LONDON, March 26 (Reuters) - Copper miner Kazakhmys has taken a $2.22 billion impairment on the value of its stake in ENRC, after a slide in the value of its rival’s shares and higher-than-expected charges reported last week.
Kazakhmys, which has already reported earnings excluding the impact of the holding, said ENRC contributed $548 million of core profit - or earnings before interest, tax, depreciation and amortisation - in 2012.
That brought the total for the group to $1.91 billion, down by more than a third.
London-listed Kazakhmys warned last month that it would write down the value of its 26 percent stake in ENRC, a holding left over from a takeover attempt pre-dating ENRC’s 2007 listing.
Kazakhmys is the latest miner to take a hit from acquisitions attempted or completed during the boom years.
ENRC itself last week announced a $1.5 billion charge on weak aluminium prices, troubles in platinum and the impact of reshuffling copper operations in Africa.
Kazakhmys said in Tuesday’s statement that the carrying value of its holding in ENRC more than halved, reducing it to little more than $2 billion, or roughly 375 pence a share. ENRC shares closed on Monday at little more than 268 pence.
The value of the 26 percent ENRC stake dropped to $1.55 billion at the end of 2012 from $3.29 billion at the end of 2011. Shares ticked higher at the start of 2013 but are now back to late 2012 levels - their lowest since the worst of the global financial crisis.
Kazakhmys - the single largest investor in ENRC - had said it would write down the value of the holding to close to the market value.