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| 30 November 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Politics and Macroeconomics |
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Electricity
Export From Kazakhstan To Russia Up 3.3% For First 10 Months Of Year |
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The
export of electricity from Kazakhstan to Russia through January-October
2004 totalled 3.956 billion kilowatt/hour vs. 3.83 billion in 2003. The
data is included in a press release from the Kazakhstani electrical
energy association that was distributed during the second national
meeting of power engineers on Friday in Astana. In
addition, the transit of electricity from Central Asian countries to
Russia via Kazakhstan has increased 1.5 times since early 2004. Thus,
the transit volume for the first ten months of the year stood at 1.4
billion kilowatt/hour compared to 900 million kilowatt/hour in Jan-Oct
2003. According
to the press release, in Jan-Oct 2004 Kazakhstan produced 53.72 billion
kilowatts/hour of electricity or up 5% year-on-year. Participants in the national meeting discussed problems and tasks of the power industry in light of new regulations and legislative acts. (Interfax Kazakhstan) |
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Mangystau
Railway Line To Be Constructed In 2006 |
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Construction
of a 134 km railway in Mangystau Oblast from the Mangystau station to
Fort-Shevchenko will begin in 2006. The government of Kazakhstan decided
to construct the line due to increasing cargo traffic in the Mangystau
region, the Fort-Shevchenko city administration reported. The
funds for the construction will be allocated from the national budget.
Surveys are currently being carried out to study the area and the
potential cargo traffic. The city administration has reported that three routes were being considered. But specialists believe that the line from the Mangystau station is the most appropriate since the surface relief is most suitable. (Kazakhstan Today)
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Gold
And Silver Output Decreases |
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Kazakhstan
produced 7,775 kg of affined gold from January to October of 2004, 6%
less than during the same period of last year. Affined silver production
decreased by 14%, down to 581,656 kg, the State Statistics Agency
reported. At
the same time, the agency reported a 103% increase in aluminium compared
to the same period of last year, producing 1,219,505 tonnes from January
to October, 2004, and zinc production increased by 105%, producing
257,128 tonnes of unrefined zinc compared to last year. Kazakhstan also boosted its output of magnesium and magnesium related products by 29% including waste and scrap metal, with the exception of magnesium carbide. Titanium and titanium products, including waste and scrap metal and excluding titanium carbide increased by 27%. The Statistics Agency does not provide data on the actual output of these non-ferrous metals. (Interfax-Kazakhstan)
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Equities |
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The KASE-Shares index decreased by 0.95% to 205.28 by the end of period on November 23 2004. KASE-Shares index and weekly volume of trades. |
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Note:
KASE-Shares index is based on ask prices for equities in A Listing In the period between November 17
and November 23 2004, the volume of equity trades at the KASE increased
to USD 9,022,867 from USD 17,050,946 in the previous period. The shares
traded during the period were common shares of Bank
CenterCredit (CCBN), Kazakhmys (KZMS), Ordabasy (ORDB), Rosa (ROSA), Temirbank
(TEBN), ValutTransit Bank (VTBN), ValutTransit
Zoloto
(VTZL) and Zerde (ZERD) and preferred shares of
ATF Bank
(ATFBp), Kazakhtelecom (KZTKp), KazChrome
(KZCRp)
and ValutTransit Bank (VTBNp). (Irbis) |
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Company News |
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Oil & Gas |
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Kazakhstan
and the Agip KCO have reached a principle agreement on the country
joining the North-Caspian project consortium as a full participant, and
are continuing talks on parameters of the contract for the purchase of
BG’s stake in the Project. "Remaining
questions concern a number of conditions, guarantees, and funding
methods," the Kazakhstani Energy and Mineral Resources Minister,
Vladimir Shkolnik said in the lobby of Kazakhstani parliament on Monday. He
noted that Kazakhstan's participation in the consortium means "a
number of procedures connected with avoidance of a conflict of interest,
on one hand, taxation and project' control, and on the other hand,
participation in the project." The talks with the consortium will
continue until end of November or early December. Both
the members of the consortium and the government of Kazakhstan intend to
buy the 16.67% share, which is assessed at USD 1.23 Billion in value. In
addition to BG, Agip KCO includes ENI, Total, ExxonMobil, Shell each
holding 16.67% shares, as well as Inpex and ConocoPhillips owning 8.33%
each. Agip
KCO was created after signing a 40-year PSA in 1997. It will begin
commercial production in 2007 - 2008. Agip KCO said Kashagan holds an
estimated 7 billion - 9 billion barrels of recoverable oil resources and
total geological reserves of 38 billion barrels. (Interfax-Kazakhstan) *** The
next round of talks on the possible purchase of BG’s stake in the
North-Caspian project by Kazakhstan will be held in early December, most
likely in Astana, Kazakhstani Minister of Energy and Mineral Resources
Vladimir Shkolnik reported to the energy sector council on Friday in
Astana. He
reminded council participants that during previous talks, they had
reached a principle agreement that Kazakhstan's participation in the
project is necessary for its success. Minister
Shkolnik said, "Kazakhstan wants BG’s entire stake." Earlier
however, he indicated that he was not ruling out the possibility that
they would buy a portion of the BG share. BG
announced its intention to sell its stake in Agip KCO, which is drilling
at a number of oil deposits, the largest being Kashagan. Both
the members of the consortium and the government of Kazakhstan intend to
buy the 16.67% share, which has been assessed at USD 1.23 Billion. In
addition to BG, Agip KCO includes ENI, Total, ExxonMobil, and Shell,
each holding a 16.67% share, and Inpex and ConocoPhillips with 8.33%
each. Agip
KCO was created after signing a 40-year PSA in 1997. It will begin
commercial production in 2007 - 2008. Agip KCO said Kashagan holds an
estimated 7 billion - 9 billion barrels of recoverable oil resources and
total geological reserves of 38 billion barrels. (Interfax
Kazakhstan) *** The
Middle East Petrol Company shipped 2.8-3 million tonnes of oil and oil
related products from Kazakhstan and Turkmenistan from the Dyubendi
terminal in Azerbaijan in 2004, the president of the Azersun Holding
Company Group, Abdulbari Goozal, told journalists. According to him,
this is 20% greater than last year. In 2005, the volume of oil shipments
will grow another 20% compared to this year and will amount to 3.3
million tonnes. Goozal
also explained that after the acquisition of the Dyubendi terminal in
April 2002, Middle East Petrol doubled the capacity of its reservoir
park, up to 260 thousand tonnes, spending over USD 10 Million. Moreover,
Azersun Holding president announced the intention to export Azerbaijani
sugar to the Caspian countries. Related talks are now underway with
Kazakhstan. The annual sugar export volume of Azersun Holding will reach
120 thousand tonnes. Azersun
Holding was created in 1992 and specializes on the production of
foodstuffs, containers and other goods. At present, the holding’s
investments into the economy of Azerbaijan exceed USD 100 Million. (Kazakhstan
Today) *** The
Canadian Nations Energy’s investment into the development of the
Karazhanbas deposit will total USD 120 in 2005, according to Nations
Energy Company Ltd. President Khashim Jojo Hadi Kusomo. Now, the daily
oil extraction at the field is 48 thousand barrels. During the upcoming
2 years the company plans to increase it up to 80-90 thousand barrels. The
Nations Energy President reported that starting in 1997, the company
invested over USD 250 Million into the development of the Karazhanbas
deposit. This deposit is located on the Buzachi peninsula, 230 km from
Aktau in Western Kazakhstan, and is being developed by KarazhanbasMunay,
whose main owner is the Nations Energy Company Ltd. (94.62% of total
shares, 100% of common stock). KarazhanbasMunay
was established in 1994 following the reorganization of Karazhanbasneft,
created in 1986 from the Experimental oil and gas extraction department.
In April 1997, the enterprise was privatised. (Kazakhstan
Today) *** The
Azeri-Dutch joint venture (JV) Azeri Fugro, founded by SOCAR and the
Dutch Fugro, each with a 60% and 40% share in the JV respectively and
specializing in geotechnical and geophysical work, has received an offer
from Kazakhstani companies to form a JV that would perform the same type
of work in the Kazakhstani sector of the Caspian Sea. A
source from SOCAR reported that this long-term co-operation for over a
10-year period would be profitable for Azeri Fugro, but in order to
finalize the offer, Dutch Fugro needs to provide their consent. The name
of the Kazakhstani company has not been revealed, since the deal has not
been finalized. The source observed that this issue would be one of the
main topics on the agenda at the meeting of the board of directors of
the Azeri Fugro JV, planned to be held around December. Azeri
Fugro JV provides a full spectrum of services including research,
geological services and environmental protection work for the oil
industry of the Caspian Sea. (Kazakhstan Today) *** The
Atyrau Oil Refinery (ANPZ) LLP processed 2.42 Million tonnes of crude
oil in the first 10 months of 2004, 25.2% more than during the same
period last year, the ANPZ press service reported. KazMunayGas
supplied ANPZ with 1 .78 Million tonnes of oil from January to October
2004. During the third quarter of 2004, ANPZ purchased 86 thousand
tonnes of crude oil, or 82 % of the total purchased this year. Due to
the abundant supply of oil to the refinery, the plant was able to
accomplish their targeted refining quota for the entire year, within ten
months. ANPZ
paid KZT 3.42 Billion in taxes for January-October 2004, according to
the ANPZ press service. Taxes increased by KZT 308 Million compared to
the same period of last year, mainly due to an increase in revenues. The
company anticipates paying KZT 4.2 Billion in taxes for 2004. ANPZ expects to increase the volume of processed oil and revenues significantly by the end of 2004. (Kazakhstan Today)
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Banking and Finance |
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A
syndicate of foreign banks has added USD 34 Million and made a one-year
extension on a USD 36 Million syndicated loan made available to Bank
CenterCredit (BCC), a Kazakhstan-based commercial bank, in November 2003.
They signed an agreement on Thursday, the BCC press service stated. This
loan is “the largest one in the history of the BCC, both in terms of the
amount and number of participating financial institutions,” the press
release indicated. The
interest rate for the new loan is LIBOR+2.30% p.a., whereas the interest
rate for the earlier drawn credit facility was LIBOR+2.55%. The
press service specified that the new loan is being made available for one
year with a possible one-year extension. According
to the press service, the loan is being organized by the UK based Standard
Bank London, the German HVB Group and the Italian SanPaolo IMI S. p. A.,
the same group that organized the first loan. Syndicate
participants of the BCC loan, including the organizers, are made up of 28
foreign banks and financial institutions with the following first time
participants - HSH Nordbank AG, Danske Bank A/S, Moscow Narodny Bank
Limited, Piraeus Bank, Alpha Bank AE, Hua Nan Commercial Bank Ltd., N.V.
de Indonesische Overseese Bank, Chang Hwa Commercial Bank Ltd., the
Export-Import Bank of the Republic of China. BCC
intends to spend the funds to finance export and import contracts for its
clients. (Interfax-Kazakhstan) *** A
new system was recently presented at the central office of TEXAKABANK in
Almaty. For the first time in the Kazakhstani banking sector, TEXAKABANK
is introducing an electronic scan and barcode system to identify payment
documents. The
operations manager will be able to identify barcodes on payment orders
with the help of a special scanner. The information is shown on the
manager’s computer monitor. This enables the bank to process a payment
order within one second. Among the advantages of the new system is an increase in the speed of banking operations. The client can locate mistakes in filling out payment orders instantly, which allows the client to quickly correct them. The introduction of this system will lower costs related to the processing of payment orders. (Kazakhstanskaya Pravda) |
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Metals and Mining |
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JSC
KazZinc showed a net profit of KZT 17,755 Million (current exchange rate
130.45/$1) from January to September 2004, versus KZT 9,905 Million for
the same period of last year, the company said in a report filed with
the Kazakhstan Stock Exchange (KASE). According
to the report, the company’s sales were KZT 65,489 Million versus KZT
45,436 Million in January-September 2003, and the cost totalled KZT
32,402 Million and KZT 23,571 Million accordingly. Company
equity reached KZT 66,734 Million as of early October 2004, compared to
KZT 47,819 Million in October of last year; its charter capital remained
at KZT 20,644 Million. Company
assets were KZT 119,955 Million as of October 1, 2004, compared to KZT
111,015 Million one year ago; its liabilities totalled KZT 53,221
Million as of October 1 of this year and KZT 63,196 Million in October
of last year. KazZinc
is the largest integrated producer of zinc with a large accompanying
output of copper, precious metals and lead. KazZinc
does not disclose its shareholders. It has however disclosed the general
investor of the company as Glencore International A.G. KazZinc
produced 276,790 tonnes of zinc in 2003 compared to 266,886 tonnes in
2002. (Interfax-Kazakhstan) *** Oriel
Resources Plc has reached an agreement to supply ThyssenKrupp AG, the
largest steel manufacturer in Germany with ferronickel, to be extracted
as part of the Shevchenko project in Kazakhstan, according to Bloomberg. The
Financial parameters of the agreement have not been disclosed, however.
ThyssenKrupp will buy 140,000 tonnes of ferronickel annually, containing
about 31,000 thousand tonnes of nickel. The
Bateman Industrial Corp. will conduct a study of the viability of the
Shevchenko project, which will begin operation in 2007. A statement on
the part of the Oriel Chief Executive Officer, Sergey Kurzin indicated
that Bateman and ThyssenKrupp will assist in the attraction funds in
order to finance the construction of mines (Interfax) *** By
the end of this year, miners from the Shatyrkul mine, located in the Shu
region of the Jambyl Oblast will exceed the ore production and loading
limit of one million tonnes. The department of energy and industry
within the administration of the Jambyl Oblast reported that the
subdivision of the Balkhash Mining and Metallurgical Plant, under the
Kazakhmys Corporation, which has been operating since 2000, has the
highest potential of the region. According
to forecasts made by geologists, the deposit’s copper and molybdenum
ore reserves total several million tonnes, with a high copper content.
The mine provides one-third of the Shu region population with jobs with
an average salary of KZT 43,000. (KazInform)
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Energy
and Power |
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The
President of the Kazakhstan Electricity Grid Operating Company (KEGOC),
Kanat Bozumbayev announced that the Kazakhstani power industry requires
USD 3.5 Billion in investment by 2015 at a national meeting of power
engineers that took place on Friday in Astana. He
explained that the investment would be used to renew the industry’s
generation, supply, distribution and heating systems. Meanwhile,
he specified that KEGOC will direct significant investments within its
own program into the two largest projects; the construction of a second
high-voltage transmission line, VL-500 kV, going North to South
estimated at USD 295.7 Million, and an upgrading of the national power
system with an estimated cost of USD 280 Million. “KEGOC
is not planning any other considerable investments until 2015,”
Bozumbayev indicated. According
to Bozumbayev, KEGOC plans to attract funds for its projects from
various sources, including the national budget and from external loans,
which will be guaranteed by the state. (Interfax-Kazakhstan) *** The
Petropavlovsk Plant, named after Kirov located in North Kazakhstan
Oblast hopes to increase its production in 2005 by 1.5 - 2 times,
according to Marat Abilmazhinov, the director of the facility. During
the first 10 months of this year, the plant has produced goods with a
value of KZT 286.6 Million (current exchange rate 130.2/ USD 1), 292%
greater compared to the same period last year. The
plant receives most of its orders from national oil and gas company,
KazMunayGas and the national railroad company Kazakhstan Temir Zholy.
The management of the plant is talking with the German organization,
Siemens, regarding the management of the KEGOC electricity grid to
produce automatic equipment protection cases. The
plant produces the following types of products; electrical energy meters
(one and three phases, one and two tariff meters), protective devices
for electrical engines, electricity transformers, oil pumping stations,
alarms and railroad communication systems, parts for equipment used in
the agriculture and energy sector. (Interfax
Kazakhstan) *** The
liquid natrium coolant processing plant for the fast neutron BN-350
reactor at the Mangyshlak atomic power plant (MAEK), in the Mangystau
Oblast, will begin operating in the spring of 2006, the Deputy Executive
Director of the Nuclear Technology Security Center, Alexandr Klepikov,
told Interfax-Kazakhstan. “The
deadline for installing the natrium processing facility, taking into
account project modifications, is April 2006. Construction is
underway,” Mr. Klepikov said. The
building foundation and transformer substation is in place and technical
equipment is being produced at the Belkamit plant in Almaty.
“Moreover,” he said, “the radioactive liquid waste processing
facility is now being designed and a feasibility study on the solid
radioactive waste processing facility is being conducted.” MAEK
maintains the reactor system to keep it in safe conditions. As
was announced earlier, the construction of the plant is being conducted
with the help of funds from the United States, under the
non-proliferation program. The cost of the project is USD 3 Million. The
plant will be able to process 1,300 tonnes of liquid natrium into
alkali. In
the future, another plant will be constructed to process alkali into
geo-cement rock for long-term safe storage. It is believed that liquid
natrium, used at the first sector of BN-350, will be processed into
geo-cement rock by September 2007. The geo-cement rock will be buried on
Kazakhstani territory. (Interfax-Kazakhstan)
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Transport and Telecommunications |
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Kazakhtelecom
has commissioned a third international switching center (ISC) in Aktobe,
thus creating an independent national telecommunications system. “Creation
of the third national ISC has completed Kazakhstan’s transformation to
international principles of communication with other national
telecommunication systems and has instituted a sovereign
telecommunications system in Kazakhstan,” the Kazakhtelecom president
Aben Bektasov announced last Thursday at the commissioning ceremony. He
reminded attendees that Kazakhtelecom and the German Siemens had signed
the contract to construct the 5,550 channel Aktobe ISC in December 2003,
as part of an official meeting between the Kazakhstani President
Nursultan Nazarbaev with the German chancellor Gerhard Shroeder. The
cost of the project totalled KZT 200 Million (current rate 130.35 / $1). The
decision to construct the third ISC in Aktobe was made with the purpose
of improving the reliability of the functioning of the long distance and
international network, and was made considering the fact that the
western region is characterized with high-level of business operations
and the presence of foreign companies as well as a high volume of
telephone traffic to Europe. Kazakhtelecom
is the only communications operator in the country providing services in
rural areas. The company provides communication with more than 230
countries worldwide. (Interfax-Kazakhstan) *** The
National Company, Kazakhstan Engineering and the Singaporean
defence-engineering company Singapore Technologies Engineering (ST Engg)
have established a joint venture called Kaz-ST Engineering Bastau,
Kazakhstan Engineering informed Interfax-Kazakhstan on November 19. The
company said a charter and agreement signing ceremony was held in Almaty
on November 15. The
heads of ST Engg and Kazakhstan Engineering had signed a memorandum of
understanding that contained an agreement to establish a joint venture
in Singapore in 2003. The
national company said that the main areas for the JV would be investment
holding and defence services, engineering including in electronics, as
well as assistance in industrialization of agriculture, the mining
industry, railways, air-space, ship-building, ship-repair and security
fields. The
company is headquartered in Singapore. ST Engg profits in 2003 totalled
USD 1.7 Billion. Singapore
Technologies Engineering is among the ten largest companies in
Singapore, and it has 100 subsidiaries in 15 countries. The
national company, Kazakhstan Engineering OJSC was founded in spring 2003
and has 19 enterprises in the former defence and engineering industry of
Kazakhstan. Most
of these companies produce civil oriented products and services designed
for both civilian and military goals. A
number of companies continue producing defence equipment including
certain products that are export-oriented. The
large products include mobile oil drilling rigs, marine vessels,
caterpillar tractors, and haulers. The
staff of Kazakhstan Engineering totals 9,000 people. Its annual turnover
in 2003 equalled USD 30 Million. (Interfax-Kazakhstan)
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Money Markets |
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KZT/USD market rate dynamics during the week |
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Currency Rates as of 30 November 2004 |
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Note: Some of the information quoted in this issue has been provided for us by Golden Eagle Partners. For more information on those articles, please contact: zhonar@maverick.kz or newswire@ges.kz |
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For
more information and other publications please contact Yelena Kovalenko
at +7 (3272) 596 708
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