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Kazakhmys reported H1 profits of US$610.5m, a 23.8% decrease on the same period in 2007, resulting from higher labour costs and a 9% fall in cathode output, to 174,300t, following harsh weather conditions in Q1. The group stated that, "copper output in 2008 will at least equal production from last year," implying a strong second half. The inclusion of profits from Kazakhmys' 25% stake in ENRC should also bolster H2 results. Kazakhmys intends to pursue synergy talks with ENRC, who operate predominantly in ferrochrome, iron and aluminium, despite a frosty reception so far, as ENRC reiterated that it would not offer Kazakhmys a seat on the board as they were, "both competing for deposits in the same region."

Copper producer Kazakhmys expects that copper prices will remain strong at least for the next two years as demand growth outpaces supply. The company said that delivering copper projects is not easy whilst the market for copper is growing much faster than projects can be delivered. It was reported that Kazakhmys intends to remain a mining company in the region where they have expertise.

U.K. stocks climbed, extending a two-month high, as banks and commodity producers rallied. Kazakhmys jumped 5.8 percent to 540.5 pence. Separately, copper futures advanced...

U.K. stocks advanced, led by banks and mining companies. Kazakhmys, Kazakhstan's largest copper producer, rose 3.4 percent to 499 pence. Vedanta, the biggest copper producer in India, gained 3.4 percent to 964 pence. Xstrata Plc, the world's fourth-largest producer of the metal, jumped 3.3 percent to 582 pence.

The pan-European Dow Jones Stoxx 600 index (ST:SXXP: news, chart, profile) ended 0.9% lower to 277.59, with markets missing an upturn in the U.S. when crude-oil prices fell sharply. The metals sector was in full retreat as platinum futures tumbled for a second session amid worries about global auto sales, sparked by the $15.5 billion loss from General Motors, BMW's profit warning and weak July sales in the U.S. Copper futures also fell sharply, and copper miners had a difficult session. Kazakhmys (UK:KAZ: news, chart, profile) shares fell 9.5%, Xstrata (UK:XTA: news, chart, profile) shares fell 5.9% and Boliden (SE:BOL: news, chart, profile) lost 5.4%.

Copper cathode production from its own concentrate was 81,900 metric tons in the first quarter, from 75,500 tons in the year-ago period. It was down 10.8% on the fourth quarter though.