Reuters reported that Kazakh copper miner Kazakhmys has agreed JV for one of its major projects with China's Jinchuan Group Limited to share the high costs with a company located in the world's biggest copper consuming nation.

Kazakhmys said that it would sell 49% stake in its Aktogay project in the east of Kazakhstan to Jinchuan for USD 120 million. The 2 firms will share development costs, estimated at USD 1.5 billion to USD 2.0 billion of Aktogay due to produce 100,000 tonnes of copper in concentrate per year. That would boost current output by around a third.

Mr Oleg Novachuk CEO of Kazakhmys said that Kazakhstan's extensive infrastructure and proximity to the Chinese market has been central in taking these projects forward. The project, seen as a large open pit mine is located in the Ayoguz region of Kazakhstan.

Kazakhmys bills Aktogay as one of the leading undeveloped copper deposits in the world, with contained copper of nearly 5 million tonnes to support a mine life of 40 years. A feasibility study is due to take about a year, after which mine construction will last 3 additional years.

Kazakhmys said that it expected lower tax rates this year after high taxes and sliding metal prices led to it missing 2009 profit forecasts with a halving of consolidated earnings per share. The firm also said that it was in good shape to pursue its expansion projects after slashing net debt to USD 689 million from USD 1.63 billion a year earlier.

(Sourced from Reuters)