OREANDA-NEWS. METALLOINVEST, a leading global iron ore and HBI producer and one of the regional steel producers, today announces its operational results for the second quarter of 2013.

Management comments

In Q2 2013, the Company increased iron ore production to 9.7 mn tonnes, a 1.1% increase q-o-q

Pellet production amounted to 5.5 mn tonnes in Q2 2013, a 2.8% decrease q-o-q

In line with annual budget, HBI/DRI production decreased by 6.0% q-o-q to 1.3 mn tonnes in Q2 2013

Iron ore products shipments’ breakdown by region remained largely unchanged in Q2 2013. Russia and the CIS remained the key markets. Shipments to this region amounted to 4.1 mn tonnes, representing 59% of the Company’s total iron ore products shipments. Europe, China and the rest of Asia accounted for 17%, 11% and 11% of shipments, respectively

Mining Segment

LGOK increased iron ore concentrate production by 2.6% q-o-q to 5.2 mn tonnes in Q2 2013, due to increased productivity resulting from improved quality characteristics of the iron ore. Iron ore concentrate production at MGOK amounted to 4.1 mn tonnes, a decrease of 0.7% q-o-q

In Q2 2013, LGOK pellet production remained in line with the Q1 2013 level of 2.2 mn tonnes. MGOK pellet production declined by 4.0% q-o-q to 2.4 mn tonnes due to scheduled major maintenance works at Pellet Plant #1

HBI production at LGOK in Q2 2013 amounted to 0.7 mn tonnes, a reduction of 4.5% q-o-q. The decrease was driven by the scheduled ramp up of maintenance works at HBI-1 and HBI-2 plants

In Q2 2013, LGOK increased shipments of iron ore concentrate by 4.0% q-o-q to 2.4 mn tonnes and MGOK by 6.5% q-o-q to 1.5 mn tonnes. The increase in iron ore concentrate shipments resulted from the reduction in output of HBI at LGOK and of pellets at MGOK due to the ramp up of scheduled maintenance works

Steel Segment

OEMK decreased pellet production by 6.8% q-o-q to 0.9 mn tonnes in Q2 2013 due to scheduled maintenance works at the Pellet Plant and major maintenance works at the DRI facilities #1 and #2. Production of DRI also decreased by 7.5% q-o-q to 0.7 mn tonnes

In Q2 2013, crude steel production at OEMK decreased by 2.3% q-o-q to 0.8 mn tonnes as a result of scheduled ramp up of maintenance works

Ural Steel decreased crude steel production by 27.6% q-o-q to 0.3 mn tonnes in Q2 2013 as a result of planned closure of the open-hearth plant in order to increase economic efficiency and environmental safety

As a result of the reduction in the steel production capacity, Ural Steel increased pig iron shipments by 45.8% q-o-q to 0.4 mn tones