Kazakhstan wants stake in Kazakhmys power plant

Kazakhstan wants stake in Kazakhmys power plant
Reuters - 41 minutes ago

ASTANA (Reuters) - Kazakh Prime Minister Karim Masimov ordered the state investment vehicle Samruk on Thursday to hold talks with Kazakhmys Plc to buy a stake in its big power project in Kazakhstan.

Kazakhmys said this week it would pay $1.5 billion (764 million pounds) to buy Ekibastuz-1, the biggest power plant in Kazakhstan, from U.S. energy company AES Corp , as well as a nearby coal field.

"I think we should hold discussions with Kazakhmys," Masimov told an energy ministry meeting, adding that Samruk's energy unit, Samruk-energo, should become a shareholder in the project.

"I urge you to hold negotiations in that direction," Masimov added.

As part of the deal with AES, Kazakhmys will buy the Ekibastuz coal-fired plant and Maikuben West coal mine for an initial cash payment of $1.1 billion and a deferred cash payment and other payments of up to $381 million.

Samruk manages some of the Central Asian state's most strategic assets, including oil.

Kazakhstan's steps to increase state presence in strategic sectors has alarmed some investors.

Earlier in the day, Masimov said the government would unilaterally break contracts with natural resource producers who violate contractual obligations.