April 26 (Bloomberg) -- Kazakhmys Plc, Kazakhstan's biggest copper mining company, agreed to sell almost half of its Aktogay project, costing about $1.5 billion to $2 billion, to Jinchuan Group Ltd. and jointly develop the site to supply China.

Jinchuan, a copper and nickel producer, will pay $120 million in cash for 49 percent, Kazakhmys said in a statement today. Aktogay will produce an annual 100,000 metric tons of copper in concentrate, 30 percent of Kazakhmys's output now.

Kazakhmys, which sells most of its copper to China and Europe, has already raised $2.7 billion mainly for the Aktogay and Bozshakol projects. The company plans to bring in customers and mining companies as partners for Aktogay to raise $2 billion this year, Chief Executive Officer Oleg Novachuk said March 17. Bozshakol will also produce about 100,000 tons a year.

Jinchuan and Kazakhmys will begin a yearlong feasibility study into the Aktogay project after setting up the venture and develop the mine over the following three years, Kazakhmys said.

Kazakhmys's shares gained 50 pence, or 3.5 percent, to 1,480 pence by the close of London trading.