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AES Sells Kazakh Power Plant and Coal Mine to Kazakhmys

Posted on: Monday, 2 June 2008, 06:00 CDT

The AES Corporation has completed the sale of its interest in the Ekibastuz power plant and the Maikuben coal mine in Kazakhstan to copper producer Kazakhmys for gross proceeds of $1.1 billion.

AES will also receive up to $381 million over a three-year period to manage and operate the facilities acquired by Kazakhmys. AES will maintain ownership and operation of its other facilities located in eastern Kazakhstan, which include thermal and hydro generation capacity of approximately 2,688MW and a distribution business with over 400,000 customers.

Ekibastuz, a coal-fired power plant with current available capacity of approximately 2,250MW, and the Maikuben coal mine are both located in northern Kazakhstan.

AES had acquired its initial interests in Ekibastuz and Maikuben in 1996 and 2001, respectively. Since 1996, AES has invested in modernization programs bringing into operation more than 2,000MW of generation capacity at Ekibastuz.

Paul Hanrahan, AES president and CEO, said: "The decision to sell a portion of our business in Kazakhstan is consistent with our focus on portfolio management and how we assess the long term potential of each of our businesses in the context of our broader portfolio. What makes this sale unique is that AES will continue to maintain a significant presence in the country and play an active role improving the delivery of power in this growing market through the management agreement with Kazakhmys and our remaining generation and distribution businesses in eastern Kazakhstan."

Source: Datamonitor

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