Kazakhmys expects strong copper prices and studies options for ENRC

Kazakhmys Plc Kazakhstan’s biggest copper producer expects prices for the metal to remain strong as demand growth outpaces supply.
Mr Oleg Novachuk CEO of Kazakhmys said that “The copper price will stay very strong at least for the next two years. Delivering copper projects isn’t easy and demand is growing much faster than people can deliver projects to the market.”
Copper prices jumped 30% last year in London as demand soared in China, the world’s largest consumer of the metal used in used in cables wires and plumbing. Prices reached a record ISD 10,190 per tonne on February 15.
Kazakhmys rose 3.5% to 1,487 pence, the biggest one day gain in a month after posting 67% increase in earnings before interest, tax, depreciation and amortization. The company is developing Kazakhstan’s Bozshakol and Aktogay mines as it seeks to raise annual output by two thirds to 500,000 tonnes in 2015.
Kazakhmys is considering strategic options for its 26% holding in Eurasian Natural Resources Corporation including swapping the stake for other assets, Novachuk said. Its interest in ENRC, a producer of ferrochrome, aluminum and iron ore in Kazakhstan is valued at about USD 5.25 billion at today’s share price.
Mr Novachuk said that we will stay as a mining company in the region where we have expertise and that area is where we are evaluating our strength.

(Source: http://www.steelguru.com/metals_news/Kazakhmys_expects_strong_copper_prices_and_studies_options_for_ENRC/194515.html)