NEWS Today
Privatization of Kazakstan gold mines being negotiated
Kazakstan Goldfields Corp KGFC
Shares issued 34,830,860 May 13 close $0.62
Wed 14 May 97 News Release
Mr A. Thomas Griffis reports
Kazakstan Goldfields has filed notice with the government of Kazakstan that
it intends to immediately begin negotiations for the privatization of three
gold mines in Kazakstan. The company's management contract with the
government gives it the right to privatize the mines.
The mines are currently managed by the Gold Pool joint venture, a Kazakstan
limited liability partnership. KGFC has a 75% controlling interest of Gold
Pool with Central Asia Goldfields, an associated company, holding the
balance.
In addition, KGFC shipped 38 kilograms of gold valued at US$380,000 from
Kazakstan this week for refining in the UK. Since December, KGFC has made
five shipments of gold from Kazakstan totalling approximately 200
kilograms. In addition to this latest shipment, KGFC has a further 237
kilograms of gold in smelter sludge, 175 kilograms of gold in concentrate
and an ore stock pile of 40,000 tonnes containing 240 kilograms of gold. In
total, including the latest shipment, Kazakstan Goldfields has produced
approximately 28,000 ounces of gold since September 1996.
Kazakstan Goldfields continues to produce gold at a rate of 84 kilograms
per month from its Bestobe mine. Management is encouraged by these regular
shipments and characterizes them as evidence that the export system in
place in Kazakstan is working.
Kazakstan Goldfields is also in the final stages of selecting an
engineering contractor for its proposed carbon in pulp plant in Kazakstan.
Recently, KGC announced that it had arranged a US$12 million loan facility
from Gerald Metals to finance the CIP plant. Dependent upon several
factors, including the availability of financing and the completion of the
privatization process, the plant could be operational by year end 1997.
Management is currently in discussion with various groups to arrange
financing.
The proposed plant will significantly reduce operating costs and is
expected to result in a production increase to 175,000 ounces in 1998.
(c) Copyright 1997 Canjex Publishing Ltd. |
