5 February 2008 – AES has agreed agreement to sell its interests in the AES Ekibastuz power plant and Maikuben West coal mine in Kazakhstan to Kazakhmys PLC, Kazakhstan’s largest producer of copper.
AES will maintain its ownership and operation of its other facilities located in Eastern Kazakhstan, which include thermal and hydro generation capacity of approximately 2688 MW and a distribution business with over 400 000 customers.
AES will receive consideration of $1.1bn at closing and will have the opportunity to receive, over three years, additional consideration of up to $381m under earn-out provisions, a management fee and a capital expenditure program bonus, for a total consideration of up to $1.48bn.
The management agreement duration is three years and runs through December 2010.
Ekibastuz, a coal fired power plant with current available capacity of approximately 2250 MW, and Maikuben, a coal mine, are both located in Northern Kazakhstan. AES acquired its initial interests in Ekibastuz and Maikuben in 1996 and 2001, respectively.