IRC surpasses iron ore production targets for 2012

IRC has exceeded its iron ore production targets for the year, the Hong Kong company announced Wednesday.

IRC, which produces industrial commodities in the far-east of Russia and north-east of China, said it surpassed its target of 820,000 tonnes.

The group anticipates a further production of up to 140,000 tonnes before year-end, a 15% increase from its original target.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The company also expects about 125,000 tonnes of by-product ilmenite as production continues to grow following an update to technology.

Jay Hambro, Chairman of IRC said: "I am delighted to report that we have achieved our annual iron ore production target ahead of time as ongoing improvements in production rates and efficiencies at the Kuranakh Mine have enabled us to beat our own forecasts. I am proud of our team's successful track record and our ability to deliver. When the new K&S Mine commences production our annual production capacity will increase fourfold. This increase will be a significant milestone in the development of IRC and I believe that today's good news from Kuranakh reinforces confidence in our ability to deliver on our growth promises at K&S."

IRC forecasts positive growth for 2013 with revised targets to be announced in its fourth quarter trading update.

IRC was previously a wholly-owned subsidiary of London-listed Petropavlovsk before it was spun-off in an initial public offering on the Hong Kong Stock Exchange in October. Petropavlovsk still holds a majority stake.

RD