Kazakh copper miner Kazakhmys PLC (KAZ.LN) Friday said that it has completed the acquisition of the Ekibastuz coal-fired power plant and the Maikuben West coal mine.
The total payment for the purchase will amount to $1.5 billion, including a $1.1 billion cash consideration and a deferred cash consideration, and other payments of up to $381 million, Kazakhmys said in a statement.
The transaction will be funded through an existing debt facility, placing the company into a net debt position for the first time since the company listed in 2005.
Ekibastuz, located in northeastern Kazakhstan's Pavlodar Oblast, is the largest power plant in the country with a nameplate capacity of 4,000 megawatts, Kazakhmys said.
Maikuben West Coal mine is an open mine located 65 kilometers from the Ekibastuz power plant and has an estimated mine life of about 30 years.
"It is clear that electricity demand in Kazakhstan and the region is increasing significantly and the spare capacity at Ekibastuz will be key in satisfying market demand," said Oleg Novachuk, chief executive of Kazakhmys. "Ekibastuz offers substantial commercial opportunities as well as underpinning all our future internal electricity requirements."