In 1998, MangystauMunaiGas, based in the west of Kazakhstan, recovered 3,347,000 tonnes of crude oil of the planned 4,350,000 tonnes. The information was released by the president of the company, Sagyn Krymkulov, at a press conference last week. The reduction in output was caused by the drop in the demand for oil due to the world crisis. In July 1998, the company was at the peak of the crisis and had to halt production at its largest oilfield Kalamkas. The oilfield resumed operations only on 5 November 1998. According to the president, 1,708 wells are currently in operation and they produce a total of 9,500 tonnes of oil per day. The management of the company is seeking increased transit quotas for recovered oil. To this end it is negotiating with the national oil company KazakhOil. Currently, it is allowed to transit 11% of its output. Additionally, the company is carrying out restructuring to reduce significantly administration costs. (Interfax)

Sales at Kazzinc, Kazakhstan's largest producer of metal zinc and lead which also produces gold, silver, rare metals and blister copper, rose 17.5% in 1998. However, according to its vice president, Zhasulan Nakupov, the company made almost no profit due to low world prices. In 1998, the output of zinc alloy and ingots increased to 240,000 tonnes from 189,000 tonnes in 1997, but the production of gold fell to 7.1 tonnes from 9.3 tonnes due to decreased ore supplies. At the same time the production of silver grew 18.6% to 176,768 tonnes. Gold and silver produced by Kazzinc are registered on the London Metals Exchange and have Good Delivery status. Gold is mainly sold to Kazakhstani banks, while silver is exported to European countries. Kazzinc's major shareholder is the Swiss company Glencore International AG. According to Nakupov, Glencore intends to invest about USD 32.5m in production in 1999. It has also provided about USD 100m in working capital. In 1998, investments in Kazzinc totalled USD 19m. (Reuters)

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Sokolovsko-Sarbaisky Mining and Concentrating Plant, an iron ore producer in the north of Kazakhstan, will start paying dividends to holders of its preferred shares in May 1999. The announcement was made by the company's Board at an open shareholders' meeting on 2 February. To pay the dividends, the company is to accumulate KZT 162m (USD 1.9m) in the next three months. The amount of the dividend will be 25% of a share with a face value of KZT 1,000. (Interfax)

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The Kazakh Government is to auction the Kazakhaltyn gold mining complex on 12 February. The company was declared bankrupt by a court last August. It will be sold under the Dutch auction scheme with a starting price of KZT 1,555m (USD 18m). The minimum price is announced to be KZT 121m and equals the participation fee. (Kazakhstanskaya Pravda).

Halyk Savings Bank of Kazakhstan (HSBK) is planning an additional issue of shares amounting to 10% of the total stock. According to its chairman Karim Masimov, the bank thereby hopes to increase its capitalisation. As of 1 October 1998, HSBK had a paid-in authorised capital of KZT 3.012bn. Currently, HSBK, along with American Express, is working on a second syndicated loan programme. In 1997 the bank received a syndicated loan worth USD 40m from a consortium of 15 banks led by American Express. (Reuters)