Though planned, KazTransOil, Kazakhstan's oil transportation company, will refrain from borrowing USD 50m on world financial markets till the year end. This information was disclosed by the president of KazakhOil, Nurlan Kapparov, at a press conference on Monday, 30 November. He didn't rule out, however, that the company could tap the markets next year. After its share transfer in late November, KazTransOil became a 100% subsidiary of KazakhOil. Kapparov said that the investment programmes of both companies are to be reviewed by the end of the year. (Interfax)

The Aktubinsk-based (western Kazakhstan) ferroalloy plant Ferrochrome will start producing metal chrome to be used in manufacturing Boeing air craft and space equipment. This information was released to Interfax by the plant's General Director, Valery Grinenko. He said that the production of metal chrome has become possible thanks to the introduction of new technology to produce medium-carbon ferrochrome. For this purpose, the transnational company Kazchrome, which owns 90% of the common shares in the plant, invested about USD 400,000. The plant has now completed the certification of the new product, and on 2 December, it implemented a pilot smelting of metal ferrochrome. Agreements are underway to supply metal chrome to some large foreign companies, said Mr. Grinenko. The plant will produce 500,000 tonnes of the metal each month. In 1999, the total output is planned at 6,000 tonnes. (Interfax)

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The Abakai GOK (a mining and concentrating plant that produces gold in southern Kazakhstan) does not intend to shrink its production of gold despite the declining prices, the president of the company, Toleukhan Ospanbekov, told Interfax. In 1998 and 1999 the company will sell to the state, its sole buyer, 1.5 tonnes of gold annually, the same amount as last year. The plant uses technology that only allows it to extract 7-8g of gold from one tonne of ore and leaves up to 2g of gold per tonne of tailing. During more than 29 years of operation, Abakai GOK has accumulated about 3 million tonnes of tailings. A recently opened plant in the town of Abakai is currently processing these tails to produce gold alloys. The new plant intends to sell 500 kg of gold alloy to the state in 1999. (Interfax)

The managers of Almaty Merchant Bank (AMB) and Nurbank have announced the establishment of an alliance. "This is not a merger or a joining. This is an alliance which aims at improving and broadening the range of services to our clients," said AMB's Chairman, Kairat Satylganov. Kazakhstan's banking legislation provides for the establishment of alliances "to co-ordinate activities, to protect mutual interests, and to implement joint projects". The heads of both banks didn't exclude that the two banks may merge in the future. The speciality of both banks is lending to small and medium-sized businesses. According to their heads, AMB and Nurbank are among those Kazakhstani banks who are seeking to reach international banking standards before 1 January 1999 with a capital not less than KZT 1bn (USD 12m). The AMB is half-owned by foreign investors, and the remaining 50% belongs to Kazakhstani corporations and individuals. As of 1 November, the bank's shareholder equity was KZT 812.7m (USD 9.98) and its profit for the first 9 months of this year totalled KZT 276.5m (USD 3.4m). One of Nurbank's founders is the Atyrau Oil Refinery. Its capital totalled KZT 673.3m (USD 8.3m) and its profit for the first 9 months of 1998 was KZT 76.4m (USD 0.94m). (Reuters)

The net income of Kazakhtelecom, Kazakhstan's national telecommunications operator, totalled KZT 3.342bn (USD 40.3m) for the first 9 months of 1998. As of 1 October 1998, the book value of one of the company's shares was KZT 3,104.10 (about USD 37). The company's management has set up a schedule to pay dividends. The dividends due for 1996 will be paid off in the 2Q99 and those due in 1997— in the 3Q99. According to Kazakhtelecom's investment programme, all its profits gained before the end of 2002, will, with the exclusion of dividends on the preferred shares, be reinvested in the company as part of its short-term financing. (Reuters)