ENRC back in the groove

Eurasian Natural Resources Group (ENRC) saw a recovery in production levels in both ferro-alloys and alumina in the second quarter after experiencing problems earlier in the year.

Total saleable production of ferro-alloy products was slightly above the previous quarter but decreased 1.3% versus the second quarter of 2011, mainly due to a 3.6% decrease in high carbon ferrochrome production. The division operated at slightly below full capacity.

Iron ore extraction and primary concentrate production in the second quarter decreased by 6.8% and 13.5%, respectively, against the comparable period of 2011 (Q2 2011). The total volume of saleable product decreased 12.3% year-on-year. The Iron Ore division operated at below full available capacity, due to a temporary decline in ore quality as well as repairs to ENRC's railways, which resulted in lower volumes of ore available for processing.

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In the Alumina and Aluminium division, the bauxite extraction decreased 3.2% and alumina production decreased 8.1% against Q2 2011 as a consequence of processing problems at the alumina refinery in the first quarter of this year. Alumina production returned to full capacity in June. Aluminium production was in line with Q2 2011.

In the Other Non-ferrous Division, production of saleable copper in Q2 2012 was 8,505 tonnes, a 15.5% increase versus Q2 2011. At 2,490 tonnes, saleable cobalt production was 1.9% below Q2 2011.

"Overall, the outlook for demand of our products remains strong despite the challenging market conditions," said Felix Vulis, Chief Executive Officer of ENRC.

JH