Kazakhmys has agreed with the Government about mineral tax reduction for low profitability assets

Kazakhmys Group has agreed with the Government about mineral tax reduction for several mature low profitability assets. The awaited economy effect is $40 million in 2014. The reduced mineral tax rates will be applied to the mines of Zhezkazgan and Zylandy groups of deposits and the Konyrat mine. The assets falling under reduced mineral tax rates are the members of 2 divisions that can be separated from Kazakhmys Group to a private company within reorganization of the group. The reduction of the metal content in ore and in profitability of production have touched these assets most of all. The new mineral tax rates will applied within the period since January 1st 2014 until January 1st 2015.