Over the first 9 months of 1998, the Aksu Ferrous-Alloy Plant (based in the north of Kazakhstan) produced 26% more finished products than in the same period last year. Its sales increased 14.5%, profitability has reached 19.9%. This information was disclosed to Interfax by the director of the plant, Bolat Svyatov. He said also that over the past 9 months the plant has reduced its production costs by 18.3% compared with the same period last year and has paid taxes in the amount of KZT 913m (some USD 11m), up 15% from 1997. The plant employs 5,912 workers, and the average monthly wage is KZT 22,000 (USD 269). (Interfax)

The Shymkentnefteorgsintez (SNOS), also known as the Shymkent Oil Refinery, announced on 5 November that it had made a proposal to its major crude oil supplier, Canada's Hurricane Kumkol Munai, that the two companies merge. "We are prepared to establish a vertically integrated group," said the Chairman of the refinery, Nurlan Bizakov. In his opinion, the merger would resolve the differences between the two companies with regard to the price of crude oil. Bisakov said that SNOS is not considering purchasing shares in Hurricane for the merger. Instead, the proposal suggests swapping shares, which would allow the partners to set up a new venture. (Reuters)

ABN AMRO Bank of Kazakhstan has reported a profit of KZT 516,171,000 (USD 6.3m) in the 3Q98. The bank's financial statement has been audited by Ernst & Young. Its major shareholders include ABN AMRO Bank (Netherlands) which owns 51%, Kazkommertzbank (29%), and the International Finance Corporation (20%). (Reuters)

***

On 5 November, Kazkommertsbank, Kazakhstan's largest private bank with a capital of over USD 110m, opened its new premises and presented to the public a number of new banking services. The bank's Managing Director, Ermek Shamuratov, told journalists that the bank is planning to increase the number of VISA credit card holders to 100,000 from the current 20,000. To this end, the bank is enhancing its services to its clients on a monthly basis. Since the beginning of the year, the number of the bank's individual clients has increased 45% to around 40,000. (Interfax)

Vostochnii, an open pit coal mine at the world's largest coal deposit, Ekibastuz, in the north of Kazakhstan, produced 8,111,200 tonnes of coal over the first nine months of 1998. Investment totalled USD 57m over the same period. "This year, we plan to produce 11.5-12.0 million tonnes of coal and in 1999 we want to boost coal output to 15 million tonnes," the head of the company, Tuleugen Akbaev, told Reuters. Vostochnii was purchased by the Japan Chrome Corporation in 1996. Its reserves are estimated at 300 million tonnes. The average monthly wage at Vostochnii is KZT 19,000 (USD 230). (Interfax & Reuters)

***

The Kazakhstani Government will put up for auction on 4 December, 1998, a 60% state stake in the coal producer JSC Borly, said a senior official of the State Property and Privatisation Department to Reuters. The starting price has been set at KZT 470.4m (USD 5.73m). "He who offers the best price will become the owner," the official said. Last summer, the government made an attempt to sell the mine through a tender, however, the tender did not take place due to a lack of bids. After the sale, the government will retain 38% of the company. The remaining shares belong to the employees. Currently, the entire state stake is under the management of Samsung Deutsche GmbH. The company is included in the Kazakhstani Blue Chip Programme. (Reuters)

The U.S. power company AES Corp. has reportedly resumed operations at Kazakhstan's largest power plant, Ekibastuz GRES-1, after a four month closure, the company said in a statement on Tuesday, 3 November. The power plant was closed on 2 July after it lost large customers in the south of Kazakhstan who started receiving electric power from Kyrgyzstan as the result of a government resolution. Presently, the company has concluded contracts for sales of 250 MW. AES has invested a total of USD 85m in Ekibastuz GRES since August 1996 when it bought the plant. (Reuters)