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Kazakh miner ENRC cuts Q4 ferroalloy output 22%, ups alumina 2.3%
London, February 4 2009
Eurasian Natural Resources Corporation (ENRC) reduced ferroalloy production 22% year-on-year in the fourth quarter of 2008 but increased alumina production 2.3%, the London-listed Kazakh miner said in a press release.
Ferroalloy production, not including by ENRC's Russia-based Serov Ferroalloy Plant or the share in production by China's Tuoli, fell 34% to 346,000 tons, including a 23.8%-drop to 224,000 tons for ferrochrome.
Chrome ore production fell 25.1% to 887,000 tons, and manganese ore production fell 21% to 429,000 tons. Iron ore production decreased by 42% to 6.1 million tons, and iron ore concentrate by 37.6% to 1.225 million tons.
Bauxite production fell 2.4% year-on-year in Q4 to 1.24 million tons, but alumina grew 2.3% to 402,000 tons. ENRC, which started to smelt aluminum at the end of 2007, produced 31,000 tons of this in Q4, 2008.
"The Alumina and Aluminum Division, in the period, was largely unaffected by weaker market conditions, owing to the long term contract and continued strength of the business with our main customer, UC RUSAL," ENRC said.
Coal production by ENRC fell 2.5% year-on-year in Q4 to 5.4 million tons.
ENRC said on November 12, 2008, when it announced production cutbacks for Q4 2008 in the ongoing businesses of the Ferroalloys and Iron Ore Divisions of approximately 35% and 50%, respectively that, with regards to the outlook for 2009, the Group saw no immediate prospect of an improvement, at least for the first half of the year, and that it anticipated reduced production volumes and pricing pressures to continue into 2009. This remains the Group's view based on current market conditions.
ENRC is a vertically integrated metals and mining group operating in Kazakhstan. The company has its own energy and transportation organizations. ENRC's scope of operations includes exploration, production, processing, electricity generation, logistics and marketing.
ENRC was created in late 2006 as a result of reorganization of Eurasian Industrial Association and now also includes the assets of Kazchrome, Aluminum of Kazakhstan, Kazakhstan Electrolysis Plant, Sokolov-Sarbai Mining and Processing Integrated Works, Zhairem Mining and Processing Integrated Works, Eurasian Energy Corporation, ENRC Logistics and ENRC Marketing & Sales. The company has owned a controlling stake in Russia's Serov Ferroalloy Plant and its affiliates since April 2008.