(EnergyAsia, June 4, Wednesday) — US-based power company AES Corporation said it has completed the sale of its interest in the AES Ekibastuz power plant and Maikuben coal mine in Kazakhstan to Kazakhmys PLC for a total of $1.1 billion.
AES said it will also receive up to $381 million over a three-year period to manage and operate the facilities acquired by Kazakhmys, Kazakhstan’s largest producer of copper and one of the leading copper producers in the world.
The Arlington, Virgina state company said it will maintain ownership and operation of its other facilities located in eastern Kazakhstan, which include thermal and hydro generation capacity of approximately 2,688 MW and a distribution business with over 400,000 customers.
“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,” said Paul Hanrahan, AES President and CEO.
“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.”
Ekibastuz, a coal-fired power plant with current available capacity of approximately 2,250 MW, and the Maikuben coal mine are both located in Northern Kazakhstan.
AES acquired its initial interests in Ekibastuz and Maikuben in 1996 and 2001, respectively. Since 1996, AES has invested in modernisation programs bringing into operation more than 2,000 MW of generation capacity at Ekibastuz.
Kazakhmys has its corporate headquarters in London and operations in Kazakhstan and Germany.
AES is a world leading power company with 2007 revenues of $13.6 billion. With operations in 29 countries on five continents, its generation and distribution facilities have the capacity to serve 100 million people worldwide.