ENRC Announces Its Production Report for 4Q
OREANDA-NEWS. February 09, 2010. EURASIAN NATURAL RESOURCES CORPORATION PLC, common shares of which are present in Kazakhstan Stock Exchange (KASE) official list, provided to KASE the following press release, reported the press-centre of KASE:
Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group'), today announces its Production Report for the fourth quarter ended 31 December 2009.
Group production volumes overall for the quarter ended 31 December 2009 further improved on the levels of Q3 2009, in line with our expectations stated in the November 2009 Interim Management Statement. Volumes in the Ferroalloys and Iron Ore Divisions in Kazakhstan recovered to approximately their full available capacity. In the Alumina and Aluminium Division there was an improvement in aluminium volumes as Phase 2 production was partially initiated.
Ore grades remained broadly consistent for all products. In the Energy Division, also impacted by adverse winter weather, electricity generation increased and coal production rose significantly. Logistics volumes also increased for both internal and third-party business. Production included the first-time contribution of the Other Non-ferrous Division, formerly Central African Mining & Exploration Company PLC ('CAMEC').
- Ferroalloys Division (including Serov and Tuoli). Volumes for all products very significantly increased versus Q4 2008, with the exception of saleable ferro-manganese concentrate and medium-carbon ferrochrome:
- 39.8% increase for saleable chrome ore;
- 47.9% increase for saleable manganese concentrate; and;
- 54.5% increase for total ferroalloys, with growth of 70.7% for high-carbon.
Ferrochrome and 84.6% for silicomanganese. Ferrochrome production increased 56.7% compared to Q4 2008 and 5.7% from Q3 2009. Serov contributed saleable chrome ore production of 29 kt and total ferroalloys of 58 kt, with eleven (of seventeen) furnaces in operation at the end of December. Tuoli's output was 17 kt in Q4 2009, with three (of four) furnaces in operation at the end of December.
- Iron Ore Division. Production volumes rose very strongly compared to Q4 2008, reflecting the recovery in market activity:
- 74.1% increase for iron ore extraction;
- 79.3% increase for primary concentrate; and
- 79.5% increase for saleable ore.
In Q4 2009, compared to Q4 2008, there was an increased proportion of pellet in the saleable mix. Pellet production doubled from Q4 2008, whilst saleable concentrate production rose 57.5%. Against Q3 2009, pellet production increased 23.4% whilst saleable concentrate production decreased 24.1% as production was switched in response to improved demand for higher margin pellet.
- Alumina and Aluminium Division. Bauxite extraction volumes were broadly stable whilst alumina production increased 2.0% compared to Q4 2008. The Division produced 36 kt of aluminium, with half of the Phase 2 pots of the smelter being charged with alumina and put into operation in December.
- Energy Division. Coal extraction increased 11.0% compared to Q4 2008, in response to a recovery in demand. Electricity generation increased 23.9% compared to Q4 2008, due to increased demand and reinstated capacity. Internal sales rose 59.3% against Q4 2008. Q4 2009 included the impact of adverse winter weather.
- Logistics Division. The tonnage of goods transported by railway increased 28.2% versus Q4 2008, as a result of improved activity in the principal operating Divisions.
- Other Non-ferrous Division. The first-time contribution of the new Division, formerly CAMEC, amounted to 2,771 tonnes of copper cathode and 1,297 tonnes of cobalt concentrate in the two months to end December 2009.
Felix Vulis, Chief Executive Officer, said, "As expected, the Ferroalloys and Iron Ore Divisions in Kazakhstan recovered to operate at effectively their full available capacity in Q4 2009, reflecting improved market conditions. The strength of the Alumina and Aluminium Division was sustained and Phase 2 of the aluminium smelter was partially initiated. The Energy Division performed strongly. In addition, we included the first-time production of copper and cobalt in the new Other Nonferrous Division. The strength of its businesses and their low cost advantage allowed the Group to achieve a strong recovery from the downturn at the end of 2008. Going forward, we remain focused on managing production levels in response to market demand.".
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