REG - Central Asia Metals - Kounrad Update <Origin Href="QuoteRef">CAML.L</Origin>

Central Asia MetalsAnnouncement

23/11/2015 07:00

RNS Number : 5245G
Central Asia Metals PLC
23 November 2015
23 November 2015
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
Kounrad Update
Central Asia Metals plc (AIM: CAML), a copper producing company, is pleased to announce that it has received the regulatory approvals required for the Stage 2 Expansion programme of its Kounrad solvent extraction and electro-winning (SX-EW) copper recovery project in Kazakhstan (the "Project").
Highlights:
 State approval received for Western dumps exploitation
 Construction works scheduled to commence in March 2016 
 Record monthly production of 1,285 tonnes of copper in October 2015
Stage 2 Expansion Update
Following completion and commissioning of the Stage 1 Expansion programme increasing the SX-EW plant's capacity (as announced 21 May 2015), the Ministry for Investment and Development of the Republic of Kazakhstan has approved an amendment to the Project's existing Subsoil Use Contract ("SSUC"). Mineral rights for the Kounrad dumps are provided for under the terms of the existing SSUC granted in 2007, and this approval gives CAML the right, under the law, to exploit the copper contained in the Western dumps.
The procurement of materials and equipment for the Stage 2 Expansion programme (announced 20 May 2014) is now underway, with the programme's capital cost remaining within the US$19.5 million estimate. The construction works are scheduled to commence in March 2016, and will be executed primarily by Company personnel.
2015 Production Update
The second part of the year has seen an overall increase in production volumes, and a record monthly production of 1,285 tonnes of copper has been achieved in October. This increase, together with an approximate 65% devaluation of the Kazakhstan Tenge against the US Dollar, results in downward pressure on the unit cost of production.
CEO Nick Clarke commented:
"Whilst a formality, this State approval offers a clear indication of the Kazakhstan government's readiness to support foreign investors, and it enables CAML to fully commit to the second phase of the Kounrad project's expansion. The successful commissioning of the additional SX-EW facilities earlier this year already had a positive impact on our unit cost of production, and I have a full confidence in our team at Kounrad successfully completing this next stage of the projects' development in a diligent and timely manner, thus further enhancing CAML's ability to generate value for its shareholders." 
For further information contact:
Central Asia Metals plc
Tel:+44 (0) 20 7898 9001
Nick Clarke, CEO
Nigel Robinson, CFO
Peel Hunt LLP (Nominated Adviser & Joint Broker)
Tel: +44 (0)20 7418 8900
Matthew Armitt
Ross Allister
Mirabaud Securities LLP (Joint Broker)
Tel: +44 (0)20 7878 3362
Peter Krens
Bell Pottinger
Tel: +44 (0)20 3772 2500
Lorna Cobbett
Note to editors:
Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper facility in Kazakhstan. The Company also has a 75% equity interest in Copper Bay Ltd, which is a private company conducting a feasibility study of the Chaaral Bay Copper Project in Chile. At the 2014 UK Stock Market Awards, CAML was named Best Basic Resources Plc. For further information, please visitwww.centralasiametals.com.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
MSCFEMFMSFISEIF