Kazakhmys (KAZ.L) plans to launch a $250 million share buyback, following fears that the current share price 'undervalues' the company.

The share buyback, for shares listed on the London Stock Exchange, was launched by the miner's board as the current share price did not 'appropriately reflect the fundamental value' of the company.

The board claimed that the current share price 'undervalues the company and its growth prospect'.

In a market statement, the board revealed the buyback was possible thanks to its strong balance sheet and would not impact its capital expenditure programme.

However, the scheme is subject to approval from the UK Takeover Panel as directors Vladimir Kim, Oleg Novachuk and Eduard Ogay, who could see their shareholdings increase.

It will also be dependent on independent shareholder approvals and would only take place upon market conditions.

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here