LONDON Feb 17 Copper miner Kazakhmys
said on Monday it will increase salaries for operational staff
by 10 percent in response to a devaluation of Kazakhstan's
The miner announced the pay increase days after President
Nursultan Nazarbayev, who has ruled the resources-rich nation
for more than two decades with firm grip, said the country's
largest exporters should raise workers' salaries to protect them
from the impact of the devaluation.
London-listed Kazakhmys operates mainly in Kazakhstan.
Its shares rose by about 30 percent last week after
Kazakhstan announced it would let the tenge devalue by 19
percent to prevent large-scale speculation on the foreign
exchange market after a slide in other emerging market
Kazakhmys, which sells copper within Kazakhstan in dollar
equivalents and exported copper in dollars, will benefit from
the devaluation because its local costs will fall.
The company said it has around 60 percent of its cost base
in Kazakh tenge.
The salary increase, which will apply to about two thirds of
the company's 58,000 employees, will be effective from April 1.
Analysts at Nomura said the salary increase only partially
corroded the benefit of the currency devaluation.
"In our view, it still locks in a significant benefit from
the devaluation," they said in a note to clients.
Kazakhmys' shares in London were 0.3 percent higher by 1059
GMT on Monday, underperforming a mining sector
increase of 1.2 percent.