April 30, 2020 / 7:17 AM / a month ago

UPDATE 1-Kaz Minerals cuts 2020 spending outlook on coronavirus hit

(Adds details on Aktogay project, Q1 output)

April 30 (Reuters) - Copper miner Kaz Minerals on Thursday cut its forecast for capital expenditure in 2020 and warned that production from its Aktogay expansion project in Kazakhstan will be delayed due to coronavirus-driven disruptions.

However, the miner said it was on track to achieve 2020 copper production outlook of 280-300 kilo tonnes (kt) after it reported a 7% rise in its first-quarter copper output, as all its mines maintained operations this year.

Kaz Minerals, which is listed on both London Stock Exchange and the Kazakhstan Stock Exchange, now expects capital expenditure in 2020 to be between $300 million and 350 million, lower than $400 million forecast previously.

The Kazakhstan-focused miner also said Aktogay expansion project remains on track for completion in 2021, as previously guided, but is now expected to commence production in late 2021.

Kaz said the measures taken to control the spread of the coronavirus have hit its supply chain, reduced the availability of local contractors with vendors unable to enter the country to support equipment installations at the project.

The company in December 2017 had announced a $1.2 billion expansion project at Aktogay, in east Kazakhstan, to double the sulphide ore processing capacity to 50 million tonnes from 2021.

Reporting by Shanima A in Bengaluru; Editing by Aditya Soni and Amy Caren Daniel

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