OREANDA-NEWS. On 04 May 2009 was announced, that in the 1st quarter 2009 "Souzmetallresource" (SMR) fully met its production targets. In January-March 2009 the Company assets produced 1,557.8 t ferromolybdenum, 2,388.6 t molybdenum concentrate, 3,056.8 t copper concentrate, which exceeds performance indicators of the same period of 2008 by 18% ferromolybdenum, 16.3% molybdenum concentrate, and 21.3% copper concentrate.

Mr. Pavel Krasovski, SMR CEO, commented on the Company performance in the 1st quarter as follows: "Sustainable growth of all performance indicators achieved in three months of the current year is the clear evidence for efficiency of crisis management actions. While international producers reduce molybdenum output due to the collapse of molybdenum prices SMR continues to retain its market position and maintain production upgrade. The Company timely pays salaries to its employees and regularly effects tax payments."

In order that to provide for maximum optimization of current technological process at all production assets the Company took the following actions: modification of parameters of supplied ore at reduction stages, review of all the materials consumption rates, stock resources were minimized, ore haulage distance was reduced, and control measures were enhanced at all process stages.

Significant growth of performance indicators resulted from production upgrade program implemented in late 2008 - early 2009. Particularly, at Sorsk Ferromolybdenum Plant a slag concentration unit was commissioned which added 0.8-1% to molybdenum recovery, and at Zhireken plant, a technology for residual sodium sulphide reduction in tailings was implemented.

New process solutions aimed at extension of the equipment service life and process optimization are continuously implemented at the Company production sites. A new lining with significantly longer operating life was installed on a mill at Zhireken Ferromolybdenum Plant. Sorsk and Zhireken mills were equipped with an automated lubricating system which extends the equipment service life twice.

"Under current crisis conditions the implementation of a new system of corporate management and "just-in-time" method are very important. The implementation of this system has already resulted in positive changes: the business philosophy has been changed. The enormous amount of work has been completed for production and business processes optimization, and liquidation of system restrictions", noted Mr. Konstantin Akimov, SMR Chairman of the Board.