Asian Metal: Hello, Mr. Ospanov, thank you for taking the time to conduct this interview. Could you give us a brief background on your company?

Rustem Ospanov: JSC BAST is a mining company operating copper-nickel deposit, located in Maxut. Maxut is a medium-size deposit located in East-Kazakhstan province, Kazakhstan. In 2013 provisional conditions for resource estimate were approved by State Commission on Mineral Reserves (GKZ).

The deposit has two additional prospective areas that have magnetic anomaly patterns similar to the main area of mineralization. Total deposit resource may potentially increase after exploration at these two areas.

Asian Metal: As far as I know, your company plans to start selling nickel ore in early May this year. How about the production capacity of the plant?

Rustem Ospanov: We have produced copper concentrate 17-23%min since the Q1 in 2016 with an annual production capacity of 200,000t of ore and we plan to start nickel production line in the Q2 in 2017 to produce nickel concentrate 3.5-4%min with an increasing capacity of 400,000t in total.

Asian Metal: How about the location, reserves and quality of your copper-nickel deposit?

Rustem Ospanov: Maxut deposit is located in Abai district of East-Kazakhstan province, Kazakhstan.

The deposit is located 107 km to the south of the city of Semey and 60 km to the north-west from the Charsk railway station. In July 2016 the company constructed and put into operation 35 kV power line. The nearest villages are Kaskabulak (20 km to the west), Borly (16 km to the north-west) and Zhaima (30 km to the north-east). All mentioned towns are connected with each other with country road. Kaskabulak village is connected with Semey with asphalt road.

The deposit has three main areas with copper-nickel mineralization: South, North and West Maxut. South Maxut C1+C2 GKZ categories sulfide resource estimate is 104 000 tonnes of copper with 0.43% Cu grade and 83 000 tonnes of nickel with 0.35% Ni grade (0.5% Cu eq. cut-off; provisional conditions for sulfide resource estimate were approved by the State Commission on Mineral Reserves in 2013). North and West Maxut areas have magnetic anomaly patterns similar to South Maxut. Exploration at these two areas may significantly increase total deposit resources.

Within the next 2 years BAST plans to perform mineral resource estimation in compliance with JORC standard to increase company value and get listed at major international stock exchange.

Asian Metal: What are advantages of your company?

Rustem Ospanov: BAST produces high-quality copper concentrate and plans to produce nickel concentrate soon, that can be used for nickel pig iron production and other product of metallurgy. As I mentioned above, there are convenient transport and rich reserves in mining area so that we can ensure stable supply for clients.

Asian Metal: Did you have any offers before? What is your marketing strategy in the near future?

Rustem Ospanov: In view of consumption of copper concentrate and nickel concentrate in the world and the rapid development of national relations between Kazakhstan and China, we mainly focus on Chinese market. In fact, we have cooperated with some Chinese copper concentrate consumers since early last year.

Asian Metal: Do you have any new palns and do you have interest in finding more investors to join the projects?

Rustem Ospanov: By 2019 our company plans to increase processing capacity from 400,000t to 1,400,000t.

We are ready to consider offers from prospective investors who want to invest in our company. JSC BAST is a public company, share of the company can be purchased at Kazakhstan Stock Exchange. Our company plans to get listed at Hong Kong Stock Exchange in the future.

Asian Metal: Thanks so much for speaking with us and wish your company a better future!