Mining companies applaud tenge devaluation

    Mining companies, which have been struggling with depressed foreign markets have finally had a breath of air.
    They are among the very few groups in Kazakhstan welcoming the nearly 20% devaluation of the tenge declared a few days ago.
    Mining and metallurgical firms support the tenge 'adjustment,' as they call it, because it means greater profits for them, Tengrinews reports.
    "The National Association of Mining and Metallurgical Enterprises supports the adjustment of the tenge exchange rate," said Tulegen Mukhanov, deputy executive director of the association.
    "Revenues from our production were hardly enough to cover manufacturing costs. But with the adjustment in place, we are getting some extra money we can use to further modernize the enterprises and implement social projects. In the long run, this makes Kazakhstan more attractive for investments," he said.
    The 300 company members of the association export 90% of what they produce.
    "They have a 13% share in the country's exports, and 11% share in the GDP. Since this share is large, the stability of Kazakhstan's economy largely depends on how well our companies are doing," Mukhanov said.
    Eduard Ogai, chief executive at KazakhMys, Kazakhstan's largest copper company, also voiced his support for the decision.
    "I believe the effect of the exchange rate adjustment will be a positive one, and we will start feeling it in about six months," he said, www.tengrinews.kz wrote.