGO) and other security agencies.

I am as a KNB head have no right to intervene in the course of the investigation, which is being overseen by the PGO.

– Here a quite reasonable question suggests itself: if the infringements by the national company were identified long ago, why couldn’t they be stopped in due time? What had the republic’s special service been doing?

– Different people have been asking me this question: well-known politicians, parliamentarians, journalists and ordinary people. The president appointed me as head of the National Security Committee (KNB) 39 months ago. There have been a lot of positive changes in the country since then. The republic has strengthened its position in the world, especially in such areas as regional and international security. The KNB also contributed to the success.

In 2010 Kazakhstan will be chairing OSCE, which demonstrates great confidence in and recognition of our republic. We have been following the recommendations of the international organizations, including those pertaining to the human rights. I have to say that there is some criticism, which, unfortunately, is sometimes subjective and biased.

Let’s start with the fight against corruption. This social woe poses a real threat to the development of the state and undermines the trust in the authorities. Today a wide-scale campaign against corruption has been launched, however, the counteraction is rising accordingly. More rebukes and accusations of the lack of action on our part have been voiced recently. We are castigated for putting up a good show of effective service, but in practice we are alleged of catching and bringing only “the small fry” to court.

As soon as the security agency charges those who mistook the state coffers for their own pockets, the same voices coming from the communists and other oppositional politicians began referring to the clannish wheeling, a massive transfer of property or political motivation.

If we mean the uranium sector and uranium deposits, it is obvious that it is not an area of personal benefits for certain people, but an important issue of national security.

The analysis and the examination of the Kazatomprom case materials revealed a real threat to the national security, which led to the consequent court procedures.

Naturally, KNB’s work is not without productive results. The investigation we conduct and the evidences we found stir public debate, as they involve the issues of the national security and the security of our citizens.

As you may know, one of the KNB’s priorities is to respond to the challenges posed by the foreign intelligence agencies, which have been showing a growing interest in our country. They are very much interested in Kazakhstan’s mineral resources, especially taking into account the existing geopolitical factors and the republic’s foreign and domestic policy. I believe we have succeeded in counteracting the foreign special services in accordance with the classical counterespionage practices.

Eighteen people implicated in espionage have been exposed over the past three years. The investigators proved their guilt. Some of them were convicted and the others were treated in accordance with the international law.

As far as economic safety is concerned, during the mentioned period we have prevented economic crimes worth hundreds billion tenge, put up a shield against the international drug trade and trafficking, extremists attacks and any predatory attempts to seize the Caspian bioresources.

The KNB always keeps the community informed of its activities and findings. I personally inform the authorities of all levels, parliamentarians and well-known politicians. I also met with journalists not to simply chat with them over a cup of tea but tell them about some specific cases and findings of the KNB.

– Thank you for the interview!

http://www.interfax.kz/?lang=eng&int_id=13&function=view&news_id=2726

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KAZAKHMYS PLC ANNOUNCES REFINANCING OF SUBSIDIARY LOAN FACILITY

Kazakhmys PLC (the “Group”) announces the successful refinancing of the loan facility relating to MKM Mansfelder Kupfer und Messing GmbH (“MKM”), the Group’s downstream copper business in Germany.

The facility is used to finance working capital requirements to match customer orders. The Group has been able to reduce the size of the facility, due to lower copper prices and more efficient management of inventory. The three year € 170 million revolving structured trade finance facility was arranged by Deutsche Bank and was over subscribed in syndication.

Matthew Hird, Chief Financial Officer said: “We are extremely pleased with the outcome of the refinancing, given the challenging conditions in financial markets. The over subscription reflects the quality of MKM’s operations and management and a new 3 year facility enables MKM to continue developing their business.”

NOTES TO EDITORS

MKM

MKM is based in Germany, producing and selling copper and copper alloy semi-finished products. There are three units: wire products, flat products (strips, plates and sheets) & tubes and bars. The production volumes are sales driven with additional capacity available for most general product specifications.

Kazakhmys

Kazakhmys PLC is a leading international natural resources group, listed in the UK and Kazakhstan, with significant interests in copper, gold, zinc, silver, power generation and petroleum.

It is the largest copper producer in Kazakhstan and one of the top ten worldwide with 20 mines, 10 concentrators and 2 smelters. Kazakhmys copper operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode produced in 2008 from own ore was 343 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure. Kazakhmys also owns MKM, an upstream copper products fabrication company in Germany, which produces a range of preand semi-finished copper and copper alloy products.

Kazakhmys Copper produces significant volumes of other metals, including zinc, silver and gold. In 2008, it produced 48 thousand tonnes of zinc metal and 137 thousand tonnes of zinc concentrate. Kazakhmys is the fourth largest silver producer in the world (17 million ounces produced in 2008).

Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes substantial new development and exploration opportunities. The Group produced 179 thousand ounces of gold in 2008 and has measured and indicated resources of 2.3 million ounces.

Kazakhmys Power owns the recently acquired coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the Maikuben open cast coal mine, supplying around 20% of the power plant’s fuel requirements producing over 3.6 million tonnes of coal in 2008.

Kazakhmys Petroleum has acquired the East Akzhar exploration block, with an area of 602km?, located on the eastern fringe of the Caspian depression.

The Group is part of the FTSE-100 index of companies listed on the London Stock Exchange and is also listed on the Kazakhstan Stock Exchange (KASE). It had revenues of $5.2 billion in 2008 with EBITDA of $2.0 billion. The Group employs some 67,000 people, principally in Kazakhstan. The Group’s strategic aim is to diversify and participate in the development of the significant natural resource opportunities in Central Asia.

http://www.kazakhmys.com/uploads/KazPLCsubsidiaryrefinancin
grelease09June09.pdf

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