OREANDA-NEWS. January 8, 2010. Kazakhmys PLC (“Kazakhmys”) announced that it was in discussions with China Development Bank Corporation (“CDB”) and Joint Stock Company Sovereign Wealth Fund Samruk-Kazyna (“Samruk”) regarding a major unsecured loan facility. Kazakhmys today announces that it has secured up to USD 2.7 billion of this loan for its growth projects.

In June 2009, Samruk agreed a USD 3 billion financing line with CDB, to be used for the development of infrastructure and resource projects in Kazakhstan. Following a Memorandum of Financial Cooperation, signed between Kazakhmys, Samruk and the CDB, up to USD 2.7 billion of this line has been allocated to Kazakhmys. On 30 December, Kazakhmys signed Facility Agreements with Samruk for USD 2.1 billion of the allocated funds (the “Transaction”), which will be available for the following projects:

.    USD 2 billion to fund the development of the Boschekul copper project

.    USD 100 million to fund the development of the Bozymchak gold/copper project

The remaining USD 600 million is available for signing over the next 3 years and will be allocated to other growth projects once committed.

The funds are available for drawing anytime within a 3 year period and once drawn will pay interest semi-annually at a rate of USD LIBOR plus 4.8%. Each Facility has a final maturity of between 12 and 15 years from the date of first drawing with amortisation commencing three years following the date of the first drawdown.

The Transaction is subject to the approval of shareholders of Kazakhmys and a circular, providing details of the Transaction including terms and guarantees, will be sent to shareholders in due course.

Oleg Novachuk, said: “We are delighted to have reached an agreement with Samruk and the CDB that gives us flexible, long dated financing to deliver our major growth projects. The transaction demonstrates our strong regional relationships and ability to raise significant funding in a challenging global market environment. Bozymchak will now move into development, with first output in 2011, and the feasibility study for our major copper growth project at Boschekul will start in early 2010. Securing this funding is a major boost for copper production from Kazakhstan and will help to meet the growing demand of our customers in China.”