Kazakhmys Plc, the largest copper producer in Kazakhstan, will sell Kazakhmys Petroleum oil division to focus on the company' core activity of copper mining, the firm's board of directors said on Thursday without disclosing the buyer.
Kazakhmys Petroleum, which develops oil fields in western Kazakhstan, is valued at $100 million, but the buyer could pay a potential royalty rate of up to $476 million, depending on future revenues from oil sales.
The deal is to be approved by regulatory agencies, Kazakhmys said.
Kazakhmys Petroleum's license for oil field exploration expired in May 2011 and was extended for two years under the same terms.
Kazakhmys Plc, one of the top 10 copper producers in the world, is listed in London's FTSE-100.
