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 first quarter of 2014.

Management comments

Iron ore production1 amounted to 9.5 mn tonnes in Q1 2014, a decrease of 0.9% q-o-q2

In Q1 2014, pellet production increased by 0.8% q-o-q to 5.8 mn tonnes

The Company increased HBI/DRI production by 3.3% q-o-q to 1.4 mn tonnes in Q1 2014

In Q1 2014, shipments of iron ore products to the domestic market amounted to 3.8 mn tonnes, a decrease of 9.6% q-o-q, which was mostly driven by the Company's sales policy. Russia and the CIS contributed 58% of the Company's consolidated shipments of iron ore products

In Q1 2014, the Company reoriented some shipments from Europe to MENA. As a result, Europe contributed 1.4 mn tonnes or 21% of the Company's consolidated shipments of iron ore products, and MENA contributed 0.3 mn tonnes or 4%

Due to improved market conditions in China in Q1 2014, especially for pellets, the Company increased shipments by more than 100% q-o-q to 0.5 mn tonnes, representing 8% of the Company's consolidated shipments of iron ore products

Mining Segment

In Q1 2014, iron ore concentrate production at LGOK amounted to 5.0 mn tonnes, a decrease of 2.1% q-o-q, which was mostly due to the seasonal factor3

MGOK increased iron ore concentrate production by 1.2% q-o-q to 4.2 mn tonnes in Q1 2014, mainly due to a planned decrease in maintenance time for the crushing and processing plant and enhanced quality of ore

LGOK increased pellet production by 2.2% q-o-q to 2.3 mn tonnes in Q1 2014, mainly as a result of completed major maintenance works at Pellet Plant #1 in Q4 2013

In Q1 2014, pellet production at MGOK amounted to 2.5 mn tonnes, a decline of 3.4% q-o-q, mainly due to the seasonal factor and a scheduled increase in maintenance works

LGOK increased HBI production by 11.1% q-o-q to 0.7 mn tonnes in Q1 2014, due to completed major maintenance works at the HBI-2 Plant in Q4 2013

Steel Segment

In Q1 2014, OEMK increased pellet production by 9.3% q-o-q to 1.0 mn tonnes, mostly due to completed major maintenance works at the Pellet Plant in Q4 2013

In Q1 2014, DRI production at OEMK amounted to 0.7 mn tonnes, a decrease of 2.9% q-o-q mostly due to the seasonal factor

Crude steel production at OEMK amounted to 0.8 mn tonnes in Q1 2014, a decrease of 2.1% q-o-q mostly due to the seasonal factor

Ural Steel increased crude steel production by 13.2% q-o-q to 0.4 mn tonnes in Q1 2014, mainly as a result of completed major maintenance works to the continuous casting machine in Q4 2013, and an increase in effective orders from third parties

In Q1 2014, hot metal production at Ural Steel amounted to 0.5 mn tonnes, a decline of 8.1% q-o-q, mainly due to the seasonal factor and maintenance works in the blast furnace shop