Kazakhmys, the copper mining firm from Kazakhstan, announced last Tuesday that it had sold MKM, its semi-finished copper products business in Germany. The price of the sale is at Eur42 million or US$54.34 million.
According to MKM, it is currently in the midst of bidding for Eurasian Natural Resources Corp. The sale would involve a deferred payment scheme for the total amount of Eur12 million.
Kazakhmys had recently purchased Mansfelder Kupfer und Messing GmbH (MKM) back in 2004. The German firm is in the business of producing copper strips, wire strips, tubing and copper bars. The annual output of nearly 200,000 tonnes to a wide range clients in the construction industry.
The mining firm said it had sold the business to a European family office but did not disclose the purchaser. The sale was a divestment of an asset which the miner sees as a 'non-core asset.'
According to Kazakhmys CEO Oleg Novachuk, "MKM is an excellent business, but did not fit with our geographic and strategic focus as a natural resources company in Central Asia."
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