CAML AIM Admission Document

420 Pages·2010·6.33 MB·English

THIS DOCUMENTIS IMPORTANT AND REQUIRESYOUR IMMEDIATEATTENTION.Ifyouare inanydoubt about thecontents ofthis
documentor as to the action you should take, you should consult an independent professional adviser authorised under the United Kingdom Financial
ServicesandMarketsAct2000(asamended)(‘‘FSMA’’)whospecialisesinadvisingontheacquisitionofsharesandothersecurities.
CentralAsiaMetalsPlc(the‘‘Company’’)anditsdirectors (the‘‘Directors’’), whosenamesappear onpage5ofthisdocument,acceptindividual
and collective responsibility for the information contained in this document and for compliance with the AIM Rules forCompanies. To the best
of the knowledge and belief of the Company and the Directors who have taken all reasonable care to ensure that such is the case, the
information contained in this document is in accordance with the facts and makes no omission which is likely to affect the import of such
information. Application has been made for the whole of the issued and to be issued ordinary share capital of the Company (the ‘‘Ordinary
Shares’’)tobeadmittedtotradingonAIM(the‘‘Admission’’),amarketoperatedbytheLondonStockExchange(‘‘AIM’’).
AIMisamarketdesignedprimarilyforemergingorsmallercompaniestowhichahigherinvestmentrisktendstobeattachedthantolargerormore
establishedcompanies.AIMsecuritiesarenotadmittedtotheOfficialListoftheUnitedKingdomListingAuthority.Aprospectiveinvestorshouldbe
aware of the risks of investing in such companies and should make the decision to invest only after careful consideration and, if appropriate,
consultation with an independent financial adviser. Each AIM company is required pursuant to the AIM Rules for Companies to have a nominated
adviser. The nominated adviser is required to make a declaration to the London Stock Exchange on Admission in the form set out in Schedule Two
totheAIMRulesforNominatedAdvisers.TheLondonStockExchangehasnotitselfexaminedorapprovedthecontentsofthisdocument.
The rules of AIM are less demanding than those of the Official List of the United Kingdom Listing Authority and it is emphasised that no
application is being made for admission of the Ordinary Shares to the Official List of the United Kingdom Listing Authority. Furthermore, the
United Kingdom Listing Authority has not examined or approved the contents of this document. It is expected that Admission will become effective
andthattradingintheOrdinaryShareswillcommenceonAIMon30September2010.
This document, which does not constitute a prospectus, has been drawn up in accordance with the AIM Rules for Companies and has been
issued in connection with the application for admission to trading of the Ordinary Shares on AIM. This document contains no, and the
Company is not making an, offer to the public within the meaning of sections 85 and 102B of FSMA. This document is therefore not an
approved prospectus for the purposes of section 85 of FSMA, and has not been filed with the Financial Services Authority (the ‘‘FSA’’) or any
otherauthoritywhichcouldbeacompetentauthorityforthepurposesoftheEUProspectusDirective2003/71/ECnorhasitbeenapprovedbya
personauthorisedunderFSMA.
CENTRAL ASIA METALS PLC
(Incorporated in England and Wales under the Companies Act 1985 with registered number 5559627)
Placing of 39,735,100 new Ordinary Shares of US$0.01 each at 96p per share
and
Admission to trading on AIM
Nominated Adviser
KPMG Corporate Finance
Lead Manager and Broker
Mirabaud Securities LLP
AllofthePlacingShareswill,onAdmission,rankparipassuinallrespectswiththeexistingOrdinarySharesinissueandwillrankinfullforall
dividendsandotherdistributionsdeclared,paidormadeinrespectoftheOrdinarySharesafterAdmission.
KPMG Corporate Finance, a division of KPMG LLP, which is authorised and regulated by the FSA for the conduct of investment business in
the United Kingdom, is acting as nominated adviser to the Company in connection with the Placing and Admission. Its responsibilities as the
Company’s nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or to
any Director or to any other person in respect of his decision to acquire shares in the Company in reliance on any part of this document.
KPMGCorporateFinanceisnot actingforanypersonother thantheCompanyandwill notberesponsibleto anyoneotherthantheCompany
for providing the protections afforded to its clients or providing advice in relation to the contents of this document or any matter or for any
arrangementsinrelationtothePlacingandAdmission.
Mirabaud Securities LLP, which is authorised and regulated in the United Kingdom by the FSA and is a member of the London Stock
Exchange, is acting exclusively for the Company, as broker, in relation to the Placing and will not be responsible to anyone other than the
Companyforprovidingtheprotections affordedtoclientsofMirabaudSecuritiesLLPorprovidingadvicetoanyotherpersoninrelationtothe
contentsofthisdocumentoranymatterorforanyarrangementsinrelationtothePlacingandAdmission.
Apart from the responsibilities and liabilities, if any, which may be imposed on KPMG Corporate Finance or Mirabaud Securities LLP by
FSMA or the regulatory regime established thereunder or under the regulatory regime of any jurisdiction where exclusion of liability under the
relevant regulatory regime would be illegal, void or unenforceable, KPMG Corporate Finance and Mirabaud Securities LLP do not accept any
responsibilitywhatsoeverforthecontentsofthisAdmissionDocumentorforanyotherstatementmadeorpurportedtobemadebyit,oronits
behalf, in connection with the Company, the Ordinary Shares or the Placing. Each of KPMG Corporate Finance and Mirabaud Securities LLP
accordingly disclaim all and any liability whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have
inrespectofsuchdocumentoranysuchstatement.
The information contained in this document has been provided by the Company and other sources identified herein. KPMG Corporate Finance
and Mirabaud Securities LLP make no representation, express or implied, nor accept any responsibility, with respect to the accuracy,
completenessorfairnessofanyoftheinformationoropinionscontainedinthisdocument.Thisdocumentisnotintendedtoprovidethebasisof
any credit or other evaluation and should not be considered as a recommendation by any of the Company, KPMG Corporate Finance or
Mirabaud Securities LLP that any recipient of this document should subscribe for or purchase the Ordinary Shares. Each potential investor in
OrdinarySharesshoulddetermineforhimself,herselforitselftherelevanceoftheinformationcontainedinthisdocumentandanyinvestmentin
OrdinarySharesshouldbebaseduponsuchinvestigationasitdeemsnecessary.
Investors should rely only on the information contained in this document. No person has been authorised to give any information or to make
any representations other than those contained in this document in connection with the Placing and, if given or made, such information or
representations mustnot be relied uponas having been soauthorised byoron behalf of the Company, KPMG Corporate Finance or Mirabaud
SecuritiesLLP.
The contents of this document should not be construed as legal, business or tax advice. Each prospective investor should consult his, her or its
ownlegaladviser,independentfinancialadviserortaxadviserforlegal,financialortaxadvice.
Neither this document nor the Ordinary Shares have been, and nor will they be, registered under the United States Securities Act of 1933, as
amended,orunderthesecuritieslegislationofanystateoftheUnitedStatesofAmerica,Canada,Australia,Japan,theRepublicofSouthAfrica
or the Republic of Ireland. Accordingly, subject to certain exceptions, the Ordinary Shares may not, directly or indirectly, be offered or sold
withintheUnitedStatesofAmerica,Canada,Australia,Japan,theRepublicofSouthAfricaortheRepublicofIrelandortoorfortheaccount
or benefit of any national resident or citizen of, or any person located in, the United States of America, Canada, Australia, Japan, the Republic
of South Africa or theRepublic of Ireland. This document does not constitute anofferto sell, or thesolicitation of anofferto subscribe for or
buy, any of the Ordinary Shares to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation in such jurisdiction
orwhichwouldimposeanyunfulfilledregistration,publicationorapprovalrequirementsontheCompanyorMirabaudSecuritiesLLP.
The distribution of this document in other jurisdictions may be restricted by law and therefore persons into whose possession this document
comes shouldinform themselves aboutandobserveany suchrestrictions.Anyfailure tocomplywiththese restrictions mayconstitute aviolation
ofthesecuritieslawofanysuchjurisdictions.
Prospectiveinvestors shouldreadthewholetextandcontentsofthisdocumentandshouldbeawarethataninvestmentintheCompanyisspeculative
andinvolvesasignificantdegreeofrisk.Inparticular,prospectiveinvestors’attentionisdrawntoPart1ofthisdocumententitled‘‘RiskFactors’’.
Copies of this document will be available to the public during normal business hours on any day (Saturdays, Sundays and public holidays
excepted) free of charge from the registered office of the Company, situated at Masters House, 107 Hammersmith Road, London W14 0QH,
UnitedKingdom,andtheCompany’snominatedadviser,KPMGCorporateFinance,situatedat8SalisburySquare,LondonEC4Y8BB,United
Kingdom,fromthedateofthisdocumentuntilthedatebeingonemonthafterthedateonwhichAdmissiontakesplace,whichisexpectedtobe
30September2010.
Forward looking statements
All statements other than statements of historical fact, contained in this document constitute ‘‘forward
looking statements’’. In some cases forward looking statements can be identified by terms such as
‘‘may’’, ‘‘intend’’, ‘‘might’’, ‘‘will’’, ‘‘should’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, ‘‘anticipate’’, ‘‘expect’’,
‘‘estimate’’, ‘‘predict’’, ‘‘project’’, ‘‘potential’’, or the negative of these terms, and similar expressions.
Such forward looking statements are based on assumptions and estimates and involve risks,
uncertainties and other factors which may cause the actual results, financial condition, performance or
achievements of CAML, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward looking statements. Factors that
might cause such a difference include, but are not limited to, those discussed in Part 1 ‘‘Risk
Factors’’. New factors may emerge from time to time that could cause CAML’s business not to
develop as it expects, and it is not possible for CAML to predict all such factors. Given these
uncertainties, prospective investors are cautioned not to place any undue reliance on such forward
looking statements except as required by law. Save as required by law, CAML disclaims any
obligation to update any such forward looking statements in this document to reflect future events or
developments.
Mineral Resources and Reserves disclosure
Where possible, CAML’s Competent Person, Wardell Armstrong International Limited (or ‘‘WAI’’),
has reviewed Mineral Resources in accordance with the Australasian Code for Reporting of Mineral
Resources and Ore Reserves (the ‘‘JORC Code’’ or ‘‘the Code’’ 2004), which is an internationally
recognised standard. The Code sets out minimum standards, recommendations and guidelines for
Public Reporting of Exploration Results, Mineral Resources and Ore Reserves in Australasia. The
Code has been drawn up by the Joint Ore Reserves Committee of The Australasian Institute of
Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of
Australia.
Reserves reported for the Kounrad Project in Kazakhstan have been approved by GKZ (Republic of
Kazakhstan), the state governing body in Kazakhstan. WAI believes that the Republic of
Kazakhstan, a member of the Commonwealth of Independent States (‘‘CIS’’), formerly a Soviet
Republic (Kazakhstan declared its sovereignty as a Republic within the Union of Soviet Socialist
Republics (‘‘USSR’’) in October 1990) still adheres to the GOST regulations of the Russian
Federation for the reporting of mineral resources and reserves and as such the reserves quoted in this
document for the Kounrad Project are equivalent to the Russian Standard. Gosstandart of the Russia
Federation (‘‘GOST’’) is a set of regulations (similar to ISO) which relate to all Russian industries.
Resources and reserves are approved by GKZ in Moscow, the state governing body for this, which
applies the GOST regulations. Therefore, if resources and reserves are approved by GKZ, they are in
compliance with GOST.
Unless stated otherwise, resource estimates contained in this document and the CPR in respect of the
Kounrad Project have not been prepared in accordance with an internationally recognised standard,
are based on historical data and are included for information only. No assurance can be given that
any resources which CAML may report to an internationally recognised standard in the future will be
in line with these estimates or that the tonnages and grades referred to will be achieved. Investors
should therefore place no reliance on these estimates. Where resources have not been estimated in
accordance with an internationally recognised standard, such as the JORC Code (2004) or the Russian
Standard and are based on historical data they are included for information only.
The Company will undertake a rolling programme of transfer of material to a recognised resource
standard (JORC) with the aim to complete the task of having all presently estimated material in
respect of the Kounrad Project classified to an acceptable international standard by the end of the
first quarter of 2013.
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TABLE OF CONTENTS
Page
PLACING STATISTICS 4
EXPECTED TIMETABLE OF PRINCIPAL EVENTS 4
DIRECTORS, SECRETARY AND ADVISERS 5
SUMMARY INFORMATION 7
PART 1 RISK FACTORS 21
PART 2 KEY INFORMATION ON THE GROUP 31
1. INTRODUCTION 31
2. OVERVIEW AND HISTORY OF THE GROUP 31
3. STRATEGY 32
4. SUMMARY OF ASSETS IN KAZAKHSTAN 33
5. SUMMARY OF ASSETS IN MONGOLIA 40
6. COMPETENT PERSON’S REPORT 47
7. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 48
8. CORPORATE GOVERNANCE AND SHARE DEALING CODE 49
9. REASONS FOR THE PLACING AND ADMISSION 50
10. USE OF PROCEEDS 50
11. FINANCIAL INFORMATION FOR THE GROUP 51
12. CURRENT FUNDING, TRADING AND PROSPECTS 51
13. TAKEOVER CODE 51
14. DISCLOSURE OF SHAREHOLDINGS 52
15. RELATED PARTY TRANSACTIONS 52
16. DIVIDEND POLICY 52
17. LOCK-IN AND ORDERLY MARKET ARRANGEMENTS 52
18. TERMS AND CONDITIONS OF THE PLACING 52
19. ADMISSION 53
20. CREST AND TRADING IN ORDINARY SHARES 53
21. TAXATION 53
22. SHARE OPTIONS 53
23. FURTHER INFORMATION 54
PART 3 KAZAKHSTAN: BACKGROUND AND SUMMARY OF KEY
AGREEMENTS 55
PART 4 MONGOLIA: BACKGROUND AND SUMMARY OF KEY
AGREEMENTS 70
PART 5 FURTHER INFORMATION ON THE MINING SECTOR 79
PART 6 COMPETENT PERSON’S REPORT 84
PART 7 HISTORICAL FINANCIAL STATEMENTS 290
PART 8 ADDITIONAL INFORMATION 381
DEFINITIONS 405
GLOSSARY 408
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PLACING STATISTICS
Placing Price 96p
Number of Ordinary Shares in issue prior to Admission 41,270,001
Total number of Placing Shares being issued pursuant to the Placing 39,735,100
Number of Ordinary Shares issued on conversion of Loan Notes 5,160,833
Number of Ordinary Shares in issue immediately following Admission (‘‘Enlarged
Share Capital’’) 86,165,934
PercentageofEnlargedShareCapitalsubjecttothePlacingandLoanNoteconversion 52.1 per cent.
Number of Ordinary Shares subject to Options and Warrants at Admission 2,013,225
Fully diluted number of Ordinary Shares in issue following Admission 88,179,159
Gross proceeds of the Placing £38.1 million
Estimated net proceeds of the Placing receivable by the Company £35.0 million
Market capitalisation on Admission at the Placing Price £82.7 million
ISIN of Ordinary Shares GB00B67KBV28
EPIC CAML
US$/£ exchange rate used in this document 1.580
EXPECTED TIMETABLE OF PRINCIPAL EVENTS
Publication of this document 24 September 2010
Admission and commencement of trading in Ordinary Shares on
AIM 8.00 a.m. on 30 September 2010
CREST accounts credited (as applicable) 30 September 2010
Expected date of dispatch of definitive certificates for Ordinary
Shares (as applicable) By 15 October 2010
References to time are to London time
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DIRECTORS, SECRETARY AND ADVISERS
Directors Christopher Nigel Hurst-Brown (Non-Executive Chairman)
Nicholas Royston Clarke (Chief Executive Officer)
Nigel Francis Robinson (Chief Financial Officer)
Alexander Abraham Capelson (Non-Executive Director)
Robert Maitland Cathery (Non-Executive Director)
Dr Michael Allan Price (Non-Executive Director)
Company secretary Anthony George Hunter
Registered office Masters House
107 Hammersmith Road
London
W14 0QH
United Kingdom
UK office 4-5 Park Place
London
SW1A 1LP
United Kingdom
Company website http://www.centralasiametals.com
Nominated Adviser KPMG Corporate Finance
8 Salisbury Square
London
EC4Y 8BB
United Kingdom
Lead Manager and Broker Mirabaud Securities LLP
33 Grosvenor Place
London
SW1X 7HY
United Kingdom
Competent Person Wardell Armstrong International
Wheal Jane, Baldhu
Truro
Cornwall
TR3 6EH
United Kingdom
Auditor PricewaterhouseCoopers LLP
1 Embankment Place
London
WC2N 6RH
United Kingdom
Legal advisers to the Company As to English law
Ashurst LLP
Broadwalk House
5 Appold Street
London
EC2A 2HA
United Kingdom
As to Kazakh law
Macleod Dixon LLP
3rd floor
32A Manas Street
050008
Almaty
Republic of Kazakhstan
As to Mongolian law
Tsets
Suite 409
Bridge Group Bld.
Enhtaivni Avenue
Ulaanbaatar 210651
Mongolia
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Legal adviser to the Nominated Field Fisher Waterhouse LLP
Adviser and the Broker 35 Vine Street
London
EC3N 2AA
United Kingdom
Financial public relations adviser Pelham Bell Pottinger
5th Floor, Holborn Gate
330 High Holborn
London
WC1V 7QD
United Kingdom
Registrar Computershare Investor Services
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
United Kingdom
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SUMMARY INFORMATION
This summary highlights information contained elsewhere in this document. Prospective investors should
read the whole document before considering an investment in the Company’s Ordinary Shares and not
rely solely on the information in this ‘‘Summary Information’’ section or any other summarised
information in this document. In particular, prospective investors should consider carefully the risk
factors set out in Part 1 of this document.
Overview
Central Asia Metals Plc (‘‘CAML’’ or the ‘‘Company’’ and together with its subsidiaries, the
‘‘Group’’) is a mining exploration and development company focused on base and precious metals in
Central Asia.
CAML currently has interests in a number of copper, gold and molybdenum mining assets in
Kazakhstan and Mongolia. In Kazakhstan, CAML has advanced plans for the construction of a
plant at the former Kounrad copper mine that will have the capacity to deliver 10,000 tonnes per
annum of near term, low-cost copper production. It also has exploration opportunities with the
potential to deliver substantial additional upside, including its Alag Bayan asset in Mongolia which is
situated close to the Oyu Tolgoi copper mine being developed by Rio Tinto and Ivanhoe Mines.
CAML’s senior management team has a proven track record of developing and commercialising
mining opportunities in Kazakhstan and is supported by non-executive directors who together have
extensive experience in the natural resources and financial sectors.
Copper produced at CAML’s pilot scale SX-EW plant at Kounrad
Source:CAML
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CAML was incorporated in September 2005 and is the UK parent company of the Group. Since
incorporation, the Group has identified, acquired and developed a number of mining exploration and
development assets. It is currently focused on the following:
* Kounrad, acquired in September 2007, is the most developed asset. It was formerly an open-pit
copper mine in Kazakhstan that was operated between 1936 and 2005. The site around the mine
contains a number of dumps of waste material from the mine from which copper can be
extracted through an in-situ leaching process followed by Solvent Extraction – Electro-Winning
(‘‘SX-EW’’). A pilot scale SX-EW plant has been commissioned by CAML at the site and has
been operating successfully since August 2008. CAML now plans to construct a commercial SX-
EW plant at the Kounrad mine and the project (the ‘‘Kounrad Project’’) is operated under a
joint venture agreement with Saryarka, a local Kazakh government entity;
* Alag Bayan, for which a licence was obtained in August 2008, is an early stage exploration
project in Mongolia focused on outlining a potentially significant copper/gold porphyry target;
* Handgait, for which a licence was obtained in May 2007, is a molybdenum exploration project
in Mongolia;
* Ereen, for which a licence was obtained in May 2007, is an advanced stage gold exploration
project located in Northern Mongolia with a potential 1 Moz gold resource. CAML is in
discussions with a third party regarding a sale of this asset; and
* Tochtar, a gold mine in Kazakhstan for which a licence was obtained in April 2006. CAML’s
intention is to dispose of the asset by the end of the year and the asset is currently subject to
due diligence.
Investment highlights
The Board considers that CAML offers the following investment highlights:
* An experienced management team with a proven track record in Central Asia and of bringing
projects to the market, supported by non-executive directors with broad mining and/or public
company experience;
* Near-term, low-cost copper production from the commercial SX-EW plant at Kounrad:
– No mining risk;
– Low discovery risk with gross GKZ (Republic of Kazakhstan) approved reserves of 49.2
Mt at 0.16 per cent. copper giving contained metal of 77.7kt (or approximately 47kt
attributable to CAML);
– CAML has estimated a further 576.3Mt (subject to GKZ approval) in additional dumps at
Kounrad for a total content of 655.5kt of copper at an average grade of 0.11 per cent.;
– SX-EW processing technology proven by completion of a pilot trial which has produced
320 tonnes of 99.99 per cent. copper cathode between August 2008 and August 2010;
– Feasibility study completed and local permissions granted to commence construction of a
commercial SX-EW plant capable of producing 10,000 tonnes of copper per annum.
Ground-works for the plant have commenced;
– Capital expenditure for the commercial SX-EW plant estimated to be US$46.9 million to
first commercial copper production in late 2011;
– Extensive existing mining infrastructure in place to support the construction and operation
of the commercial SX-EW plant following a 72-year history of mining at the Kounrad
open-pit mine; and
– Low direct cash operating cost estimated at US$0.38 per pound of copper produced.
* Significant potential upside from exploration assets including:
– The highly prospective Alag Bayan copper/gold porphyry exploration project in Mongolia
located close to the Oyu Tolgoi mine being developed by Rio Tinto and Ivanhoe Mines;
– The Handgait molybdenum exploration project; and
– The Ereen advanced stage gold exploration project (by way of its sale and, potentially,
further investment in its development in the short term).
* A track record of raising funding and securing mining exploration and development
opportunities in Central Asia;
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* An established presence in Kazakhstan and Mongolia and a track record of successful
operations in each country;
* Proximity to China, one of the world’s largest consumers of commodities;
* Exposure to opportunities across a range of commodities and to Mongolia, a country that is
expected to become increasingly attractive for mining companies; and
* Early stage discussions underway in respect of a new exploration and development opportunity.
Strategy
CAML’s objective in the short term is to seek to maximise the value of its current asset portfolio. Its
primary focus will be on the construction of a commercial SX-EW plant at Kounrad through to
production in order to generate an early revenue stream for the Group. In parallel with this, CAML
will further its exploration of the Group’s other assets at Alag Bayan and Handgait. The Board
believes that success with one of these exploration assets will deliver a significant increase in the value
of the Group.
The Board is seeking to maximise the value of the Group’s interest in Ereen which is expected to be
by way of a sale that is currently under discussion or, if the sale cannot be completed on acceptable
terms, by way of the further development of the asset in 2011 with a view to a sale in the future.
Plans for the construction of a 10,000 tonnes per annum commercial copper SX-EW plant at the
Kounrad mine are well advanced. A pilot scale SX-EW plant has been operational on the site since
August 2008 which to date has produced over 300 tonnes of cathode copper from the processing of
material in the dumps for sale to third parties. Initial construction ground-works for the commercial
SX-EW plant have already been started. Subject to raising further funding by way of the Placing and
Admission, production at the plant is expected to commence in the fourth quarter of 2011.
In order to drive additional growth in the business, the Group’s strategy in the short to medium term
is to seek new opportunities, subject to further funding, by:
* Focusing on base and precious metals in Kazakhstan and Mongolia, although CAML will also
consider new opportunities in other CIS countries; and
* Using its experience from Kounrad on other late stage mining projects where the use of
alternative mining and metallurgical technologies can help realise their full economic potential.
The Board believes that such projects are often not of a scale that would warrant development
by larger mining groups and therefore represent a significant opportunity for CAML.
An integral part of CAML’s strategy is to give regard to the various environmental and social aspects
of its operations so that it not only fully complies with all relevant local legislation but also seeks to
make a significant contribution to local communities.
A major factor in the delivery of CAML’s strategy is the experience of its directors and senior
management in successfully completing mining projects, delivering value to shareholders and raising
finance for new ventures. They are also able to employ their long standing experience of operating in
Kazakhstan and Mongolia.
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CAML’s Mongolian management team on-site at Alag Bayan

Source:CAML
Countries in which the group operates
The Group’s major assets are located in Kazakhstan and Mongolia, both of which border and enjoy
positive relations with China and Russia. Both countries have stable governments and have benefited
from progressive trade policies which have delivered strong economic growth over the past ten years.
Kazakhstan is the ninth largest, and the largest landlocked, country in the world, equivalent in size to
Western Europe. Under the leadership of President Nurultan Nazarbayev, who has led the ruling
political party since 1989, Kazakhstan has made significant progress towards developing as a market
economy.
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