OREANDA-NEWS. On February 06, 2007 Company KAZAKHMYS PLC, common shares of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list, provided KASE with the press-release, in which the following is informed, reported the press-centre of KASE:

Kazakhmys PLC ("Kazakhmys") announced that it has signed an agreement with AES Corporation ("AES") to acquire the Ekibastuz coal-fired power plant and the Maikuben West coal mine in Kazakhstan. Completion is subject to certain conditions, including obtaining the necessary regulatory approvals from the Government of Kazakhstan.

 - Ekibastuz is a strategic asset in the Central Asian power market:

 - It is the largest source of power in Kazakhstan, with nameplate capacity of 4,000MW, in a market increasingly short of power supply.

 - Ekibastuz offers significant growth opportunities with capacity to double output over the next 5 years from current available capacity of 2,250 MW;
 
 - The captive coal mine at Maikuben provides a secure base of raw material supply, with current output of 3,1 million tonnes of coal with estimated mine life of about 30 years based on A,B, C1    classification of reserves.

 - Considerable potential to create commercial opportunities and off take agreements.

 - Total payments of up to US$1,5 billion, subject to adjustment under a closing mechanism:

   - Includes an initial cash consideration of US$1,100 million and a deferred cash consideration and other payments of up to US$381 million, payable under earnout provisions.

   - Kazakhmys will retain AES on a management service contract up to 31 December 2010a.

   - Kazakhmys will fund the transaction through a debt facility, which has been announced separately today.

Oleg Novachuk, Chief Executive of Kazakhmys said "The acquisition of Ekibastuz and the captive coal mine at Maikuben West is consistent with our strategy of diversifying our portfolio and secures the future of an asset that is of importance to the development of Kazakhmys and the region. It offers considerable opportunities to develop commercial relationships through surplus power generation.