Kazakhmys PLC

28th October 2010

KAZAKHMYS PLC PRODUCTION REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2010 AND INTERIM MANAGEMENT STATEMENT

  Copper cathode production for the first 9 months of 2010 reaches 239 kt

• Production remains on track to meet the full year target of at least 300 kt
• Work in progress will be rebuilt in the final quarter

  By-product output in the first 9 months of 2010 is in line with annual targets

• Increase in zinc grades leads to 16% increase in zinc in concentrate output
• Silver production reduced 22% to 10,282 koz, with lower grades and lower contribution from stockpiled ore
• Gold production declined 6% to 97 koz, as higher mining output largely offsets the lower contribution from stockpiled ore

 Kazakhmys Power continues to benefit from strong market demand

• 26% increase in net generated power during the first 9 months of 2010
• Acceleration of modernisation programme with refurbishment of a further unit to commence in Q4 2010

Commodity pricing has remained firm over the period

• Average copper price of $7,100 per tonne for the first 9 months of 2010
• Sales of products have been in line with production
• Net debt has been reduced to $489 million at 30 September 2010, from $585 million at 30 June 2010, taking advantage of strong commodity pricing and continued cost control

Oleg Novachuk, Chief Executive Officer, said: �This has been another solid quarter for production in our Copper Division and, combined with firm markets and pricing, has led to further strengthening of our balance sheet.  The Power Division continues to see positive demand and the modernisation programme is accelerating to meet the power needs of Kazakhstan�s economic growth.  We remain on track to meet the production targets set out at our interim results in August and we look forward to reporting at the end of the year.�

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