Corporate Strategy
KazakhGold aims to become one of Central Asia's leading gold producers by increasing output to a level that is more commensurate with its large reserve/resource position through the introduction of open pit mining and modern treatment processes at its three principal mines in northern Kazakhstan. This programme is also expected to lower overall production costs across all operations. Furthermore, the new facilities will yield cathodic gold, a higher margin product than either the flotation or gravity concentrates which the operations have traditionally produced.
The Group will progressively increase production of open pit ore from each of the mines, linked to further expansion of CIP processing facilities as it seeks to raise gold output over the medium term. Underground mining of high-grade ore at both Aksu and Zholymbet will continue, however.
KazakhGold has an experienced management team whose growth strategy is to increase its reserve base and expand its current portfolio of mines by actively pursuing selective acquisitions. The Group intends to continue acquiring under-performing operating gold mines or their assets and rights to exploration properties in Kazakhstan and elsewhere in Central Asia. The Group also continues to focus on increasing its reserves by ongoing exploration in the vicinity of its existing mines.
International joint ventures and other strategic arrangements are also part of the Group strategy. One such arrangement is expected to see China National Gold Corporation, China's leading gold mining company, provide mining equipment and operational management for expansion of underground mining at Bestobe. A second is being negotiated with Barrick Gold and covers co-operation in exploration projects in Kazakhstan and Central Asia.