U.K.-listed miner Kazakhmys PLC (KAZ.LN) Tuesday said it has signed a memorandum of understanding with the Kazakh government's Samruk-Energy JSC to explore a partnership that would give Kazakhmys access to additional coal resources to run its power stations.
Kazakhmys and Samruk-Energy, a company created by Kazakhstan's government to implement state policy on the modernization of existing power stations and the construction of new power stations, are considering entering a strategic partnership, which would lead to joint ownership of Kazakhmys' power division.
Aside from additional coal resources, the partnership would help better integrate the company's power division into then nation's energy and transmission programs.
Oleg Novachuk, Chief Executive of Kazakhmys, said: "Samruk-Energy, with their access to substantial coal assets, would be an excellent partner for our power division....Such a partnership could further support the upgrading of the Ekibastuz power station, the largest power generator in Kazakhstan, and bring it up to its maximum capacity at the earliest opportunity."
Kazakhmys is Kazakhstan's largest copper producer and is one of the top ten copper producers worldwide. The natural resources group also produces gold, zinc, silver, electricity, and petroleum.